Travelers Companies Inc. (TRV): Today's Featured Insurance Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Travelers Companies ( TRV) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day up 1.1%. By the end of trading, Travelers Companies rose $1.70 (2.1%) to $83.44 on average volume. Throughout the day, 2,915,758 shares of Travelers Companies exchanged hands as compared to its average daily volume of 1,978,000 shares. The stock ranged in a price between $81.50-$83.72 after having opened the day at $82.12 as compared to the previous trading day's close of $81.74. Other companies within the Insurance industry that increased today were: Kingsway Financial Services ( KFS), up 15.1%, Prudential ( PUK), up 4.4%, MBIA ( MBI), up 4.1% and Prudential Financial ( PRU), up 3.9%.
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The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Travelers Companies has a market cap of $31.0 billion and is part of the financial sector. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Travelers Companies a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Travelers Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, American Independence Corporation ( AMIC), down 4.9%, Atlas Financial Holdings ( AFH), down 4.5%, Donegal Group ( DGICB), down 4.3% and National Security Group ( NSEC), down 3.0%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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