The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners' insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

Travelers’ strong profitability and capital discipline are combined with a notable premium to book value, which makes the picture look more high-quality than cheap. P/E at 10.05 and P/FCF at 7.56 appear below industry medians, while P/S at 1.66 also points to a moderate valuation on revenue. At the same time, P/B at 2.15 is significantly above the median, and this is what limits re-rating potential, because the market is already paying for high capital quality and a sustainable return on equity. ROE of 25.44, ROA of 5.31, ROI of 19.81, and return on tangible equity of 29.49 are well above the industry and are also rising over the years, confirming strong operating efficiency. Profit margin of 15.42%, operating margin of 22.03%, and gross margin of 49.51% also look healthy, and their improvement across several periods suggests good cost control and underwriting discipline. Revenue, EBITDA, operating profit, and net income are generally staying at high levels, although quarterly volatility is visible in some periods, which is typical for the financial business. The debt burden looks comfortable: debt/equity of 0.27 is below the industry median, and long-term debt does not appear excessive relative to capital. The weak point is liquidity: the quick ratio is zero, and the current ratio is 0.27, which is not critical for an insurer but still requires attention to the liability structure and the quality of liquid assets. Dividend yield of 0.34% has declined compared with previous periods, so the dividend argument is not the main driver of the investment case right now. Overall, this is a company with strong profitability, good capitalization, and moderate leverage, but with not the cheapest book valuation and weak liquidity by standard ratios. Therefore, it is fair to expect only a moderately more restrained valuation relative to the initial forecast, rather than an aggressive upward revision.

The Travelers Companies, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно вырос. Рынок на стороне быков.

Medium index, slightly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Strong profitability and low debt support TRV, but a high P/B valuation and weak liquidity limit revaluation potential.

Mercury General Corporation MCY appears well positioned to continue growing its policy base even as competition intensifies in the U.S. personal auto insurance market. MCY’s second-quarter 2026 performance provides evidence of this momentum. Personal auto policies in force increased 2.5% from year-end 2025 to 1.07 million, while total company policies rose 4.2% to 2.36 million. Direct premiums written also increased 9.3% year over year, suggesting that policy growth is increasingly supplementing rate-driven premium expansion.
Competition in the personal auto insurance market is increasing as insurers shift from aggressive rate increases toward competing more actively for profitable customers. As pricing momentum moderates, insurers with strong underwriting capabilities, technology, distribution networks and financial strength are likely to gain an advantage.
This environment could benefit MCY. Mercury General competes through competitively priced products, disciplined underwriting, risk segmentation, strong customer service, effective claims management and established relationships with independent agents.
MCY has also identified auto as an important growth opportunity. In its 2025 annual report, MCY noted that the private-passenger auto market had softened as insurers returned to profitability, while maintaining its expectation of growing its private-passenger auto business in 2026. This suggests that MCY is seeking to capitalize on improving market conditions while maintaining underwriting discipline.
Continued policy growth accompanied by a stable or improving combined ratio would indicate that the company is winning business through competitive pricing, risk selection and execution rather than underpricing risk. Conversely, if competition forces MCY to become overly aggressive on pricing or marketing, new-business economics, retention and margins could come under pressure.
Overall, MCY appears capable of continuing to gain auto policies in a more competitive market, provided it maintains its underwriting discipline.
What About Its Peers?
The Progressive Corporation PGR is well positioned to benefit from the increasingly competitive U.S. personal auto market. Its strong brand, scale, sophisticated pricing and risk-segmentation capabilities, and growing use of telematics and technology can help it attract profitable customers. As industry rate increases moderate, PGR’s ability to combine competitive pricing with disciplined underwriting should support continued policy and market-share gains while protecting margins.
The Travelers Companies, Inc. TRV is also well positioned to navigate a more competitive personal auto market. Its strong underwriting capabilities, sophisticated pricing and risk-selection tools, telematics and extensive claims-management expertise should help it compete for profitable customers as rate increases moderate. Travelers can potentially gain or retain market share by offering competitive pricing while using data and technology to better differentiate risks.
MCY’s Price Performance
Shares of MCY have gained 29.9% in the past year, outperforming the industry.
MCY’s Overvaluation
The stock is overvalued compared with its industry. Its forward price-to-book value of 2.01X is higher than the industry average of 1.43X. It carries a Value Score of A.
Estimate Movement for MCY
The Zacks Consensus Estimate for MCY’s fourth-quarter 2026 EPS has moved up 0.9% in the past 30 days. The Zacks Consensus Estimate for full-year 2026 and 2027 EPS has moved up 7.3% and 1.1%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for MCY’s 2026 and 2027 revenues indicates a year-over-year increase.
MCY stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Can MCY Sustain Policy Growth Amid Rising Auto Competition?

