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solzberg in Gainers & Losers,

Travelers - growth trend continues

I remain upbeat about the shares of The Travelers Companies (TRV), a leading US provider of property and casualty insurance services. The company’s financial for the third quarter of 2015 were solid, with both revenues and earnings topping consensus estimates. Policy sales rose 2.6% to a record $6.19 bn, and combined ratio improved 310 basis points to 86.9% on the back of strong performance across all of the company’s business segments. Adjusted operating income per share jumped 12.3% y-o-y to $2.93

Travelers is also a shareholder friendly company. In Q3, it returned $939 mn to its stockholders. The company spent $750 mn on buying back 7.3 mn shares during the quarter, taking the year-to-date tally to 21.5 mn shares bought back for $2.2 bn. At the end of September, Travelers had $4.3 bn worth shares remaining under its authorization. A quarterly dividend of 61 cents per share offers annualized dividend yield of 2.1%.

I believe that high retention rate, pricing gains, positive renewal rate changes, strong product portfolio, strategic acquisitions and strong capital position will support Travelers’ growth going forward. The company also remains committed to enhance its shareholders’ value via continued share buybacks and dividend payouts.

I expect Travelers’ stock to continue to grow, with short-term aim at $120.