FBR Capital Maintains a 'Market Perform' on Travelers (TRV); Lower Estimates and Price Target due to 2Q11 Catastrophes

FBR Capital maintains a 'Market Perform' on Travelers (NYSE: TRV), PT lowered by $1 to $70.

FBR analyst says, "We are lowering our earnings estimates and decreasing our price target to account for Travelers' preannounced quarter-to-date catastrophe loss estimates of between $1.0B and $1.05B (after-tax and net of reinsurance). On a pretax basis, losses amount to around $1.5B. We are cutting our 2Q11 operating EPS estimate to ($0.50) from $1.51, our 2011 estimate to $4.25 from $6.40, and our 2012 forecast to $6.15 from $6.55. We are not lowering estimates by the entire $1.0B, as we already assumed some catastrophe losses in our previous forecasts. We are warming up to the TRV story due to improving conditions, such as positive audit premiums and favorable rate changes, but we are maintaining our rating for now, as we see better relative value with other large-cap insurers."

For more ratings news on Travelers click here and for the rating history of Travelers click here.

Shares of Travelers closed at $57.92 yesterday.

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