The Chubb Corporation ( CB ) reported a record
high first-quarter operating earnings of $566 million or $2.14 per
share, significantly ahead of the Zacks Consensus Estimate of $1.74
per share. Earnings also increased 26% year over year from $469
million or $1.70 per share in the first quarter of 2012.
Including after-tax realized investment gains of $138 million or
34 cents per share, net income amounted to $656 million or $2.48
per share, up 36% from $506 million or $1.83 per share in the
Net written premium for the quarter was up 4% year over year to
Property and casualty investment income after tax slumped 6%
year over year to $288 million.
Combined ratio for the quarter was 84.6% compared with 90.2%
last year. Excluding catastrophe losses, combined ratio was 84%,
improving from 89.4% last year.
Book value per share, a measure of net worth, was $61.79
compared with $60.45 at Dec 31, 2012.
At Chubb Commercial Insurance segment, net
written premium increased 2% year over year to $1.4 billion during
the reported quarter. The combined ratio was 81.9% in the reported
quarter, compared to 93.3% in the year-ago quarter.
Chubb Specialty Insurance 's net written
premiums went up 5% year over year to $632 million due to higher
premiums written in the professional liability lines. The combined
ratio was 87.4% in the reported quarter, compared with 93.6% in the
Chubb Personal Insurance segment's net written
premiums was up by 5% year over year to $987 million. The increase
was driven by higher premium from Homeowners, Personal Automobile
as well as Other Personal lines. Combined ratio was 87% in the
reported quarter, compared to 85.5% in the year-ago quarter.
During the quarter Chubb repurchased 3.9 million shares of its
common stock at a total cost of $326 million. The company had
remaining authorization worth $1.1 billion as of Mar 31, 2013.
Chubb carries a Zacks Rank #2 (Buy). Other property and casualty
insurers worth considering are Aspen Insurance Holdings
Ltd. ( AHL
), Everest Re Group Ltd. ( RE ) and Global
Indemnity plc ( GBLI ). All these
companies carry a Zacks Rank #1 (Strong Buy).ASPEN INS HLDGS (AHL): Free Stock Analysis
ReportCHUBB CORP (CB): Free Stock Analysis ReportGLOBAL INDEMNTY (GBLI): Free Stock Analysis
ReportEVEREST RE LTD (RE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment