Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  The Allstate Corporation    ALL

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Travelers smashes estimates, insurance rates rising

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/19/2012 | 06:21pm CET
People enter the Travelers Life & Annuity building in New York.

Property insurer Travelers Cos Inc (>> The Travelers Companies, Inc.) blew past Wall Street earnings estimates for the first quarter and raised its dividend 12 percent as natural disaster losses declined and insurance rates continued to rise after years of weakness.

Property insurer Travelers Cos Inc (>> The Travelers Companies, Inc.) blew past Wall Street earnings estimates for the first quarter and raised its dividend 12 percent as natural disaster losses declined and insurance rates continued to rise after years of weakness.

The company's shares rose 4.8 percent to $62.35 in morning trading Thursday, touching their highest level since May 2011. Analysts said the results would be seen positively.

"Incorporating the first-quarter results, our 2012 estimate is very likely to increase," Larry Greenberg, an analyst at Janney Capital Markets unit Langen McAlenney, wrote in a note to clients. He said he was optimistic on property insurers and that Travelers was a preferred "buy" within that group.

Travelers, a Dow component, said commercial insurance rates rose an average 8 percent in the quarter. On a conference call with analysts, the company indicated that strength has continued.

"We feel good about what we're seeing in the second quarter and ... feel the momentum is continuing," Chief Operating Officer Brian MacLean said.

Rates rose in other lines as well, including 4 percent in auto and 10 percent in homeowner policies. Chief Executive Jay Fishman, on the conference call, said Travelers was in some places raising deductibles and placing tighter terms on personal policies in order to improve profitability.

The company has been among the most aggressive in the industry about raising rates in recent months, after a years-long period of excess capital forced companies to compete on price. Analysts have been watching closely to see whether Travelers could maintain the momentum, which bodes well for other insurers.

Pretax catastrophe losses declined to $168 million in the first quarter from $186 million a year earlier. The year-earlier period was marked by severe winter weather in the United States and devastating earthquakes in the Asia-Pacific region.

On Thursday Travelers peer Allstate (>> The Allstate Corporation) said its own catastrophe losses were $260 million in the latest quarter, mostly in March.

NET DOWN ON INVESTMENTS

Travelers reported a first-quarter net profit of $806 million, or $2.02 per share, compared with a year-earlier profit of $839 million, or $1.92 per share. Per-share earnings rose because of a decrease in share count.

Net profit fell largely because of lower net investment income, and because of a one-time tax benefit last year that boosted underwriting results.

The company also increased its reserve releases, to $200 million after tax from $155 million a year earlier. During the years of weak pricing, reserve releases were a major profit booster for insurers, though most analysts expect that well to start running dry soon.

Operating earnings came in at $2.01 per share. Analysts polled by Thomson Reuters I/B/E/S on average had expected $1.52.

There was a broad range of estimates, and because Travelers does not give an outlook it is normal for its results to differ sharply from the Wall Street forecast. Even so, earnings were nearly 40 cents above the highest analyst estimate.

The company raised its quarterly dividend by 5 cents, to 46 cents per share. It spent $350 million on share buybacks during the quarter.

(Reporting By Ben Berkowitz; Editing by Gerald E. McCormick and Maureen Bavdek and John Wallace)

By Ben Berkowitz

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on THE ALLSTATE CORPORATION
11/16 ALLSTATE : Returns Cash to Shareholders through Dividends
11/16 THE ALLSTATE CORPORATION (NYSE : ALL-D) Files An 8-K Regulation FD Disclosure
11/16 ALLSTATE : Announces October 2017 Catastrophe Loss Estimate
11/16 ALLSTATE : Announces October 2017 Catastrophe Loss Estimate
11/16 ALLSTATE CORP : Regulation FD Disclosure (form 8-K)
11/15 ALLSTATE : Atlantic Media / Allstate Regional Renewal Poll of Puget Sound Area S..
11/15 ALLSTATE : Roadside Services(R) Hits the Road With Waze to Help Drivers Needing ..
11/15 ALLSTATE : Business Insurance and Business Talent Group Meet Growing Demands of ..
11/14 ALLSTATE : Roadside Services® Hits the Road with Waze to Help Drivers Needing Ro..
11/14 ALLSTATE : Roadside Services® Hits the Road with Waze to Provide Roadside Help f..
More news
News from SeekingAlpha
06:18a Tracking David Tepper's Appaloosa Management Portfolio - Q3 2017 Update
11/16 Allstate declares $0.37 dividend
11/13 YOUR DAILY PHARMA SCOOP : Regeneron's Appeal, Good News For Amgen, Bristol-Myers..
11/05 Allstate Corporation 2017 Q3 - Results - Earnings Call Slides
11/02 The Allstate (ALL) Q3 2017 Results - Earnings Call Transcript
Financials ($)
Sales 2017 32 525 M
EBIT 2017 3 455 M
Net income 2017 2 396 M
Debt 2017 -
Yield 2017 1,47%
P/E ratio 2017 15,27
P/E ratio 2018 13,72
Capi. / Sales 2017 1,11x
Capi. / Sales 2018 1,07x
Capitalization 35 944 M
Chart THE ALLSTATE CORPORATION
Duration : Period :
The Allstate Corporation Technical Analysis Chart | ALL | US0200021014 | 4-Traders
Technical analysis trends THE ALLSTATE CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 102 $
Spread / Average Target 2,0%
EPS Revisions
Managers
NameTitle
Thomas Joseph Wilson Chairman & Chief Executive Officer
Matthew E. Winter President
Steven E. Shebik Chief Financial Officer & Executive Vice President
Mary Alice Taylor Independent Director
Judith A. Sprieser Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
THE ALLSTATE CORPORATION35.15%35 944
BERKSHIRE HATHAWAY11.71%446 526
THE TRAVELERS COMPANIES6.13%35 559
TOKIO MARINE HOLDINGS INC1.58%32 535
SAMPO OYJ6.83%29 950
MS&AD INSURANCE GROUP HOLDING INC2.15%19 437