After spending much of the past six months at a mediocre three-star rank, The Travelers Companies
The world isn't as bleak these days for Travelers and other insurers, as the sector has seen much improved financial results this earnings season. Despite suffering the same sharp increase in catastrophe claims that led to a dramatic jump in first-quarter payouts at peers such as Allstate
Earnings reports from others around the sector have also been heading in the right direction. Berkshire Hathaway's
Travelers' solid financial position has also attracted big fans; Warren Buffett has jumped in and one UBS analyst recently described Travelers as a cash cow. While other financial companies such as AIG struggled to survive during the financial crisis and still face numerous underlying problems, Travelers remained profitable throughout the recession. The company recently announced it was raising its dividend and is continuing to buy back shares, moves that have some investors feeling more confident about the company going forward.
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