The Chubb Corp. announced its second quarter profits would drop by more than 25 percent from last year, mainly due to losses from Tropical Storm Allison, which did much damage in Texas, Louisiana and other parts of the Southeastern U.S. last month.
According to a Reuters report, New Jersey-based Chubb is the initial major insurer to note large losses from the storm, after storm-related earning warnings were issued by three smaller regional insurers.
A car, home and business insurer, Chubb noted it paid out some $80 million in catastrophe claims in the second quarter, mainly due to damage from the storm.
Chubb indicated that the catastrophe losses, amounting to more than three times larger in the same quarter last year, would remove around 29 cents from second-quarter earnings.
Chubb notes that it expects to receive earnings between 75 cents to 80 cents per share, much below the 99 cents to $1.15 per share forecasted by analysts, who were polled by the research firm Thomson Financial/First Call.
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