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The Travelers Companies, Inc.

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Shares of Travelers have outperformed the industry quarter to date. The insurer boasts a strong market position as one of the leading writers of auto and homeowners’ insurance and commercial U.S. property-casualty insurance with impressive inorganic growth story. Travelers’ capital position remains strong. The company has been generating sufficient capital, which it prudently deploys to enhance shareholders’ value and pursue growth initiatives. Solid retention and a positive renewal rate change are positives. However, exposure to catastrophe losses pose headwind for underwriting results. Travelers estimates catastrophe losses from California wildfires in $340–$440 million range. A still low interest rate environment restricts desired improvement in investment results. Travelers estimates $15–$20 million lower after-tax net investment income on a quarterly basis.

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