Travelers initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Cave Montazeri initiated coverage of Travelers with a Hold rating and $186 price target. The next 12 months will be a transition period for Travelers’ Personal Insurance segment as ongoing price increases slowly accrete through the company’s P&L and negatively impact growth, while inflation continues to negatively impact loss costs, the analyst tells investors in a research note. The firm notes however that the strong performance of Travelers’ commercial insurance segments and the lagged impact on the P&L of last year’s interest rate hikes by the Fed will be offsetting to those challenges.