Analyst Note| Brett Horn, CFA |
Travelers ended the year on a strong note, suggesting the narrow-moat franchise might be turning a corner on some of the difficulties it has faced over the past couple of years. The annualized ROE for the quarter of 18% was aided by improvement in both underwriting and investment results. For the full year, ROE was 10%, a reasonable result, in our view, considering the events of the year. We will maintain our $144 fair value estimate.