General Electric (GE) (PNC) (FITB) (TRV) (HON) (RAI) EPS Estimates Changed

General Electric (NYSE: GE), PNC Financial Services (NYSE: PNC), Fifth Third Bancorp (NASDAQ: FITB), The Travelers Companies, Inc. (NYSE: TRV), Honeywell International Inc. (NYSE: HON) and Reynolds American, Inc. (NYSE: RAI) EPS estimates adjusted by analysts.

Citigroup (NYSE:C) raised its EPS estimate on Fifth Third Bancorp (FITB). They have a “Hold” rating and a price target of $14.00 on the company.

Credit Suisse (NYSE:CS) cuts its EPS estimate on General Electric (GE) ‘s. They have an “Outperform” rating and a price target of $23.00 on the company.

Citigroup lowered its EPS estimate on Honeywell International Inc. (HON). They have a “hold” rating and a price target of $65.00 on the company.

Citigroup boosted its EPS estimate on PNC Financial Services (PNC). They have a “Hold” rating and a price target of $64.00 on the company.

Morgan Stanley (NYSE:MS) cuts its EPS estimate on Reynolds American, Inc. (RAI). They have an “Equal Weight” rating and a price target of $38.00 on the company.

UBS AG lowered its EPS estimate on The Travelers Companies, Inc. (TRV). They have a “Buy” rating and a price target of $66.00 on the company.

All-Time Highs for (THI) (TLEO) (TNAV) (TRV) (TU) Reached May 6

Tim Hortons Inc. (NYSE:THI), Taleo Corp. (NASDAQ:TLEO), Telenav, Inc. (NASDAQ:TNAV), The Travelers Companies (NYSE:TRV) and Telus Corp. (NYSE:TU) all breached all-time highs on Friday, May 6.

Tim Hortons Inc. (THI) closed at $49.11, gaining $0.87, or 1.80 percent. They traded as high as $49.38 on the day.

Taleo Corp. (TLEO) closed Friday at $36.62, jumping $1.60, or 4.57 percent. They traded as high as $37.95 on the day.

Telenav, Inc. (NASDAQ:TNAV) closed Friday at $14.71, climbing $0.39, or 2.72 percent. They traded as high as $14.83 on the day.

The Travelers Companies (NYSE:TRV) closed at $63.43, up $0.43, or 0.68 percent. They traded as high as $64.17 on the day.

Telus Corp. (NYSE:TU) closed at $51.26, gaining $0.13, or 0.25 percent. They traded as high as $51.98 on the day.

All-Time Highs for (THI) (TLEO) (TNAV) (TRV) (TU) Reached May 6

Tim Hortons Inc. (NYSE:THI), Taleo Corp. (NASDAQ:TLEO), Telenav, Inc. (NASDAQ:TNAV), The Travelers Companies (NYSE:TRV) and Telus Corp. (NYSE:TU) all breached all-time highs on Friday, May 6.

Tim Hortons Inc. (THI) closed at $49.11, gaining $0.87, or 1.80 percent. They traded as high as $49.38 on the day.

Taleo Corp. (TLEO) closed Friday at $36.62, jumping $1.60, or 4.57 percent. They traded as high as $37.95 on the day.

Telenav, Inc. (NASDAQ:TNAV) closed Friday at $14.71, climbing $0.39, or 2.72 percent. They traded as high as $14.83 on the day.

The Travelers Companies (NYSE:TRV) closed at $63.43, up $0.43, or 0.68 percent. They traded as high as $64.17 on the day.

Telus Corp. (NYSE:TU) closed at $51.26, gaining $0.13, or 0.25 percent. They traded as high as $51.98 on the day.

Dividend Yields for (MMC) (TRV) (ALL) (CB) (AFL)

Indicated dividend yields for Standard & Poor's 500 Index companies Marsh & McLennan Cos Inc (MMC), Travelers Cos Inc (TRV), Allstate Corp (ALL), Chubb Corp (CB) and Aflac Inc (AFL).

These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.

Marsh & McLennan Cos Inc (MMC) has a dividend yield of 2.77 percent on a declared dividend of $0.55. The payout ratio is 60.2 percent.

