The Chubb Corporation CB reported first-quarter 2015 operating income of $1.57 per share, which surpassed the Zacks Consensus Estimate by 1.95% and improved 4.7% year over year.
Better-than-expected earnings came on the back of higher premium written in its Personal and Commercial lines of business partly offset by higher catastrophe loss. A lower share count due to share buyback also contributed to bottom-line growth.
The Chubb Corporation - Earnings Surprise | FindTheCompany
Net written premium for the reported quarter rose 1% year over year to $3.1 billion. While Chubb registered a 4% rise in premium from its U.S. business, premium declined 5% outside U.S. Property and casualty investment income after taxes came in at $264 million, down 5% year over year.
Chubb’s underwriting income of $205 million decreased 1.4% year over year due to loss and loss expenses.
Combined ratio for the quarter deteriorated 70 basis points (bps) year over year to 93.9%.
Book value per share, which is a measure of net worth, was $70.33, up almost 6% year over year.
Segment Update
At Chubb’s Personal Insurance segment, net written premium increased 2% year over year to $1.0 billion during the reported quarter. The combined ratio deteriorated 330 bps year over year to 105.1%. Within the segment, net written premiums for Homeowners, Personal Automobile and Other Personal lines increased 1%, 2% and 5%, respectively.
The Commercial Insurance segment’s net written premiums rose 2% year over year to $1.4 billion, primarily driven by higher premium in Workers followed by Multiple Peril insurance. Combined ratio improved 230 bps year over year to 90.8%.
Chubb's Specialty Insurance net written premiums remained flat year over year at $621 million, primarily due to a 1% decline in premium from its professional liability segment partly offset by a 6% increase in Surety premium. The combined ratio, however, improved 700 bps year over year to 81.9%.
Capital Management
During the reported quarter, Chubb repurchased 3.2 million shares of its common stock for $326 million.
During the quarter, the company announced a 14% hike in its quarterly dividend payment.
Currently, Chubb holds a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some earnings plays in the property and casualty space this season are:
Selective Insurance Group Inc. SIGI with a Zacks Rank #3 and an Earnings ESP of +10.64%. Selective Insurance will announce first-quarter results on Apr 29.
The Allstate Corporation ALL with a Zacks Rank #3 and an of +3.6%. Allstate will announce first-quarter results after the closing bell on May 5.
Assurant Inc. AIZ with a Zacks Rank #3 and an Earnings ESP of +2.7%. Assurant will announce first-quarter results after the closing bell on May 5.
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