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Chubb Limited (CB) Beats Q3 Earnings Estimates, Up Y/Y

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Chubb Limited (CB - Free Report) reported third-quarter 2016 operating income of $2.88 per share, which surpassed the Zacks Consensus Estimate of $2.64 by 9.1%. Also, the bottom line improved 5.1% from $2.74 per share in the prior-year quarter.

Net premiums written surged 60.8% year over year to about $7.6 billion in the reported quarter. Net premiums earned increased 62.9% to $7.7 billion.

Net investment income was $739 million, up 34.6% from a year ago.

Property and casualty (P&C) underwriting income totaled $1.0 billion, up 67.8% year over year. Also, combined ratio improved 10 basis points (bps) to 86.0%.

Segment Update

North America Commercial P&C Insurance: Net premiums written soared 117% year over year to $3.1 billion. Combined ratio deteriorated 40 bps to 86.2%.

North America Personal P&C Insurance: Net premiums written surged 263.7% from a year ago to $1.0 billion. Combined ratio deteriorated 70 bps to 84.4%.

Overseas General Insurance: Net premiums written jumped 22.5% year over year to $1.9 billion. Combined ratio improved 80 bps to 81.2%.

North America Agricultural Insurance: Net premiums written rose 15.2% year over year to $849 million. Combined ratio improved 130 bps to 88.9%.

Global Reinsurance: Net premiums written decreased 29.2% year over year to $131 million. Combined ratio deteriorated 2510 bps to 66.3%.

Life Insurance: Net premiums written climbed 8.1% year over year to $532 million. International life insurance net premiums and deposits collected improved 19.3% in constant dollars.

Financial Update

Cash balance was $870 billion as of Sep 30, 2016, down approximately 51% from $1.8 billion at the end of 2015. Total shareholders' equity soared about 66% from $29.1 billion at 2015 end to $48.4 billion.

Book value per share was $103.96 as of Sep 30, 2016, up 15.8% from year-end 2015.

Operating cash flow was $1.7 billion.

CHUBB LTD Price, Consensus and EPS Surprise

 

CHUBB LTD Price, Consensus and EPS Surprise | CHUBB LTD Quote

Zacks Rank

Chubb currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other P&C Insurers

Among other players in the insurance industry that have reported third-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) and The Travelers Companies Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate, while RLI Corp. (RLI - Free Report) missed the same.

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