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Chubb Limited (CB - Free Report) reported fourth-quarter 2016 operating income of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.43 by 11.9%. Also, the bottom line improved 14.3% from $2.38 per share in the prior-year quarter.
Operating income for 2016 inched up 3.7% year over year to $10.12 per share. Full-year earnings also surpassed the Zacks Consensus Estimate of $9.82.
Quarter in Details
Net premiums written surged 67% year over year to about $6.9 billion in the reported quarter. Net premiums earned increased 68% to $7.1 billion.
Net investment income was $744 million, up 40% from a year ago.
Property and casualty (P&C) underwriting income totaled $795 million, up 75% year over year. Also, combined ratio improved 10 basis points (bps) to 87.8%.
Segment Update
North America Commercial P&C Insurance: Net premiums written soared 95% year over year to $3.1 billion. Combined ratio deteriorated 20 bps to 84.4%.
North America Personal P&C Insurance: Net premiums written declined 5% from a year ago to $1.0 billion. Combined ratio deteriorated 670 bps to 87.6%.
Overseas General Insurance: Net premiums written inched up 1.6% year over year to $2.1 billion. Combined ratio deteriorated 230 bps to 90.8%.
North America Agricultural Insurance: Net premiums written decreased 71.6% year over year to $40 million due to lower premium retention. Combined ratio was (25.4%) as against 76.4% in the year-ago quarter.
Global Reinsurance: Net premiums written increased 4.6% year over year to $114 million. Combined ratio deteriorated 1420 bps to 94%.
Life Insurance: Net premiums written surged 86.6% year over year to $549 million.
Financial Update
Cash balance was $985 billion as of Dec 31, 2016, down approximately 45% from $1.8 billion at the end of 2015. Total shareholders' equity grew about 66% from $29.1 billion at year-end 2015 to $48.4 billion.
Book value per share was $103.60 as of Dec 31, 2016, up 15.4% from year-end 2015.
Operating cash flow was $5.3 billion in 2016.
D/B/A Chubb Limited New Price, Consensus and EPS Surprise
Among the other insurers that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Chubb (CB) Q4 Earnings Beat Estimates, Premiums Increase
Chubb Limited (CB - Free Report) reported fourth-quarter 2016 operating income of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.43 by 11.9%. Also, the bottom line improved 14.3% from $2.38 per share in the prior-year quarter.
Operating income for 2016 inched up 3.7% year over year to $10.12 per share. Full-year earnings also surpassed the Zacks Consensus Estimate of $9.82.
Quarter in Details
Net premiums written surged 67% year over year to about $6.9 billion in the reported quarter. Net premiums earned increased 68% to $7.1 billion.
Net investment income was $744 million, up 40% from a year ago.
Property and casualty (P&C) underwriting income totaled $795 million, up 75% year over year. Also, combined ratio improved 10 basis points (bps) to 87.8%.
Segment Update
North America Commercial P&C Insurance: Net premiums written soared 95% year over year to $3.1 billion. Combined ratio deteriorated 20 bps to 84.4%.
North America Personal P&C Insurance: Net premiums written declined 5% from a year ago to $1.0 billion. Combined ratio deteriorated 670 bps to 87.6%.
Overseas General Insurance: Net premiums written inched up 1.6% year over year to $2.1 billion. Combined ratio deteriorated 230 bps to 90.8%.
North America Agricultural Insurance: Net premiums written decreased 71.6% year over year to $40 million due to lower premium retention. Combined ratio was (25.4%) as against 76.4% in the year-ago quarter.
Global Reinsurance: Net premiums written increased 4.6% year over year to $114 million. Combined ratio deteriorated 1420 bps to 94%.
Life Insurance: Net premiums written surged 86.6% year over year to $549 million.
Financial Update
Cash balance was $985 billion as of Dec 31, 2016, down approximately 45% from $1.8 billion at the end of 2015. Total shareholders' equity grew about 66% from $29.1 billion at year-end 2015 to $48.4 billion.
Book value per share was $103.60 as of Dec 31, 2016, up 15.4% from year-end 2015.
Operating cash flow was $5.3 billion in 2016.
D/B/A Chubb Limited New Price, Consensus and EPS Surprise
D/B/A Chubb Limited New Price, Consensus and EPS Surprise | D/B/A Chubb Limited New Quote
Zacks Rank
Chubb currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Stocks
Among the other insurers that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>