Chubb Earnings: Here’s How Super Storm Sandy Slammed Results
The Chubb Corporation (NYSE:CB) delivered a profit and beat Wall Street’s expectations. Shares are up 0.46%.
The Chubb Corporation Earnings Cheat Sheet
Results: Net income decreased -77.43% to $102 million (16 cents per diluted share) in the quarter versus a net gain of $452 million in the year-earlier quarter.
Actual vs. Wall St. Expectations: The Chubb Corporation reported adjusted net income of 16 cents per share. By that measure, the company beat the mean analyst estimate.
Quoting Management: Chubb’s results for the fourth quarter of 2012 were adversely affected by costs of $882 million before tax ($2.15 per share after-tax) related to Storm Sandy. This amount includes $829 million of losses net of reinsurance recoverable, as well as reinsurance reinstatement premium costs of $53 million. During the quarter, the company also had $6 million of favorable development of reserves for catastrophes that occurred before the fourth quarter of 2012, reducing the total impact of catastrophes in the fourth quarter of 2012 to $876 million before tax ($2.13 per share after-tax). In the fourth quarter of 2011, the impact of catastrophes was $11 million before tax ($0.03 per share after-tax).