The Progressive Corporation PGR continues to use its extensive driving data and telematics capabilities to improve pricing, risk selection and claims management. Its Snapshot program uses actual driving behavior to help assess individual risk, giving Progressive a valuable data advantage as artificial intelligence adoption accelerates.
In the second quarter of 2026, net premiums earned increased 6% year over year to $21.57 billion, while policies in force rose 7% to 40.09 million. Personal Lines Business remained the key growth engine, with policies in force increasing 8% to 38.86 million. Progressive reported an 87.3% combined ratio compared with 86.2% in the prior-year quarter.
The opportunity is becoming more important as competition in the U.S. personal auto market intensifies. After several years of significant rate increases, insurers are shifting toward competing more actively for profitable customers. This puts greater emphasis on accurate risk selection, customer retention, claims execution and operating efficiency.
Progressive's telematics and data capabilities could help it navigate this trend. Increasing use of AI could further enhance these capabilities by helping the company improve claims processing, fraud detection and pricing models. As the company continues to expand its customer base, these capabilities could support underwriting discipline.
Progressive’s data advantage could become a durable competitive strength and position PGR as one of the strongest operators in U.S. auto insurance.
What About Its Peers?
The Travelers Companies, Inc. TRV is investing heavily in data and technology to strengthen underwriting. TRV’s IntelliDrive 365 program uses driving behavior to help personalize auto pricing, while the company is deploying AI across underwriting and claims.
The Allstate Corporation ALL is also using telematics to sharpen auto insurance pricing through its Drivewise program, which tracks driving behavior such as speed, braking and time of day. This creates a similar data-driven approach to risk assessment.
PGR’s Price Performance
PGR shares have declined 12.8% in the past year against the industry’s growth of 3%.
Image Source: Zacks Investment Research
PGR’s Valuation
Shares of Progressive are trading at a trailing 12-month price-to-book value of 3.64X, higher than the industry average of 1.43X. Yet, it carries a Value Score of B.
Image Source: Zacks Investment Research
Estimates for PGR
The Zacks Consensus Estimate for Progressive’s 2026 earnings per share (EPS) indicates a year-over-year decrease of 2.8%.
The consensus estimate for revenues is pegged at $92.3 billion, implying a year-over-year improvement of 6.1%.
The consensus estimate for 2027 EPS indicates a decrease of 9%, while revenue estimates indicate an increase of 5.4% from the corresponding 2026 estimates.
The Zacks Consensus Estimate for 2026 earnings has moved up 2.1%, while the 2027 estimate has moved down 0.2% over the past 30 days.
Image Source: Zacks Investment Research
PGR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can PGR's Telematics Edge Strengthen Its Underwriting Advantage?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Dow Jones Industrial Average ETF Trust (Symbol: DIA) where we have detected an approximate $501.7 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 85,942,867 to 86,892,867). Among the largest underlying components of DIA, in trading today Amgen Inc (Symbol: AMGN) is up about 0.1%, Travelers Companies Inc (Symbol: TRV) is up about 0.2%, and Sherwin-Williams Co (Symbol: SHW) is lower by about 0.7%. For a complete list of holdings, visit the DIA Holdings page » The chart below shows the one year price performance of DIA, versus its 200 day moving average:
Looking at the chart above, DIA's low point in its 52 week range is $450.44 per share, with $546.75 as the 52 week high point — that compares with a last trade of $524.44. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further DIA Research:

Notable ETF Inflow Detected - DIA, AMGN, TRV, SHW

Markel Group MKL is expanding its workers' compensation business in California through a collaboration with Midwest General Insurance Agency, a subsidiary of Acrisure.
The partnership will focus on small-business workers' compensation coverage. Midwest brings more than 20 years of experience in the California market and offers online quoting capabilities, which could help Markel access smaller accounts more efficiently.
The move could support Markel's insurance business by expanding its addressable market in one of the largest and most competitive workers' compensation markets in the United States. Midwest already has capabilities spanning marketing, underwriting, policy issuance, claims and loss control. This established platform could allow Markel to broaden its reach without having to develop an entirely new distribution infrastructure.
However, California's workers' compensation market is facing rising cost pressures. The state adopted an average advisory pure premium rate that is 6.6% higher than the 2025 level, effective Sept. 1, 2026. This makes disciplined underwriting particularly important for Markel as it expands its business in the state.
Midwest's data-driven approach to account selection could benefit Markel. Better risk selection and appropriate pricing for rising medical and claims costs can help the insurer grow premiums while maintaining underwriting discipline.
The collaboration gives Markel an efficient avenue to expand its small-business workers' compensation portfolio in California and could support premium growth over the long term.
What About Its Peers?
The Travelers Companies, Inc. TRV has expanded its digital small-business quoting capabilities, making workers’ compensation available through its platform in more than 30 states. Its use of data and analytics can help improve risk selection and streamline policy issuance.
Berkshire Hathaway Inc. BRK.B, through its GUARD business, has also been expanding its workers’ compensation business through partnerships. In 2025, GUARD partnered with London Underwriters to allow agencies to quote and bind its workers’ compensation policies through the LU One digital platform. GUARD also works with hundreds of payroll-service partners to distribute its workers’ compensation products.
MKL’s Price Performance
Shares of MKL have lost 5.3% in the past year against the industry’s growth of 8.8%.
Image Source: Zacks Investment Research
MKL’s Undervaluation
The stock is undervalued compared with its industry. Its forward price-to-book value of 1.19X is lower than the industry average of 2.70X. It carries a Value Score of B.
Image Source: Zacks Investment Research
Estimate Movement for MKL
The Zacks Consensus Estimate for Markel’s 2026 earnings per share (EPS) indicates a year-over-year increase of 13.5%.
The consensus estimate for revenues is pegged at $15.9 billion, implying a year-over-year improvement of 3.9%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 9.9% and 1.2%, respectively, from the corresponding 2026 estimates.
The Zacks Consensus Estimate for 2026 and 2027 earnings have moved 0.7% and 1% south, respectively, over the last 30 days.
Image Source: Zacks Investment Research
MKL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Markel Taps California's Workers' Compensation Market With Midwest

