Tags: Chubb | profit | underwriting | margins

Chubb Profit Gains 30% to $656 Million on Underwriting Margins

Thursday, 25 Apr 2013 04:33 PM

Chubb Corp., the insurer of businesses and luxury homes, said first-quarter profit rose about 30 percent on better underwriting margins.

Net income advanced to $656 million, or $2.48 a share, from $506 million, or $1.83, a year earlier, the Warren, New Jersey-based company said in a statement. Operating profit, which excludes some investment results, was $2.14 a share, beating the $1.74 average estimate of 18 analysts surveyed by Bloomberg.

Chubb joins Travelers Cos. in reporting better earnings this week on underwriting results. Chubb Chief Executive Officer John Finnegan, 64, has been charging some clients more for coverage and tightening policy terms to improve profitability as low interest rates pressure income from the company’s bond portfolio.

“If you own Chubb, you’re excited about the underlying margin expansion,” Josh Stirling, an analyst at Sanford C. Bernstein & Co., said by phone before today’s statement. Chubb is “a very disciplined, conservative company that is happily shrinking while they drive higher pricing and tighter terms.”

Chubb fell 8 cents to $89.06 at 4 p.m. today in New York before the company’s statement. The insurer has gained about 18 percent this year, in line with the 22-company Standard & Poor’s 500 Insurance Index.

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Chubb Corp., the insurer of businesses and luxury homes, said first-quarter profit rose about 30 percent on better underwriting margins.
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2013-33-25
Thursday, 25 Apr 2013 04:33 PM
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