Latest news with #TRV
Yahoo
30-05-2025
- Business
- Yahoo
TRV to Sell Major Canada Insurance Operations: Time to Buy the Stock?
The Travelers Companies, Inc. TRV has inked a deal to divest the personal insurance business and the majority of the commercial insurance business of Travelers Canada to Definity Financial Corporation for $2.4 billion. The divestiture is intended to create long-term value via prudent capital allocation. Subject to regulatory approvals and other customary closing conditions, the transaction will see light in the first quarter of sale consideration represents a multiple of 1.8 times book value, excluding approximately $0.8 billion of excess local capital, which is being repatriated in a tax-efficient manner. To optimize its capital allocation and enhance long-term shareholder value, this insurer will deploy $0.7 billion of the net proceeds to buy back shares in 2026. The remaining $1.7 billion will support ongoing operations and general corporate boasts being the largest surety writer in North America. It has decided to retain its premier Canadian surety business, which is in alignment with its core competencies. It is also streamlining its operations. This latest strategic move is expected to be slightly accretive to earnings per share over the next several Financial Corporation, on the other hand, will become the fourth-largest property and casualty insurer in Canada following the buyout. This acquisition will also be immediately accretive to its operating earnings per share. TRV's Canada operation generates roughly $1 billion in premiums annually that will be added to Definity's personal lines business. Travelers boasts a strong market presence in auto, homeowners' insurance and commercial U.S. property-casualty insurance with solid inorganic growth. Travelers has grown net written premiums by more than 70% to over $43 billion in the past eight years, driven by strong retention rates, positive renewal premium changes and higher new business premiums in both Domestic Automobile and Domestic remains optimistic about the trajectory of its personal lines of business as insurers are tightening their underwriting standards. It expects to see moderated claim trends and is bundling auto and home to make coverages affordable. While Travelers expects renewal premium change to remain elevated as it continues to seek rate increases in response to higher loss costs, it also anticipates a gradual moderation over tandem with the industry's ongoing technological transformation, Travelers has been harnessing cutting-edge technologies — including artificial intelligence, the Internet of Things, data analytics, and cloud computing — to enhance its underwriting claims, customer experience and risk management capabilities. As part of its commitment to innovation, Travelers plans to invest more than $1 billion annually in technology to support continued advancement and operational solid cash generation has allowed it to return capital to shareholders via dividends and share buybacks. It increased dividends for the 21st consecutive year with a compound annual growth rate of 8% over that period. Its current dividend yield of 1.7% is better than the industry average of 0.3%.Shares of TRV have gained 14.3% year to date, underperforming its industry's increase of 16.5%. Image Source: Zacks Investment Research TRV shares are trading at a premium to the industry. Its price-to-book of 2.21X is much higher than the industry average of 1.63X. It is, however, cheaper than The Progressive Corporation PGR and The Allstate Corporation ALL, two other P&C insurers. Image Source: Zacks Investment Research Despite its premium valuation, investors can add this Zacks Rank #2 (Buy) stock to their portfolios as it is set to gain from underwriting excellence, solid investment income and a strong balance sheet with a statutory capital and surplus of $27.8 billion at first-quarter 2025 end. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Travelers Companies, Inc. (TRV) : Free Stock Analysis Report The Allstate Corporation (ALL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Keefe Bruyette Raises Target as Travelers Companies (TRV) Divests Canadian Businesses