For Immediate Release
Chicago, IL – September 8, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Travelers Companies, Inc. TRV, Kinsale Capital Group, Inc. KNSL and The Allstate Corp. ALL.
Here are highlights from Friday’s Analyst Blog:
3 Insurers to Add to Portfolio as AI Transforms Insurance Operations
Artificial intelligence is becoming increasingly important to the U.S. insurance industry as insurers look for ways to improve underwriting, claims processing, pricing and customer service. By automating repetitive, data-intensive tasks, the technology can allow employees to handle greater workloads while potentially reducing operating costs and improving underwriting profitability. As a result, AI is rapidly becoming an important growth and efficiency driver for industry players.
In this backdrop, The Travelers Companies, Inc., Kinsale Capital Group, Inc. and The Allstate Corp. stand out because they combine significant data and technology capabilities with established insurance franchises and strong operating performance.
According to Deloitte, 76% of insurance executives surveyed have implemented generative AI in at least one business function, highlighting the technology’s rapid adoption. AI is also gaining traction in fraud detection, claims management and underwriting, where faster data analysis can help insurers make better decisions. Deloitte estimates that AI-driven, real-time fraud analytics could help P&C insurers save as much as $160 billion by 2032 by reducing fraudulent claims.
As insurance pricing moderates across several markets, technology could become an increasingly important competitive advantage. However, successful AI adoption depends on the quality of data, technology infrastructure and execution. Insurers with large proprietary datasets, advanced analytics capabilities and modern technology platforms may be better positioned to convert AI investments into lower expense growth, faster decision-making and stronger margins.
The key point here is not simply which insurers are using AI, but which companies can translate its adoption into measurable financial benefits. Companies that successfully use AI to improve underwriting, claims and operating efficiency could strengthen margins and gain market share over time.
3 Insurers to Watch
As AI adoption deepens across the industry, Travelers, Kinsale Capital and Allstate could be well positioned to capture the productivity and underwriting benefits of the technology.
These stocks carry a favorable Zacks Rank and have witnessed upward estimate revisions.
Based in New York, Travelers Companies provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States and select international markets. Strong renewal rate change, retention and increased new business, supported by a compelling portfolio and a solid capital position, poise TRV well for growth.
Travelers is advancing its AI capabilities through TravelersLLM, an insurance-specific large language model trained on millions of company documents. The technology helps employees analyze information, conduct research and improve workflows. Travelers is also applying AI to claims through its AI Claim Assistant, which was developed using OpenAI capabilities. The intelligent voice service helps customers with auto damage claims, creating opportunities to improve productivity, underwriting and customer service.
Travelers invested more than $1.5 billion in AI and other technology initiatives in 2025. These initiatives complement strong operating performance. In the second quarter of 2026, Travelers reported $1.68 billion of underlying underwriting income and an 83.6% combined ratio. The combination of AI adoption, strong data capabilities and improving underwriting profitability makes TRV one of the more compelling insurance stocks to watch as AI becomes increasingly embedded in P&C operations.
The Zacks Consensus Estimate for TRV’s 2026 earnings indicate 22.6% growth from the year-ago reported figure. The expected long-term earnings growth rate is 4.4%. The Zacks Consensus Estimate for 2026 earnings has moved up 20.7% in the past 60 days. Travelers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Richmond, VA, Kinsale Capital markets insurance through products in its E&S Insurance segment across all 50 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It separately enters into reinsurance contracts to cede risk and limit its own exposure. Kinsale Capital is poised to benefit from its long-term expansion in the United States and the E&S market, as well as its focus on smaller, hard-to-place risks, prudent underwriting, lower expense ratio, technology-enabled efficiency and effective capital deployment.
Kinsale Capital stands out for its technology-driven operating model and rapid AI adoption. The company operates without legacy software, allowing it to focus on automation and innovation. Management said in its second-quarter 2026earnings callthat every Kinsale associate has an enterprise license for two leading AI models. Kinsale Capital has also incorporated AI functionality into its proprietary underwriting worksheets.
These capabilities are supporting strong operating results, with the company reporting $105.4 million of underwriting income and a 75.5% combined ratio in the second quarter. Management said that the company's AI initiatives are improving productivity, customer service and accuracy, potentially strengthening its already strong cost and underwriting advantages.
The Zacks Consensus Estimate for Kinsale Capital's 2026 earnings indicate 8.2% growth from the year-ago reported figure, on 5.5% higher revenues. The consensus estimate for 2026 earnings has moved up 2.2% in the past 60 days. The expected long-term earnings growth rate is pegged at 15%. KNSL stock currently carries a Zacks Rank #3 (Hold).
Headquartered in Northbrook, IL, Allstate Corp. is the fourth-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. Growing premiums, Protection Services, business streamlining efforts and solid cash flows are expected to drive long-term growth.
Allstate is using data, AI and advanced analytics across underwriting, pricing, claims and customer service. The company has more than 250 significant models and 40 petabytes of data supporting its operations. Its ALLIE platform is designed to expand the use of AI across the business. Allstate targets a 45% reduction in policy billing inquiries, AI review or generation of 100% of claims adjuster emails and AI handling of 15% of new coding, which could improve employee productivity and lower operating costs. The company's 2026 strategy explicitly includes using AI to improve customer acquisition and launching agentic AI experiences across purchasing, servicing and claims.
These capabilities are supporting strong operating results, with underwriting income in the Property-Liability segment surging 56.7% year over year to $2 billion. The underlying combined ratio improved 10 basis points to 79.4% in the second quarter of 2026. Allstate also benefits from Arity, which has collected more than 2 trillion miles of driving data. This data can help improve pricing, risk assessment and loss prediction, further strengthening Allstate’s technology-driven underwriting capabilities.
The consensus estimate for 2026 earnings has moved up 17% in the past 60 days. The expected long-term earnings growth rate is pegged at 12.5%. ALL stock currently sports a Zacks Rank #1.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Travelers, Kinsale Capital and Allstate

