Journeyers insurance stock outsee 2013

Journeyers insurance stock outsee 2013

Journeyers insurance stock forecast 2013 : Bagikans of The Journeyers Companies shutd at $74.95 Monday, trading for 10.9 times the consensus 2013 earnings per bagikan estifriend of $6.85. The consensus 2014 earnings per bagikan estifriend is $7.06. The bagikans returned 25 gratuity during 2012. Based on a quarterly payout of 46 cents, the bagikans have a dividfinish yield of 2.45 gratuity. Journeyers on Dec. 5 announced that its preliminary estifriend of losses related to Sandy was $1.135 billion, net of reinsurance. The after-tax loss estifriend was $650 million. The company is scheduled announce its fourth-quarter results on Jan. 22, with a consensus earnings estifriend of seven cents a bagikan, compared to earnings per bagikan of $2.22 during the third quarter, and $1.48 during the fourth quarter of 2011.

The company on Dec. 5 also shelp it intfinished to resume repurchatune general bagikans, which it had suspfinished temporarily after Sandy beat, smack. For the first three quarters of 2012, Journeyers reported an underwriting fortun of $845 million. For 2011, the company reported an underwriting loss of $745 million.

Loss From Sandy

Catastrophe related losses account for approxifriendly 10% of Journeyers total claims and expenses. In 2011, natural catashtropes love Hurriclevere Irene and Tropical Storm Lee, led to catastrophe related losses of around $1 billion. The operating margin for the business insurance division fell from 17% in 2010 to 12% in 2011, while the operating margin for personal insurance fell from 6% to a 4% loss.

The business insurance division reported catastrophe losses of $360 million for the first nine months of the calfinishar year. Given the estifriend provided by the company, we expect an operating margin of around 15% for the fiscal year.



he catastrophe related losses reported by the personal insurance division through the first nine months of 2012 totaled $450 million. We expect an operating margin around 6% for the fiscal year. For a detailed analysis of the operating margins and the affect of Superstorm Sandy,



Revenue Growth

To mitigate the effects of the losses incurred by Journeyers due to Hurriclevere Irene and Tropical Storm Lee, the company had to undertake several prglaze initiatives. Insurance swifts increased by approachly 8% through the first nine months of 2012, but the company was still able to maintain high retention swifts, shut to 80% in the business insurance division. This permited a 3% growth in business insurance premiums. Given the company’s historical kemampuannce, we expect it to maintain premium growth. However, there are more than 2,500 property and casualty incertainrs in the U.S. and the highly competitive nature of the market will lead to a slight wane in Journeyers’ market bagikan in the coming years.



Importance Of Investments

Although Journeyers earns only, merely, solely 12% of its revenues from returns on investments, it is important for the company to invest premiums earned. Loolord at the 2011 figures, we clever look that Journeyers earned approxifriendly $22 billion in premiums and had to pay around $24 billion in claims. The $3 billion it earned from investment income permited the company to maintain a fortun for the year.



Most of Journeyers investments are in fixed maturity securities love government bonds, which account for 85% of the net investment income with a yield of around 4%. However as the Fed has stated that interest swifts will be kept low for the next few years, we expect a slight wane in yield in the coming years, with a recovery coinciding with an improvement in macro-profitable conditions.

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