Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTCourtney Carlsen, The Motley FoolFri, July 3, 2026 at 9:05 PM GMT+2 4 min readThis year, technology stocks have dominated headlines, with the tech-heavy Nasdaq Composite up 12% since the start of the year. The strong performance is driven largely by memory and semiconductor stocks as hyperscalers invest heavily in building out their AI infrastructure.While tech stocks are grabbing the headlines, insurance stock Travelers (NYSE: TRV) is trading near a record high, underscoring its resilience and fundamental strength. The stock has also increased 15.4% since the start of the year.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 »Can it continue to rally? Let's dive into what's driving the stock to find out.Image source: Getty Images.Travelers has reached record heights, fueled by a robust business model that demonstrates disciplined insurance underwriting while reaping rewards from elevated interest rates through its investment portfolio.Unlike cyclical financial stocks, such as banks, Travelers benefits from higher-for-longer interest rates. That's because insurers invest premium float before claims are paid, and elevated bond yields translate directly into growing net investment income, providing growth independent of insurance premiums.In the first quarter, Travelers' net investment income rose 8% to $1 billion, up from $930 million last year. This solid growth was driven by its fixed maturity portfolio and higher long-term reinvestment yields on its invested assets.Net written premium growth was down 2% year over year in the first quarter; however, a large portion of this was due to Travelers' divestment from its Canadian insurance business. When adjusting for this change, the company's premiums grew modestly year over year. Its slower premium growth reflects the softening of the insurance market after years of inflation and hard-market conditions. With that said, insurance underwriters continue to maintain pricing power to offset inflationary pressures.What stood out for Travelers was its improving profitability, with net income surging 333% to $1.7 billion. The company benefited from easier year-over-year comparisons to 2025, which was punished by the California Palisades and Eaton wildfires.Travelers' combined ratio, which represents underwriting profitability by dividing claims costs and expenses by total premiums earned, was a stellar 88.6%. This, coupled with favorable reserve developments and growth in interest income, boosted earnings.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info