The U.S. insurance industry is entering a transition phase. The extraordinary earnings tailwinds from higher pricing, favorable reserve development and strong investment income are beginning to fade, while competition is increasing across several major insurance markets. The industry remains profitable, but investors are increasingly focusing on underwriting quality, sustainable organic growth and market-share gains rather than rate-driven premium expansion.
Competition in the U.S. personal auto insurance market is increasing as the industry shifts from a period of rapid rate increases to one in which insurers are competing more aggressively for profitable customers.
After several years of elevated claims inflation, insurers raised premiums significantly to restore underwriting profitability. As loss ratios have improved, carriers now have greater flexibility to pursue growth and compete more actively for customers. Several major insurers have begun filing rate reductions in certain markets, signaling a shift toward a more competitive pricing environment.
Higher premiums have also encouraged consumers to shop around and switch providers, increasing competition for both customer retention and new business. As shopping activity rises, insurers must offer more competitive prices while maintaining adequate risk-adjusted returns.
Technology is further intensifying competition. Telematics, advanced pricing models, digital distribution and automated underwriting allow insurers to assess risk more precisely and compete selectively for attractive customers. Companies with superior data and analytics can offer competitive prices to lower-risk drivers while avoiding underpriced business.
As a result, personal auto is moving from a “raise rates to restore profitability” phase to a “compete for profitable growth” phase. This means less reliance on pricing and greater emphasis on underwriting discipline, technology, customer retention, claims execution and market-share gains.
Importantly, a more competitive personal auto market can benefit the strongest insurers. Companies with superior underwriting capabilities, technology and distribution can compete aggressively without necessarily sacrificing profitability.
Leading insurers have advantages in data, telematics and pricing analytics that allow them to identify and selectively target lower-risk customers. Large carriers can also benefit from established brands, broad agent networks and digital channels, giving them multiple ways to attract customers who are shopping for better prices.
Scale is another important advantage. Large insurers can spread advertising, technology and customer-acquisition costs across a broader policy base, potentially giving them a lower cost of acquiring and servicing customers. Their diversified product offerings also allow them to use auto relationships to cross-sell homeowners, renters and other insurance products, improving customer economics and retention.
Therefore, as personal auto moves from rate-driven growth to competition-driven growth, the likely winners are insurers with superior underwriting, technology, distribution, claims management and balance-sheet strength. These advantages should allow the strongest operators to gain market share and sustain attractive returns even as industry pricing moderates.
The pricing, growth appetite and market-share strategies of companies such as The Travelers Companies, Inc. TRV, The Allstate Corporation ALL and The Progressive Corporation PGR can materially influence the competitive environment for the entire personal-auto market.
The insurance industry has returned 4.5% in the past year compared with the Finance sector’s growth of 12.7% and the Zacks S&P 500 composite’s appreciation of 20%.
3 Insurers to Watch
With the help of the Zacks Stock Screener, we have selected three insurance stocks with an impressive Value Score of A or B. TRV and ALL sport a Zacks Rank #1 (Strong Buy) each, while PGR has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Travelers: Based in New York, The Travelers provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States and select international markets. Strong renewal rate change, retention and increased new business, supported by a compelling portfolio and a solid capital position, poise TRV well for growth.
For diversified insurers, personal auto is only one part of the earnings equation. They can offset weaker auto economics with commercial lines, specialty businesses and investment income.
The Zacks Consensus Estimate for The Travelers’ 2026 earnings per share indicates a year-over-year increase of 22.6%. The consensus estimate for 2027 revenues indicates an increase of 2.9% from the 2026 estimates.
The consensus estimate for 2026 and 2027 has moved 20.7% and 5.6% north, respectively, in the past 60 days. Earnings have grown 19.2% in the past five years. The expected long-term earnings growth rate is pegged at 4.4%. TRV delivered a four-quarter average earnings surprise of 41.68%. Shares of TRV have rallied 34.5% in the past year.
Allstate: Headquartered in Northbrook, IL, Allstate is the fourth-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. Growing premiums, Protection Services, business streamlining efforts and solid cash flows are expected to drive long-term growth. The insurer also has a favorable VGM Score of A.
Allstate's focus is increasingly on underwriting profitability and improving its book. A competitive auto market could provide opportunities to grow selectively, but investors will want evidence that growth isn't coming at the expense of margins.
The Zacks Consensus Estimate for Allstate’s 2026 earnings per share indicates a year-over-year increase of 1.9%. The consensus estimate for revenues is pegged at $71.25 billion, implying a year-over-year improvement of 5%.
The consensus estimate for 2027 revenues indicates an increase of 4% from the 2026 estimates. The consensus estimate for 2026 and 2027 has moved 15% and 5% north, respectively, in the past 30 days. Earnings have grown 21.7% in the past five years. The expected long-term earnings growth rate is pegged at 12.5%, better than the industry average of 7.9%. ALL delivered a four-quarter average earnings surprise of 45.34%. Shares of ALL have gained 29.6% in the past year.
Progressive: Headquartered in Mayfield, Ohio, Progressive is one of the country’s largest auto insurance groups, the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. Progressive’s leadership in Personal Auto remains a major driver of long-term growth. Its growth strategy is its push toward bundled offerings, particularly auto and home bundles, which deepen customer engagement and improve retention economics. The insurer also has a favorable VGM Score of B.
Potentially one of the biggest beneficiaries of the competitive environment because it has demonstrated strong pricing and underwriting capabilities and is gaining market share.
The Zacks Consensus Estimate for Progressive’s 2026 and 2027 revenues indicates an increase of 6.1% and 5.3%, respectively, from the 2026 estimates. Earnings have grown 23.7% in the past five years, better than the industry average of 22.7%. The expected long-term earnings growth rate is pegged at 4.2%. Shares of PGR have lost 11% in the past year.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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This article originally published on Zacks Investment Research (zacks.com).

3 Insurers to Watch as Competition in Personal Auto Intensifies

Key Points
The sale, conducted on Aug. 28, was valued at approximately $2.2 million.
The transaction size represented 5% of the total equity stake held before the filing.
Equity is held across a direct position of 118,742 shares and an indirect position of 343 shares held via a 401(k) Plan.
Maria Olivo, EVP, ERM & Chief Risk Officer, reported a sale of 6,000 shares of The Travelers Companies (NYSE:TRV) in a recent SEC Form 4 filing.
Transaction summary
Shares sold (directly held)
6,000
Transaction value
$2.2 million
Post-transaction shares (directly held)
118,742
Post-transaction shares (indirectly held)
343
Post-transaction value
$44 million
Transaction value based on SEC Form 4 weighted average sale price ($369.86); post-transaction value based on Aug. 28, 2026, market close ($369.90).
Key questions
What is the concentration of the executive's equity position?
Following this transaction, the executive maintains a significant long-term interest in the company, with 118,742 shares held directly and a minor indirect interest of 343 shares through retirement accounts.
At what price levels was the transaction executed?
The sale was completed at a weighted average price of $369.86 per share, with individual execution prices ranging from $369.81 to $369.962.
How does this sale affect the insider's total ownership percentage?
The executive now holds 0.05% of the company's total shares outstanding as of the Aug. 28, 2026, market close.
What is the company's current scale and market position?
The firm operates with a market capitalization of $77 billion and reported trailing twelve-month revenue of $49 billion as of the most recent reporting period.
Company Overview
Share Price (as of market close 2026-08-28)
$369.90
Market Capitalization
$77 billion
Revenue (TTM)
$49 billion
Net Income (TTM)
$8.3 billion
Company Snapshot
The Travelers Companies delivers a comprehensive portfolio of commercial and personal property and casualty insurance products and services through its network of subsidiaries, generating revenue across three primary operating segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
The company operates a diversified insurance business model that generates revenue through premium collection from policyholders, investment income from its substantial investment portfolio, and underwriting profits derived from disciplined risk selection and claims management.
Travelers serves a broad customer base, including businesses of all sizes, government entities, associations, and individual consumers across the United States and international markets, positioning itself as a comprehensive risk management provider.
The Travelers Companies is a leading property and casualty insurer with a market capitalization of $77 billion and TTM revenue of $49 billion, demonstrating substantial scale and market presence within the financial services sector. The company has delivered strong shareholder returns, with a 34.5% one-year share price appreciation, reflecting investor confidence in its underwriting discipline and capital management. As a diversified insurer with operations spanning commercial, specialty, and personal lines, Travelers maintains a competitive advantage through its integrated distribution network, sophisticated risk assessment capabilities, and strong financial position.
What this transaction means for investors
For shareholders, it may initially seem worrisome that an executive is selling $2.2 million worth of stock. But looking at the full context of the sale, this appears to largely be a routine transaction. Olivo indeed sold 6,000 shares on Aug. 28, but there are two other factors to consider regarding this sale.
The first is stock price appreciation. Over the last 12 months, the TRV stock price has climbed 34.5%, while the S&P 500 is up 18.8% over the same period. With that kind of return, it doesn't seem out of the ordinary that an executive may consider selling some shares. The second factor to consider is that Olivo still holds over 118,000 shares directly and 343 shares indirectly. That shows significant alignment with the company's future potential for success. Given both the stock price appreciation and the number of shares the insider still holds, this transaction does not appear to be something shareholders should be overly concerned about.
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Travelers Chief Risk Officer Sells 6,000 Shares for $2.2 Million

