Market Commentary and Intraday News
Chubb 2Q results top estimates; fewer storm losses
298 days ago
(AP:WARREN, N.J.) Property and casualty insurer Chubb Corp. on Thursday reported a 4 percent decline in second-quarter profit but still beat Wall Street estimates handily, aided by sharply lower losses from weather catastrophes.
The insurer said it had $223 million in catastrophe losses from April through June, mostly from severe hail and wind storms. That was $106 million less than in the second quarter of 2011.
Chubb said net income for the three months ended June 30 was $404 million, or $1.48 per share, compared with $419 million, or $1.42 per share, a year earlier.
Excluding investment gains and losses, operating income was $1.37 per share -- well above the $1.14-per-share consensus estimate of analysts surveyed by FactSet.
Stock buybacks boosted per-share earnings in the quarter by reducing the number of company shares outstanding. The insurer spent $305 million in the quarter to repurchase about 4.3 million shares of its common stock.
Chubb's net written premiums for the quarter increased by 1 percent to $3.1 billion.
Chubb raised its guidance for full-year operating income to a range of $5.70 to $5.95 per share. It previously estimated $5.30 to $5.70 per share, with analysts estimating $5.68 per share.
Chubb shares rose 52 cents to close at $69.55.
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