Earnings Review and Free Research Report: Chubb’s Diluted EPS Soared 79.9%

Research Desk Line-up: Hartford Financial Services Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 2, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Chubb Ltd (NYSE: CB), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CB, following the Company's release of its financial results on July 20, 2017, for the second quarter fiscal 2017. The Company surpassed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Property & Casualty Insurance industry. Pro-TD has currently selected The Hartford Financial Services Group, Inc. (NYSE: HIG) for due-diligence and potential coverage as the Company reported on July 27, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Hartford Financial Services when we publish it.

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Earnings Reviewed

For the three months ended July 01, 2017, Chubb's net premiums written decreased 0.8% to $7.58 billion on a y-o-y basis from $7.64 billion in Q2 FY16. During Q2 FY17, the Company's net premiums earned decreased 2.3% to $7.24 billion from $7.41 billion in the same quarter last year.

During Q2 FY17, Chubb's Property and Casualty (P&C)'s underwriting income increased 32.7% to $808 million from $609 million in Q2 FY16. The increase was mainly due to expense efficiencies from the merger and improved combined ratios. For the reported quarter, the P&C combined ratio improved 320 basis points to 88% on a y-o-y basis from 91.2% in Q2 FY16.

For the reported quarter, Chubb's net investment income increased 8.8% to $770 million from $708 million in Q2 FY16. During Q2 FY17, the Company's combined ratio improved 220 basis points to 88% from 90.2% in Q2 FY16. The increase was attributable to improvement in the expense ratio of about 1.5 points as well as lower catastrophe losses.

During Q2 FY17, Chubb's net income increased 80.4% to $1.31 billion on a y-o-y basis from $726 million in the same quarter last year. For the reported quarter, the Company's diluted EPS increased 79.9% to $2.77 on a y-o-y basis from $1.54 in Q2 FY16. The diluted EPS surpassed analysts' expectations of $2.49.

For the reported quarter, Chubb's after tax operating income increased 11.3% to $1.18 billion on a y-o-y basis from $1.06 billion in Q2 FY16. During Q2 FY17, the Company's operating income per share increased 11.1% to $2.50 from $2.25 in the same quarter last year. The operating income per share surpassed analysts' expectations of $2.19.

Segment Details

North America Commercial P&C Insurance - During Q2 FY17, Chubb's North America Commercial P&C Insurance segment's net premiums written decreased 1.5% to $3.20 billion from $3.25 in Q2 FY16. For the reported quarter, the segment's combined ratio improved 430 basis points to 85.2% from 89.5% in Q2 FY16.

North America Personal P&C Insurance - During Q2 FY17, Chubb's North America Personal P&C Insurance segment's net premiums written increased 2.4% to $1.26 billion from $1.23 in Q2 FY16. For the reported quarter, the segment's combined ratio improved 50 basis points to 89.6% from 90.1% in Q2 FY16.

North America Agricultural Insurance - During Q2 FY17, Chubb's North America Agricultural Insurance segment's net premiums written increased 7.7%. For the reported quarter, the segment's combined ratio improved 260 basis points to 93.3% from 95.9% in Q2 FY16.

Overseas General Insurance - During Q2 FY17, Chubb's Overseas General Insurance's net premiums written decreased 98 basis points to $2.01 billion from $2.03 in Q2 FY16. For the reported quarter, the segment's combined ratio improved 360 basis points to 87.3% from 90.9% in Q2 FY16.

Global Reinsurance - During Q2 FY17, Chubb's Global Reinsurance segment's net premiums written decreased 17.7% to 16.5% on a y-o-y basis in a constant currency due to market conditions. For the reported quarter, the segment's combined ratio improved 1960 basis points to 60.2% from 79.8% in Q2 FY16.

Life Insurance - During Q2 FY17, Chubb's Life Insurance segment's income decreased 42% to $52 million from $74 million in Q2 FY16. The decrease was primarily due to the adverse impact of updating the long-term benefit ratio in the variable annuity business in Q4 FY16.

Balance Sheet

As on July 01, 2017, Chubb's cash balance increased 32% to $1.30 billion from $985 million in Q2 FY16.

During Q2 FY17, Chubb's annualized ROE ratio was 10.5% compared to 6.2% in Q2 FY16. For the reported quarter, the Company's operating ROE was 9.8% compared to 9.5% in Q2 FY16.

For the reported quarter, Chubb's book value per share increased 2.7% to $108.19 on a sequential basis. During Q2 FY17, tangible book value per share increased 4.3% to $65.23 on a sequential basis.

Outlook

For FY17, Chubb is expecting integration and merger-related expenses to be $903 million and the Company estimates annualized run-rate savings to be $875 million by the end of 2018.

Stock Performance

Chubb's share price finished yesterday's trading session at $148.07, climbing 1.10%. A total volume of 1.32 million shares have exchanged hands. The Company's stock price surged 8.06% in the last three months, 12.61% in the past six months, and 18.20% in the previous twelve months. Additionally, the stock rallied 12.07% since the start of the year. Shares of the Company have a PE ratio of 13.01 and have a dividend yield of 1.92%. The stock currently has a market cap of $69.87 billion.

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