Shares of American Financial Group, Inc. AFG closed at $144.34 on Thursday, near its 52-week high of $150.02. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $142.63 and $134.77, respectively, indicating solid upward momentum. The SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
The insurer has a solid track record of beating earnings estimates in three of the last four quarters and missing in one, with an average of 10.78%.
AFG Is an Outperformer
Shares of American Financial have risen 4.1% in the past year, outperforming the industry's growth of 3.6%. Shares of other insurers like NMI Holdings Inc NMIH, The Travelers Companies, Inc. TRV and Cincinnati Financial Corporation CINF have also outperformed the industry average.
With a market capitalization of $11.96 billion, the average trading volume over the last three months was 0.4 million shares.
AFG’s Growth Projection Encourages
The Zacks Consensus Estimate for American Financial’s 2026 earnings per share indicates a year-over-year increase of 17.9%. The consensus estimate for revenues is pegged at $8.19 billion, implying a year-over-year improvement of 2.6%.
The consensus estimate for 2027 revenues indicates an increase of 4.9% from the corresponding 2026 estimates.
Average Target Price for AFG Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $155.83 per share. The average suggests a potential 9.3% upside from the last closing price.
Image Source: Zacks Investment Research
AFG’s Favorable Return on Capital
American Financial’s return on equity has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12-month ROE was 20.3%, which compared favorably with the industry average of 7.5%.
Factors Favoring AFG
AFG’s Specialty P&C platform spans roughly 36 niche businesses across property, transportation, casualty and specialty financial lines, helping it adapt underwriting and pricing as conditions change. Management expects diversification and disciplined underwriting to support premium growth even as parts of the P&C market soften.
Average renewal pricing excluding workers’ compensation rose about 5% in the second quarter of 2026, marking four consecutive quarters near that level and 40 consecutive quarters of overall renewal increases. Management said pricing in social inflation-exposed excess liability and umbrella remains around double digits, enabling AFG to meet or exceed targeted returns despite softer conditions in parts of the market.
About two-thirds of AFG’s $17.1 billion investment portfolio was in fixed maturities as of June 30, 2026, giving the insurer a large base of predictable income-producing assets. P&C net investment income continues to be driven by higher alternative investment returns.
Management expects alternative investment returns to improve versus 2025 and the first quarter of 2026 during the second half of 2026 and continues to target long-term annualized alternative returns averaging 10% or better.
AFG ended the second quarter of 2026 with $4.96 billion of shareholders’ equity excluding AOCI and $6.81 billion of total capital, while the principal amount of long-term debt was $1.85 billion.
Management expects operations to continue generating excess capital through the remainder of 2026, preserving flexibility for acquisitions, special dividends, share repurchases and investment in core businesses.
Wealth Distribution
AFG continues to pair regular dividends with special dividends and opportunistic share repurchases. In August 2026, the board raised the regular annual dividend 10.2% to $3.88 per share, marking the 21st consecutive annual increase; the 10-year compound annual growth rate in regular dividends paid is 12.1%. During the quarter, AFG returned nearly $100 million to shareholders through $26 million of repurchases and an 88 cents per share regular dividend. Management expects excess capital generation through the remainder of 2026, leaving room to fund organic growth and acquisitions while continuing shareholder distributions.
End Notes
American Financial’s prudent capital deployment, diversification and disciplined underwriting and a good renewal rate environment make it an attractive stock. It intends to maintain satisfactory rates in P&C renewal pricing in the future.
American Financial also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers.
American Financial should benefit from strategic acquisitions, new business opportunities and stronger underwriting profit. Its impressive dividend history, solid growth projections and higher return on capital should continue to benefit American Financial over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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American Financial Near 52-Week High: Time to Hold the Stock?