On Tuesday, May 27, The Travelers Companies Inc. (NYSE:TRV) announced an agreement to divest its personal insurance segment and most of its commercial insurance operations in Canada to Definity Financial Corp., a Canadian financial services company. The sale is valued at approximately $2.4 billion, implying an adjusted price-to-book value of 1.8 times, according to company data. However, after this deal, which is expected to close in the first quarter of 2026, The Travelers Companies will retain its Canadian surety business. A close-up image of an insurance policy with hands standing firmly on top, conveying security. Of the total proceeds, the company plans to use around $700 million for share buybacks in 2026, which are expected to be EPS accretive. The remaining proceeds will be used for operational and corporate purposes. Following the deal announcement, an analyst from Keefe Bruyette increased his price target on The Travelers Companies to $303 from $290 and reiterated his Outperform rating. The analyst was positive on the deal and expects higher return ratios to lead to better valuation multiples for the company. The Travelers Companies Inc. (NYSE:TRV) is a U.S.-based provider of property casualty insurance for auto, home, and business. While we acknowledge the potential of TRV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRV and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Time of India
22-05-2025
- Entertainment
- Time of India
Indian football fans can skip long US visa wait times for FIFA 2026 by travelling to Canada or Mexico
With the FIFA World Cup 2026 set to take place across the United States, Canada, and Mexico, Indian fans looking to experience the tournament in person may find smoother travel access through Canada and Mexico. While US visa appointments for Indian tourists are currently facing longer wait times-extending up to 13.5 months; both Canada and Mexico offer relatively faster and less complex tourist visa processes. Canada allows online applications for its Temporary Resident Visa (TRV), with processing timelines often under three months. Mexican tourist visa applications can be completed quickly as well, with added flexibility for travelers already holding valid visas for countries like the US, UK, Canada, Schengen states, or Japan. Matches in Canada will be hosted in Toronto and Vancouver, while Mexico will hold games in Mexico City, Guadalajara, and Monterrey. With the World Cup's expanded format of 48 teams and 104 matches, fans opting for these locations can still be part of the global event without the added delays tied to U.S. visa appointments. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Se você sofre com isso de forma constante, veja isso agora. Saúde Undo For Indian fans eager to witness the tournament live, applying through Canada or Mexico may offer a smoother and timely route to be part of football's biggest stage. (Join our ETNRI WhatsApp channel for all the latest updates) According to the US Department of State, B-1/B-2 tourist visa appointments for Indian applicants have substantial wait times across major consular cities, which could affect travel plans for fans hoping to attend matches in the United States. Live Events You Might Also Like: Planning to attend FIFA World Cup 2026 in the US? Now is the time to apply for your visa Indian nationals planning to travel to the United States for tourism, including attending global events like the FIFA World Cup 2026, are required to obtain a B-1/B-2 visa. The application process includes completing the DS-160 form online, paying the visa fee, and attending an in-person interview at a US consulate or embassy. Appointment availability depends on location-specific demand, staffing levels, and overall workload at the post, leading to varied wait times. According to the US Department of State, as of April 25, 2025, the average wait time for a B-1/B-2 visa interview in Chennai is 11.5 months, with the next available appointment at 13.5 months. Hyderabad reports a 7.5-month wait for both average and next available appointments, while Kolkata stands at 8 months for both. Mumbai applicants face a 7.5-month average wait, with the next appointment slot available in 9.5 months. In New Delhi, the average and next available appointment times are both 9 months. The department advises applicants to schedule visa appointments well in advance to account for these delays. You Might Also Like: US may bolster consular services, employ AI to meet World Cup visa demand, says Rubio FIFA World Cup 2026 The FIFA World Cup 2026 will be the largest edition of the tournament to date. For the first time, the event will feature 48 teams, up from 32 in previous editions. Between June 11 and July 19, 2026, the FIFA World Cup will feature approximately 104 matches held across three host countries: the United States, Mexico, and Canada. The tournament will take place in 16 cities, with 11 located in the US. All matches from the quarter-finals onwards are scheduled to be played in the United States, including the final, which will be held at MetLife Stadium in New Jersey.
Globe and Mail
16-05-2025
- Business
- Globe and Mail
TRV Outperforms Industry, Trades at Premium: Is the Stock Still a Buy?
