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Chubb Beats on Q3 Earnings, Up Y/Y on Solid Underwriting

The Chubb CorporationCB reported third-quarter 2015 operating income of $2.37 per share, which surpassed the Zacks Consensus Estimate by 20.3% and improved 9% year over year.

The Chubb Corporation - Earnings Surprise | FindTheBest

The better-than-expected earnings came on the back of higher underwriting income.

Including post-tax realized investment gains of 23 cents, net income was a record $2.60 per share, up 5% year over year.

Shares gained 0.11% in the after market trading hours to reflect the outperformance.

Net written premiums for the reported quarter was $3.2 billion, flat year over year. While Chubb registered a 4% rise in premiums from its U.S. business, premiums declined 12% outside the U.S.

Property and Casualty investment income after taxes came in at $255 million, down 6% year over year.

Chubb's underwriting income of $525 million rose almost 19.6% year over year primarily due to lower operating costs and expenses.

Combined ratio for the quarter improved 250 basis points (bps) year over year to 83.3%. The impact of catastrophe was 9 cents a share in the reported quarter, lower than 20 cents in the year-ago quarter.

Book value per share, which is a measure of net worth, was $72.09, up almost 3% year over year.

Segment Update

At Chubb's Personal Insurance segment, net written premiums decreased 1% year over year to $1.2 billion. Within the segment, net written premiums increased 1% for Homeowners, decreased 8% for Personal Automobile and fell 2% for Other Personal lines from the year-ago quarter.

Combined ratio improved 100 bps year over year to 84.9%.

The Commercial Insurance segment's net written premiums rose 3% year over year to $1.3 billion, primarily driven by higher premiums in Workers' Compensation.

Combined ratio improved 320 bps year over year to 86.3%.

Chubb's Specialty Insurance net written premiums declined 3% year over year to $681 million, primarily due to a decline in premiums from its Professional Liability. Combined ratio, however, improved 350 bps year over year to 74.8%.

Zacks Rank

Currently, Chubb carries a Zacks Rank #1 (Strong Buy).

Performance of Some Other Insurers

The bottom line at Progressive Corp. PGR , RLI Corp. RLI and The Travelers Companies Inc. TRV have outperformed their respective Zacks Consensus Estimate in the reported quarter.

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PROGRESSIVE COR (PGR): Free Stock Analysis Report

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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 Nasdaq, Inc.


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

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