Travelers’ stock slips after hurricane loss estimates, suspension of buyback program

Stocks of Vacationers Corporations Inc. TRV, -Zero.23% fell Zero.five% in morning business Tuesday, after the insurer mentioned it might droop its percentage repurchase program because it assesses losses from Hurricanes Harvey and Irma. Past due Monday, the corporate mentioned it estimated disaster pre-tax losses with regards to Harvey, together with recoveries from reinsurance, within the vary of $375 million to $750 million. Prior to quickly postponing the percentage repurchase program, the corporate mentioned it had spent $328 million to shop for again 2.6 million stocks within the present quarter. MKM Companions analyst Harry Fong reiterated his impartial score and $130 honest worth estimate at the inventory, however slashed his third-quarter earnings-per-share estimate to 25 cents from $2.27 and his 2017 EPS outlook to $6.80 from $eight.80. "We added within the complete $750 million of [catastrophe] losses into our third-quarter estimate; that can be conservative for Harvey, however we all know the corporate will most likely have a loss as large if no longer larger for Storm Irma," Fong wrote in a notice to shoppers. Vacationers’ inventory has misplaced 2.eight% during the last 3 months, whilst the SPDR S&P Insurance coverage ETF KIE, +Zero.19% has edged up Zero.2% and the Dow Jones Commercial Reasonable DJIA, +Zero.21% has tacked on 2.6%.

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