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Chubb (CB) Q4 Earnings Beat Estimates, Premiums Increase

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Chubb Limited (CB - Free Report) reported fourth-quarter 2016 operating income of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.43 by 11.9%. Also, the bottom line improved 14.3% from $2.38 per share in the prior-year quarter.

Operating income for 2016 inched up 3.7% year over year to $10.12 per share. Full-year earnings also surpassed the Zacks Consensus Estimate of $9.82.

Quarter in Details

Net premiums written surged 67% year over year to about $6.9 billion in the reported quarter. Net premiums earned increased 68% to $7.1 billion.

Net investment income was $744 million, up 40% from a year ago.

Property and casualty (P&C) underwriting income totaled $795 million, up 75% year over year. Also, combined ratio improved 10 basis points (bps) to 87.8%.

Segment Update

North America Commercial P&C Insurance: Net premiums written soared 95% year over year to $3.1 billion. Combined ratio deteriorated 20 bps to 84.4%.

North America Personal P&C Insurance: Net premiums written declined 5% from a year ago to $1.0 billion. Combined ratio deteriorated 670 bps to 87.6%.

Overseas General Insurance: Net premiums written inched up 1.6% year over year to $2.1 billion. Combined ratio deteriorated 230 bps to 90.8%.

North America Agricultural Insurance: Net premiums written decreased 71.6% year over year to $40 million due to lower premium retention. Combined ratio was (25.4%) as against 76.4% in the year-ago quarter.

Global Reinsurance: Net premiums written increased 4.6% year over year to $114 million. Combined ratio deteriorated 1420 bps to 94%.

Life Insurance: Net premiums written surged 86.6% year over year to $549 million.

Financial Update

Cash balance was $985 billion as of Dec 31, 2016, down approximately 45% from $1.8 billion at the end of 2015. Total shareholders' equity grew about 66% from $29.1 billion at year-end 2015 to $48.4 billion.

Book value per share was $103.60 as of Dec 31, 2016, up 15.4% from year-end 2015.

Operating cash flow was $5.3 billion in 2016.

D/B/A Chubb Limited New Price, Consensus and EPS Surprise

 

D/B/A Chubb Limited New Price, Consensus and EPS Surprise | D/B/A Chubb Limited New Quote

Zacks Rank

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

Performance of Other Stocks

Among the other insurers that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.

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