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The Travelers Companies, Inc. (TRV)

- NYSE
  • Oct. 9, 2013, 11:49 AM
    • The property-casualty insurance cycle is "petering out," says the team, noting "outright softening" in reinsurance pricing, a leveling out in commercial-insurance price gains, decelerating personal line pricing, and flat auto-insurance prices (home-insurance prices remain on the rise).
    • Still, Sandler's Q3 estimates remain above consensus, mostly because of the lack of catastrophe losses, and the firm has Buy ratings on ACE, AIG, ALL, TRV, and XL.
    • American Financial (AFG -0.7%) is downgraded to Hold - a valuation call after a big run has the stock near Sandler's $58 price target.
    • Price targets on ProAssurance (PRA -1.3%) and State Auto Financial (STFC -0.5%) are cut $2 to $47 and $1 to $20, respectively.
    • Relevant ETFs: KIE, IAK, KBWP, KBWI.
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  • Sep. 20, 2013, 1:12 PM
    • Bullish on life insurers vs. their P&C brethren over the past couple of years, FBR Capital begins to reverse course.
    • It may be time to take some chips off the table after big runs in MetLife (MET), Prudential (PRU), Lincoln National (LNC), and American Equity Investment Life Holding (AEL), and instead look to P&C names like Travelers (TRV), AIG, XL Group (XL), and AmTrust (AFSI). Editor's note: The P&C names haven't exactly been unloved.
    • Travelers has performed the weakest of the group, and FBR upgrades it to a Buy (reported yesterday), thinking the cautious pricing outlook for rates is priced in. "Travelers, we think, is a good relative trade for investors who start diversifying away from lifecos."
    | 1 Comment
  • Sep. 19, 2013, 8:30 AM
    • Relative valuation, continued price increases, reserve releases, excess capital, and buybacks are cited by FBR Capital hiking its rating on Travelers (TRV) to a Buy with raised price target of $94 (from $84).
    • Shares +0.8% premarket.
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  • Sep. 18, 2013, 12:12 PM
    • ACE, AmTrust Financial (AFSI), AllState (ALL), AON, Meadowbrook (MIG), Marsh & McLennan (MMC) are all started at Buy, while Argo Group (AGII), AIG, Maiden Holdings (MHLD), Travelers (TRV), Tower Group (TWGP), and XL Group (XL) are initiated at Hold.
    • Tower Group plummets 27% after further delaying the release of financial statements until the week of October 7, and FBR speculates the reserve charge could be as high as $125M.
    | 2 Comments
  • Jul. 24, 2013, 10:57 AM
    Travelers' (TRV -0.4%) price target is cut to $92 from $97 at Sandler O'Neill which maintains its Buy rating. While prospects are good, the team notes price increases declined sequentially and management made comments (CC transcript) about price decreases on auto insurance. On one hand price decreases aren't a good thing, but on the other, auto makes up a small portion of Travelers' business and the company continues to see healthy price action in its larger commercial business. The comments could also be interpreted as the beginning of the end of the current hard pricing cycle.
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  • Jul. 23, 2013, 3:37 PM
    A couple of insurance companies go on sale today after earnings reports - Travelers (TRV -3.7%) and W.R. Berkley (WRB -4.5%). Traveler's reported a big drop in book value (to $66.65 from $68 in Q1) as higher interest rates forced marks on its bond portfolio. Isn't this the reason, investors are supposed to pay attention to adjusted book value (which doesn't reflect these swings - up or down) - it rose to $62.12 from $60.39. "The rise in interest rates does have a positive side," says CFO Jay Benet on the CC (transcript). If rates stay high, the company can reinvest at higher yields.
    | 1 Comment
  • Jul. 23, 2013, 8:32 AM
    More on Travelers (TRV) Q2 earnings: Net income of $925M up 85% Y/Y thanks to lower catastrophe losses and continued improvement in underwriting margins - combined ratio falls 91.7% from 94.5%. Net written premiums of $5.8B off 1% Y/Y. Adjusted book value/share of $62.12 up from $59.09 a year ago. Shares +1.3% premarket. CC at 9 ET. (PR)
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  • Jul. 23, 2013, 6:59 AM
    Travelers (TRV): Q2 EPS of $2.13 beats by $0.53. Revenue of $6.67B (+5% Y/Y) beats by $0.7B. (PR)
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  • Jul. 23, 2013, 12:05 AM
    Notable earnings before Tuesday’s open: AKS, AMTD, APD, AVY, BEAV, BTU, CIT, CNC, CSL, DD, DPZ, EDU, EXAS, FCX, FMER, FRX, IDXX, IRWD, ITW, LMT, LXK, MO, MTG, PCAR, PENN, PII, PNR, R, RF, RSH, SIAL, ST, TCB, TRV, UPS, UTX, VLO, WAT, WEN
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  • Jul. 22, 2013, 5:30 PM
    Notable earnings before Tuesday’s open: AKS, AMTD, APD, AVY, BEAV, BTU, CIT, CNC, CSL, DD, DPZ, EDU, EXAS, FCX, FMER, FRX, IDXX, IRWD, ITW, LMT, LXK, MO, MTG, PCAR, PENN, PII, PNR, R, RF, RSH, SIAL, ST, TCB, TRV, UPS, UTX, VLO, WAT, WEN
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  • Jul. 15, 2013, 12:11 PM
    A number of insurers (MET, HIG, TRV, CB) come under the downgrade gun today. Details are sparse at the moment, but surely valuations are playing a part after decent to big runs for all 4. MetLife and Hartford were already doing fine, but the idea of higher interest rates (leading to higher investment returns) have given those 2 stocks an additional boost the past several weeks.
    | 1 Comment
  • Jul. 11, 2013, 12:09 PM
    Sandler O'Neill is 2-handed on P-C insurers, maintaining buys on ACE, AFG, AIG, ALL, PRA, TRV, UFCS, and XL even as it says caution is warranted. Among the reasons are consensus not accounting for high catastrophe losses in Q2, weak reinsurance pricing, and poor investment returns (despite the recent rise in rates).
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  • Jun. 10, 2013, 9:17 AM
    Travelers (TRV) agrees to acquire Dominion of Canada General Insurance from E-L Financial for ~$1.1B. TRV expects the transaction will have no significant impact on 2013 EPS and will be slightly accretive to 2014 EPS.
    | 1 Comment
  • May 24, 2013, 7:46 AM
    Tornados striking the U.S. this week are expected to cause anywhere from $2B-$5B in insured losses, according to Eqecat, obviously with most of the damaged coming from the Moore, OK disaster. At the top end of the range, this week would rank as the 2nd worst ever, behind only the April 2011 tornados in Alabama. TRV, CB, ALL all dropped amid the tornado news early in the week and have held steady since.
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  • May 21, 2013, 8:07 AM
    Keep an eye on property casualty insurers (TRV, ALL, CB, AIG) after all posted notable declines amid the Oklahoma City tornado disaster yesterday. The dip following Sandy proved a great buying opportunity (though from much lower levels).
    | 2 Comments
  • May 7, 2013, 3:56 PM
    More on Goldman's AIG downgrade (earlier): Better bets are Travelers (TRV) and Allstate (ALL) - like AIG, set to benefit from improving insurance margins, but also able to return capital without the regulatory risk. Prudential (PRU) and MetLife (MET) might also be better ideas - like AIG, they do face regulatory risk over capital returns, but both have more muted expectations and trade at lower valuations.
    | 3 Comments
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Company Description
Travelers Companies Incthrough its subsidiaries provides commercial & personal property and casualty insurance products and services to businesses, government units, associations and individuals.