Travelers (NYSE:TRV), ACE (NYSE:ACE), Arch Capital (Nasdaq:ACGL), PartnerRe (NYSE:PRE) Top P&C Insurance Picks of Barclays

Saying they prefer the high-quality names in the P&C insurance sector, Travelers (NYSE:TRV), ACE (NYSE:ACE), Arch Capital (Nasdaq:ACGL) and PartnerRe (NYSE:PRE) were the leading companies chosen by Barclays.

Barclays says, "U.S. tort costs (a proxy for P&C insurers' claims costs) decreased by 2.7% to $248 billion in 2009 (latest data available), compared to a 1% increase 2008. In 2009, the decline was driven by reduced economic activity which results in fewer opportunities for tort actions. An increase in personal tort costs was more than offset by a decrease in commercial tort costs. Tort costs as a percent of GDP fell to 1.74% in 2009 from 1.76% in 2008 and 1.79% in 2007, and represents the sixth consecutive year of a decline in this ratio, according to a study by Towers Watson.

"Within the P&C insurance sector, we prefer the shares of primary commercial P&C insurers and select diversified reinsurers over the personal lines P&C insurers and insurance brokers. Broadly, we favor the high-quality names with strong balance sheets, excess capital, and attractive valuations: Travelers (TRV), ACE Ltd (ACE), Arch Capital (ACGL), and PartnerRe (PRE). (all rated Overweight)."

Travelers (NYSE:TRV) was trading at $54.48, down $0.11, or 0.20, as of 2:31 PM EST. ACE was at $60.71, down $0.14, or 0.23 percent. Arch Capital was at $87.53, down $0.44, or 0.50 percent. PartnerRE was at $80.84, down $0.68, or 0.83 percent.