Citigroup Raises Estimates On The Travelers Companies

Citigroup is raising its The Travelers Companies, Inc.

3Q10E by 18%, from $1.31 to $1.55, as it reduces its 3Q CAT estimate by roughly half. “Our CAT loss estimate drops to $155M (2.9 points impact to CR) from $290M (5.4 points impact),” Citigroup writes. “Our estimate is in-line with 3Q09 CAT losses, also a relatively benign CAT loss quarter.” Citigroup says that are no change to 4Q10E or out-year estimates. “2010E goes to $5.78 as a result of the increase to 3Q10E. TP remains $55. Maintain Hold.” 3Q consensus is currently at $1.45, but we expect this to climb as the Street continues to revise estimates upwards to reflect the benign CAT season. The Travelers Companies currently trades for $53.76.