Travelers Cos Inc (TRV) has a dividend yield of 2.59 percent on a declared dividend of $0.41. The payout ratio is 18.5 percent.

Allstate Corp (ALL) has a dividend yield of 2.48 percent on a declared dividend of $0.21. The payout ratio is 21.5 percent.

Chubb Corp (CB) has a dividend yield of 2.39 percent on a declared dividend of $0.39. The payout ratio is 17.2 percent.

Aflac Inc (AFL) has a dividend yield of 2.14 percent on a declared dividend of $0.30. The payout ratio is 32.2 percent.

Financials (C) (BAC) (TRV) (JPM) (AXP) (GS) (WFC) All Close Up Wednesday

Shares of the major banks in the U.S. followed their overseas counterparts in getting a boost on Wednesday, as Bank of America Corp. (NYSE:BAC), Travelers Corp. (NYSE:TRV), JPMorgan (NYSE:JPM), American Express (NYSE:AXP), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) and Goldman Sachs (NYSE:GS) all closed up.

Foreign banks jumped on expectations the European central bank will raise rates Thursday.

All four financial components of the Dow Jones Industrial Average posted gains on Wednesday.

Nasdaq OMX Group (NDAQ) increased 3 percent and NYSE Euronext (NYX) added 1.8 percent.

Also finishing in the positive was the Financial Select Sector SPDR ETF (XLF), which tracks financial stocks in the S&P 500 index.

Travelers (NYSE:TRV), ACE (NYSE:ACE), Arch Capital (Nasdaq:ACGL) Better Bets Than Chubb (NYSE:CB) on Valuation

Chubb (NYSE:CB) has a lot going for it, unfortunately for them at this time, peers like Travelers (NYSE:TRV), ACE (NYSE:ACE) and Arch Capital (Nasdaq:ACGL) are trading at or below 1X book value, making them a preferable investment at this time.

Barclays says, "CB has a solid franchise in our view as evidenced by strong 4Q10 underwriting results and aggressive share repurchase activity. However, CB's valuation is above peers, and we prefer other high-quality P&C insurers that trade at or below 1x book value such as Travelers (NYSE:TRV), ACE Ltd (NYSE:ACE) and Arch Capital (Nasdaq:ACGL).

"We are reducing our 2011 EPS estimate for CB to $5.65 from $5.75 (consensus=$5.80) to reflect higher than anticipated catastrophe losses. No change to our 2012 EPS estimate of $5.60 (consensus=$5.73)."

Barclays maintains an 'Equalweight' rating on Chubb Corporation (CB), which closed Friday at $57.97, down $1.36, or 2.29 percent. Barclays has a price target of $59 on Chubb.

Travelers (NYSE:TRV) Still Faces Challenges After Solid Quarter

Travelers (NYSE:TRV) stands in an enviable position, finishing up a strong quarter, while continuing to work from a solid base, but FBR noted they do have some concerns over the underlying dynamics of the earnings for the quarter.

FBR says, "TRV reported solid 4Q10 results, with operating EPS of $1.89 exceeding the $1.67 consensus estimate by a comfortable margin. Book value declined a modest 1.1% to $58.47/share, despite significant pressure in the bond market, reflecting TRV's high-quality fixed-income portfolio. Shares now trade at 95% of BV, a valuation many would find incredibly attractive given full-year operating ROE of 12.5%. In spite of the strong quarterly result, we continue to rate TRV at MP, as we worry about some of the dynamics underlying this quarter's earnings. In addition, the current rate of buybacks cannot continue in perpetuity...We are increasing our 2011 operating EPS estimate to $6.15 from $6.00 to account for a higher amount of expected share buybacks."

FBR Capital reiterates a "Market Perform" rating on Travelers (TRV), which closed Tuesday at $56.23, up $0.61, or 1.10 percent. FBR raised their price target on Travelers from $70 to $71.

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.

