Fundamentals snapshot
TRV · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$389.54
52-week range
$262.90 - $398.70
Market cap
$81.25B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $3.49B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Travelers sells insurance to businesses and individuals, mostly car and home insurance, and also covers things like businesses being sued or employees getting hurt on the job. Their money mainly comes from collecting premiums (the regular payments customers make for insurance coverage), and this matters because insurance companies need those premiums to pay out claims when bad things happen, like a car accident or a house fire. Travelers also makes money by investing the premiums they collect before they need to pay claims, which is an important part of their profitability.
The Travelers Companies, Inc. has a long history, tracing its roots back to 1853 when it was founded in New York. It grew by offering insurance to protect against various risks, evolving over time to become a major player in the property and casualty insurance market. A key turning point was its focus on providing a wide range of insurance products for both businesses and individuals, adapting to changing economic landscapes and customer needs. This strategic expansion and diversification have shaped Travelers into the large, established insurer it is today.
Travelers essentially acts as a safety net for individuals and businesses against financial losses due to unexpected events. They offer various types of insurance policies, which are contracts where customers pay a regular fee (called a premium) in exchange for financial protection. If an insured event occurs, like a car accident, a house fire, or a business liability claim, Travelers pays to cover the costs outlined in the policy. This allows customers to manage risks without having to bear the full financial burden of a loss themselves.
This is the largest part of Travelers' business, focusing on insuring companies. It offers a wide array of policies designed to protect businesses from various risks they might face. This includes coverage for employee injuries on the job (workers' compensation), damage to business property, and liability if the business causes harm to others (general liability). They also provide specialized insurance for industries like construction and energy. This segment serves businesses of all sizes, from small local shops to large corporations, and reaches them through brokers and agents.
This segment provides specialized insurance and risk management services, often for specific situations or professions. It includes surety bonds, which are guarantees that a party will fulfill an obligation, often used in construction projects. It also covers management liability insurance (protecting company leaders from lawsuits) and professional liability insurance (for professionals like doctors or lawyers against malpractice claims). This part of the business is crucial for companies needing to demonstrate financial reliability or protect their key personnel and operations.
This segment focuses on providing insurance for individuals and families. The primary products offered are automobile insurance, which covers damages and liability from car accidents, and homeowners insurance, which protects against damage to a home and its contents from events like fire or storms. This is the part of Travelers that most everyday consumers might interact with directly, offering peace of mind for significant personal assets.
Travelers' management is focused on profitable growth within its core insurance businesses. A key priority is leveraging technology and data analytics to better understand and price risk, aiming to improve underwriting profitability (the profit made from selling insurance policies after paying claims and expenses). They are also concentrating on maintaining strong customer relationships and providing excellent service to retain clients and attract new ones. Additionally, Travelers aims to manage its investments wisely to generate income that supplements its insurance operations.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $3.5B. Interest coverage 19.3x.
The Travelers Companies, Inc.'s profit covers its interest bill about 19.3 times over. which is stronger than most peers shown here.
Total debt $9.81B Interest coverage 19.34x This is the baseline the peer rows are being compared against.
Total debt $7.50B Interest coverage 33.97x +76% vs TRV Carries about 1.8x more debt cushion than TRV.
Total debt $8.39B Interest coverage 52.16x +170% vs TRV Carries about 2.7x more debt cushion than TRV.
Total debt $25.01B Interest coverage 18.07x -7% vs TRV Has roughly the same debt cushion as TRV.
Total debt $9.13B Interest coverage 10.80x -44% vs TRV Carries about 1.8x less debt cushion than TRV.
Total debt $4.38B Interest coverage 24.92x +29% vs TRV Carries about 1.3x more debt cushion than TRV.
What you should know
The numbers
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Valuation
Profitability
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What you should know