The Travelers Cos. Inc.

The stable outlook on The Travelers Cos. Inc. and its operating subsidiaries (collectively, Travelers) reflects the group's extremely strong competitive position and capital adequacy and its superior operating earnings. S&P Global Ratings expects the group's operating performance to remain consistent with historical profitability and our base-case projections. We also expect Travelers to maintain favorable pricing relative to peers, reflecting its track record of disciplined underwriting and reserving. We could lower the ratings if: Capital adequacy weakens below our 'AAA' confidence level; The group cannot maintain its historical levels of superior underwriting profitability; or Travelers' competitive position materially erodes. We are unlikely to raise our ratings in the next 24 months. An upgrade is constrained by our intermediate insurance industry and

...The Travelers Cos. Inc. has a leading market position in the U.S., providing the group with a diversified business mix. As the sixth-largest property/casualty (P/C) insurer in the U.S., with a top 10 market position (measured by direct premiums written) in several commercial lines, Travelers has developed a well-diversified and resilient business model. Extremely strong capital has always been one of Travelers' trademark characteristics.Travelers' capital strength has been resilient even throughout periods of heightened catastrophe activity. The company has taken steps to maintain capital strength, such as having proper catastrophe risk controls in place, making strategic reinsurance purchases, and adjusting share repurchase activity based on capital requirements. Strong profitability metrics have been one of the key factors behind the ratings on Travelers.The company's operating performance has historically been strong and relatively stable. The five-year (2014-2018) combined ratio average...

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