Chubb Corp.'s (CB) second-quarter earnings rose 43% on higher rates and growth in underwriting income.Chubb, which sells insurance for businesses and high-end homes, also increased its full-year operating income to a range of $7.30 to $7.50 a share from the $6.40 to $6.80 range it provided in January.
The effect of catastrophes in the second quarter, mostly due to severe storms in the central U.S. and flooding in Alberta, Canada, was $237 million before tax, slightly better than the estimate of $240 million provided earlier this month.
For the quarter, Chubb reported a profit of $579 million, or $2.21 a share, up from $404 million, or $1.48 a share, a year earlier. Operating income, which excludes realized investment gains and losses, increased to $1.77 a share from $ 1.37 a share a year ago.
Premiums earned increased slightly to $3 billion. Net premiums were flat at $3.1 billion.
Analysts polled by Thomson Reuters had expected a per-share profit of $1.39 and $3.19 billion in net premiums written.
Underwriting income nearly doubled to $317 million.
Losses and loss expenses fell 8.9% to $1.69 billion.
Investment income slid 6.4% to $349 million.
Chubb reported net realized investment gains of $179 million before tax, up from $47 million a year earlier.
The combined loss-and-expense ratio, or portion of premium dollars spent on claims and expenses, narrowed to 88.8% from 93.8%, reflecting higher rates and strong underlying underwriting performance. Excluding the effect of catastrophes, the combined ratio declined to 80.9% from 86.3% a year earlier.