Allstate (NYSE:ALL), Hanover (NYSE:THG), Travelers (NYSE:TRV), Arch Capital (Nasdaq:ACGL), Everest Re (NYSE:RE), ACE (NYSE:ACE), PartnerRe (NYSE:PRE)

The property-casualty insurance sector is expected to be under strong pressure in the fourth quarter of 2010, and insurers Allstate (NYSE:ALL), Hanover (NYSE:THG), Travelers (NYSE:TRV), Arch Capital (Nasdaq:ACGL), Everest Re (NYSE:RE), ACE (NYSE:ACE) and PartnerRe (NYSE:PRE) all had their EPS estimates lowered by Barclays.

Barclays said, "The fourth quarter 2010 earnings season is expected to be challenging for the property-casualty insurance sector. This is because P&C insurers are likely to suffer the first quarterly decline in linked-quarter book value since the 2008 financial crisis due to mark-to-market investment losses, and the outlook for 2011 is expected to be uninspiring. Also, 4Q10 EPS estimates appear too high in some cases due the risk of elevated catastrophe losses. In 2010, the Barclays Capital P&C Insurance Index modestly outperformed both the S&P 500 and S&P Financials. Currently, we recommend investors take profits in P&C insurance stocks (especially the insurance brokers) due to our outlook for challenged near-term results for P&C and concerns about a lack of pricing power."

"We are reducing our 4Q10 EPS estimates for Allstate, Hanover Insurance Group, Travelers due to our expectations of elevated U.S. storm losses, and we are lowering our 4Q EPS outlook for Arch Capital & Everest Re to reflect our concern that New Zealand earthquake loss estimates could rise beyond our existing catastrophe load."

"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: TRV, ACE Ltd, ACGL, and PartnerRe ."

Travelers (NYSE:TRV), ACE (NYSE:ACE), Arch Capital (Nasdaq:ACGL) , PartnerRe (NYSE:PRE) Have Best P&C Outlook for 2011

Heading into 2011, Barclays (NYSE:BCS) says they see the outlook for the P&C insurance sector as "lackluster." Based on the management team differentiator, their favorite picks going forward are Travelers (NYSE:TRV), ACE (NYSE:ACE), Arch Capital (Nasdaq:ACGL) and PartnerRe (NYSE:PRE).

Barclays said, "Entering 2011, our outlook is lackluster for the P&C insurance sector. Positive factors include low valuations and strong capital positions. Challenges for the sector include declining pricing due to excess capital and slack demand, anticipated declines in EPS and ROEs, slowing book value growth, and potential increases in interest rates and inflation. Barring a major catastrophe loss, broad tightening in P&C commercial insurance and reinsurance pricing appears unlikely before 2013.

"Our highest conviction long ideas are Travelers, ACE Ltd, Arch Capital Group and PartnerRe Ltd because we believe these companies have superior management teams, can generate top-tier performance, and trade at attractive valuations. On the other hand, we recommend investors use the insurance brokers including MMC, AJG, and BRO as a source of funds because of expensive valuations and headwinds from soft P&C market conditions as well as a slow economic recovery. Separately, our outlook could become more favorable on shares of Bershire H (NYSE:BRK.B), Progressive (NYSE:PGR), and Chubb (NYSE:CB) if their valuations became more attractive.

"P&C insurers' book values could experience negative mark to market losses in 4Q10 (the first time in roughly one year) due to rising interest rates, which we estimate could be 5% of book value on average. P&C insurers with the highest impact to book value could be XL Capital (NYSE:XL) (-9% of BV), TRV (-8%) and Everest Re Group (NYSE:RE) (-7%). Berkshire Hathaway's book value, on the other hand, could benefit by about a 2% mark-to-market investment gain due to its higher exposure to equities.

"In addition, we are lowering our 2011 EPS outlook for Aon Corporation (NYSE:AON) and Arthur J Gallagher (NYSE:AJG) to reflect less margin expansion than previously anticipated. We are also raising our 2011 EPS estimate for PRE and FSR to reflect higher than projected share repurchase activity."

Travelers closed Monday at $55.45, up $0.27, or 0.49 percent. Ace closed at $60.96, down $0.09, or 0.15 percent. Arch Capital was down to $88.26, losing $0.40, or 0.45 percent. PartnerRe closed at $77.78, up $0.05, or 0.06 percent.

