KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comChubb 3Q profit more than doubles, guidance raised

Chubb 3Q profit more than doubles, guidance raised

WARREN, N.J. (AP) - Chubb Corp. said Thursday that its third-quarter profit more than doubled as a quiet hurricane season trimmed catastrophe losses and helped offset a decline in written premiums.

The Warren, N.J.-based company also raised its full-year earnings expectations, citing the strong recent results.

John Finnegan, chairman, president and CEO, said the recession continued to hurt premium activity in the latest quarter. But the recently quiet hurricane season sharply reduce damage claims, especially compared with last year's third quarter which included Hurricane Ike, which devastated parts of the Gulf Coast.

For the three months ended Sept. 30, Chubb posted net income of $596 million, or $1.69 per share, up from a profit of $264 million, or 73 cents per share, in the same quarter a year ago.

Analysts surveyed by Thomson Reuters, whose forecasts typically exclude one-time items, had expected a profit of $1.27 per share, on average, in the latest quarter.

Net written premiums fell 7 percent to $2.7 billion from $2.9 billion a year earlier.

Chubb boosted its full-year earnings expectations, citing performance throughout the year's first nine months and expectations for lower catastrophe losses.

Chubb now expects operating income of $5.90 to $6 per share, up from the range of $5.20 to $5.50 that the company had forecast in July. Analysts expect a full-year profit of $5.51 per share, on average.

Shares of Chubb rose $2.64, or about 5.2 percent, to close at $53.79 before the report's release.

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