Chubb Limited

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  • uploads///Rel val
    Company & Industry Overviews

    What Led to Chubb’s Discounted Valuations?

    Chubb has been successful in gaining investors’ confidence as the company rewarded shareholders with $667 million in 2Q17 via repurchases and dividends.

    By Raymond Anderson
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    Basic Materials

    Underwriting profit: First leg of the profit machine

    An underwriting loss is not unusual for an insurance company. In a soft pricing environment, pricing of P&C products is low due to intense competition.

    By Sean Millard
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    Consumer

    How cost structures and distribution channels impact profit

    As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.

    By Sean Millard
  • uploads///Insurance
    Earnings Report

    Lower Claims, Pricing, Reinsurance Key to Berkshire’s Insurance

    Berkshire Hathaway’s (BRK.B) Insurance segment saw subdued growth in the second half of 2017 on reinsurance losses.

    By Robert Karr
  • uploads///Insurance
    Earnings Report

    Berkshire’s Insurance Segment Benefits From Fewer Claims

    In 1Q18, Berkshire Hathaway’s (BRK.B) insurance revenue fell YoY (year-over-year) to $14.6 billion from $22.9 billion.

    By Robert Karr
  • uploads///Valuation
    Earnings Report

    Berkshire Hathaway’s Valuations Command a Premium after Market Declines

    Berkshire Hathaway (BRK.B) stock has declined ~7.0% in the last one month and has risen 19.2% in the past one year.

    By Robert Karr
  • uploads///Ratings
    Financials

    How Wall Street Analysts View Berkshire Hathaway

    Analysts assigned four “strong buy” or “buy” ratings out of six for Berkshire Hathaway in February 2018.

    By Robert Karr
  • uploads///analysts
    Earnings Report

    How Analysts Are Rating Chubb

    Chubb (CB) is tracked by 18 analysts in February 2018. One analyst has recommended a “sell” for the stock, and one has recommended a “hold.”

    By Raymond Anderson
  • uploads///Rel Val
    Earnings Report

    Understanding Chubb’s Premium Valuations

    Chubb’s (CB) PE (price-to-earnings) ratio is 14.37x on an NTM (next 12-month) basis. The average for its competitors was 13.36x.

    By Raymond Anderson
  • uploads///net incoe
    Earnings Report

    Here’s What’s behind Chubb’s Net Income in 4Q17

    Chubb’s (CB) net income in 4Q17 was $1.5 billion compared to $1.6 billion in 4Q16. It saw a rise in net premiums earned, from $7.1 billion in 4Q16 to $7.2 billion in 4Q17.

    By Raymond Anderson
  • uploads///DY
    Earnings Report

    Net Investment Income Rises for AIG’s Group Retirement Division

    Net investment income and premiums American International Group’s (AIG) group retirement division saw its premiums fall marginally to $8 million in 3Q17 from $9 million in 3Q16. The division’s net investment income fell 5% from $554 million in 3Q16 to $524 million in 3Q17. This fall was mainly due to lower income from alternative investments. Whereas AIG […]

    By Raymond Anderson
  • uploads///Insurance
    Earnings Report

    What Berkshire’s Insurance Business Expects for 3Q17

    Berkshire Hathaway Insurance segment is expected to see a YoY rise in revenues due to the sale of policies in automotive, property, and reinsurance offerings.

    By Robert Karr
  • uploads///ROA
    Company & Industry Overviews

    Understanding Chubb’s North America Agricultural Insurance Division

    Chubb’s North America Agricultural Insurance division generated underwriting income of $116.0 million in 1H17 compared to $67.0 million in 1H16, which implies an increase of 73.1%.

    By Raymond Anderson
  • uploads///total revenues
    Company & Industry Overviews

    What Happened with Chubb’s Life Insurance Division?

    In 1H17, Chubb Limited’s (CB) Life Insurance business reported income of $114.0 million in 1H17 compared to $134.0 million in 1H16, reflecting a 14.9% decline.

