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NEW YORK - Chubb Limited (NYSE:CB) reported first quarter earnings that beat analyst expectations, but revenue fell short of estimates, sending shares down 4.6% in after-hours trading.
The property and casualty insurer posted adjusted earnings per share of $3.68, surpassing the consensus estimate of $3.20. However, revenue of $12.65 billion missed analysts’ projections of $12.94 billion.
Net premiums written rose 3.5% year-over-year to $12.65 billion, or 5.7% in constant currency. Property and casualty (P&C) net premiums written increased 3.2% to $10.93 billion.
"We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires," said Evan G. Greenberg, Chairman and CEO of Chubb.
The company reported total pre-tax net catastrophe losses of $1.64 billion, primarily from the California wildfires. This compares to $435 million in catastrophe losses in the same quarter last year.
Chubb’s combined ratio, a key measure of underwriting profitability, deteriorated to 95.7% from 86.0% a year ago due to the higher catastrophe losses.
Despite the revenue miss, Greenberg expressed confidence in the company’s growth prospects, stating that about 80% of Chubb’s global P&C business and life business "have very good growth prospects."
The company returned $751 million to shareholders during the quarter through share repurchases and dividends.
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