The Travelers Companies, Inc. TRV is expected to register a decline in its bottom line but an improvement in its top line when it reports second-quarter 2026 results on July 17, before the opening bell.
The Zacks Consensus Estimate for TRV’s second-quarter revenues is pegged at $12.28 billion, indicating 1.3% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $5.14 per share. The Zacks Consensus Estimate for TRV’s second-quarter earnings has moved north 5.5% in the past 30 days. The estimate suggests a year-over-year decrease of 21%.
What the Zacks Model Unveils for TRV
Our proven model predicts an earnings beat for Travelers this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
TRV’s Earnings ESP: Travelers has an Earnings ESP of +6.09%. This is because the Most Accurate Estimate of $5.45 is pegged higher than the Zacks Consensus Estimate of $5.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Travelers Companies, Inc. Price and EPS Surprise
The Travelers Companies, Inc. price-eps-surprise | The Travelers Companies, Inc. Quote
TRV’s Zacks Rank: The stock carries a Zacks Rank #3 at present.
Factors to Consider
Better performances across all three segments are likely to aid Travelers’ second-quarter results.
Premiums are likely to have benefited from better pricing, a solid renewal rate change, strong retention and exposure growth. The Zacks Consensus Estimate is currently pegged at $10.9 billion, indicating an increase of 0.3% from the year-ago reported number.
A higher average level of fixed maturity investments and higher long-term average yields are likely to aid investment results in the to-be-reported quarter. Management estimates fixed income NII, including earnings from short-term securities, of approximately $810 million after tax in the second quarter. The Zacks Consensus Estimate is currently pegged at $1 billion, implying an increase of 9.5% from the year-ago reported number.
The Personal Insurance segment is likely to have benefited from strong retention rates, increased new business premiums and positive renewal premium change, particularly in the Homeowners business. The Zacks Consensus Estimate is currently pegged at $4.1 billion, indicating a decrease of 4% from the year-ago reported number.
The Bond & Specialty Insurance segment is likely to have benefited from strong retention rates, positive renewal premium changes and increased new business premiums, as well as increases in the United Kingdom and broader Europe. The Zacks Consensus Estimate is currently pegged at $1 billion, indicating an increase of 5.9% from the year-ago reported number.
Strong retention rates, positive renewal premium changes and increased new business premiums are likely to have aided premiums at Business Insurance. The Zacks Consensus Estimate is currently pegged at $5.7 billion, indicating an increase of 2.3% from the year-ago reported number.
An increase in net written premiums, coupled with higher net investment income and other revenues, is likely to have aided the top line in the to-be-reported quarter.
Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is expected to have led to an improvement in the combined ratio. However, losses from severe convective storms in the United States are likely to have affected the insurer. The Zacks Consensus Estimate is currently pegged at 96, indicating a deterioration of 600 basis points from the year-ago reported number.
However, expenses are expected to have risen due to higher claims and claim adjustment expenses, amortization of deferred acquisition costs, general and administrative expenses, and interest expenses.
Continued share buybacks are anticipated to have provided an additional boost to the bottom line.
Other Stocks to Consider
Here are three other P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Cincinnati Financial Corporation CINF has an Earnings ESP of +8.84% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited CB has an Earnings ESP of +4.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $6.60, indicating a year-over-year increase of 7.4%.
CB’s earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation ALL has an Earnings ESP of +23.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92, indicating a year-over-year decrease of 17.1%.
ALL’s earnings beat estimates in each of the last four reported quarters.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Chubb Limited (CB): Free Stock Analysis Report
Cincinnati Financial Corporation (CINF): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).