Chubb Limited (CB - Free Report) reported second-quarter 2016 operating income of $2.25 per share, which missed the Zacks Consensus Estimate of $2.26 by 0.4%. Also, the bottom line deteriorated 6.3% from $2.40 per share in the prior-year quarter.
After adjusting for one-time items, net income came in at $1.54 per share, down 46.2% year over year.
Net premiums written surged 59.7% year over year to about $7.6 billion in the reported quarter. Net premiums earned increased 69.8% year over year to $7.4 billion.
Net investment income was $708 million, up 25.9% year over year.
Property and casualty (P&C) underwriting income totaled $609 million, up 27.4% year over year. However, combined ratio deteriorated 350 basis points (bps) year over year to 91.2%.
Segment Update
North America Commercial P&C Insurance: Net premiums written soared 127.2% year over year to $3.2 billion. Combined ratio deteriorated 490 bps year over year to 89.5%.
North America Personal P&C Insurance: Net premiums written surged 125.1% year over year to $1.2 billion. Combined ratio deteriorated 1950 bps year over year to 90.1%.
Overseas General Insurance: Net premiums written rose 21.7% year over year to $2.0 billion. Combined ratio deteriorated 170 bps year over year to 90.9%.
North America Agricultural Insurance: Net premiums written dipped 1.1% year over year to $375 million. Combined ratio deteriorated 230 bps year over year to 95.9%.
Global Reinsurance: Net premiums written decreased 11.9% year over year to $230 million. Combined ratio deteriorated 1410 bps year over year to 79.8%.
Life Insurance: Net premiums written increased 5.4% year over year to $527 million. International life insurance net premiums and deposits collected improved 15.3% year over year in constant dollars.
Financial Update
Cash balance was $1.0 billion as of Jun 30, 2016, down 43% from $1.8 billion at the end of 2015. Total shareholders' equity soared 62.1% from $29.2 billion at year-end 2015 to $47.2 billion.
Book value per share was $101.56 as of Jun 30, 2016, up 13.1% from year-end 2015.
Operating cash flow came in at $1.1 billion.
Zacks Rank and Performance of Other P&C Insurers
Chubb currently carries a Zacks Rank #3 (Hold). Among other property and casualty (P&C) insurers that have reported their second-quarter earnings so far, the bottom line at RLI Corp. (RLI - Free Report) and Progressive Corp. (PGR - Free Report) missed their respective Zacks Consensus Estimates, while First American Financial Corporation’s earnings (FAF - Free Report) beat the same.
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Chubb Limited (CB - Free Report) reported second-quarter 2016 operating income of $2.25 per share, which missed the Zacks Consensus Estimate of $2.26 by 0.4%. Also, the bottom line deteriorated 6.3% from $2.40 per share in the prior-year quarter.
After adjusting for one-time items, net income came in at $1.54 per share, down 46.2% year over year.
Net premiums written surged 59.7% year over year to about $7.6 billion in the reported quarter. Net premiums earned increased 69.8% year over year to $7.4 billion.
Net investment income was $708 million, up 25.9% year over year.
Property and casualty (P&C) underwriting income totaled $609 million, up 27.4% year over year. However, combined ratio deteriorated 350 basis points (bps) year over year to 91.2%.
Segment Update
North America Commercial P&C Insurance: Net premiums written soared 127.2% year over year to $3.2 billion. Combined ratio deteriorated 490 bps year over year to 89.5%.
North America Personal P&C Insurance: Net premiums written surged 125.1% year over year to $1.2 billion. Combined ratio deteriorated 1950 bps year over year to 90.1%.
Overseas General Insurance: Net premiums written rose 21.7% year over year to $2.0 billion. Combined ratio deteriorated 170 bps year over year to 90.9%.
North America Agricultural Insurance: Net premiums written dipped 1.1% year over year to $375 million. Combined ratio deteriorated 230 bps year over year to 95.9%.
Global Reinsurance: Net premiums written decreased 11.9% year over year to $230 million. Combined ratio deteriorated 1410 bps year over year to 79.8%.
Life Insurance: Net premiums written increased 5.4% year over year to $527 million. International life insurance net premiums and deposits collected improved 15.3% year over year in constant dollars.
Financial Update
Cash balance was $1.0 billion as of Jun 30, 2016, down 43% from $1.8 billion at the end of 2015. Total shareholders' equity soared 62.1% from $29.2 billion at year-end 2015 to $47.2 billion.
Book value per share was $101.56 as of Jun 30, 2016, up 13.1% from year-end 2015.
Operating cash flow came in at $1.1 billion.
Zacks Rank and Performance of Other P&C Insurers
Chubb currently carries a Zacks Rank #3 (Hold). Among other property and casualty (P&C) insurers that have reported their second-quarter earnings so far, the bottom line at RLI Corp. (RLI - Free Report) and Progressive Corp. (PGR - Free Report) missed their respective Zacks Consensus Estimates, while First American Financial Corporation’s earnings (FAF - Free Report) beat the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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