Summary
Chubb Ltd. (formerly Ace Limited) reported a decrease in net income for the second quarter and first half of 2011 compared to the same periods in 2010. This decline was primarily attributed to a significant increase in catastrophe losses, particularly from the Japan earthquake and Australian storms, which negatively impacted underwriting results. Despite these losses, the company demonstrated growth in net premiums written across most segments, driven by acquisitions and underlying business expansion, particularly in the North American wholesale and International retail businesses. Investment income also saw a slight increase, benefiting from higher invested assets due to acquisitions and positive cash flows. Overall, Chubb's balance sheet remained strong, with total assets growing to $89.3 billion and total shareholders' equity increasing to $24.1 billion. The company maintained a solid capital position, with a debt-to-total capitalization ratio of 16.3%. Management remains focused on underwriting discipline and strategic growth initiatives, aiming for sustained book value growth through a combination of underwriting and investment income.
Financial Highlights
33 data points| Revenue | $4.25B |
| Interest Expense | $62.00M |
| Net Income | $594.00M |
| EPS (Basic) | $1.75 |
| EPS (Diluted) | $1.74 |
| Shares Outstanding (Basic) | 338.92M |
| Shares Outstanding (Diluted) | 341.69M |
Key Highlights
- 1Net income decreased by 10% for the quarter and 40% for the six months ended June 30, 2011, compared to the prior year periods, largely due to increased catastrophe losses.
- 2Total revenues increased by 13% for the quarter and 5% for the six months, driven by higher net premiums earned and increased net investment income.
- 3Net premiums written increased by 16% for the quarter and 6% for the six months, supported by acquisitions and growth in North American wholesale and international retail segments.
- 4Catastrophe losses, net of tax, were $101 million for the quarter and $544 million for the six months, significantly higher than the prior year periods.
- 5Total assets grew to $89.3 billion and shareholders' equity rose to $24.1 billion as of June 30, 2011.
- 6The company repurchased shares to offset obligations related to employee stock awards, with $297 million of the $600 million authorization remaining at quarter-end.
- 7The company completed acquisitions of New York Life’s Korea and Hong Kong operations, contributing to the growth in net premiums and invested assets.