Minnesota Insurance

As practically, if we consider an umbrella.

Last year, the takeover of Travelers Companies his former logo - red roof - of its former parent company, Citigroup Corporate. The timing was a coincidence that, at least symbolically.

As if the open skies with a rain of finance in companies around the world threw problems - a shower of investment failures, setbacks and markets in the insurance sector, the price wars.

While Manhattan’s Centre of money with banks has been soaked losses worth billions, St. Paul Travelers based on dry and has remained high. The operating income hit $ 4.5 billion in the previous year, representing an increase of 14% compared to 2006.

What’s more, Travelers’ stock has been almost untouched by the merger of the Subprime mortgage markets, notably through the holding negligible amounts of Subprime Securities (less than $ 290 million to $ 75 billion investment portfolio) or Commercial Mortgage-Backed Securities (935 $ million at year-end).

Primes, income from capital are the key to Travelers’ profits. Investments made in after-tax profits last year, to $ 101 million. Premiums delivered 45 times more profit.

The insurance protection against losses, Travelers warned massive catastrophic insurance to cover claims arising from the pleasure of fires, earthquakes and cyclones. In the eyes of a conference of analysts, guests can also some of the results of the worst natural disasters and only shows few scars.

In the case of a hurricane of a size that is likely only four times during the year 1000, Travelers would probably remain profitable, “said Brian Meredith, an analyst at UBS Investment Research.

In a presentation of financial well-being, by the end of 2007 Travelers had repurchased $ 4.1 billion of shares outstanding, and announced plans to repurchase nearly $ 6 billion more.

While many companies have offered apologies and excuses for the results of 2007, 2008 and entered offer Travelers and Chief Executive Jay Fishman, paid $ 9.8 million last year, including its reward.

Travellers, in a report this year, said that his return to shareholders from nearly 47 percent in early 2004 - when Travelers merged with the St. Paul Companies - at the end of 2007.

Only three companies in their peer - Goldman Sachs, Chubb and ACE - are outdated, that the performances. Progressive companies such as Wachovia, American International, XL Capital and Citigroup - all investors, the losses suffered during the same period.

Differing opinions about 2008

However, analysts predict more storms and insurance with mixed feelings that 2008 will be a good year for travelers in 2007.

Citigroup insurance analyst Joshua Shanker in January lowered its revenue outlook for travellers this year to a share of $ 5.65 - 20 cents by his estimation, and the real benefits of $ 6.86 last year, a . He cited the pressure on premiums increased competition facing the Insurance Company. “We are aware of the tone of the last Conference calls clearly aware that the industry is indeed a contrary wind a negative effect on the outcome,” he said.

Bear Stearns analyst David Small reached a conclusion similar to Travelers.

Given the “cycle of the insurance is probably a good idea, for the year 2008, even worse,” Small Travelers expected outcome for this year, a share of $ 5.92. It is expected that the part not better than its counterpart group in the year 2008. However, analysts at the UBS Investment Research, and Morgan Stanley recently wrote optimistic assessments Travelers “Perspectives 2008″. Positives of view … And the risks seem exaggerated, “said William Wilt, insurance analyst at Morgan Stanley.

Said Meredith at UBS: “Travelers is a great company. Absolute, it has a balance of quality.” He also a virtue uncommon for investors in companies these days, in the esteem Meredith: “You can sleep well at night with him.”

Meredith plans to Travelers’ to take stock price, $ 62 for this year. Lately, it has raised loopholes in the $ 40s.