TRV

After a strong five year run, Travelers Companies now looks closer to fairly priced, which raises questions for investors who are trying to judge how much of that success is already reflected in the share price. Travelers Companies has returned 156.1% over the past 5 years, which means recent shareholders have already seen substantial value creation baked into the stock price. AM Best's affirmation of Travelers Companies' A++ rating may support confidence in balance sheet strength, while any adverse claims experience or pricing pressure remains a key risk to future profitability and valuation. With a broad valuation score that is mixed, Travelers Companies does not screen as a clear bargain or as clearly expensive. This points to a more finely balanced risk reward trade off. The issue now is whether Travelers Companies' current share price offers enough potential upside relative to its recent gains and risk profile to appeal to new investors. Spot opportunities beyond Travelers Companies by scanning a curated set of insurers and financials through the 74 resilient stocks with low risk scores, poised for resilient performance and sturdier balance sheets. The P/E ratio is a common yardstick for insurers like Travelers Companies because earnings quality and consistency often matter more than headline revenue growth. Travelers Companies currently trades on a P/E of 9.4x, which is close to both its peer average of 9.2x and the broader Insurance industry average of 11.3x. That places the stock slightly below the industry level on this metric, yet not in clear discount territory relative to similar insurers. The tailored fair P/E ratio for Travelers Companies is 9.7x, which is only a modest step above the current 9.4x. This suggests the market price is broadly aligned with what the model implies after considering factors such as growth expectations, margins and risk profile. AM Best’s affirmation of Travelers Companies’ A++ rating may support this equilibrium, since strong balance sheet signals can justify a valuation close to a modelled fair range. On the P/E multiple, Travelers Companies looks roughly fairly valued rather than clearly cheap or expensive. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Travelers Companies pick up where the valuation puzzle leaves off. They explain which paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than it is today. Each narrative links a fair value estimate to a specific story about Travelers Companies' potential catalysts and key risks so you can track over time which version of events is actually unfolding. Community views on Travelers Companies are split between one group that sees meaningful upside and another that reads the stock as close to fully priced. Bull case: 13% undervalued Read the full Bull Case to see why Travelers Companies could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Travelers Companies could be overvalued Do you think there's more to the story for Travelers Companies? Head over to our Community to see what others are saying! On current P/E multiples, Travelers Companies looks roughly in line with peers rather than clearly discounted or stretched. The value checks point to a mixed picture, which fits a stock that now relies more on execution than on multiple expansion to move the valuation needle. From here, the key question is whether Travelers Companies can sustain earnings quality in the face of claims volatility and pricing pressure so that today’s “about right” valuation does not drift toward either a value trap or a premium that is hard to justify. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Since August 2021, the S&P 500 has delivered a total return of 70.1%. But one standout stock has nearly doubled the market - over the past five years, Travelers has surged 129% to $371.89 per share. Its momentum hasn’t stopped as it’s also gained 20.5% in the last six months, beating the S&P by 8.8%. Following the strength, is TRV a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free. Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE:TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals. We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable. Travelers’s EPS grew at 21.1% compounded annual growth rate over the last five years, higher than its 7.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are therefore net of what’s ceded to reinsurers as a risk mitigation and transfer strategy. Travelers’s net premiums earned has grown at a 4.4% annualized rate over the last two years, worse than the broader insurance industry and in line with its total revenue. Travelers’s merits more than compensate for its flaws, and with its shares outperforming the market lately, the stock trades at 2.2× forward P/B (or $371.89 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

In early August 2026, The Travelers Companies, Inc. expanded its Board from eight to nine directors and elected former Dun & Bradstreet CEO Anthony Jabbour, also appointing him to the Audit and Risk Committees. This addition brings deep data, analytics, and fintech experience to Travelers' oversight of financial reporting and risk, potentially influencing its approach to underwriting and technology investments. We’ll now examine how Travelers’ stronger Q2 profitability and reduced catastrophe losses reshape the company’s existing investment narrative and risk profile. Find 50 companies with promising cash flow potential yet trading below their fair value. To own Travelers today, you need to believe in its ability to turn disciplined underwriting and cautious catastrophe exposure into durable earnings, supported by consistent capital returns. The recent addition of Anthony Jabbour strengthens board oversight on data and risk, but does not materially change the near term catalyst of sustaining improved Q2 profitability or the key risk that more frequent, severe catastrophe events could again