** Shares of insurance bellwether Travelers TRV.N rise 1.6% to $242.16 in early trading

** KBW upgrades TRV shares to "outperform" from "market perform"; raises PT to $286 from $275, a 20% upside to stock's last close

** Brokerage says TRV's current price-to-earnings ratio does not properly appreciate firm's near and long-term earnings potential

** Adds that TRV's stock has underperformed broader markets in recent months as investors are concerned about rising costs and decelerating property and casualty rate increases

** KBW says its year-end 2024 reserve review points towards sustained releases by TRV

** Brokerage raises its 2025 estimate for reserve releases by TRV to $392 million from $315 million

** Reserves are funds set aside by insurers to meet any future claims it may have to pay

** Ten of 26 brokerages rate the stock "buy" or higher, 13 "hold" and three "sell"; their median PT is $277, according to data compiled by LSEG

** TRV jumped 26.5% in 2024

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))