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10-QPeriod: Q2 FY2013

Chubb Ltd Quarterly Report for Q2 Ended Jun 30, 2013

Filed July 31, 2013For Securities:CB

Summary

Chubb Ltd (CB) reported a significant increase in net income for the three months ended June 30, 2013, reaching $891 million compared to $328 million in the same period last year. This strong performance was driven by a notable increase in net premiums written, which rose by 6.3% (7.6% on a constant-dollar basis), reflecting growth across its key segments, particularly in North American P&C and Overseas General. The company also benefited from favorable prior period development and improved underwriting results. Investments in the quarter were impacted by rising interest rates, leading to a decrease in net investment income, though this was partially offset by higher private equity and other distributions. Chubb completed two strategic acquisitions in Mexico during the quarter: Fianzas Monterrey for $293 million and ABA Seguros for $690 million, both aimed at expanding its global franchise. The company maintained a strong combined ratio of 87.9% for its P&C business, indicating solid underwriting profitability. Management also highlighted a share repurchase authorization of $249 million remaining through December 31, 2013.

Financial Highlights

35 data points
Beta

Revenue

$4.82B

Net Income

$779.00M

0.2% Net Margin

EPS (Diluted)

$2.28

Total Assets

$93.69B

Cash & Equivalents

$679.00M

Free Cash Flow

$895.00M

Financial Statements
Beta
Revenue$4.82B
Interest Expense$73.00M
Net Income$779.00M
EPS (Basic)$2.30
EPS (Diluted)$2.28
Shares Outstanding (Basic)341.05M
Shares Outstanding (Diluted)344.10M

Key Highlights

  • 1Net income surged to $891 million for the quarter, a significant increase from $328 million in the prior year.
  • 2Net premiums written increased by 6.3% (7.6% in constant-dollar terms), driven by growth in North American P&C and Overseas General segments.
  • 3The company completed two acquisitions in Mexico: Fianzas Monterrey and ABA Seguros, for a total of $983 million in cash.
  • 4Favorable prior period development contributed $128 million to underwriting results, an increase from $113 million in the prior year.
  • 5The P&C combined ratio improved slightly to 87.9% from 88.7% in the prior year period.
  • 6Net investment income slightly decreased by 0.6% to $534 million due to lower reinvestment rates, but was supported by higher private equity and other distributions.
  • 7Cash flow from operations remained strong at $895 million for the quarter.

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