The Travelers Companies Inc. Earnings: Profit Down

S&P 500 (NYSE:SPY) component The Travelers Companies Inc. (AMEX:TRV) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the property and casualty insurance company fell to $618 million ($1.51 per share) vs. $894 million ($1.95 per share) a year earlier. This is a decline of 30.9% from the year earlier quarter.

Revenue: Rose 0.6% to $6.37 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TRV fell in line with the mean analyst estimate of $1.51 per share. It beat the average revenue estimate of $5.47 billion.

Quoting Management: “We posted solid results in the quarter, generating net income of $618 million and a return on equity of 10%,” commented Jay Fishman, Chairman and Chief Executive Officer, “In light of the fact that 2011 was the costliest catastrophe year on record for the insurance industry on a global basis, we are pleased that the strength of our businesses enabled us to generate net income of $1.4 billion and to grow book value per share by 7%.”

Key Stats:

The company fell in line with estimates last quarter after missing the mark in the previous two quarters. In the third quarter, it fell short by 13 cents, and in the second quarter, it missed by 29 cents.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 1.2% to $6.41 billion in the third quarter from the year earlier.

Looking Forward: Analysts have a more positive outlook for the company’s next quarter performance. Over the past month, the average estimate for the first quarter of the next fiscal year has gone up from $1.53 per share to $1.54. For the fiscal year, the average estimate has moved down from $3.37 a share to $3.30 over the last ninety days.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com