Posted on 22 Jul 2011
Insurer Chubb Corp., based in Warren, New Jersey, said Thursday that its second-quarter profit fell 19 percent as it was hit by catastrophic losses from storms in the United States, but it expects its rate of net premiums written to rise the rest of the year and boosted its 2011 profit estimate.
Chubb posted net income of $419 million, or $1.42 per share, compared with $518 million, or $1.59 per share a year ago. The results included investment gains, which added 15 cents per share to the results.
Excluding one-time items, the company earned $1.27 per share, down from $1.41, a year ago. Analysts surveyed by FactSet expected $1.02 per share in adjusted earnings. Shares rose 72 cents, or 1.2 percent, to close at $62.56. They rose 68 cents in after-market trading.
The storm losses amounted to $329 million, or 72 cents per share. A year ago in the same quarter, storm losses totaled $193 million, or 38 cents per share.
The company said its combined loss and expense ratio was 94.9 percent, compared with 90.4 percent in 2010. A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and other expenses. The farther the figure is below 100 the more profitable are the company's insurance operations.
Chubb said that it wrote $3.06 billion in premiums during the quarter, up 6 percent from $2.89 billion in the same period last year.
Premiums increased 3 percent in the United States and 14 percent outside the U.S.
The company boosted its full-year guidance to a range of $5.55 to $5.85 from the range of $5.35 to $5.75 it had provided in January.