Shares of The Travelers Companies, Inc. TRV have gained 12.5% year to date, outperforming the industry, the Finance sector and the Zacks S&P 500 composite index in the same time frame. The stock is trading near its 52-week high and well above the 50-day simple moving average (SMA), indicating a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend. TRV, one of the leading writers of auto and homeowners' insurance plus commercial U.S. property-casualty insurance, has a market capitalization of $61 billion. The average volume of shares traded in the last three months was 1.4 million. TRV vs. Industry, Sector & S&P 500 Year to Date Average Target Price for TRV Suggests an Upside Based on short-term price targets offered by 22 analysts, the Zacks average price target is $281.45 per share. The average suggests a potential 3.9% upside from the last closing price. Bullish Analyst Sentiments but Growth Projections Mixed The Zacks Consensus Estimate for TRV's 2025 and 2026 earnings has moved up 6.1% and 3.4%, respectively, in the past 30 days, instilling confidence in its shares. The Zacks Consensus Estimate for 2025 earnings stands at $18.39, suggesting a decrease of 14.8%, while the consensus estimate for 2026 earnings stands at $24.07, suggesting an increase of 30.9%. The long-term earnings growth rate is expected to be 17.2%, lagging the industry average of 18.9%. Factors Favoring Travelers Travelers is poised for growth, driven by solid retention rates, favorable pricing, an uptick in new business and positive renewal premium trends. The company's broad product portfolio, covering nine distinct lines of business, provides extensive coverage options. Continued execution of strategic growth initiatives, combined with stable market environments, is expected to support the expansion of TRV's auto, homeowners, and commercial insurance segments. To solidify its competitive advantage in the Bond & Specialty segment, it plans to launch products in 2025. Higher returns from the non-fixed income portfolio have been driving investment income over the last four years amid a low interest rate environment. Travelers estimates fixed-income NII, including earnings from short-term securities, to be $725 million after-tax in the second quarter, growing to approximately $755 million in the third quarter and then to around $790 million in the fourth quarter of 2025. The insurer expects the $100 billion investment portfolio to continue generating a higher level of predictable and reliable net investment income. Net margin has improved 170 basis points over the last two years on prudent underwriting. Travelers has a conservative balance sheet among its peers. The insurer remains focused on keeping the debt-to-capital ratio between 15 and 25 and has been increasing its book value for the past 10 years. TRV had $4.49 billion remaining under repurchase authorization at first-quarter 2025 end. Travelers' Favorable Return on Capital Over the trailing 12 months, its return on equity (ROE) reached 16.1%, well above the industry average of 7.8%. This highlights the company's effective use of shareholders' capital. Travelers aims to maintain a core ROE in the mid-teens over time. Return on invested capital (ROIC) has steadily increased over the past few quarters, aligning with a rise in the company's capital investments. This demonstrates TRV's strong capability in efficiently allocating capital to drive earnings. Over the trailing 12 months, ROIC was 9.1%, surpassing the industry average of 5.9%. TRV Shares Expensive TRV shares are trading at a premium to the industry. Its price-to-book value of 2.18X is higher than the industry average of 1.51X. It has a Value Score of A. Shares of other insurers like The Allstate Corporation ALL, Chubb Limited CB and The Progressive Corporation PGR are also trading at a multiple higher than the industry average. How to Play TRV Stock Travelers' strong presence in auto, homeowners, and commercial U.S. property-casualty insurance provides a solid foundation for future growth. An impressive history of inorganic expansion strengthens its position. Continued momentum in renewal rate improvements, high retention levels and increased new business, supported by a well-diversified portfolio and solid capital strength, are likely to sustain its earnings growth. Travelers has been hiking dividends for the last 21 years. Its dividend yield of 1.8% appears attractive compared with the industry average of 0.3%, making it an attractive pick for yield-seeking investors. Its VGM Score of B instills confidence. Thus, despite its premium valuation, this Zacks Rank #2 (Buy) stock is worth adding to your portfolio You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report The Allstate Corporation (ALL): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
13-05-2025
- Automotive
- Globe and Mail
PGR vs. TRV: Which Property and Casualty Insurer is a Better Buy?
