Travelers Earnings: Improvement in Personal Auto

We think Travelers had a strong start to the year, but given the industry backdrop, the market may have been looking for more. Results in business insurance are holding strong, personal auto results appear to be improving, and the company continues to see benefits from higher interest rates. Overall, these factors led to an 18% annualized return on equity in the quarter, a solid result for the narrow-moat company, in our view. We will maintain our $210 fair value estimate and see the shares as about fairly valued.