Chubb Earnings: Here’s How Super Storm Sandy Slammed Results

The Chubb Corporation (NYSE:CB) delivered a profit and beat Wall Street’s expectations. Shares are up 0.46%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

The Chubb Corporation Earnings Cheat Sheet

Results: Net income decreased -77.43% to $102 million (16 cents per diluted share) in the quarter versus a net gain of $452 million in the year-earlier quarter.

Actual vs. Wall St. Expectations: The Chubb Corporation reported adjusted net income of 16 cents per share. By that measure, the company beat the mean analyst estimate.

Quoting Management: Chubb’s results for the fourth quarter of 2012 were adversely affected by costs of $882 million before tax ($2.15 per share after-tax) related to Storm Sandy. This amount includes $829 million of losses net of reinsurance recoverable, as well as reinsurance reinstatement premium costs of $53 million. During the quarter, the company also had $6 million of favorable development of reserves for catastrophes that occurred before the fourth quarter of 2012, reducing the total impact of catastrophes in the fourth quarter of 2012 to $876 million before tax ($2.13 per share after-tax). In the fourth quarter of 2011, the impact of catastrophes was $11 million before tax ($0.03 per share after-tax).

Key Stats:

Net income decreased 80.86% from $533 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.58 to a profit $1.57. For the current year, the average estimate has moved down from a profit of $6.55 to a profit of $4.62 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)