Keefe Bruyette Raises Target as Travelers Companies (TRV) Divests Canadian Businesses

On Tuesday, May 27, The Travelers Companies Inc. (NYSE:TRV) announced an agreement to divest its personal insurance segment and most of its commercial insurance operations in Canada to Definity Financial Corp., a Canadian financial services company. The sale is valued at approximately $2.4 billion, implying an adjusted price-to-book value of 1.8 times, according to company data.

However, after this deal, which is expected to close in the first quarter of 2026, The Travelers Companies will retain its Canadian surety business.

Of the total proceeds, the company plans to use around $700 million for share buybacks in 2026, which are expected to be EPS accretive. The remaining proceeds will be used for operational and corporate purposes.

Following the deal announcement, an analyst from Keefe Bruyette increased his price target on The Travelers Companies to $303 from $290 and reiterated his Outperform rating. The analyst was positive on the deal and expects higher return ratios to lead to better valuation multiples for the company.

The Travelers Companies Inc. (NYSE:TRV) is a U.S.-based provider of property casualty insurance for auto, home, and business.

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