Chubb Limited CB reported second-quarter 2019 core operating income of $2.60 per share, which outpaced the Zacks Consensus Estimate by 0.8%. The upside was driven by higher premium revenues. However, the bottom line dipped 3% from the year-ago quarter.
Quarter in Detail
Net premiums written improved 4.2% year over year to about $7.7 billion in the quarter. Net premiums earned rose 3% year over year to $7.29 billion.
Net investment income was $859 million, up 3.7% from the comparable quarter last year.
Property and casualty underwriting income was $727 million, down 11.7% from the year-ago period.
Combined ratio expanded 170 basis points (bps) to 90.1%.
Chubb reported after-tax catastrophe loss of $221 million in the reported quarter, wider than the year-ago quarterâ€™s loss of $173 million.
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote
North America Commercial P&C Insurance: Net premiums written increased 6% year over year to about $3.5 billion. Combined ratio expanded 150 bps to 86.5%.
North America Personal P&C Insurance: Net premiums written slipped 2% year over year to $1.3 billion. Combined ratio improved 170 bps to 90.3%.
North America Agricultural Insurance: Net premiums written increased 20.1% year over year to $466 million. The current accident year combined ratio excluding catastrophe losses was 89.6%, up 240 bps.
Overseas General Insurance: Net premiums written rose 2.7% year over year to $2.2 billion. Combined ratio deteriorated 190 bps to 90.8%.
Global Reinsurance: Net premiums written inched up 0.2% year over year. Combined ratio of 87.7% deteriorated 840 bps from the year-ago period.
Life Insurance: Net premiums written were up 2.5% year over year on the back of growth in the Combined Insurance North America supplemental accident and health business and growth in the Asian international life operations.
Cash balance of $1.3 billion as of Jun 30, 2019 increased 1.8% from 2018 end.
Total shareholdersâ€™ equity increased 6.9% from 2018-end level to $53.8 billion as of Jun 30, 2019.
Book value per share was $117.97 as of Jun 30, 2019, up 7.7% from the level as of Dec 31, 2018.
Core operating ROE was 9.3%.
Operating cash flow was $1.4 billion in the quarter under consideration.
Share Repurchase Update
In the reported quarter, the company bought back shares worth $376 million.
Chubb currently carries a Zacks Rank #3 (Hold). You can see the complete list of todayâ€™s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Insurers
Of the insurance industry players that have reported second-quarter results so far, the bottom-line figures of The Progressive Corporation PGR and RLI Corp. RLI beat the respective Zacks Consensus Estimate for earnings. However, The Travelers Companies, Inc.â€™s TRV metric missed the mark.
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