5. The Travelers Companies Inc. (NYSE:TRV)
Year-to-Date Performance: 34.44%
Number of Hedge Fund Holders: 38
The Travelers Companies Inc. (NYSE:TRV), or simply Travelers, is an American insurance provider that ranks among the top 5 hot insurance stocks to buy right now. It is one of the largest writers of commercial property casualty insurance and personal insurance in the US. Travelers offers a wide range of coverage options for auto, home, and business insurance, primarily through independent agents and brokers. With over 30,000 employees and 15,000 independent agents across the US, Canada, the UK, and Ireland, the company has a strong market presence.
In the Q3 2024 earnings call, management shared that Travelers has demonstrated its commitment to customer service by efficiently managing claims following hurricanes Helene and Milton. The company activated its national catastrophe center in Hartford, deploying hundreds of claims professionals and mobile offices to assist affected customers. This proactive approach allows The Travelers Companies Inc. (NYSE:TRV) to resolve claims quickly. The company aims to resolve 90% of claims from natural catastrophes within 30 days.
In the third quarter of 2024, The Travelers Companies Inc. (NYSE:TRV) reported impressive financial results with a net income of $1.26 billion, or $5.42 per diluted share, significantly up from $404 million in the same quarter last year. Core income increased to $1.218 billion, driven by higher underwriting gains and net investment income despite some increased catastrophe losses. The company achieved record net written premiums of $11.3 billion, marking an 8% increase from the previous year.
The company’s Business Insurance segment grew by 9% year-over-year, reaching $5.5 billion in net written premiums. The Bond & Specialty Insurance segment also performed well, with a 7% increase to $1.1 billion in premiums, maintaining a high retention rate of 90% in the management liability business. Personal Insurance saw a similar growth trend, with net written premiums rising by 7% to reach a record $4.7 billion, driven by strong renewals in homeowners insurance.
Additionally, The Travelers Companies Inc. (NYSE:TRV) returned $496 million to shareholders this quarter through share repurchases and dividends, reflecting its commitment to returning capital while maintaining growth. This includes $253 million in share buybacks and $243 million in dividends.
With its strong financial performance, effective response strategies, and consistent premium growth across multiple segments, The Travelers Companies Inc. (NYSE:TRV) presents a compelling investment opportunity.
Over the past 5 years, The Travelers Companies Inc. (NYSE:TRV) has recorded a compound annual growth rate of 7% for its top line and 13% for its bottom line.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 38 hedge funds held stakes in The Travelers Companies Inc. (NYSE:TRV). As of June 30, AQR Capital Management holds 1.15 million shares of the company, valued at $233.76 million, making it TRV’s most prominent shareholder.
