AIG insurance stock rating overweight by Evercore Partners

Best Insurance stock - AIG insurance stock rating overweight by Evercore Partners : American International Group (NYSE: AIG)�s stock had its �overweight� rating restated by analysts at Evercore Partners in a research report issued to clients and investors on Tuesday. They currently have a $40.00 price target on the stock.

Other equities research analysts have also recently issued reports about the stock. Analysts at Sanford C. Bernstein reiterated an �outperform� rating on shares of American International Group in a research note to investors on Wednesday, January 16th. They now have a $45.00 price target on the stock. Separately, analysts at FBR Capital initiated coverage on shares of American International Group in a research note to investors on Thursday, January 10th. They set an �outperform� rating and a $44.00 price target on the stock. Finally, analysts at Wells Fargo downgraded shares of American International Group from an �outperform� rating to a �market perform� rating in a research note to investors on Thursday, January 10th.

Twelve research analysts have rated the stock with a buy rating, one has issued an overweight rating, and nine have issued a hold rating to the company. The stock has a consensus rating of �overweight� and an average target price of $40.43.

American International Group traded up 1.11% on Tuesday, hitting $35.48. American International Group has a 1-year low of $24.66 and a 1-year high of $37.67. The stock�s 50-day moving average is currently $34.89. The company has a market cap of $52.379 billion and a price-to-earnings ratio of 2.42.

American International Group last issued its quarterly earnings data on Thursday, November 1st. The company reported $1.00 earnings per share for the quarter, beating the analysts� consensus estimate of $0.88 by $0.12. Analysts expect that American International Group will post $3.77 EPS for the current fiscal year.

American International Group, Inc. (AIG) is an international insurance company, serving customers in more than 130 countries.

Bankinter SA stock ratings prices target by Nomura

best insurance stock - Bankinter SA stock ratings by Nomura : Nomura reiterated their reduce rating on shares of Bankinter SA (MCE: BKT) in a research report sent to investors on Tuesday morning. The firm currently has a $3.73 (�3) price target on the stock.

Other equities research analysts have also recently issued reports about the stock. Analysts at Macquarie reiterated an underperform rating on shares of Bankinter SA in a research note to investors on Wednesday, January 16th. They now have a $3.60 price target on the stock. Separately, analysts at Exane BNP Paribas reiterated an underperform rating on shares of Bankinter SA in a research note to investors on Tuesday, January 15th. They now have a $2.80 price target on the stock. Finally, analysts at Societe Generale reiterated a sell rating on shares of Bankinter SA in a research note to investors on Wednesday, January 9th. They now have a $3.68 price target on the stock.

The stock�s 50-day moving average is currently �N.

Bankinter SA is a Spain-based financial institution primarily engaged in the banking sector. The Bank offers a range services and products, such as current accounts, fixed-term deposits, investment funds and retirement plans, mortgages, insurance policies; as well as other banking operations to businesses and individuals.

QBE Insurance stock prices target by Credit Suisse

Best insurance stocks - QBE Insurance stock rating prices target by Credit Suisse : Credit Suisse reissued their outperform rating on shares of QBE Insurance Group Limited (ASX: QBE) in a research report released on Tuesday morning. Credit Suisse currently has a $13.79 (13 AUD) price target on the stock.


QBE has been the subject of a number of other recent research reports. Analysts at Macquarie reiterated a neutral rating on shares of QBE Insurance Group Limited in a research note to investors on Tuesday, January 15th. They now have a $13.44 price target on the stock. Separately, analysts at Nomura reiterated a buy rating on shares of QBE Insurance Group Limited in a research note to investors on Thursday, January 10th. They now have a $14.74 price target on the stock. Finally, analysts at CIMB reiterated a neutral rating on shares of QBE Insurance Group Limited in a research note to investors on Wednesday, December 12th. They now have a $12.73 price target on the stock.

Shares of QBE Insurance Group Limited traded down 2.55% during mid-day trading on Tuesday, hitting A$11.830. QBE Insurance Group Limited has a one year low of A$9.880 and a one year high of A$15.150. The stock�s 50-day moving average is currently A$13.12. The company has a market cap of A$13.936 billion and a P/E ratio of 18.28.

QBE Insurance Group Limited is engaged in underwriting general insurance and reinsurance risks, management of Lloyd�s syndicates and investment management.

