More on Chubb (CB) Q2 earnings: Operating income per share of $1.77 up 29% Y/Y. Catastrophe losses of $237M vs. $223M a year ago. Combined ratio falls (a good thing) to 88.8% from 93.8%, excluding catastrophes, it fell to 80.9% from 86.3%. Net written premiums of $3.1B flat Y/Y. P&C investment income of $286M off 6%. 3.7M shares repurchased at average of $87.28/share. $758 buyback authorization remains. FY13 EPS guidance is upped to $7.30-$7.50 from $6.40-$6.80 even as catastrophe loss assumption is raised to 4.6% from 4%. Shares +2.4% AH. CC at 5 ET. (PR)
Investors prefer to focus on Travelers' (TRV +5.9%) plan to pursue targeted pricing and changes in terms and conditions rather than its 67% Y/Y profit drop, boosting shares. A multiyear streak of outsized losses from severe weather is the top factor in providing an impetus to raise rates across all its operating segments. Insurance peers: CB +2.1%, ACE +3.4%, WRB +2.6%.
Chubb (CB +2.1%) is higher today, after the company says its Q3 pretax catastrophe losses would range between $400M - $475M, in line with projections. The the bulk of those losses, around $300M - $375M, were due to Hurricane Irene.
P&C insurance firms are taking a hit as Hurricane Irene is shaping up to be a storm of biblical proportions. Chubb CB -3.7%, Allstate ALL -3.6%, Berkshire BRK.A -2.6%. Gov. Christie of New Jersey declares a state of emergency with a (so far) voluntary request for folks to leave shore areas.