Chubb Slumps as Profit Falls, Missing Analysts’ EstimatesCraig Giammona
Chubb Corp., the insurer of corporate boards and high-end homes, declined the most since January after first-quarter profit fell 32 percent, missing analysts’ estimates, on claims from winter weather in the U.S.
Chubb slipped 1.9 percent to $90.03 at 4:15 p.m. in New York. The insurer has dropped 6.8 percent this year.
Net income fell to $449 million, or $1.80 a share, from $656 million, or $2.48, the Warren, New Jersey-based company said in a statement late yesterday. Operating profit, which excludes some investment results. was $1.50 a share, missing by six cents the average estimate of 20 analysts surveyed by Bloomberg. Paul Newsome, an analyst at Sandler O’Neill & Partners LP, had estimated $1.78 a share.
“The earnings miss relative to our estimate was driven by a materially worse than expected underwriting performance that served to more than offset slightly higher than expected investment income,” Newsome wrote in a note to investors. “We find the company’s underwriting underperformance interesting in light of a strong underwriting performance out of Travelers’ first-quarter 2014 earnings earlier this week.”
Travelers Cos., the lone property-and-casualty insurer in the Dow Jones industrial average, reported April 22 that first-quarter profit climbed 17 percent. New York-based Travelers slipped 28 cents to $88.31 today, bringing its drop for the year to about 2.5 percent.