Orin
TRVNYSE·Insurance - Property & Casualty

The Travelers Companies, Inc. TRV

Market cap $76.0BP/E 9.5× trailingGross margin 34.7%Reports Fri 16 Oct, before the open
$364.54
+4.15 (+1.15%)live 09:45 ET
52-wk $252.26 – $398.70
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Orin's take
0.55conviction · moderate
Refreshed 31 Aug · take v6. A new filing or a print queues the next refresh.

Travelers remains a buy as FY2025 results show continued margin expansion — operating margin reached 15.97% (up from 13.31% in 2024) and net margin hit 12.88%, driving diluted EPS of $27.43, up 27.8% year-over-year. At a P/E of 9.65 and EV/EBITDA of 7.50, TRV trades at roughly 11.6% and 14.5% discounts to peer medians respectively, while free cash flow of $10.6B (FCF margin 21.72%) underscores capital efficiency.

The stock sits above both its 50-day ($359.00) and 200-day ($310.78) moving averages with neutral RSI of 48.8, offering a reasonable entry after the prior overbought condition resolved.

What could go wrong

  • Revenue growth deceleration. FY2025 revenue growth slowed to 5.2% YoY from 12.2% in 2024 and 12.1% in 2023, and recent news highlights moderating insurance pricing momentum, which could pressure top-line growth further.
  • Persistent insider selling. Over the trailing 24 months, insiders net sold approximately 598,018 shares for $250.9M, with recent transactions dominated by option exercises followed by same-day sales at prices near $370–$387.
  • Weak smart money positioning. Smart money score stood at just 0.0253 as of 2026-06-30, down from 0.0668 in Q3 2025, with fund count declining from 64 to 62 quarter-over-quarter.
  • Catastrophe loss volatility. As a P&C insurer with significant personal and commercial property exposure, TRV's underwriting results remain vulnerable to elevated catastrophe activity, which could reverse the margin expansion trend.

What would change my mind

Combined ratio deterioration. Q3 2026 or Q4 2026 combined ratio rises above 95%, signaling margin expansion has stalledbearish
Sustained MACD bullish crossover. MACD line crosses above signal line on daily chart with RSI reclaiming 55+bullish
Pricing momentum reversal. Renewed hardening in commercial insurance rates with renewal price increases accelerating above 5%bullish
Smart money outflow acceleration. Q3 2026 13F filings show fund count dropping below 55 or net institutional selling exceeding 2% of floatbearish

Where this comes from: derived_metrics FY2025 vs FY2024 · fundamentals FY2025 + derived_metrics eps_growth_yoy · peer_relative · peer_relative. Orin's read on TRV; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

FormFiledWhat it saysRead
8-K7 AugThe Travelers Companies, Inc.read
8-K24 JulThe Travelers Companies, Inc.read
10-Q17 JulThe Travelers Companies, Inc.read
8-K17 JulThe Travelers Companies, Inc.read
8-K22 MayThe Travelers Companies, Inc.read
8-K21 MayThe Travelers Companies, Inc.read
DEFA14A12 Mayon file
13G/A6 Mayon file

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
State Street$5.2B0.2% of fund
Vanguard Capital Management$4.6B0.1% of fund
Fmr$3.4B0.1% of fund
Vanguard Portfolio Management$2.7B0.1% of fund
Geode Capital Management$2.1B0.1% of fund
Massachusetts Financial Services /Ma/$1.4B0.4% of fund

111 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 308 Form 4 filings, net −$250.9M. Of the 50 on hand, 0 were open-market purchases and 20 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about TRV

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E9.5×11.0×21.6×
EV/EBITDA7.4×8.6×
P/S1.53×1.18×
P/B2.3×2.0×

Its P/E sits below all 5 of the last 5 years (−1.31σ from its own mean).

What the price assumes

-6.8%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $10.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

44 firms · 2026-09-23
Consensus target

$351

$290$430 · −4% against today's price

How they rate it
  • 11 buy or overweight
  • 29 hold
  • 4 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 10.2× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
TRVThe Travelers Companies, Inc.$75B9.5×7.4×34.7%17.0%26%
ALLThe Allstate Corporation$58B4.5×3.7×42.2%19.2%43%
CBChubb Limited$129B11.8×11.9×39.6%18.1%15%
CINFCincinnati Financial Corporation$25B7.6×5.5×52.3%23.8%21%
PGRThe Progressive Corporation$118B10.2×8.2×26.9%12.8%35%
WRBW. R. Berkley Corporation$25B13.8×10.3×44.8%10.7%20%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 6.5% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 9.8×FY25 10.4×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.9×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$1004$304.42 · +230%2026-06-10
Levered DCF$1306$304.42 · +329%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $364.54
52-week range$252 – $399
Analyst targets$290 – $430
Standard DCF$1004 as of 2026-06-10, when it was $304.42
Levered DCF$1306 as of 2026-06-10, when it was $304.42
At own 5y-median P/E (11×)$417
At 5y P/E range (10–16×)$392 – $593
At sector P/E (22×)$817

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.