The Travelers Companies (TRV)

Add a New Bears Reason Company: The Travelers Companies (TRV) Current price: Headline: (100 character max) Analysis: Cancel 66% agree 3 votes   Highly Vulnerable to Fluctuations in Interest Rates Top Contributor: Michael Mitchell | Created when NYSE:TRV was $41.91 | Edit | History Travelers invests heavily in bonds as party of its investment portfolio. Any increases in interest rates cause the value of TRV's bonds to decrease; conversely, decreases in interest rates devalue the company's returns on new investments. (100 character max) Cancel 0% agree 0 votes   Increase in Catastrophe Spells Doom for Travelers' Premiums and Claims Expenses Top Contributor: Michael Mitchell | Created when NYSE:TRV was $41.91 | Edit | History Already, modeling and predicting catastrophes is the most difficult yet vital aspect of Travelers' business. Travelers, as do all insurers, use models to price their premiums accordingly so that they will have adequate funds to pay necessary claims while making a profit at the same time. However, these models are highly dependent on rather ambiguous assumptions and as a result may end poorly for TRV if the company fails to accurately predict catastrophes. Furthermore, many climatologists believe that emerging climate and geological trends are causing the incidence of catastrophes to increase, thus possibly increasing the amount of TRV's claims expenses. (100 character max) Cancel

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.