Chubb Corp. (CB): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Chubb Corp.'s earning of $2.17 per share surpassed the Zacks Consensus Estimate by 11.3% and was up 5% year over year. The solid results were led by strong underwriting performance from all the business segments, along with low catastrophe losses. We expect strong earnings over the long term given Chubb's superior franchise network and a significant presence in its niche market. Its Commercial insurance segment has consistently reported impressive earnings led by a renewal rate that has increased over several quarters. The retention ratio stands at a stable level. Chubb's Personal Insurance segment is also witnessing gradual market improvement. Moreover, international business has been performing strongly and is the key to its future growth. Chubb's disciplined capital management strategy which includes regular share buyback and dividend payment will drive the bottom line. However exposure to interest rates and low interest rates are some headwinds. We thus maintain our Neutral recommendation on the stock.


Overview:

Chubb is the one of the largest writers in the U.S., with diverse, profitable operations in commercial and personal lines and several specialty market segments. It was incorporated in the NJ in 1967. Chubb is a holding company for a family of property and casualty insurance companies known informally as the Chubb Group of Insurance Companies (the P&C Group). Since 1882, the P&C Group has provided property and casualty insurance to businesses and individuals around the world. The P&C Group underwrites most lines of property and casualty insurance. Underwriting operations consist of three separate business units: personal insurance, commercial insurance and specialty insurance.

The Chubb Commercial Insurance (CCI) segment (represented 42% of net premiums written in 2013) provides multiple peril, casualty, workers' compensation, property, and marine insurance. It also writes insurance products for niche businesses.

The Chubb Specialty Insurance (CSI) segment (24%) offers various professional liability products for privately and publicly owned companies, financial institutions, professional firms, health care organizations, as well as the surety business.

The Chubb Personal Insurance (CPI) segment (34%) offers insurance products related to automobiles, homeowners, and other personal coverage products for individuals with homes and possessions.

Chubb provides its products and services through independent insurance agents and brokers in the United States, Canada, Europe, Australia, Latin America and Asia.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: CB , CCI , CPI , CSI

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