Latest news with #TravelersCompanies
Yahoo
41 minutes ago
- Business
- Yahoo
Travelers Releases 2025 Injury Impact Report
Comparison of pre- and post-pandemic workers compensation data shows effects of changing workforce demographics HARTFORD, Conn., June 03, 2025--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV), one of the country's largest workers compensation insurers, today published its 2025 Injury Impact Report, which compared workers compensation data from the five years leading up to the COVID-19 pandemic with the next five years. The analysis of more than 2.6 million claims submitted during that time found that while the number of workplace injuries overall continues to decline, the costs associated with them are climbing. "Over the past decade, we've seen three trends intensify: increasing retirement ages, ongoing employee turnover and longer injury recovery times," said Rich Ives, Senior Vice President of Business Insurance Claim at Travelers. "Our aim with this report is to provide employers with insights on these dynamics that are contributing to growing claim severity so they can better navigate these workforce challenges, protect their employees and keep their businesses running." Decreasing Workers Compensation Claim Frequency The report found that the frequency of workplace injuries overall has declined over the past decade. Travelers examined 1.2 million workers compensation claims received during the past five years, down from 1.4 million from 2015 through 2019. Workplace Turnover and First-Year Employees There were many shifts in the workplace over the last 10 years, including continued job churn during and after the pandemic. This created a steady stream of new employees, who are among the most vulnerable to injury. The report found that employees in their first year on the job accounted for approximately 36% of injuries and 34% of overall claim costs during the last five years. This is an increase from the prior five years, when 34% of injuries and 32% of overall claim costs were attributed to new employees. An Aging Workforce The U.S. Bureau of Labor Statistics projects that by 2033, approximately 24% of employees will be age 55 or older – up from 15% in 2003. Travelers has seen the volume of claims involving older employees rise in line with this shift. During the past five years, employees aged 50 or older made up 41% of the injured employee population, and those 60 and above represented 16%. This is up from 39% and 13%, respectively, when compared with data from 2015 through 2019. This trend is significant because older employees – while typically injured less frequently than their younger counterparts – tend to require longer recovery times and have more costly claims. Lengthier Recovery Times From 2020 through 2024, employees missed an average of 80 workdays per injury – an increase of more than seven days when compared with the previous five-year period. Injured employees aged 60 and above were out of work due to workplace injuries for nearly 97 days, almost 17 more days than the overall average and an increase of 14 days from pre-pandemic years. Risk Management and Employee Safety Strategies With proper precautions, many workplace injuries can be prevented. Travelers Workforce Advantage® is the company's comprehensive approach to helping businesses manage employee safety by focusing on three key areas: Onboarding and training employees to establish safe work practices. Creating a culture of safety by supporting and engaging employees. Managing workplace accidents and injuries through the Travelers Corridor of Care® post-injury management process. "By examining claim data, which includes information such as injury frequency, severity and causes, we can provide guidance to employers across multiple industries to anticipate future risks and implement preventive strategies," said Chris Hayes, Assistant Vice President of Workers Compensation and Transportation, Risk Control, at Travelers. "Taking these steps can help employees feel valued and supported, which is key to maintaining a motivated, safe and healthy workforce." Additional findings from the 2025 Injury Impact Report can be found at For best practices on creating safer workspaces, visit the Workplace Safety Resources page on the company's website. About the 2025 Injury Impact Report Travelers analyzed more than 2.6 million workers compensation claims submitted over the past 10 years from a variety of industries and business sizes to identify trends in worker safety. Findings were based solely on indemnity claims, where the injured employees could not immediately return to work and incurred medical costs. About Travelers The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of more than $46 billion in 2024. For more information, visit View source version on Contacts Media: Kate Thermansen, 860-954-1789ktherman@
Yahoo
4 days ago
- 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
Globe and Mail
6 days ago
- Business
- Globe and Mail
Why investors love Definity's big acquisition, helping the home and auto insurer extend its hot run