Travelers insurance earnings surpassing the Zacks Consensus

Best Insurance stock - Travelers insurance earnings surpassing the Zacks Consensus : The Travelers Companies, Inc. (TRV - Analyst Report) reported earnings of 72 cents per share in the fourth quarter of 2012, surpassing the Zacks Consensus Estimate of 4 cents per share. However, results plunged 51% from $1.48 earned in the year-ago quarter. Operating income of $278 million dipped 54% the reported quarter.

The year-over-year downside was largely attributable to higher catastrophe losses mostly due to Hurricane Sandy. However, higher underlying underwriting margins and higher net favorable prior-year reserve development limited the downside to some extent.

Cat loss in the quarter was $689 million or $1.78 per share. Including net realized investment gains of $26 million or 6 cents per share, the company reported net income of $304 million or 78 cents per share, comparing unfavorably with net income of $618 million or $1.51 a share. The year-ago quarter included net realized investment gains of $9 million.

Operational Update

Net written premiums during the quarter were $5.4 billion, up 2% year over year.

Net investment income increased 5.7% year over year to $689 million during the quarter, largely attributable to better performance at non-fixed income portfolio, partly muted by reduction in fixed income returns.

Travelers posted underwriting loss of $338 million, comparing unfavorably with profit of $187 million in the year-ago quarter. Combined ratio deteriorated 950 basis points year over year to 105.4% in the reported quarter. The deterioration was due to higher catastrophe losses, partially muted by higher underwriting margins and higher net favorable prior-year reserve development.

Total revenue in the quarter under review was $6.5 billion, increasing 2% year over year, driven by the augmentation in premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estimate of $6.3 billion.

Full Year Highlights

Operating earnings of $6.21 per share outpaced the Zacks Consensus Estimate of $5.56 and year ago earnings of $3.28. The upside stemmed from a combination of lower catastrophe losses, higher underwriting margins and higher net favorable prior-year reserve development

Including net realized investment gains of 9 cents, the company reported net income of $6.30 per share, surging from $3.36 a share earned in 2011.

Total revenue increased 1% year over year to $25.7 billion. It also outperformed the Zacks Consensus Estimate of $25.2 billion.

Underwriting gains of $296 million reversed the year-ago loss of $745 million. Combined ratio improved 800 basis points.

Segment Update

Business Insurance: Net written premium increased 6% year over year to $2.78 billion in the quarter, largely driven by increases in renewal rate change.

The combined ratio deteriorated 770 basis points year over year to 103.5%, mainly due to higher catastrophe losses.

Operating income slid 27% year over year to $326 million in the fourth quarter of 2012, primarily attributable to higher catastrophe losses.

Financial, Professional & International Insurance: Net written premium in the quarter under review improved 2% year over year to $808 million, driven by a 6% increase in net written premiums in the International business.

The combined ratio deteriorated 100 basis points year over year to 80.2% in fourth quarter 2012, attributable to higher catastrophe losses.

Operating income descended 13.8% year over year to $131 million, attributable to higher catastrophe losses, partly offset by higher underlying underwriting margins

Personal Insurance: Net written premium skidded 3% year over year to $1.79 billion, primarily due to lower new business volumes.

The combined ratio deteriorated 1540 basis points year over year to 89.7% in the fourth quarter of 2012, largely driven by higher catastrophe losses.

Operating loss of $114 million compared unfavorably with profit of $77 million in the year-ago quarter largely due to higher catastrophe loss. However, higher underlying underwriting margins and higher net favorable prior-year reserve development limited the downfall.

Dividend and Share Repurchase

Travelers spent $400 million to buyback 5.4 million shares in the quarter, taking the tally to $1.45 billion spent to buyback 22.4 million shares in 2012. The company is still left with $2.159 billion remaining under its authorization.

The company also paid $178 million in dividends. Additionally, the board approved a quarterly dividend of 46 cents, payable Mar 29, 2013, to the shareholders of record as of Mar 8, 2013.

Our Take

Travelers continues with the trend of delivering positive earnings surprise.

Though its exposure to cat loss weighs on the results, prudent underwriting practices and favorable prior-year reserve development managed to limit the adverse affect.

High retention rate, pricing gains, positive renewal rate changes, and a strong capital position are among the other positives, which are likely to support Travelers perform better going forward.

Travelers� continuous share buyback strategy has a positive impact on earnings per share and also bolsters shareholder value.

