Chubb Corp. Earnings: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component Chubb Corporation (NYSE:CB) reported net income above Wall Street’s expectations 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 Corporation Earnings Cheat Sheet

Results: Net income for Chubb Corporation rose to $533 million ($1.98 per share) vs. $298 million ($1.04 per share) in the same quarter a year earlier. This marks a rise of 78.9% from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chubb Corporation beat the mean analyst estimate of $1.51 per share.

Quoting Management: “Chubb’s third quarter operating earnings per share of $1.98 were the highest of any quarter in Chubb’s history,” said John D. Finnegan, Chairman, President and Chief Executive Officer. “This record result reflected strong underlying underwriting performance as well as unusually low catastrophe losses. All three of our business units made significant contributions to these results, producing an outstanding 86.3% combined ratio. We’re also encouraged by the rate increases we continued to obtain in all of our business units.”

Key Stats:

The company reported a profit increase last quarter, breaking a four-quarter stretch of year-over-year profit losses. In the second quarter, net income fell 3.6% from the year earlier, while the figure fell 0.6% in the first quarter, 27.1% in the fourth quarter of the last fiscal year and 47.9% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 22 cents in the second quarter, by 19 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the fourth quarter have not changed from $1.52. The average estimate for the fiscal year is $6.07 per share, a rise from $5.84 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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