Chubb Corp. Reports Disappointing Earnings, 12% Drop in Second-Quarter Profits

Strategic Insights -

Warren, N.J.-based Chubb Corp., a wholly owned subsidiary of Jefferson-Pilot Corp., experienced a significant decline in second-quarter earnings, falling 12% to $154.4 million. This marked a bigger-than-expected drop, with analysts estimating 98 cents per diluted share. The company's recent results were impacted by storm damage, which boosted claims that Chubb paid to policyholders. Despite this setback, Chubb remains the 12th-largest U.S. property and casualty insurer, with a 25-year rental contract with the Piedmont Triad Airport Authority, which will not be affected by the restructuring of Host Marriott's sublease to HMC Senior Communities Inc.

Key Takeaways:

  • Chubb Corp.'s second-quarter earnings fell 12% to $154.4 million, missing analyst estimates of 98 cents per diluted share.
  • The company's recent results were impacted by storm damage, which boosted claims paid to policyholders.
  • Chubb Corp. is a wholly owned subsidiary of Jefferson-Pilot Corp. and remains the 12th-largest U.S. property and casualty insurer.
  • The company has a 25-year rental contract with the Piedmont Triad Airport Authority, which will not be affected by the restructuring of Host Marriott's sublease to HMC Senior Communities Inc.
  • Host Marriott will remain liable on the lease, along with Potomac Ltd., the original holder of the lease when it began in 1982.
  • Chubb Corp. reported earnings from operations in the quarter ended June 30, down from $175.6 million in the year-ago period.

Statistics:

  • Second-quarter earnings: $154.4 million
  • Diluted earnings per share: 90 cents (down from $1 in the year-ago period)
  • projected earnings per share (per analyst estimate): 98 cents
  • Dollar amount of claims paid due to storm damage: Not specified
  • Duration of rental contract with Piedmont Triad Airport Authority: 25 years
  • Year the original lease with Potomac Ltd. began: 1982

Sources:

  • "Chubb Corp. earnings miss estimates, decline 12%." (Publication and date not specified)
  • First Call Corp. (survey data)
  • Piedmont Triad Airport Authority
  • Chubb Corp. (press release/earnings report)