Travelers delivered revenue and non-GAAP earnings per share above Wall Street expectations in Q3, yet the market responded negatively. Management attributed the quarter’s results to strong underwriting profits—driven by lower catastrophe losses and disciplined risk selection—and higher investment income, especially from its fixed income portfolio. CEO Alan Schnitzer highlighted, “Very strong underwriting results and higher investment income drove the bottom line,” while noting robust performance across all business segments. Despite these strengths, investors appeared concerned about the slower pace of top-line premium growth, particularly in property and select business lines.
Is now the time to buy TRV? Find out in our full research report (it’s free for active Edge members).
Travelers (TRV) Q3 CY2025 Highlights:
- Revenue: $12.44 billion vs analyst estimates of $12.34 billion (5% year-on-year growth, 0.9% beat)
- Adjusted EPS: $8.14 vs analyst estimates of $6.32 (28.8% beat)
- Adjusted Operating Income: $2.32 billion vs analyst estimates of $2.15 billion (18.6% margin, 7.8% beat)
- Market Capitalization: $59.89 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Travelers’s Q3 Earnings Call
- Gregory Peters (Raymond James) asked about top-line growth prospects beyond this year. CEO Alan Schnitzer reiterated their priority on long-term growth but declined to provide specific forward-looking guidance, emphasizing confidence in the company’s value proposition.
- David Motemaden (Evercore) inquired about property pricing trends and growth in Business Insurance. President Greg Toczydlowski explained that property premium declines were driven by large account dynamics, while select and middle market segments continued to see positive, though decelerating, price increases.
- Michael Zaremski (BMO) questioned whether views on loss cost inflation have changed. CFO Dan Frey stated that loss trend assumptions remain stable, with no significant surprises in the quarter’s loss activity.
- Elyse Greenspan (Wells Fargo) asked if tariffs have materially impacted personal auto margins. President Michael Klein responded that tariff impacts were present but modest, well below previously forecasted severity levels, and are being closely monitored.
- Tracey Banque (Wolfe Research) probed whether excess capital could support both share buybacks and technology investments. Frey confirmed that all opportunities to generate returns—including tech investments and M&A—are considered before returning capital to shareholders.
Catalysts in Upcoming Quarters
Our analysts will be watching (1) whether underwriting margins remain resilient as premium growth recovers in key business segments, (2) the impact of ongoing technology and AI investments on expense efficiency and underwriting quality, and (3) how Travelers navigates external risks such as catastrophe events, social inflation, and tariff pressures. Execution on planned share repurchases and progress in personal and business insurance growth initiatives will also be closely scrutinized as signposts for long-term profitability.
Travelers currently trades at $268.50, in line with $269.35 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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