We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chubb (CB) Q1 Earnings Beat Estimates, Down Y/Y on Cat Loss
Read MoreHide Full Article
Chubb Limited (CB - Free Report) reported first-quarter 2018 core operating income of $2.34 per share, which surpassed the Zacks Consensus Estimate of $2.31 by 4.46%. However, the bottom line declined 5.6% from the prior-year quarter on higher catastrophe losses.
Though the company registered better-than-expected earnings, it suffered due to catastrophe loss excluding which, core operating income per share increased 5.3%.
Nonetheless, net investment income was solid while premium revenue and commercial P&C pricing improved across many of its businesses lines.
Including one-time integration and merger-related expenses of 2 cents, amortization of fair value adjustment of acquired invested assets, a long-term debt of 11 cents and a net realized loss of 9 cents, net income of $2.30 per share dipped 0.4% from the year-ago quarter.
Quarter in Detail
Net premiums written improved 5.9% year over year to about $7.1 billion in the quarter under review. Net premiums earned increased 3.8% to $7 billion.
Adjusted net investment income was $877 million, up 4.9% from the prior year.
Property and casualty underwriting income was $642 million, declining 18.1% from the year-ago quarter. This downside is attributable to the $303 million cat loss incurred in the reported quarter. Chubb reported catastrophe losses of 64 cents in the reported quarter, compared with 34 cent in the year ago quarter. Combined ratio deteriorated 260 basis points (bps) to 90.1%.
Merger-related expenses were $48 million in the first quarter. The company projects $150 million of merger-related expenses for 2018.
Segment Update
North America Commercial P&C Insurance: Net premiums written increased 3% year over year to $2.8 billion, benefiting from higher premiums in the middle-market division and a small commercial division. Combined ratio deteriorated 140 bps to 86.2%.
North America Personal P&C Insurance: Net premiums written increased 6.5% year over year to $1 billion. Combined ratio deteriorated 2000 bps to 104.2%.
Overseas General Insurance: Net premiums written rose 7.8% year over year to $2.4 billion. Combined ratio improved 490 bps to 90.7%.
North America Agricultural Insurance: Net premiums written soared 77% year over year to $108 million on higher crop premiums. Combined ratio improved 690 bps to 101.6%.
Global Reinsurance: Net premiums written decreased 3% year over year to $193 million. Combined ratio of 69.5% improved 1260 bps from the year-earlier quarter.
Life Insurance: Net premiums written improved 12.5% year over year to $938 million.
Financial Update
Cash balance was $1.99 billion as of Mar 31 2018, surged from $728 million from the end of 2017. Total shareholders’ equity nudged up 0.2% to $51.3 million as of Mar 31, 2018.
Book value per share was $110.10 as of Mar 31, 2018, down 0.2% from year-end 2017. This fall was attributable to realized and unrealized loss of $938 million in the company's investment portfolio, driven by rising interest rates. However, a favorable foreign currency movement limited this downside,
Core operating ROE was 8.7% in the quarter while operating cash flow was $551 million.
The bottom line of Torchmark Corporation , The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate in the first quarter of 2018.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Chubb (CB) Q1 Earnings Beat Estimates, Down Y/Y on Cat Loss
Chubb Limited (CB - Free Report) reported first-quarter 2018 core operating income of $2.34 per share, which surpassed the Zacks Consensus Estimate of $2.31 by 4.46%. However, the bottom line declined 5.6% from the prior-year quarter on higher catastrophe losses.
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited Price, Consensus and EPS Surprise | Chubb Limited Quote
Though the company registered better-than-expected earnings, it suffered due to catastrophe loss excluding which, core operating income per share increased 5.3%.
Nonetheless, net investment income was solid while premium revenue and commercial P&C pricing improved across many of its businesses lines.
Including one-time integration and merger-related expenses of 2 cents, amortization of fair value adjustment of acquired invested assets, a long-term debt of 11 cents and a net realized loss of 9 cents, net income of $2.30 per share dipped 0.4% from the year-ago quarter.
Quarter in Detail
Net premiums written improved 5.9% year over year to about $7.1 billion in the quarter under review. Net premiums earned increased 3.8% to $7 billion.
Adjusted net investment income was $877 million, up 4.9% from the prior year.
Property and casualty underwriting income was $642 million, declining 18.1% from the year-ago quarter. This downside is attributable to the $303 million cat loss incurred in the reported quarter. Chubb reported catastrophe losses of 64 cents in the reported quarter, compared with 34 cent in the year ago quarter. Combined ratio deteriorated 260 basis points (bps) to 90.1%.
Merger-related expenses were $48 million in the first quarter. The company projects $150 million of merger-related expenses for 2018.
Segment Update
North America Commercial P&C Insurance: Net premiums written increased 3% year over year to $2.8 billion, benefiting from higher premiums in the middle-market division and a small commercial division. Combined ratio deteriorated 140 bps to 86.2%.
North America Personal P&C Insurance: Net premiums written increased 6.5% year over year to $1 billion. Combined ratio deteriorated 2000 bps to 104.2%.
Overseas General Insurance: Net premiums written rose 7.8% year over year to $2.4 billion. Combined ratio improved 490 bps to 90.7%.
North America Agricultural Insurance: Net premiums written soared 77% year over year to $108 million on higher crop premiums. Combined ratio improved 690 bps to 101.6%.
Global Reinsurance: Net premiums written decreased 3% year over year to $193 million. Combined ratio of 69.5% improved 1260 bps from the year-earlier quarter.
Life Insurance: Net premiums written improved 12.5% year over year to $938 million.
Financial Update
Cash balance was $1.99 billion as of Mar 31 2018, surged from $728 million from the end of 2017. Total shareholders’ equity nudged up 0.2% to $51.3 million as of Mar 31, 2018.
Book value per share was $110.10 as of Mar 31, 2018, down 0.2% from year-end 2017. This fall was attributable to realized and unrealized loss of $938 million in the company's investment portfolio, driven by rising interest rates. However, a favorable foreign currency movement limited this downside,
Core operating ROE was 8.7% in the quarter while operating cash flow was $551 million.
Zacks Rank
Chubb carries a Zacks Rank # 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The bottom line of Torchmark Corporation , The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate in the first quarter of 2018.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>