pressure results. The most relevant recent announcement is Travelers’ sharp increase in Q2 2026 profit as catastrophe losses declined and investment income rose, alongside a 13.6% dividend hike and ongoing buybacks. Together with Jabbour’s fintech and analytics background, this earnings momentum highlights how better loss experience and data driven risk management could reinforce Travelers’ ability to fund technology investments and shareholder returns, while still leaving it exposed to weather volatility and evolving liability trends. Yet even with stronger profits and a higher dividend, investors should be aware that catastrophe risk and reinsurance dependence could still... Read the full narrative on Travelers Companies (it's free!) Travelers Companies’ narrative projects $47.2 billion revenue and $5.2 billion earnings by 2029. This requires a 1.2% yearly revenue decline and a $3.0 billion earnings decrease from $8.2 billion today. Uncover how Travelers Companies' forecasts yield a $354.71 fair value, a 4% downside to its current price. Some of the most optimistic analysts were expecting earnings of about US$5.7 billion by 2029 on shrinking margins, which is much rosier than consensus, and this new board level focus on data and risk may either support that view or challenge it, depending on how you think catastrophe exposure and AI driven underwriting evolve from here. Explore 4 other fair value estimates on Travelers Companies - why the stock might be worth 16% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Travelers Companies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Travelers Companies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Travelers Companies' overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: Uncover the next big thing with 21 elite penny stocks that balance risk and reward. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Outshine the giants: these 17 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Travelers Companies (TRV) has been in focus after a quarterly report that combined flat revenue with higher profit, supported by lower catastrophe losses, stronger investment income, and another increase in its long-running dividend stream. See our latest analysis for Travelers Companies. Travelers Companies’ latest report and dividend hike come after a strong run, with a 90 day share price return of 19.86% and a 1 year total shareholder return of 39.02%. This suggests recent momentum has been building on an already solid multi year record. If earnings and dividend resilience are on your radar, it can also be useful to look at other income ideas in adjacent areas such as infrastructure. A practical next step is to scan companies in grid upgrade and transmission through the Simply Wall St screener for 39 power grid technology and infrastructure stocks. After that sharp move and a share price slightly above analyst targets despite a modelled discount to intrinsic value, Travelers Companies now raises a simple question: Is the market being cautious enough or already looking past the risks? The most followed narrative for Travelers Companies puts fair value at $354.71, slightly below the last close of $367.93, and leans heavily on underwriting and technology assumptions. Read the complete narrative. The fair value call depends on how much earnings can be supported by underwriting margins, shrinking modeled profits, and a richer future earnings multiple than the sector usually gets. Result: Fair Value of $354.71 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Travelers Companies still faces meaningful risks, including higher catastrophe losses from continued weather volatility and pressure on margins if social inflation and competitive pricing intensify. Find out about the key risks to this Travelers Companies narrative. While the most popular narrative has Travelers Companies trading about 4% above its $354.71 fair value estimate, the SWS DCF model paints a very different picture. At a last close of $367.93 and a DCF value of $767.93, it flags the stock as trading at roughly a 52% discount. That gap is wide for two models looking at the same business. One leans on analyst earnings paths and a 14x future P/E. The other leans on cash flows. For investors weighing Travelers Companies today, which set of assumptions feels more realistic? Look into how the SWS DCF model arrives at its fair value. Given the mixed signals around Travelers Companies, it makes sense to move quickly, review the figures, and test the story against your own expectations. A helpful way to frame that view is to weigh the 3 key rewards and 2 important warning signs If Travelers Companies has sharpened your focus, do not stop here. Broadening your watchlist across sectors can help you spot themes and potential opportunities earlier. Pursue potential mispricings by hunting through companies flagged as high quality and possibly overlooked using the screener containing 20 high quality undiscovered gems. Strengthen your portfolio’s foundation by reviewing companies that combine robust finances with consistent fundamentals through the solid balance sheet and fundamentals stocks screener (50 results). Target steadier income ideas by scanning for companies with higher yields that still aim to balance payout and resilience using the 11 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in The Progressive Corporation? Here are five stocks we like better. Progressive is targeting bundled auto-and-home households, known internally as “Robinsons,” which represent nearly 35% of the U.S. auto market and generate substantially higher lifetime premiums than unbundled or inconsistently insured customers. The company said its property insurance turnaround is substantially complete, with improved profitability, lower catastrophe exposure and 41 states now positioned for growth, representing 82% of the property market. Progressive continues to expand