Expected industry consolidation is forcing Canada's auto and property insurers to choose between eating or being eaten, and Definity Financial Corp. DFY-T is leaving no one guessing where it stands. On Tuesday the company, which predominately operates in Ontario, shelled out $3.3-billion for the Canadian operations of U.S. insurance giant Travelers Companies Inc., a deal that amounted to 40 per cent of Definity's stock market value. In most circumstances, taking such a big bite would be considered a risky bet. Yet Canada's auto and property insurance market has become very lucrative for the industry's best operators, and investors are so intrigued by the growth opportunity that they scrambled to buy more Definity stock on Wednesday, both through an upsized share sale that helps finance the takeover and in the open market. By day's end, Definity's stock jumped 11.3 per cent. Its total return, including dividends, since going public in November, 2021, is now 198.1 per cent, trouncing the 46.9-per-cent total return for the S&P/TSX Financials Index over the same period. Travelers, meanwhile, made the opposite call. The American insurer expanded to Canada in 2013 and 12 years in, its 1.85-per-cent market share remains muted. The company's Canadian business also accounted for just 2.3 per cent of its total property and casualty – that is, home, auto and commercial – premiums in 2024. While Travelers' shares have been on a run of their own and the company is in good financial standing, fighting Canadian rivals would take more capital, because the company would likely need to grow by acquisition. Instead, management decided to sell while home and auto insurers are trading at premium valuations. Travelers declined to comment. The sector is scorching hot for multiple reasons. To start, home and auto insurers are seen as defensive stocks amid the stock market volatility. Banks often struggle with surging loan losses during economic downturns, but property and casualty insurers do not face the same threats. Pricing conditions have also been favourable to insurers. Across the industry, executives often talk about 'soft' and 'hard' markets – the former is when insurers drop their prices and increase their risk tolerance in hopes of gaining market share, and the latter is when companies drop clients and hike premiums. Canada's P&C insurers have been operating in a hard market for a few years now, and there aren't many signs of it changing. When Definity reported first-quarter earnings in early May, chief executive officer Rowan Saunders said the hard market helped premiums grow 9.6 per cent over the same quarter in the prior year. The industry's best operators have also invested in technology that improves their risk models which, in turn, help them determine which clients are worthy of underwriting. This means rising prices and better profits. It also means a lower combined ratio for an insurer, which is a measure of claims to premiums earned. In 2018, Definity's combined ratio was 111.8 per cent, meaning it was paying out more in claims than it was bringing in through premiums. In the first quarter, the ratio had fallen to 94.1 per cent. Having proven its operating prowess, Definity became quite vocal over the past year about wanting to make an acquisition. The company was sitting on excess capital, and its balance sheet was in such good shape that it was comfortable adding debt to fund a large deal. By combining with Travelers' property and casualty business – Travelers' surety business in Canada will remain with the American company – Definity vaults into fourth place, ranked by market share, and its new heft will offer the scale Mr. Rowan believes is necessary to compete in a rapidly changing technology environment. Because Definity will have more revenue, it can spread its technology expenses – to upgrade its risk systems and to transform its claims operations – over a larger pot. And by growing, Definity can mimic the expansion strategy that has been so successful for Canadian rival Intact Financial Corp. Once known as ING Groep NV's Canadian arm, Intact rebranded in 2009 after ING sold the business to public investors. Intact then went on an acquisition spree in Canada, the United States and, most recently, in Britain with its deal to buy RSA Insurance Group. The growth abroad has impressed investors, because Intact has successfully integrated its takeover targets and increased profits in the process. In an interview Tuesday, Mr. Saunders said his immediate focus is to integrate the Travelers' business, but he added, 'We still have capital to keep deploying.' It's not yet clear who else would consider selling, but the more the industry consolidates, the better it is for top operators, because pricing power will only increase.
National Post
7 days ago
- Business
- National Post
Travelers to Sell Its Canadian Personal Insurance Business and Majority of Its Canadian Commercial Insurance Business to Definity for US$2.4 Billion
Article content Article content NEW YORK — The Travelers Companies, Inc. (NYSE: TRV) today announced that it has signed a definitive agreement to sell the personal insurance business and the majority of the commercial insurance business of Travelers Canada to Definity Financial Corporation (TSX: DFY) for approximately US$2.4 billion. The purchase price represents a multiple of 1.8 times book value, adjusting for approximately US$0.8 billion of excess local capital which is being repatriated as part of this transaction in a tax-efficient manner. Travelers, which is the largest surety writer in North America, will retain its premier Canadian surety business. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions. Article content 'This transaction is a reflection of our steadfast commitment to disciplined capital allocation and long-term value creation,' said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. 'The evolution of the Canadian market over the past decade has made Definity a natural long-term owner for this business, a view affirmed by the compelling value of their proposal. I am confident that our Canadian customers, brokers and colleagues will benefit from being part of one of the country's leading and fully integrated property casualty insurers.' Article content Travelers expects to use approximately US$0.7 billion of the net cash proceeds of the transaction for additional share repurchases in 2026, while retaining the remainder to support ongoing operations and for general corporate purposes. The transaction and resulting share repurchases are expected to be slightly accretive to the company's earnings per share in each of the next several years. Article content Jefferies LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP served as legal advisors to Travelers in this transaction. Article content