Chubb 3Q Earnings Easily Top Views

Chubb (CB) reported late Thursday better-than-expected third-quarter earnings, though its narrowed profit fell victim to declining specialty and commercial premiums.  

The Warren, NJ-based company posted net income of $572 million, or $1.80 a share, compared with $596 million, or $1.69 a share, in the same quarter last year.

Excluding investment gains and losses, earnings were $1.69 a share, trumping the Street’s view of $1.39.

Investment gains were $54 million, down from $69 million a year ago.

Earnings were hit by higher catastrophes, up to $58 million from $22 million a year ago, offset by slightly improved net written premiums to $2.73 billion, virtually matching average analyst estimates polled by Thomson Reuters.

While net written premiums remained flat in the company’s specialty and commercial insurance units, personal insurance premiums grew 4% to $980 million.

During the quarter, Chubb bought back 10.2 million of its shares at a cost of $555 million, or $54.63 a share. As of Sept. 30, there were 6.6 million shares left under the current authorization.

Chubb Chairman John D. Finnegan said the quarter represented the property and casualty insurer’s ability to “generate outstanding profitability and book value growth during a period of challenging economic and industry conditions.”

Based on the favorable results, the company offered an optimistic fourth-quarter outlook, now anticipating earnings in the range of $5.75 to $5.85 a share, up from its earlier prediction of $5.15 to $5.55.

Separately Thursday, the company announced several changes to its executive lineup amid the Dec. 31 retirement of current chief operating officer John J. Degnan.

The moves include the promotions of current chief underwriting officer, Paul J. Krump, as president of commercial and special lines, and current chief administrative officer, Dino E. Robusto, as president of personal lines and claims.

Chubb’s current chief global field officer, Harold L. Morrison, will remain in that roll and receive the additional responsibilities of chief administrative officer.

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