while maintaining underwriting discipline: policies in force rose 8%, the company surpassed 40 million policies, and management reaffirmed a goal of keeping the combined ratio at or below 96%. Travelers Stock Surges 10% as Earnings Beat Reveals Underwriting Discipline Progressive (NYSE:PGR) used its second-quarter investor event to outline its strategy for expanding in bundled auto and home insurance, emphasizing improvements in its property business and the growth potential among “Robinsons,” its term for consistently insured households that bundle auto and home coverage. Chief Executive Officer Tricia Griffith also announced a leadership transition in personal lines. Pat Callahan, Personal Lines President, will retire in January after nearly 24 years at the company. Lori Niederst has assumed the newly created role of Chief Personal Lines Officer, overseeing both Personal Lines and CRM. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Allstate’s Comeback Is Turning Into a Profit Machine “Our ability to move people around the company to expand their experience and deepen their skillset is what helps us build an extremely strong bench,” Griffith said, describing Niederst’s appointment as a reflection of the company’s succession planning. Niederst said Progressive’s operating objective remains to grow as quickly as possible while maintaining a combined ratio at or below 96%, alongside high-quality customer service. She said the insurer’s segmentation and rate-to-risk capabilities have enabled it to grow twice as fast as the private-passenger auto industry over the past decade while maintaining a combined ratio seven points lower. → 3 Drone Stocks That Should Soar After the Summer Slump Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming Due Callahan said Progressive recently became the largest U.S. personal auto writer on a trailing-12-month basis, measured by direct premiums written. The company captured approximately 75% of total industry premium growth during 2025, he said. However, Progressive sees substantial opportunity among Robinson households, which account for nearly 35% of the U.S. auto market. The company has historically been more focused on other customer segments, including inconsistently insured customers, continuously insured non-homeowners and customers with unbundled auto and home policies. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Progressive’s share and policy-in-force growth among Robinsons remains in the single digits, Callahan said, particularly in agency distribution. He noted that Robinson households produce approximately 70% more lifetime premium than unbundled auto-and-home customers and roughly five times the lifetime premium of inconsistently insured customers. “A key area of focus in agency is having a broadly available, competitively priced property offering,” Callahan said. John Curtis, National Property Leader, said Progressive’s property turnaround is “substantially complete” after a multiyear effort to improve profitability, reduce catastrophe exposure and build underwriting capabilities. The company is focused primarily on owner-occupied homes bundled with Progressive auto policies. Progressive’s property direct written premium has increased 3.7 times since 2015, and the insurer is now a top-12 property carrier, Curtis said. But the company intentionally slowed property growth after weather losses and profitability pressures weighed on results. The property business reported a 75% combined ratio in 2025 and a 78% year-to-date combined ratio in 2026. Curtis said the 2025 result benefited from a mild catastrophe season and favorable prior-year development, though underlying profitability was in line with the company’s targets after considering those factors. High-weather-risk states declined by 23% as a share of total insured value from 2022 through 2025. Total insured value rose 30% during that period, while modeled one-in-100-year probable maximum loss declined nearly 33%. The number of states classified as healthy and positioned for growth increased to 41 in June 2026 from 18 in May 2025. Those 41 states represent 82% of the property insurance market, compared with 40% previously. Curtis said the company reduced Florida exposure through non-renewals focused on higher-risk coastal properties and homes not compliant with recommended building codes. Progressive also managed growth in states with severe convective storm and wildfire risk, while growing faster in lower-risk markets. Its property initiatives have included by-peril pricing, updated product models, a countrywide risk model, higher wind and hail deductibles where permitted, roof-payment schedules, exposure-management actions and distribution changes. As of June, 93% of Progressive homes premium was written on product model 5.0 or newer, while wildfire and wind-pool non-renewals were 73% complete. Niederst said the company’s Robinson opportunity differs by channel. Direct policy-in-force growth for bundled households has remained positive, supported by HomeQuote Explorer, Progressive’s platform that allows customers to compare property insurance options from affiliated and unaffiliated carriers. Since online quoting launched in 2017, HomeQuote Explorer quote starts have grown at a 27% compound annual rate to more than 6 million from less than 1 million. The platform now offers 26 product options across 19 carriers, compared with one carrier in 2007, Niederst said. In the independent-agent channel, Progressive estimates that more than 40,000 agencies representing over 90,000 storefronts sell its products. The company is investing in easier bundled quoting, improved property workflows, agency appointments and agent compensation through its Platinum program. Progressive has created nearly 500,000 Robinson households through cross-selling since 2023, Niederst said. The company also is using products such as embedded renters coverage, umbrella