Wells Fargo Upgrades Travelers (TRV) to Outperform; Insurance Rates are Improving Across The Board

Wells Fargo upgraded Travelers (NYSE: TRV) from Market Perform to Outperform with a price target range of $67-$72 (from $60-65).

Wells analyst says, "Active but cautious capital manager: TRV has been one of the most active P&C companies in repurchasing shares. However, the company realizes that it is close to reaching an inflection point where all of its excess capital will be returns and the company will be creating new excess capital through earnings...TRV has been able to drive success with new agents. Since 2006 TRV has appointed 3,500 new agents and in 2010 these new agents generated more than $400 million of business...Has successful worked on finding joint venture partnerships internationally including recently in Brazil."

"We have introduced a 2013 EPS estimate of $5.95. Our Q4 2011 and 2011 EPS estimates are unchanged at $1.61 and $3.35, respectively. We are raising our 2012 EPS estimate to $5.80 (from $5.70)."

For an analyst ratings summary and ratings history on Travelers click here. For more ratings news on Travelers click here.

Shares of Travelers closed at $59.33 yesterday.

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