Travelers Was A Big Winner, Run A House Position

Travelers has nearly doubled since our initial buy call after a significant drop two years ago. TRV's Q2 results showed strong profitability: net income of $2.21B, core income of $2.16B, and adjusted EPS of $10.04, beating consensus by $4.65. Premium growth remains robust across all segments, with retention rates high and underlying combined ratios notably improved year-over-year. We recommend trimming the initial investment plus half the profit, letting the remainder run as a long-term house position, given ongoing buybacks and dividend growth.

Two years ago we called for a buy in the Travelers Companies (TRV) after the stock had a precipitous drop. We saw a medium-term investment opportunity in the name. This is the type of opportunity