The Travelers Companies Inc. Earnings Cheat Sheet: Misses Expectations

S&P 500 (NYSE:SPY) component The Travelers Companies Inc. (AMEX:TRV) reported its results for the third quarter. The Travelers Companies is a holding company that is engaged in providing commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.

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The Travelers Companies Earnings Cheat Sheet for the Third Quarter

Results: Net income for the property and casualty insurance company fell to $333 million (79 cents per share) vs. $1 billion ($2.11 per share) a year earlier. This is a decline of 66.9% from the year earlier quarter.

Revenue: Fell 1.2% to $6.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TRV fell short of the mean analyst estimate of 96 cents per share. It beat the average revenue estimate of $5.58 billion.

Quoting Management: “With third quarter earnings being meaningfully impacted by a number of significant catastrophes, including Hurricane Irene and Tropical Storm Lee, the strength of our business enabled us to generate net income of $333 million and to grow book value per share to $60.98, up 4% from year-end 2010,” commented Jay Fishman, Chairman and Chief Executive Officer. “We extend our sympathies to those affected by these events, and I would like to express my appreciation to our claim organization for the speed, dedication and professionalism with which they respond to our customers and agents.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 3.4% in the second quarter and 2.6% in the first quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 29 cents with a loss of 91 cents versus a mean estimate of a loss of 62 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.66 a share to $1.61 over the last ninety days. At $3.61 per share, the average estimate for the fiscal year has fallen from $4.31 ninety days ago.

Competitors to Watch: American Financial Group (NYSE:AFG), White Mountains Insurance Group, Ltd. (NYSE:WTM), RLI Corp. (NYSE:RLI), The Chubb Corporation (NYSE:CB), W.R. Berkley Corporation (NYSE:WRB), CNA Financial Corporation (NYSE:CNA), XL Group plc (NYSE:XL), HCC Insurance Hldgs., Inc. (NYSE:HCC), and Markel Corporation (NYSE:MKL).

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(Source: Xignite Financials)