insurance and vehicle protection to build broader household relationships over time. Management said auto growth has moderated from the elevated levels seen in 2024 and 2025 but remains positive. Progressive surpassed 40 million companywide policies in force, including 2.2 million additional private-passenger auto policies in force, Griffith said. Personal-lines policies in force increased 8%, including 8% growth in agency auto and 10% growth in direct auto. During the second quarter, Progressive reduced auto rates in 16 states representing 37% of countrywide net written premium, Niederst said. The company reported $1.4 billion in advertising expense for the quarter, up 16% from a year earlier, while saying cost per sale remained below its target acquisition cost. Chief Financial Officer Andrew Quigg said Progressive continues to work toward a 3.5-to-1 premium-to-surplus ratio for most eligible insurance entities by year-end 2026. He said the company’s capital priorities are reinvesting in underwriting growth and returning excess capital to shareholders when growth opportunities do not require it. On property reinsurance, Risk and Reinsurance Business Leader Brandon Hopkins said Progressive has kept overall reinsurance capacity relatively stable in recent years despite lower exposures. He said the company is positioned to grow into its existing program while remaining within group risk-appetite and property-business financial constraints. Progressive Corporation is a large U.S.-based property and casualty insurer that primarily underwrites personal auto insurance along with a broad suite of related products. Its offerings include coverage for private passenger automobiles, commercial auto fleets, motorcycles, boats and recreational vehicles, as well as homeowners, renters, umbrella and other specialty P&C products. Progressive also provides claims handling, risk management and related services to individual and commercial policyholders. The company distributes its products through a mix of direct channels—online and by phone—and an extensive independent agent network. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Progressive Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Definity Financial Co.? Here are five stocks we like better. Strong second-quarter growth: Gross written premiums rose 34.7% to C$1.8 billion, while operating net income reached C$118 million and operating EPS increased 15.5% year over year. Definity reaffirmed its goal of exceeding C$6.5 billion in annual premiums. Travelers integration is ahead of plan: Definity converted more than 40,000 policies and achieved C$52 million in run-rate expense synergies six months after closing. The company raised its annual synergy target by 25% to C$125 million, with the acquired portfolio expected to reach a low-90s combined ratio by the end of integration. Capital position supports expansion: Definity ended the quarter with more than C$1.2 billion in financial capacity, a 26.5% debt-to-capital ratio and a 12.5% trailing operating ROE. Management said the balance sheet can fund organic growth, broker acquisitions and potential carrier acquisitions. Definity Financial (TSE:DFY) said its second-quarter results reflected continued growth, early synergy capture and progress integrating the Travelers business it acquired, as the insurer raised its annual expense-synergy target by 25%. Gross written premiums increased 34.7% from a year earlier to C$1.8 billion, while operating net income reached C$118 million, or C$0.97 per share. Operating earnings per share rose 15.5% year over year. The consolidated combined ratio was 93.9%, including the acquired business, with a lower ratio indicating better underwriting profitability. → Microsoft Just Flipped the AI Spending Narrative Overnight President and CEO Rowan Saunders said the company had reached its objective of becoming one of Canada’s five largest property and casualty insurers and was now focused on building what he called a “Canadian champion.” He said Definity’s longer-term goal is to become a top-three P&C insurer in Canada. Definity said it had converted more than 40,000 acquired policies onto its systems and had not experienced unexpected revenue leakage as policies began renewing during the second quarter. The company unified new-business intake for broker business within one month of closing the acquisition, Saunders said. → 2 Unique Space ETFs That Could Upend the Industry The insurer reported C$52 million in run-rate expense synergies six months into the integration, of which C$11 million was reflected in second-quarter underwriting results. Year-to-date realized synergies totaled C$17 million. As a result, Definity increased its post-integration annual expense-synergy target to C$125 million from C$100 million. Management said it expects roughly one-third of that annual target to be reflected in 2026 results, about half in 2027 and nearly the full amount in 2028, as transition-service agreements with Travelers are wound down. → MarketBeat Week in Review – 07/27- 07/31 Chief Financial Officer Philip Mather said about two-thirds of synergies triggered to date stemmed from eliminating parent-company charges and technology savings. The remaining third came from scale efficiencies and attrition management. He said approximately half of the ultimate C$125 million of expense synergies is expected to benefit operating expenses, with the other half supporting the loss ratio through claims-related infrastructure and technology costs. Saunders said Definity also expects future improvement in non-expense loss-ratio elements as the acquired portfolio moves to its platforms and pricing tools. He said the company expects the Travelers portfolio, which was approximately break-even before the acquisition, to operate with a combined ratio in the low 90s by the end of the integration period. Mather said the quarter’s premium growth included 