Tragedy in California

Travelers Companies (TRV) faces significant challenges due to increasing financial exposure from catastrophic California wildfires, with potential claims reaching $800 million to $1 billion. These events are pressuring the insurance market, driving premium hikes, stricter underwriting, and rising costs for homeowners, leading to market instability and customer attrition. Our analysis highlights broader implications for the housing market, California’s economy, and Travelers' valuation, as well as potential bearish movement driven by these risks. This comprehensive insight underscores strategic short positioning ahead of anticipated market reactions.

Travelers Company Analysis.pdf

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