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 strong 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 operating performance relative to peers, reflecting its track record of disciplined underwriting and reserving. We could lower the ratings if: Capital adequacy weakens sustainably below our 'AAA' confidence level; The group cannot maintain its historical levels of strong 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

...The Travelers Cos. Inc. has a leading market position in the U.S., providing the group with a diversified business mix. Travelers is a leading U.S. property/casualty (P/C) insurer in the independent agent distribution channel with a strong market position in many of its lines and a diverse mix of commercial and personal lines. The company is the sixth largest P/C insurer in the U.S., with a top 10 market position (measured by direct premiums written) in several commercial lines. Extremely strong capital has been one of Travelers' attributes. Travelers' capital strength has been resilient historically and throughout periods of heightened catastrophes. It has taken steps to maintain capital strength, including having appropriate catastrophe risk controls and reinsurance protection in place. Share repurchases in recent years have been lower than historical levels largely reflecting the company retaining capital to support growth in premium volume. Strong profitability metrics have been one...

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