Chubb Corp. Earnings Cheat Sheet: Two Straight Quarters of Profit Drops, but Beat Estimates

S&P 500 (NYSE:SPY) component Chubb Corporation (NYSE:CB) reported its results for the third quarter. Chubb is a holding company that provides property and casualty insurance business to a wide range of customers.

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Chubb Earnings Cheat Sheet for the Third Quarter

Results: Net income for Chubb Corporation fell to $298 million ($1.04 per share) vs. $572 million ($1.80 per share) a year earlier. This is a decline of 47.9% from the year earlier quarter.

Actual vs. Wall St. Expectations: CB beat the mean analyst estimate of 82 cents per share.

Quoting Management: “For the third consecutive quarter, results for Chubb and the industry were adversely affected by an unusually high level of catastrophe losses,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “Despite these significant catastrophe losses, Chubb still produced net income for the quarter of $298 million, driven by a solid combined ratio of 88.2% excluding catastrophes, which reflects the strong underlying performance of all our business units in a challenging environment.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 26 cents in the second quarter, by 22 cents in the first quarter, and by 12 cents in the fourth quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 19.1% from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.56 a share to $1.62 over the last ninety days. Over the past sixty days, the average estimate for the fiscal year has reached $5.11 abs per share, a decline from $5.64.

Competitors to Watch: American Financial Group (NYSE:AFG), The Travelers Companies, Inc. (NYSE:TRV), CNA Financial Corporation (NYSE:CNA), White Mountains Insurance Group, Ltd. (NYSE:WTM), RLI Corp. (NYSE:RLI), Loews Corporation (NYSE:L), HCC Insurance Hldgs., Inc. (NYSE:HCC), W.R. Berkley Corporation (NYSE:WRB), OneBeacon Insurance Group, Ltd. (NYSE:OB), and Arch Capital Group Ltd. (NASDAQ:ACGL).

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(Source: Xignite Financials)