Chubb Corp. (CB) posted second-quarter results that topped Wall Street’s expectations, but the insurer’s earnings fell compared to the year-ago quarter as high disaster claims related to flooding and thunderstorms in the Midwest and an earthquake in Chile cut into profits.
The insurer reported second-quarter profit slid to $518 million or $1.59 a share, compared to earnings of $551 million or $1.54 a share from the same period last year. Operating income, which is adjusted to remove gains and losses on investments, fell to $1.41 a share, from $1.49 a share one year ago.
Net written premiums rose 1.4% to $2.89 billion.
Analysts had predicted operating income of $1.39 a share on net written premiums of $2.8 billion.
"Chubb's second quarter operating income per share of $1.41 is an outstanding result given the competitive pressures in the insurance marketplace and the $0.38 per share negative impact of catastrophe losses," said John D. Finnegan, chairman, president and CEO, in a statement.
The company raised its catastrophe assumption for fiscal 2010 from 3 points to 7 points, in light of the high level of catastrophe losses in the first two quarters, but maintained its fiscal 2010 forecast for adjusted earnings per share in the range of $5.15 to $5.55.
Shares of Chubb Corp fell 22 cents or half a percent after the market closed Thursday. In the regular session, the stock gained 51 cents or one percent to finish the day at $52.20.
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