Stockchase Opinions

Brian Acker, CASt. Paul Travelers Companies Inc.TRVTOP PICKSep 10, 2004

Feels it's mispriced. Will probably hold for a couple of months until the mispricing corrects itself.
$33.69

Stock price when the opinion was issued

$289.95

As of Jun 03, 2026. Market Open.

insurance
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BUY

Property and casualty insurance is bumping up against much better comps.

BUY

Trades at 11x earning at 10% premium growth. They've raised the dividend 20 straight years.

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2.5% dividend. Financials in general seem to be mispriced.
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Property/casualty group looks OK but this company is underperforming the sector. Look for strength, not weakness.
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Will far outpace the average market in its earnings are the cyclicals that are exposed to the economy.
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A high quality company that is cheap. Insurance stocks have become incredibly compressed because of the fear of higher interest rates and it has been overdone.