24.5% growth from the acquired renewal book, while underlying growth across Definity’s business exceeded 10%. The company reaffirmed its full-year gross written premium target of more than C$6.5 billion and expects overall growth to remain broadly consistent in the second half. Personal auto: Gross written premiums rose 35.1%, including 22.6% growth from the acquired renewal business and 12.5% underlying growth. The combined ratio was 95.1%, compared with 94.2% a year earlier, reflecting the temporary impact of the acquired business before synergies are fully realized. Personal property: Premiums increased 37.1%, including 25.5% from acquired-business retention and 11.6% underlying growth. The combined ratio improved to 92.8% from 94.3%, aided by lower catastrophe losses. The first-half combined ratio for the line was in the upper 80s. Commercial insurance: Premiums grew 32.2%, including 26.3% from the acquired renewal book. Underlying growth was 5.9%, supported by pricing increases and market-share gains in small business and specialty lines. The commercial combined ratio was 93.1%, up from 89.6% a year earlier, primarily due to acquired-business expenses and modestly higher catastrophe losses. Management expects commercial premium growth to reach the mid- to upper-30% range in the second half as a larger volume of scheduled acquired-business renewals occurs. Personal property growth is expected to remain in the mid-30% range, while personal auto growth is expected to remain relatively consistent with first-half levels. Net investment income increased to C$79.5 million, driven by a larger investment portfolio following the acquisition. Mather said the company remained on track for C$320 million in full-year net investment income, supported by active fixed-income portfolio management and without taking undue risk to pursue higher yields. Distribution income totaled C$24.5 million, while total broker operating income, including C$11.2 million of intercompany commission income, rose 20.2% to C$35.7 million. Definity said its national broker platform ranked among Canada’s top 10 brokers, with about C$1.6 billion in gross written premiums under management. The company maintained its target of reaching C$2 billion by the end of 2027 and its guidance for 20% annual broker-platform operating-income growth. The company ended the quarter with more than C$1.2 billion in financial capacity and a debt-to-capital ratio of 26.5%, approaching its long-term 25% target. Saunders said the capital position supports organic growth, broker acquisitions, potential carrier acquisitions and other capital priorities. Definity reported trailing 12-month operating return on equity of 12.5%, at the high end of its target range. Saunders said the Travelers acquisition is expected to add more than 200 basis points to operating ROE beyond the company’s organic plans, supporting its mid-term goal of sustainable mid-teens operating ROE. Definity Financial Corp is a multi-channel, property, and casualty insurance company. It offers auto, property, liability, and pet insurance products to individual customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Definity Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

We are in the first half of the second-quarter 2026 earnings season, which appears robust so far, reaffirming the fundamental strength of the U.S. economy. Up to July 24, 135 S&P 500 companies reported their quarterly financial numbers. Total earnings for these companies are up 67.8% from the same period last year on 12.6% revenue gains, with 87.4% of the companies beating EPS estimates and 79.3% of them beating revenue estimates. At present, the Zacks Consensus Estimate shows that total S&P 500 earnings for this reporting cycle are expected to increase by 39.1% compared to the same period last year on 12.3% higher revenues. Aside from the S&P 500 stable, several companies of the 30-stock Dow portfolio (popularly known as blue-chip stocks) have also come out with their quarterly earnings results. Here, we recommend three such stocks with a favorable Zacks Rank for investment that have reported solid earnings results.These are: 3M Co. MMM, The Travelers Companies Inc. TRV and UnitedHealth Group Inc. UNH. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The chart below shows the price performance of our three picks in the past three months. Image Source: Zacks Investment Research Zacks Rank #2 3M is poised to benefit from solid momentum in the Safety and Industrial unit, driven by strength in the industrial adhesives and tapes, abrasives and electrical markets. Strength in MMM’s semiconductor, aerospace and defense markets is aiding the Transportation and Electronics unit. Solid operational execution, restructuring savings and spending discipline are supporting 3M’s margin performance. Synergies from acquisitions made by the company also bolster MMM’s growth. Its measures to reward shareholders through dividends are encouraging. MMM has strengthened and expanded the geographical footprint of its businesses through acquisitions while unlocking cash by disposing of underperforming or non-core assets. In July 2026, MMM completed the acquisition of Madison Fire & Rescue in partnership with Bain Capital. The transaction is expected to strengthen MMM’s safety portfolio. For 2026, MMM expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.88, which reflects an increase from earnings of $8.06 per share reported in 2025. Adjusted total revenue growth is projected to be above 4.5%. 3M has an expected revenue and earnings growth rate of 4% and 9.