Property and casualty insurer
) reported the fourth-quarter operating earnings of 16 cents per
share, significantly ahead of the Zacks Consensus Estimate of a
loss of 46 cents per share. Earnings were down substantially by
90% year over year. The quarter's results suffered from $882
million before tax loss from superstorm Sandy.
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FY12 operating income per share was $5.23 which is significantly
higher than the Zacks Consensus Estimate $4.61. Earnings were
also up 2% year over year.
Net written premium for the quarter was down 2% year over year to
Property and casualty investment income after tax slumped 6% year
over year to $296 million.
Combined ratio for the quarter was 111.2% compared with 89.9%
last year. The deterioration in the combined ratio came from
Adjusted book value per share, a measure of net worth, was $53.80
compared with $50.37 at Dec 2011.
the segment net written premium was down by 2% year over year to
$1.2 billion during the reported quarter.
's net written premiums went down 7% year over year to $688
million due to lower premiums written in the professional
segment net written premiums was up by 2% year over year to $1.0
billion. The increase was driven by higher premium from
Homeowners, Personal Automobile as well as Other Personal lines.
During the quarter Chubb repurchased 369,900 shares of its common
stock at a total cost of $28 million. The company authorized new
share repurchase program for up to $1.3 billion.
Management expects to earn $6.40 to $6.80 on a per share basis
for full year 2013.
Though the quarter results suffered due to effects of
Sandy, more closely watched, full-year results show that Chubb
performed well overall.
Chubb is poised to perform better going forward based on a high
retention rate, pricing gains, positive renewal rate changes,
favorable prior-year reserve development, prudent underwriting
practice and a strong capital position.
However, exposure to significant catastrophic events remains a
concern. Also, the prevailing low interest rate environment acts
as a headwind.
Nevertheless, in our view, Chubb's strong capital management
policy will enable it to return capital to shareholders and take
advantage of the opportunities to grow profitably. Moreover,
Chubb's superior underwriting, customer loyalty and conservative
investment approach gives it a competitive edge over other
property and casualty insurance players such as
The Travelers Companies, Inc.
The Allstate Corp.
) to name a few.