The Travelers Cos. Inc.

For 2023, we expect underwriting profitability in personal insurance to improve from the effect of pricing increases obtained in 2022 and 2023. We also believe that premium growth will rise amid strong pricing, retention, and growth exposure. The stable outlook reflects the group's prominent market leadership, robust capital adequacy, and strong operating earnings. We expect the group's operating performance to remain consistent with historical profitability in our base-case projections. We forecast the group to keep at least a 4 percentage point lead in its combined ratio relative to the industry. 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

...Despite challenges in personal insurance in 2022 and the first half of 2023, Travelers generated strong net earnings due to its highly diversified business book and strong rate momentum. The company's strong profitability is the key driver behind our ratings on Travelers. We also consider Traveler's operating performance to be a key rating strength compared with other U.S. peers. The company continues to demonstrate pricing power and disciplined growth strategy. The five-year (2018-2022) combined ratio average is about 95.7%, compared with the industry average of about 99.7%, highlighting Travelers' pricing power and its ability to maintain a strong profit margin. For 2023, we expect underwriting profitability in personal insurance to improve from the effect of pricing increases obtained in 2022 and 2023. We also believe that premium growth will rise amid strong pricing, retention, and growth exposure. S&P Global Ratings expects Travelers Cos. Inc. will maintain a leading market presence...

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