The Hanover Insurance Group (NYSE:THG) EPS Estimates Challenged by Midwest Storms

EPS estimates for the fourth quarter for The Hanover Insurance Group (NYSE:THG) could be under pressure in light of the amount of damage from severe storms in the midwest.

Barclays (NYSE:BCS) said, "We met with The Hanover Insurance Group's CEO Fred Eppinger. THG appears confident it can improve its ROE by leveraging its expense base, raising rates in personal lines, and deploying excess capital (roughly $250 mn), although it is unclear to us how long this could take to achieve.

"Catastrophe losses in 4Q10 could be above average fourth quarter catastrophe losses due in part to severe Midwest storms. As a result, we believe THG could face difficulty achieving its FY2010 EPS guidance of $2.85-$3.10 (implies 4Q10 EPS of $1.17-$1.42 vs our $1.01 estimate, which could be optimistic). Higher-than-average 4Q10 catastrophe losses is a negative lateral for Allstate (NYSE:ALL), and to a lesser extent Travelers (NYSE:TRV) & Chubb (NYSE:CB)."

Barclays maintains an "Equalweight" on The Hanover Insurance Group, which closed Wednesday at $47.41, down $0.18, or 0.38 percent. They have a price target of $46 on the company.

Top Ten Calls Recommended by Goldman Sachs (NYSE:GS)

Goldman Sachs (NYSE:GS) released a list of their top ten calls in the financial sector, targeting those lagging behind the market in the midst of what they perceive as improving fundamentals.

They see the overall sector rising.

The 10 companies the options strategists at Goldman recommend are these: IntercontinentalExchange, Inc. (NYSE:ICE), Allstate Corporation (NYSE:ALL), Travelers Companies, Inc. (NYSE:TRV), Franklin Resources (NYSE:BEN), The Chubb Corporation (NYSE:CB), Moody's Corp. (NYSE:MCO), Progressive Corp. (NYSE:PGR), State Street Corp. (NYSE:STT), NYSE Euronext, Inc. (NYSE:NYX) and T. Rowe Price (Nasdaq:TROW).

IntercontinentalExchange, Inc. was trading at $117.87, up $1.49, or 1.28 percent, as of 12:14 PM EST. Allstate was at $30.98, up $ 0.03, or 0.10 percent. Travelers was at $55.42, up $0.08, or 0.14 percent. Franklin Resources was trading at $117.37, up $0.93, or 0.80 percent. Chubb was at $59.53, up $0.04, or 0.07 percent. Moody's was at $27.40, up $0.07, or 0.26 percent. Progressive was up to $20.62, gaining $0.18, or 0.88 percent. State Street moved up to $45.60, rising by $0.40, or 0.88 percent. NYSE Euronext was up to $29.62, gaining $0.27, or 0.92 percent. T.Rowe Price was trading at $63.31, up $0.53, or 0.84 percent.

All 10 companies were positive as of this writing.

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

Among the US P&C insurance universe covered by Barclays (NYSE:BCS), their top picks are Travelers (NYSE:TRV), ACE (NYSE:ACE) and Arch Capital (Nasdaq:ACGL).

Barclays said, "preliminary look at our proprietary Commercial P&C Insurance Buyers' Survey shows expectations for pricing to decline modestly in early 2011. The most recent update to our bi-annual Buyers' Survey, which we have been conducting since 2000, so far consists of interviews with 40 risk managers with a 40% response rate. Our survey primarily consists of large national accounts. Almost half of the respondents renewed (or will renew) their insurance programs in 4Q10 with the rest preparing to renew in 1H11.

"Commercial P&C insurance prices are expected to fall 4% year-over-year at the January 2011 renewals, in line with the result six months ago based on our initial responses....

"The vast majority (77%) of respondents we surveyed said the P&C market is now soft vs. 56% six months ago..."

"Policy terms and conditions were mostly stable, with three-quarters of respondents expecting no change vs. a year ago....

Travelers closed Thursday at $54.63, down $0.43, or 0.78 percent. Ace ended the session at $59.50, up $0.10, or 0.17 percent. Arch Capital closed at $89.50, down $0.07, or 0.08 percent.