1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Travelers reported a strong second quarter, as the commercial side of the business is benefiting from recent industry price increases, and the personal side is still enjoying some pandemic tailwinds, although the effect appears to be tapering off. Overall, we consider the 13% annualized ROE in the quarter to be a solid result for the narrow-moat franchise. We will maintain our $163 fair value estimate.
Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance. Policies are distributed via a network of more than 11,000 brokers and independent agents.
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