For Immediate Release
Chicago, IL – September 4, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Archer-Daniels-Midland Co. ADM, The Travelers Companies Inc. TRV, Virtu Financial Inc. VIRT, Paycom Software Inc. PAYC and The Allstate Corp. ALL.
Here are highlights from Thursday’s Analyst Blog:
Buy 5 Stocks to Stay Safe in Wall Street's Worst Month
September is historically known as the worst-performing month for U.S. equities. According to the 2026 Stock Trader's Almanac, the S&P 500 index has recorded an average decline of 0.7% in September since 1950. The Dow has fallen 0.8% during the same period.
The 2026 Stock Trader's Almanac also reported that the Nasdaq Composite has fallen 0.9% in September since 1971, and the small-cap benchmark — Russell 2000 — has declined 0.8% in the same month since 1979.
Moreover, a Bank of America research report has revealed that in September, the S&P 500 has lost 1.17% on average since 1928 and the broad-market index has ended in negative 56% of those years.
At this stage, it should be prudent to invest in low-beta (beta >0<1) high-yielding stocks with a favorable Zacks Rank in September. Five such stocks are: Archer-Daniels-Midland Co., The Travelers Companies Inc., Virtu Financial Inc., Paycom Software Inc. and The Allstate Corp.. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Volatility Reappears on Wall Street
This year, volatility has appeared on Wall Street since the first trading day of September. Market participants are worried about three immediate concerns.
First, the U.S.-Iran war escalated from Aug 30, for the first time since late July. As a result, crude oil prices spiked. The price of the U.S. benchmark — the West Texas Intermediate crude oil future — crossed $91 per barrel and the price of the global benchmark — the Brent crude oil future — crossed $95 per barrel.
Second, on Aug 28, in his remarks at the Fed's annual symposium of economic policies in Jackson Hole, WY, Chairman Kevin Warsh warned about the sticky inflation rate. Higher crude oil prices will worsen the inflationary situation, forcing the Fed to hike the Fed fund rate anytime soon.
Third, the yield on the benchmark 10-Year U.S. Treasury Note reached its highest level since November 2023. Japan's benchmark 10-Year Treasury Note yield touched 3% for the first time since 1996. The yield on U.K. 10-year government Gilt reached the highest level since June 2008. Yields on German and France Government bonds also moved higher.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach.
ADM's Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients. In addition, a focus on higher-margin product lines and ongoing cost optimization further aided results. ADM is expanding profitability by complementing its core processing business with investments in biosolutions, precision fermentation and decarbonization capabilities.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 7.9% over the last 30 days. ADM has a beta of 0.62 and a current dividend yield of 2.56%.
The Travelers Companies Inc.
Travelers Companies' has been benefiting from broad commercial and personal insurance franchises, disciplined underwriting and growing investment income. Second-quarter 2026 results highlighted the strength of TRV's earnings base, with healthy underlying margins, lower catastrophe losses and favorable reserve development across all segments.
Continued technology investment, refined pricing and segmentation, a high-quality fixed-income portfolio and consistent capital returns should sustain TRV's earnings growth and shareholder value.
Although weather volatility, loss-cost inflation, reinsurance expenses and changing pricing conditions remain risks, TRV's operating strength and diversified business mix should help it navigate these pressures. Also, solid fundamentals and dependable execution support further share-price gains.
Travelers Companies has an expected revenue and earnings growth rate of -0.1% and 22.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 1.1% over the last 30 days. TRV has a beta of 0.44 and a current dividend yield of 1.37%.
Virtu Financial Inc.
Virtu Financial is benefiting from an active trading backdrop that continues to support opportunity capture across equities, options, and other asset classes. VIRT is scaling its capital base and reinforcing returns by investing in technology and talent, which has supported higher daily adjusted net trading income through the cycle.
VIRT's Execution Services is gaining relevance, extending diversification with expanding product penetration across workflow technology, algorithms, and capital markets activity. Balance sheet liquidity and disciplined leverage help fund reinvestment while supporting dividends and buybacks. In first-half 2026, VIRT's adjusted EBITDA rose 38.9% annually.
Virtu Financial has an expected revenue and earnings growth rate of 21.9% and 22.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 1.7% over the last 30 days. VIRT has a beta of 0.62 and a current dividend yield of 1.47%.
Paycom Software Inc.
Paycom Software is benefiting from an employee-first, single-database HCM platform that pushes automation deeper into payroll and HR workflows. Rising adoption of IWant, Project Arc and new products such as Career and Succession Planning and Asset Management broadens PAYC's platform and supports cross-selling.
PAYC's revenue growth accelerated in the second-quarter 2026, while automation-driven efficiencies lifted margins and management raised its full-year outlook. Sales capacity expansion and faster rep productivity add to the longer-term opportunity. Aggressive buybacks also support per-share value creation.
Paycom Software has an expected revenue and earnings growth rate of 7.7% and 28.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 10.9% over the last 30 days. PAYC has a beta of 0.78 and a current dividend yield of 0.63%.
The Allstate Corp.
The Allstate delivered a second-quarter earnings beat, driven by sustained premium growth, expanding market share, and stronger underwriting performance. ALL's Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside.
ALL's Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability, with the Property-Liability underlying combined ratio improving to 79.8% in the first half of 2026. Strong cash generation supports shareholder returns, including $1.3 billion returned in the second quarter of 2026.
The Allstate has an expected revenue and earnings growth rate of 5% and -0.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 1% over the last seven days. ALL has a beta of 0.15 and a current dividend yield of 1.68%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