Calculation of Book Value Multiple The price to book value multiple calculation excludes approximately US$0.8 billion of excess local capital from both the numerator (purchase price) and the denominator (book value). Book value is based on the equity of the entities being sold as of Dec. 31, 2024, after taking into account the separation of the surety business and measured on an IFRS basis. Article content About Travelers The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of more than $46 billion in 2024. For more information, visit Article content Forward-Looking Statements All statements in this press release other than statements of historical facts are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These include, among others, statements regarding expected closing of the transaction, use of proceeds, financial impact of the sale and share repurchases. Actual results of matters addressed in these forward-looking statements involve risks and uncertainties and may differ substantially from those expressed or implied. Some of the factors that could cause actual results to differ are discussed under the heading 'Risk Factors' and 'Forward-Looking Statements' in the company's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. In addition, the transaction is subject to closing conditions, including obtaining required regulatory approvals and the satisfaction of other customary closing conditions, and may not occur. The forward-looking statements in this press release speak only as of the date of this press release, and we undertake no obligation to update any forward-looking statements. Article content Article content Article content Article content Contacts Article content Article content Article content
Globe and Mail
21-05-2025
- Business
- Globe and Mail
CINF Lags Industry, Trades at a Premium: How to Play the Stock
Shares of Cincinnati Financial Corporation CINF have gained 4.5% year to date, underperforming the industry 's 11.8% growth and the Finance sector's return of 5.7%. The insurer outperformed the Zacks S&P 500 composite's rise of 0.2% in the same time frame. The stock is trading at a 7.2% discount to its 52-week high of $161.75. It is trading 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. CINF vs. Industry, Sector & S&P 500 Year to Date CINF Shares Are Expensive CINF shares are trading at a premium to the industry. Its price-to-book value of 1.75X is higher than the industry average of 1.57X. The company has a Value Score of C, indicative of expensive valuation. Yet it is cheaper than The Progressive Corporation PGR and The Travelers Companies Inc. TRV, which are also trading at a premium to the industry. Northbound Estimate Revisions Instill Confidence in CINF The Zacks Consensus Estimate for 2025 and 2026 has moved 6.7% and 1.8% north, respectively, in the past 30 days, reflecting analyst optimism on the stock. The Zacks Consensus Estimate for 2025 earnings stands at $5.26, suggesting a decrease of 31% on 12.1% higher revenues of $11.1 billion. The consensus estimate for 2026 earnings stands at $8.12, suggesting an increase of 54.4% on 7.9% higher revenues of $12 billion. The expected long-term earnings growth rate is pegged at 2.8%. Factors Favoring CINF Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer's top line. CINF boasts above-average industry premium growth. CINF is focused on expanding its commercial lines segment by appointing more agencies, strengthening its local field operations, enhancing internal expertise, and offering a broad product portfolio that supports a larger share of agencies' commercial business. Ongoing initiatives to refine pricing accuracy and reduce loss costs are anticipated to further improve the segment's profitability. Since its inception in 2008, Cincinnati Financial's Excess and Surplus (E&S) line has consistently performed well. It is utilizing technology and data analytics to identify new and emerging risks in businesses that require insurance solutions or additional value-added services. A strong emphasis on superior service is expected to continue driving growth and profitability within this segment. Its agent-focused business model, CINFny, remains dedicated to securing new business by delivering outstanding service and expanding insurance offerings to better serve the clients of its agency partners. Cincinnati Financial's consistent cash flow continues to boost liquidity. Cash flow, in addition to higher bond yields, continues to boost investment income growth. The insurer has increased dividends for 65 years straight, a record that is believed to be matched by only seven other U.S. publicly traded companies. The dividend increases reflected strong operating performance and signaled management's and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility. Its dividend yield of 2.4% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. CINF's Return on Capital Return on equity in the trailing 12 months was 8.2%, better than the industry average of 6.6%. This highlights the company's efficiency in utilizing shareholders' funds. However, its return on invested capital (ROIC), which reflects efficiency in utilizing funds to generate income, of 2.3% is poor when compared with the industry average of 5.9%. How to Play CINF Stock Cincinnati Financial is poised to grow on its solid agent network, sturdy financial health, and an impressive dividend history. The average target price of $152 reflects a 1.2% upside potential from its last closing price. However, its business is significantly concentrated in the Midwest region, which is prone to catastrophes. As such, its operations have substantial catastrophe loss exposure, which makes its earnings volatile. Given premium valuation, it is better to adopt a wait-and-see approach on this Zack Rank #3 (Hold) stock. 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 Cincinnati Financial Corporation (CINF): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