    By Raymond Anderson
  • uploads///total operating expenses
    Company & Industry Overviews

    Inside Chubb’s Overseas General Insurance Division

    Chubb’s Overseas General Insurance Division generates the majority of its net premiums written from Latin America, Europe, and Asia.

    By Raymond Anderson
  • uploads///Market cap
    Company & Industry Overviews

    Why Chubb’s Personal Insurance Business Saw a Rise in Income

    Chubb Limited’s (CB) Personal Property and Casualty business’s underwriting income rose from $138.0 million in 1H16 to $285.0 million in 1H17, reflecting an increase of 106.5%.

    By Raymond Anderson
  • uploads///ROE
    Company & Industry Overviews

    Chubb’s Net Investment Income Rose in 1H17

    Chubb Limited (CB) reported net investment income of ~$1.5 billion in 1H17 compared to ~$1.4 billion in 1H16, reflecting a 9.6% increase. CB generated an 11% return on equity on a trailing-12-month basis.

    By Raymond Anderson
  • uploads///rel val
    Financials

    Weighing Chubb’s Valuation beside Those of Other Insurance Giants

    Chubb’s one-year forward PE ratio stands at 13.15x, compared with the peer average of 12.09x, which means that Chubb is trading at a premium valuation.

    By Raymond Anderson
  • uploads///Expected div
    Financials

    Where MetLife’s Expected Total Dividend for 2017 Stands next to Allstate’s

    In 2017, MetLife (MET) is expected to declare a total dividend of $1.61 per share, representing an increase of 1.9% from the total dividend it declared in 2016.

    By Raymond Anderson
  • uploads///Total revenues
    Financials

    What Else Could Make This an Expensive Year for Insurance Giants?

    US insurance giants (IYF) are expected to witness costs in the range of $20 billion–$65 billion stemming from the effects Hurricane Irma.

    By Raymond Anderson
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    Financials

    Insurance after Harvey and Irma

    Hurricane Harvey devastated Houston in late August 2017, causing damages totaling $180 billion, but Irma could be even more expensive.

    By Raymond Anderson
  • uploads///Total opertaing expenses
    Financials

    What’s Happening with AIG’s Commercial Insurance Division?

    From January 2016–June 2016, AIG managed to report total operating revenues of $10.8 billion—a 15% YoY fall, primarily due to lower premiums in 1H17.

    By Raymond Anderson
  • uploads///Prem recievd
    Financials

    These Insurance Giants Have Seen Declines in Their Total Revenues

    In 1H17, Prudential Financial (PRU) generated total revenues of $27.1 billion—a year-over-year decline of ~5.8%.

    By Raymond Anderson
  • uploads///CB relative valuation
    Company & Industry Overviews

    What Led to Chubb’s Premium Valuations?

    Wall Street analysts have given a one-year price target of $157.53 on Chubb (CB), an increase of 11.4% from the current price level.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    How Chubb’s Life Insurance Division Fared

    Chubb’s (CB) life insurance division has posted net premiums written of $523 million in 2Q17 as compared to $527 million in 2Q16.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    How Chubb’s Overseas General Insurance Division Performed

    Chubb’s (CB) Overseas General Insurance division saw a decline in its net premiums written in 2Q17 from $2.01 billion as compared to $2.03 billion in 2Q16.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    Why Chubb’s Global Reinsurance Division’s Income Rose

    Chubb’s (CB) global reinsurance division has witnessed a substantial fall in its net premiums written in 2Q17 as compared to 2Q16.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    How CB’s North America Agricultural Insurance Division Fared

    Chubb’s (CB) North America Agricultural Insurance division witnessed a rise of 7.7% in its net premiums written in 2Q17 as compared to 2Q16.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    How CB’s North America Personal Property Insurance Segment Performed

    Chubb Limited (CB) has witnessed a rise of 2.0% in its net premiums written in 2Q17 as compared to 2Q16.

    By Raymond Anderson
  • uploads///CB and comp
    Company & Industry Overviews

    How Chubb’s North American Commercial Property Segment Performed

    Chubb’s (CB) North America Commercial Property and Casualty Insurance division witnessed a marginal fall in its net premiums written in 2Q17 as compared to 2Q16.

