Citizens analyst Matthew Carletti reiterated a Market Perform rating on Travelers (NYSE: TRV).

The analyst commented, "We reaffirm our Market Perform rating on The Travelers Companies following better-than-expected second quarter results. Travelers reported operating EPS of $10.04, well above our estimate of $5.22 and consensus of $5.34. The beat versus our estimate was driven by better-than-projected reserve development ($578 mln favorable vs. $110 mln favorable est.), lower-than-projected catastrophe losses ($518 mln vs. $1,303 mln est.), lower-than-projected accident year ex-cat loss ratio (55.2% vs. 56.2% est.), and slightly higher NII ($1,070 vs. $1,021 mln est.). Book value was up +6% sequentially to $159, above our estimate of $155 and consensus of $156. During the quarter, Travelers repurchased $1.3 bln of shares, in line with our estimate. Travelers is a well-managed and disciplined underwriter, in our opinion, with one of the strongest franchises in the P&C insurance sector. However, we view the shares as fairly valued at the current 2.3x book value and ~12x 2027E EPS, with expectations for an ~17% ROE in 2027, and thus reaffirm our Market Perform rating."

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Shares of Travelers closed at $368.98 yesterday.