Markets
TRV

Chubb Limited (CB) Beats Q3 Earnings Estimates, Up Y/Y

Chubb LimitedCB reported third-quarter 2016 operating income of $2.88 per share, which surpassed the Zacks Consensus Estimate of $2.64 by 9.1%. Also, the bottom line improved 5.1% from $2.74 per share in the prior-year quarter.

Net premiums written surged 60.8% year over year to about $7.6 billion in the reported quarter. Net premiums earned increased 62.9% to $7.7 billion.

Net investment income was $739 million, up 34.6% from a year ago.

Property and casualty (P&C) underwriting income totaled $1.0 billion, up 67.8% year over year. Also, combined ratio improved 10 basis points (bps) to 86.0%.

Segment Update

North America Commercial P&C Insurance : Net premiums written soared 117% year over year to $3.1 billion. Combined ratio deteriorated 40 bps to 86.2%.

North America Personal P&C Insurance : Net premiums written surged 263.7% from a year ago to $1.0 billion. Combined ratio deteriorated 70 bps to 84.4%.

Overseas General Insurance : Net premiums written jumped 22.5% year over year to $1.9 billion. Combined ratio improved 80 bps to 81.2%.

North America Agricultural Insurance : Net premiums written rose 15.2% year over year to $849 million. Combined ratio improved 130 bps to 88.9%.

Global Reinsurance : Net premiums written decreased 29.2% year over year to $131 million. Combined ratio deteriorated 2510 bps to 66.3%.

Life Insurance : Net premiums written climbed 8.1% year over year to $532 million. International life insurance net premiums and deposits collected improved 19.3% in constant dollars.

Financial Update

Cash balance was $870 billion as of Sep 30, 2016, down approximately 51% from $1.8 billion at the end of 2015. Total shareholders' equity soared about 66% from $29.1 billion at 2015 end to $48.4 billion.

Book value per share was $103.96 as of Sep 30, 2016, up 15.8% from year-end 2015.

Operating cash flow was $1.7 billion.

CHUBB LTD Price, Consensus and EPS Surprise

CHUBB LTD Price, Consensus and EPS Surprise | CHUBB LTD Quote

Zacks Rank

Chubb currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .

Performance of Other P&C Insurers

Among other players in the insurance industry that have reported third-quarter earnings so far, the bottom line at Progressive Corp. PGR and The Travelers Companies Inc. TRV beat the respective Zacks Consensus Estimate, while RLI Corp. RLI missed the same.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RLI CORP (RLI): Free Stock Analysis Report

TRAVELERS COS (TRV): Free Stock Analysis Report

CHUBB LTD (CB): Free Stock Analysis Report

PROGRESSIVE COR (PGR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

TRV CB PGR RLI

Other Topics

Earnings Stocks

Latest Markets Videos