/Travelers%20Companies%20Inc_%20location-by%20JHVEPhoto%20via%20Shutterstock.jpg)
New York-based The Travelers Companies, Inc. (TRV) is a leading provider of commercial and personal property, and property casualty insurance for auto, home and business. Valued at $54.1 billion by market cap, the company’s diverse business lines offer its global customers a wide range of coverage sold primarily through independent agents and brokers.
Shares of this insurance giant have underperformed the broader market over the past year. TRV has gained 9.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.5%. In 2025, TRV stock is down 1%, compared to the SPX’s 4.2% rise on a YTD basis.
Narrowing the focus, TRV’s underperformance is also apparent compared to the Invesco KBW Property & Casualty Insurance ETF (KBWP). The exchange-traded fund has gained about 12% over the past year. However, TRV’s dip on a YTD basis outshine the ETF’s 2.2% losses over the same time frame.
TRV has underperformed due to intensifying competition in the insurance industry and the effects of rising interest rates on investment earnings.
On Jan. 22, TRV shares closed up more than 3% after reporting its Q4 results. Its adjusted EPS came in at $9.15, up 30.5% year over year. The company’s revenue stood at $12 billion, up 9.9% year over year.
For fiscal 2025, ending in December, analysts expect TRV’s EPS to decline 21.1% to $17.02 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 26 analysts covering TRV stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, 13 “Holds,” one “Moderate Sell,” and three “Strong Sells.”
This configuration is more bullish than a month ago, with its overall rating of “Hold,” consisting of eight analysts suggesting a “Strong Buy.”
On Feb. 14, Morgan Stanley (MS) analyst Bob Huang maintained a “Hold” rating on TRV with a price target of $250, implying a potential upside of 4.9% from current levels.
The mean price target of $270.73 represents a 13.6% premium to TRV’s current price levels. The Street-high price target of $310 suggests an ambitious upside potential of 30%.
