Best Insurance Companies To Watch For 2015: The Travelers Companies Inc.(TRV)
The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.
Advisors' Opinion:- [By Jessica Alling]
Insurance companies have also been struggling against the pressures of low interest rates, with their all-important investin! g operations suffering from lower yields. Travelers Companies (NYSE: TRV ) is in the red this morning, with a lesser drop of 0.21% as of this writing. Despite the pressure from low bond yields, the company announced impressive earnings in April. As one of the favorites of Street hedge funds, Travelers has been getting plenty of good press from analysts, with a reiterated "buy" rating from TheStreet, an "outperform" from Raymond James, and a boost to its target price. The increase to $97 gives current investors a 12.2% upside based on yesterday's close.
- [By John Maxfield]
On the individual stock front, shares of Travelers Companies (NYSE: TRV ) are leading the Dow higher this afternoon, up by 2.3% at the time of writing. Given that it's an insurance company, the fact that the jobs report wasn't outright awful probably has a lot to do with Travelers' ascent today. The better the economy is doing, the sooner long-term interest rates will increase. And the sooner long-term rates increase, the sooner Travelers' bottom line will pick up to full steam.
- [By Michael Flannelly]
Travelers Companies Inc (TRV) was downgraded by analysts at Wells Fargo on Thursday, as they believe shares of the insurance provider will lose some steam going forward.
The analysts downgraded TRV from “Outperform” to “Market Perform” and see shares reaching a valuation range of $89-$92, down from the previous target range of $94-$98. This new price target range suggests a 6% to 10% upside to the stock’s Wednesday closing price of $83.73.
Furthermore, the analysts note that TRV is up 41% since they started recommending the stock in January 2012, versus a 32% gain for the S&P 500. “Travelers has been a leader in gaining commercial lines renewal rate increases utilizing a disciplined, segmented approach. Yet as TRV reaches rate adequacy across more of its segmentation bands, we think there is less profit leverag! e, which ! could slow multiple expansion going forward.”
Travelers shares were inactive during pre-market trading on Thursday. The stock is up 16.58% year-to-date.
- [By Dan Caplinger]
Earnings news played a big role in the advance. Within the Dow, Travelers (NYSE: TRV ) rose 2.6% after it moved to increase premiums on certain policies and suffered fewer major catastrophic events during the quarter. Although revenue declined, the company boosted its profit by 11% and raised its quarterly dividend to $0.50 per share -- a 9% jump from its previous rate. Even when hurricane season returns later this year, the insurance company will have established a strong foundation on which to weather future storms. DuPont also impressed investors, gaining 3% after reporting better-than-expected earnings and affirming its full-year earnings guidance, adding a 5% dividend hike to boot.
source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/best-insurance-companies-to-watch-for-2015-4.html
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