Further, Travelers recently increased its stake in J. Malucelli Participa��es em Seguros e Resseguros S.A., a market leader in the surety insurance business in Brazil. Further, it made some useful investments to augment its technology platform. It scores strongly with the rating agencies as well.

source -  Zacks.com

Travelers stock prices rally today

Best Insurance Stock - Travelers stock prices rally today : Shares of Travelers Cos. rallied on Tuesday after the insurance company reported quarterly earnings that exceeded Wall Street�s expectations.

The Financial Select Sector SPDR Fund XLF +0.41% , which tracks the performance of financial stocks in the S&P 500 SPX -0.28% , traded marginally higher in midmorning trade.   The broader U.S. stock market declined after data showed a decline in sales of existing homes in December. The S&P 500 slipped 0.3% to 1,481.

Travelers TRV +2.63%  was the top gainer among S&P 500 financial stocks and the biggest gainer in the blue-chip Dow Jones Industrial Average DJIA +0.12% , with its shares up nearly 3%. The insurer said its fourth-quarter profit slumped 51% as it racked up millions in claims from Hurricane Sandy, which hit the Northeastern U.S. in November. Still, the results were better than expected. See: Travelers fourth-quarter profit down 51% after Sandy. Another insurer, Allstate Corp. ALL +1.76% , gained 1.8%.

State Street Corp. STT +3.36%  shares rose 2.6% after the investment manager was upgraded to neutral from underweight at J.P. Morgan Chase, which said that the company�s new cost-savings program is expected to offset its lower net interest margin, In the banking sector, shares of Regions Financial Corp. RF +4.58%  rose 1.5% after the lender swung to a fourth-quarter profit, source : http://www.marketwatch.com

Nigeria insurance market trends by A.M. Best Co

Nigeria insurance market trends by  A.M. Best Co : Economic development and the demand for energy infrastructure projects has been fuelled by Nigeria�s oil and gas industry, resulting in the country�s insurance market becoming the largest in West Africa, according to a new report from A.M. Best Co.

�Africa�s Diverse Insurance Markets Offer Growth Opportunities, Untapped Demand�

In the report entitled, �Africa�s Diverse Insurance Markets Offer Growth Opportunities, Untapped Demand�, A.M. Best notes total insurance premium in Nigeria reached USD 1.6 billion in 2011, although insurance penetration is modest at 0.6%. The report states the Pension Reform Act, which makes pension insurance compulsory for companies employing more than five people, is likely to drive further growth in life premiums. A.M. Best considers the development of the life portfolio in Nigeria as positive for insurers� diversification, although management teams may need to demonstrate their skills in these new areas.

Carlos Wong-Fupuy, Senior Director, Analytics, said: �Nigeria�s non-life sector accounted for 74% of total premium in 2011, with drivers including the enforcement of compulsory lines of business such as motor third-party liability, professional indemnity, public and general liability. Motor risks make up more than a quarter of non-life premium in Nigeria. This reflects the country�s oil and gas risks, which result in very volatile growth in gross premiums written and low retention ratios.�

The report notes the insurance market has experienced consolidation driven primarily by higher capital requirements. The financial crisis also contributed to merger and acquisition activity, as the Central Bank of Nigeria passed a directive ordering all deposit money banks to divest their non-banking interests or form a holding company structure. However, the report states Nigeria�s insurance market remains crowded.

Source: Business Wire

Vermont Mutual Insurance issuer credit rating by A.M. Best

best insurance stock - Vermont Mutual Insurance issuer credit rating by A.M. Best : A. M. Best Co. said it has upgraded the issuer credit rating (ICR) to �a+� from �a� and affirmed the financial strength rating of A (Excellent) of Vermont Mutual Insurance Company and its two fully reinsured subsidiaries, Northern Security Insurance Company and Granite Mutual Insurance Company.

These companies are members of Vermont Mutual Insurance Group and are all domiciled in Montpelier, Vermont. The outlook for all rating is stable.

The ICR upgrade reflects Vermont Mutual�s favorable underwriting and operating results. In addition, Vermont Mutual continues to maintain solid risk-adjusted capitalization, a well established market presence in the New England states and knowledge of local insurance issues.

Chartered in 1828, the Vermont Mutual Insurance Company is one of the 10 oldest mutual property/casualty insurers in the United States. The Vermont Mutual Insurance Group provides coverage throughout New England and New York.

Through more than 400 independent agencies, Vermont Mutual insures some 275,000 policyholders with a direct written premium of more than $300,000,000.