First Take 2Q26 Earnings: Strong All Around Results

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First Take 2Q26 Earnings: Strong All Around Results

Update

July 17, 2026 12:40 PM GMT

Morgan Stanley & Co. LLCMThe Travelers Companies, Inc. | North America Bob Jian Huang

Equity Analyst

First Take 2Q26 Earnings: Bob.Huang@morganstanley.comDaniel Lee, ACAS +1 212 761-6136

Research Associate

Daniel.Lee4@morganstanley.com +1 212 761-0219

Strong All Around Results Siddhant Shah

Sid.Shah@morganstanley.com +1 212 761-2603

Reaction to earnings

The Travelers Companies, Inc. (TRV.N, TRV US)

Unchanged Modest upside Largely unchanged

Insurance - Property & Casualty | United States of

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS America

Source: Company data, Morgan Stanley Research Stock Rating Underweight

Industry View Attractive

Price target $290.00

Improving underwriting powers the quarter: Travelers is seeing strong Shr price, close (Jul 16, 2026) $337.82

underwriting profit for some time now. This quarter is no different. While pricing is Mkt cap, curr (mm) $72,888

52-Week Range $349.21-250.30

facing notable headwinds in both Personal Insurance and Business Insurance, the

overall underwriting profit has been improving sequentially. The company saw sub

90s combined ratio for Business Insurance, and sub 80s combined ratio for Personal

Insurance. Both are impressive given the current underwriting environment. Further,

the excess cash generated also supported buybacks, which was well beyond

expectations. That said, a portion of the earnings beat was due to favorable

catastrophe losses, which is temporary in our view. Growth continues to slow down

in Personal Insurance, while Business Insurance saw some improvements despite

pricing headwinds. Given the pricing trends and overall P&C environment, we expect