Insurer Chubb Corp. announced it foresees its 2002 earnings will be at the low end of Wall Street estimates as the insurance industry tangles with high losses and costs.
According to a Reuters report, New Jersey-based Chubb said it is expecting to earn $4.70 a share in 2002. Wall Street now foresees the insurer to garner between $4.70 and $5 a share next year, with a mean estimate of $4.82 a share, according to market researcher Thomson Financial/First Call.
The company responded in a statement that Chairman and Chief Executive Dean O’Hare is expecting global property and casualty insurer net written premiums to grow by 16 percent to 20 percent next year, while property and casualty investment income is projected to grow by 2 to 3 percent.
O’Hare said he expects Chubb’s total loss and expense ratio range from 96 percent to 100 percent in 2002, and that Chubb is more likely to post operating earnings around $4.70 a share.