Despite a rise in catastrophic activities, the property and casualty insurance industry is poised to grow as it continually focuses on personalized offerings to enhance customer experience, leveraging digitalization. Solid retention, exposure growth across business lines and improved pricing are driving higher premiums and helping insurers maintain profitability. The Progressive Corporation PGR and The Travelers Companies Inc. TRV — both notable P&C insurers — are expected to grow, banking on these positives. To safeguard their balance sheet, insurers are increasingly seeking reinsurance arrangements. Climate risk modeling is also helping a lot. Insurers' pricing is thus influenced by higher reinsurance costs and more restrictive terms, as well as higher inflation. Yet, as an investment option, which stock, PGR or TRV, is more attractive? Let's closely look at the fundamentals of these stocks. Factors to Consider for PGR PGR is one of the country's largest auto insurance groups, the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. Most of PGR's premium comes from auto insurance, though it is on track to expand its offerings into homeowners and commercial insurance. As part of its growth strategy, Progressive is prioritizing auto bundles, lowering exposure to risky properties and increasing segmentation through product rollouts. In line with industry trends, Progressive has embraced digital transformation, including the adoption of AI technologies. Its Snapshot program supports personalized pricing, strengthening its competitive position across all markets. Its expanded multi-product portfolio continues to fuel growth and has led to improvements in policy life expectancy (PLE) — a key measure of customer retention — which has consistently risen across all business segments in recent years. Over more than 10 years, PGR's average combined ratio has stayed under 93%, outperforming the industry average of over 100%. This performance reflects strong underwriting discipline and favorable reserve development, both of which should help the company retain the momentum. Progressive's comprehensive reinsurance program shields it from the adverse financial impacts of catastrophic events and active weather periods, helping to maintain the integrity of its balance sheet. Net margin, measuring a company's profitability, has been showing continuous improvement. The metric expanded 950 basis points in the last two years, banking on rising demand for personal auto insurance policies as well as prudent risk management. PGR's solid cash flow ensures continuous investment in growth initiatives, including digitalization, which helps improve margins. PGR has been enhancing its book value and lowering leverage, banking on operational expertise. Though its leverage compares unfavorably with the industry average, times interest earned, reflecting a company's debt servicing capabilities, outperforms the industry. Its return on equity of 33.5% betters the industry average of 7.8%. Factors to Consider for TRV Travelers boasts a strong market presence in auto, homeowners' insurance and commercial U.S. property-casualty insurance with solid inorganic growth. Travelers has grown net written premiums by more than 70% to over $43 billion over the past eight years, driven by strong retention rates, positive renewal premium changes and higher new business premiums in both Domestic Automobile and Domestic Homeowners and other across all three segments. Travelers' commercial business continues to deliver strong results, driven by stable market conditions and the successful implementation of its strategies. It has maintained historically high retention levels, achieved improved pricing, and grown new business. While Travelers expects renewal premium change to remain elevated as it continues to seek rate increases in response to higher loss costs, it also anticipates a gradual moderation over time. To solidify its competitive advantage in the Bond & Specialty segment, it plans to launch products in 2025. Net margin improved 170 basis points over the last two years on prudent underwriting. On the flip side, the majority of Travelers' revenues are generated from the North American market, exposing it to concentrated geographic risk. Over the last four years, Travelers has been witnessing a rising debt level that has induced higher interest expenses. Though its debt of $8 billion at first-quarter 2025 end remained flat from 2024 end, both its leverage and times earned interest compared unfavorably with the industry average. Nonetheless, a solid capital deployment strategy supports growth and helps return wealth to shareholders. Its return on equity of 16.8% is better than the industry average. Estimates for PGR and TRV The Zacks Consensus Estimate for PGR's 2025 revenues and EPS implies a year-over-year increase of 16.5% and 12.2%, respectively. EPS estimates have moved 1.2% northward over the past 30 days. PGR has a Growth Score of A. On the other hand, the Zacks Consensus Estimate for TRV's 2025 revenues implies a year-over-year increase of 5.4% while the same for EPS indicates a decline of 14.8% year over year. EPS estimates have moved 6.1% northward over the past 30 days. TRV has a Growth Score of D. Are PGR and TRV Shares Expensive? Progressive is trading at a price-to-book multiple of 5.67, above its median of 4.72 over the last five years. Travelers' price-to-book multiple sits at 2.15, above its median of 1.74 over the last five years. Conclusion PGR remains focused on increasing the share of auto and home-bundled households, investing in mobile applications and rolling out products in a higher number of states to drive growth. Travelers is set to gain from continued strong renewal rate change, retention and an increase in new business. Underwriting excellence and solid investment income drive its earnings. Both these insurers have weathered cost challenges well, as evident from their continued net margin improvement. Yet, on the basis of return on equity, which reflects a company's efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, PGR scores higher than TRV. Progressive has a VGM Score of A while Travelers carries a VGM Score of B. PGR shares have gained 17% year to date and outperformed the industry, while TRV has gained 11.3% and underperformed the industry. Though both PGR and TRV carry a Zacks Rank #2 (Buy), PGR seems a safer bet. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> The Travelers Companies, Inc. (TRV): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