The Zacks Analyst Blog Highlights Archer-Daniels-Midland, Travelers Companies, Virtu Financial, Paycom Software and The Allstate

Key Points
The Nasdaq Composite rose 1.3%, the Dow 1.1%, and the S&P 500 1.0% by early Thursday afternoon.
Goldman Sachs contributed 179 Dow points, roughly 30% of the index gain, without announcing any news.
Nvidia confirmed its $12.9 billion Hugging Face deal and rose just 1.3% on the news.
On Wednesday, I suggested that the rest of the week should be calm. Maybe I jinxed the market in a bullish way. Stocks rallied broadly on Thursday.
The Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 1.3% as of 1:29 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) climbed 1.1%, and the S&P 500 (SNPINDEX: ^GSPC) added 1%. All three indexes are now slightly up from last Thursday's closing scores. Yesterday, they seemed destined for a down week.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
SpaceX and Tesla powered the Nasdaq's 1.3% gain
The biggest single push behind the Nasdaq Composite came from Space Exploration Technologies (NASDAQ: SPCX), up 7.8% and worth 0.29 percentage points of the index move on its own. Tesla (NASDAQ: TSLA) followed with a 7% jump, good for another 0.19 points. Tesla is unveiling a two-seat robotaxi at a Cybercab event in Austin after the close tonight, and SpaceX went along for the ride on the strength of a shared chief executive.
The Dow told a different story. Goldman Sachs rose 3.1%, contributing 179 Dow points, or roughly 30% of the entire index gain. Microsoft (NASDAQ: MSFT) and Travelers each added 2.7%. Microsoft is restructuring to a simpler two-segment reporting structure. The biggest Dow contributor didn't announce anything, but the overall vibe is clearly bullish. 25 of the 30 Dow stocks are higher right now.
Then there's Nvidia (NASDAQ: NVDA), which generated the loudest headline of the day but one of the quieter stock moves. Rumor evolved into real news as Nvidia announced a $12.9 billion bid for AI platform Hugging Face. The stock rose 1.3%, adding roughly $73 billion to Nvidia's market value. Rumors of the same deal moved Nvidia 3.8% higher yesterday, so the official version was worth about a third of the speculation (but still several times Hugging Face's price tag).
Semiconductors skipped the party
Chip stocks are generally sitting out today's market exuberance.
Broadcom (NASDAQ: AVGO) fell 3.6% after guiding fourth-quarter revenue to $34.8 billion against a $35.0 billion consensus. CEO Hock Tan also issued robust revenue guidance for the next two years, but Wall Street didn't seem to care.
Micron Technology and SK Hynix both slipped about 1.5%, and the iShares Semiconductor ETF finished slightly negative. The hardware sector caught a cold from Broadcom's sneeze.
Macroeconomic markers sent mixed signals today. Gold and Bitcoin (CRYPTO: BTC) are up by 2% and 5%, respectively. The paired safe-haven bets linked up again after a split on Wednesday. As for the oil trade, the U.S. Oil Fund (NYSEMKT: USO) rose 0.8% while American ships escorted a record number of oil tankers through the Strait of Hormuz. Boosted oil shipments usually result in lower prices, but I see the opposite reaction today.
The August jobs report arrives tomorrow morning, the final significant data release before the Federal Reserve meets Sept. 15-16. Thursday's broad rally suggests the market has taken a position on what it will show. Spoiler alert: With a lead-in like this, people expect good news.
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The Travelers Companies, Inc.

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