MKM Partners analyst Harry Fong lowered his price target on Travelers to $130 and kept his Neutral rating after its Q3 earnings miss driven by the "worsening tort environment". The analyst contends however that earnings will improve as rate increases roll through the company's book of business, noting that as many industry analysts know, the pricing power in insurance only surfaces after the recognition of losses. Fong adds that the 4.3% renewal rate change in teh quarter and the the 7.4% renewal premium change in business insurance were the highest since 2014.