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last seven days. MMM has an expected revenue and earnings growth rate of 3.5% and 8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.2% over the last seven days. Zacks Rank #2 The Travelers combines broad commercial and personal insurance franchises with disciplined underwriting, rising investment income and sustained capital returns. Second-quarter results reinforced the durability of TRV’s earnings base, as underlying margins remained attractive, catastrophe losses declined and favorable reserve development supported results across all segments. Technology investment, pricing segmentation and a high-quality fixed income portfolio should aid TRV’s long-term returns over time. Travelers’ growing fixed income portfolio provides an increasingly predictable earnings contribution. After-tax net investment income rose 14% to $883 million in the second quarter, reflecting TRV’s higher portfolio yields, growth in invested assets and better non-fixed income returns. New money yields were about 90 basis points above the portfolio’s embedded yield at quarter-end. TRV expects its full-year 2026 underwriting expense ratio to be approximately 28.5%. Management also emphasized that strong earnings, cash flow and capital generation continue to support investments in technology, including artificial intelligence, while maintaining significant capital returns to its shareholders. Travelers has an expected revenue and earnings growth rate of -0.1% and 17.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.5% over the last seven days. TRV has an expected revenue and earnings growth rate of 2.9% and -8.6%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.9% over the last seven days. Zacks Rank #1 UnitedHealth has shown steady revenue growth, driven by Optum and UnitedHealthcare. Optum remains a key growth driver through its pharmacy services, technology integration, and government solutions. UNH’s strong second-quarter results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in Optum Health, Optum Rx and declining risk-based membership partially offset the positives. A strong market position and ongoing expansion initiatives, combined with rising healthcare demand, support sustained long-term growth. Commercial membership also grew for UNH, supporting margins despite challenges from government programs. UNH earlier anticipated revenues for 2026 above $439 billion, which are below the 2025 level due to planned right-sizing across operations. Adjusted EPS is now expected to be in the range of $19.50-$20.00 for 2026, up from the previous guidance of more than $18.25, indicating improving margins. Net margin was expected to be around 3.6% in 2026, up from 2.7% in 2025. UnitedHealth has an expected revenue and earnings growth rate of -0.3% and 19.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.3% over the last 30 days. UNH has an expected revenue and earnings growth rate of 2.4% and 13.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.7% over the last 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Hanover Insurance Group, Inc. THG reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%.Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Results benefited from stronger Personal Lines underwriting, lower catastrophe losses and higher net investment income. The consolidated combined ratio improved to 91.2%. The consolidated loss and loss adjustment expense ratio improved 1.7 percentage points year over year to 60.2%. Catastrophe losses totaled $91.8 million, contributing 5.7 points to the combined ratio, compared with a catastrophe ratio of 7% in the prior-year quarter.The combined ratio excluding catastrophes remained unchanged at 85.5%. The current accident year loss and LAE ratio excluding catastrophes improved 30 basis points to 55.8%, while favorable prior-year reserve development contributed 1.3 points. Net premiums earned increased to $1.60 billion from $1.55 billion. The Hanover Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hanover Insurance Group, Inc. Quote Core Commercial net premiums written rose 7.2% year over year to $574.8 million. Growth accelerated from the first quarter, supported by increases of 6% in small commercial and 9.4% in the middle market. Renewal price increases averaged 7.8%, including rate increases of 7%.Segment profitability weakened despite the faster premium growth. Operating income before taxes declined to $77.5 million from $83.9 million, while the combined ratio increased to 95.7% from 93%. The current accident year combined ratio excluding catastrophes deteriorated 1.8 points to 91.2%, reflecting higher liability loss selections and a difficult comparison with unusually low property losses a year earlier. Specialty net premiums written increased 4.4% to $384.4 million, reflecting improved growth momentum from the first quarter. Renewal pricing rose 3.6%, including average rate increases of 2.1%.Operating income before taxes declined to $68.4 million from $71.2 million. The combined ratio increased to 88.3% from 86.5%, as the current accident year loss and LAE ratio, excluding catastrophes, rose 2.6 points to 51.6%. Lower catastrophe losses provided some support, falling to $10 million from $14.6 million. Personal Lines net premiums written increased 2.6% year over year to $697.6 million. Growth reflected higher new business and continued renewal pricing, with renewal price increases averaging 8.7% and rate increases averaging 4.8%. Policies in force were essentially unchanged sequentially.Operating income before taxes surged to $104.9 million from $57.4 million. The combined ratio improved 6.6 points to 88.9%, aided by lower catastrophe losses and better underlying loss experience. The current accident year combined ratio, excluding catastrophes, improved to 81.9% from 84.8%, as earned pricing exceeded loss trends and property claim frequency remained favorable. Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. The portfolio’s pretax earned yield increased to 4.28% from 4.11%, while the fixed-maturity yield improved to 4.45% from 4.24%.The Hanover ended June with $11.2 billion in cash and invested assets. Book value per share increased 3.5% from March 31, 2026, to $105.40. During the quarter, THG repurchased about 0.3 million shares for approximately $55 million. Through July 24, repurchases totaled roughly 0.8 million shares for $149 million, leaving about $660 million under the company’s authorization. THG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago. Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points from the prior-year quarter’s level to 87.1.The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year.Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Strong underwriting, higher net revenues and margin expansion supported earnings. Principal Financial Group, Inc. price-consensus-eps-surprise-chart | Principal Financial Group, Inc. Quote Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million. Retirement and Income Solutions’ net revenues increased 9% year over year to $779 million. Favorable market performance and business growth supported the increase.Pre-tax operating earnings rose 11% to $323.3 million, while the operating margin expanded 60 basis points to 41.5%. Transfer deposits increased 30% to $9 billion, and recurring deposits advanced 6% to $13 billion. Participant roll-ins totaled $1.7 billion in the quarter. Investment Management’s operating revenues less pass-through expenses increased 1% to $431.6 million. Pre-tax operating earnings edged up 1% to $159.4 million, while the operating margin remained stable at 37.5%.International Pension delivered stronger growth. Net revenues increased 16% to $184.8 million, and pre-tax operating earnings rose 24% to $97 million. Assets under management reached a record $168.5 billion, up 18%, aided by more favorable encaje returns and foreign-currency tailwinds. Specialty Benefits’ premiums and fees increased 4% to $873.3 million. Pre-tax operating earnings rose 25% to $158.9 million, driven by premium growth and more favorable underwriting. Specialty Benefits’ loss ratio improved 280 bps to 57.4%. This was driven by improvements across all products.The unit’s operating margin improved 300 basis points to 18.2%, while the incurred loss ratio declined 280 basis points. Life Insurance revenues fell 6% to $224.1 million, but pre-tax operating earnings increased 26% to $25.2 million on improved mortality experience. Its operating margin expanded 280 basis points to 11.2%. Principal Financial’s assets under management increased 7% year over year to $808 billion. The total was included within assets under administration of $1.89 trillion.AUM net cash outflows were $11.1 billion compared with $2.6 billion a year earlier. Investment Management recorded $12 billion of net outflows, concentrated in a small number of U.S. active equity strategies. Market performance added $47.5 billion to AUM during the quarter. The company returned $426.7 million to shareholders during the quarter. This included $250.2 million of share repurchases and $176.5 million of dividends.Principal Financial ended the quarter with $1.6 billion of excess and available capital, an estimated 400% risk-based capital ratio and a 23.6% debt-to-capital ratio. Book value per share, excluding certain fair-value and accumulated other comprehensive income effects, was $58.40. Principal Financial agreed to acquire Beam Benefits, a provider of dental, vision, life, disability and supplemental health products for small and midsized businesses. Beam serves more than 25,000 employer customers and generated $175 million in premiums during 2025.The transaction is expected to close in the second half of 2026. Principal Financial maintained its 2026 earnings-per-share and capital targets and expects Specialty Benefits growth to be at or above the high end of its 5-9% target range in 2027. The board also raised the third-quarter dividend by 2 cents to 84 cents per share. Principal Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Travelers Companies (TRV) is back in focus after a strong second quarter earnings beat, supported by higher net income, rising earnings per share, continued share repurchases, and a maintained quarterly dividend. See our latest analysis for Travelers Companies. The earnings surprise and fresh bond issue appear to have reinforced confidence in Travelers Companies, with a 30-day share price return of 20.74% and a 1-year total shareholder return of 50.71% pointing to strong, building momentum. If this kind of strong move has you looking beyond a single insurer, it could be a good moment to widen your search and check out 18 top founder-led companies Travelers Companies now trades above the average analyst price target, yet third party estimates of intrinsic value still suggest a wide potential discount. Where does a reasonable fair value range sit after this sharp rerating? At a last close of $387.26 versus a narrative fair value of $354.71, the current pricing of Travelers Companies sits above that popular estimate and puts the underlying assumptions in the spotlight. Read the complete narrative. Curious how Travelers Companies can screen as overvalued even with strong recent earnings? The narrative leans heavily on shrinking margins, softer top line assumptions, and a richer future earnings multiple. The mix may surprise you. Result: Fair Value of $354.71 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Travelers Companies narrative can be disrupted if catastrophe losses stay elevated or if social inflation and pricing pressure squeeze underwriting margins more than analysts expect. Find out about the key risks to this Travelers Companies narrative. The analyst narrative suggests Travelers Companies is about 9.2% overvalued at $387.26 versus a fair value of $354.71, yet the SWS DCF model tells a very different story. On that framework, TRV screens as undervalued, with a future cash flow value of $754.15 per share. For investors, that kind of gap raises a simple question: which set of assumptions feels more realistic? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Travelers Companies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With sentiment on Travelers Companies already split between risk and reward, it may be worthwhile to move quickly, review the underlying data, and reach your own judgment with the help of the 2 key rewards and 1 important warning sign. If Travelers Companies has sharpened your focus, do not stop here. Use the Simply Wall St Screener to surface other stocks that fit your investment style. Target stability first by reviewing companies in the 81 resilient stocks with low risk scores that may better align with your comfort around volatility and downside risk. Spot potential value candidates early by scanning the 49 high quality undervalued stocks and compare their fundamentals before attention fully shifts their way. Hunt for quality that flies under the radar by working through the screener containing 20 high quality undiscovered gems so promising ideas do not slip past you. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Travelers Companies stock has delivered a strong 5 year run, yet the current checks show a more nuanced picture, with the Excess Returns intrinsic value estimate pointing to meaningful undervaluation while the broader valuation score suggests the shares are not an outright bargain across every metric. Over the last 5 years, Travelers Companies has returned 186.6%, which puts extra focus on whether recent gains are now running ahead of underlying value. The recent earnings strength, helped by lower catastrophe losses and higher investment income, can support the intrinsic value case. However, future catastrophe experience and reserve adequacy remain key risks for how sustainable that valuation looks. With Travelers Companies screening as undervalued on 3 of 6 checks, the overall value view is mixed rather than clearly cheap or clearly expensive, as reflected in its 3 out of 6 valuation score. The stock's next move may depend on whether investors give more weight to the Excess Returns intrinsic value estimate or to the mixed signal from the broader valuation checks. Travelers Companies delivered 50.7% returns over the last year. See how this stacks up to the rest of the Insurance industry. The Excess Returns model evaluates how efficiently Travelers Companies turns each dollar of shareholder equity into profit, then compares that to the return investors demand. For Travelers, the model uses a Book Value of $158.78 per share and a Stable EPS of $33.36 per share, based on weighted future Return on Equity estimates from 16 analysts. With an Average Return on Equity of 18.30% and a Cost of Equity of $12.96 per share, the framework implies an Excess Return of $20.40 per share and a Stable Book Value of $182.28 per share, using analyst forecasts from 15 sources. Using these inputs, the Excess Returns model arrives at an intrinsic value of about $754 per share. This output suggests that Travelers Companies screens as significantly undervalued relative to its current share price. Because the recent Q2 earnings beat was driven by lower catastrophe losses and stronger investment income, the market reaction so far still leaves a sizable gap between price and this intrinsic value estimate. On this Excess Returns view, Travelers Companies stock currently appears undervalued. Our Excess Returns analysis suggests Travelers Companies is undervalued by 48.6%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Travelers Companies. P/E is usually the cleanest quick check for an insurer like Travelers Companies because earnings already capture underwriting results and investment income in one figure. Travelers currently trades at a P/E of about 9.8x, which is close to the peer average of 9.5x and below the broader Insurance industry average of about 12.4x. The tailored fair P/E ratio for Travelers Companies, which reflects factors such as its scale, margins and risk profile, sits at about 9.3x. That is only a small step below the current 9.8x, so the gap is modest compared with both the fair ratio and sector benchmarks. On this yardstick, the stock does not stand out as clearly cheap or expensive, and the recent Q2 earnings beat has not pushed the P/E into an extreme premium zone. Overall, Travelers Companies appears priced roughly in line with what its P/E would suggest as a fair valuation. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this valuation puzzle for Travelers Companies' stock leaves off by spelling out what would need to happen to growth, margins and earnings for the shares to be worth materially more or less than today's price. Each one treats its fair value as a thesis about the business that can be checked over time so you can see how the story holds up rather than relying on a single snapshot. Community views on Travelers Companies are split, with one camp seeing meaningful upside and the other arguing risks and pricing power make the stock look full. Bull case: 9% undervalued Read the full Bull Case to see why Travelers Companies could be undervalued Bear case: 9% overvalued Read the full Bear Case to see why Travelers Companies could be overvalued Do you think there's more to the story for Travelers Companies? Head over to our Community to see what others are saying! For Travelers Companies, the Excess Returns intrinsic value estimate points to a sizable discount to current pricing, while the P/E and other market multiples sit closer to about right, which leaves the overall picture mixed. The gap largely reflects different lenses, with the intrinsic value work leaning on how efficiently equity is turned into profit over time, and the multiples view anchored in current sentiment and peer pricing. With broader checks only mixed, the key question is whether catastrophe losses and reserve risks stay contained enough for that intrinsic value case to play out, rather than the current discount proving to be a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]