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Investing.com - BofA Securities has raised its price target on Travelers (NYSE:TRV) to $265.00 from $259.00 while maintaining an Underperform rating following the insurer’s third-quarter earnings beat. According to InvestingPro data, the company, currently trading at $262.05, appears slightly undervalued based on its Fair Value analysis, with 13 analysts recently revising earnings estimates upward.
The insurance company’s Q3 2025 earnings per share exceeded BofA’s forecast of $5.58 and consensus estimates of $6.31, with the largest variance coming from better-than-expected underwriting results in the homeowners’ business segment. The company maintains strong profitability metrics, with a P/E ratio of 11.58 and an impressive financial health score of "GREAT" according to InvestingPro analysis.
Travelers reported an underlying combined ratio of 69.4% in its homeowners’ business versus BofA’s estimate of 79.5%, contributing an additional $0.81 per share to earnings, while favorable development of $22 million compared to BofA’s forecast of $169 million in unfavorable development added $0.66 per share.
Lower catastrophe losses added $0.56 per share and higher alternative income contributed $0.11 per share to the earnings beat, with share repurchases of $625 million exceeding BofA’s forecast of $350 million.
Travelers management has guided for $1.3 billion in share repurchases in Q4 2025 and expects to repurchase a total of $3.5 billion over the Q3 2025-Q1 2026 period, representing approximately 5% of shares outstanding.
In other recent news, Travelers Companies reported impressive financial results for the third quarter of 2025. The company’s earnings per share (EPS) reached $8.14, significantly surpassing the analysts’ forecast of $6.15. Additionally, Travelers Companies’ revenue totaled $12.47 billion, exceeding the expected $11.75 billion. These figures indicate a strong performance for the quarter, highlighting the company’s ability to outperform market expectations. Despite the positive financial results, the stock experienced a decline in value. Analyst firms have not provided any recent upgrades or downgrades for Travelers Companies. These recent developments underscore the company’s robust financial health during the reported period.
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