    By Raymond Anderson
  • uploads///Chubb and comp
    Company & Industry Overviews

    Chubb Beat EPS Estimates but Missed Revenue Estimates

    Chubb (CB) reported earnings per share (or EPS) of $2.50 in 2Q17, which beat Wall Street analyst estimates of $2.47.

    By Raymond Anderson
  • uploads///Prudential relative val
    Company & Industry Overviews

    Prudential’s Discounted Valuations in 2Q17

    Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.

    By Raymond Anderson
  • uploads///PRU and comp
    Company & Industry Overviews

    A Look at Prudential Financial’s Dividends in 2017

    In 2016, Prudential Financial (PRU) declared total dividends of $2.80 per share. In 2017, the company is expected to declare total dividends of $3.06 per share.

    By Raymond Anderson
  • uploads///PRU and comp
    Company & Industry Overviews

    Insights into Prudential’s International Insurance Division

    Prudential Financial’s (PRU) Life Planner division experienced an increase in its earnings in 2Q17 compared to 2Q16.

    By Raymond Anderson
  • uploads///Analysts rating on AIG
    Company & Industry Overviews

    How Wall Street Analysts View AIG

    American International Group (AIG) is covered by 18 analysts, out of which seven analysts gave “strong buy” ratings on the stock.

    By Raymond Anderson
  • uploads///PRU and comp
    Company & Industry Overviews

    Understanding Prudential’s Group Insurance and Individual Life Earnings

    In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.

    By Raymond Anderson
  • uploads///AIG relative valuation
    Company & Industry Overviews

    Why AIG Discounted Its Valuations in 2017

    Wall Street analysts have given a one-year price target of $70.00 on American International Group (AIG), which reflects an ~14.1% increase from the current price.

    By Raymond Anderson
  • uploads///PRU and comp
    Company & Industry Overviews

    Why Earnings Rose in Prudential’s Asset Management Business

    In 2Q17, earnings from Prudential’s asset management business stood at $218 million compared to $207 million in 2Q16.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    Insights on AIG’s Share Repurchases

    In 2Q16, AIG reported operating general operating expenses (or GOE) of $2.4 billion, which the company reduced by $191.0 million. It reported GOE of $2.2 billion in 2Q17.

    By Raymond Anderson
  • uploads///PRU and comp
    Company & Industry Overviews

    Analyzing Prudential’s Individual Annuities and Retirement Businesses

    After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    Understanding AIG’s Dividend Distribution in 2017

    AIG is expected to declare dividends of $1.33 per share in 2017, reflecting a rise of ~38.5% from the total dividends declared in 2016.

    By Raymond Anderson
  • uploads///Prudential and comp RPS
    Company & Industry Overviews

    Prudential Misses Earnings Estimates, Net Income Falls Year-over-Year

    In 2Q17, Prudential Financial (PRU) reported 2Q17 net income of $491 million compared to $921 million in 2Q16. Its 2Q17 earnings per share of $2.09 missed the estimate of $2.70.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    Analyzing AIG’s Life and Personal Insurance Business

    AIG’s pretax operating income for personal insurance stood at $330 million in 2Q17. In 2Q16, it stood at $152 million.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    AIG’s Individual and Group Retirement Businesses amid Strong Equity Markets

    American International Group’s (AIG) Consumer Business division reported pretax operating income of ~$1.3 billion in 2Q17 compared to $948.0 million in 2Q16.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    Why AIG’s Commercial Business Segment’s Operating Income Fell in 2Q17

    In 2Q17, the pretax operating income of AIG’s Commercial Business division stood at $716 million compared to $941 million in 2Q16.

    By Raymond Anderson
  • uploads///AIG and comp
    Company & Industry Overviews

    Why AIG’s Net Income Fell on a Year-over-Year Basis

    AIG is expected to post earnings per share of $1.22 in 3Q17, an ~20.3% decline from its 2Q17 earnings. AIG is expected to report revenues of ~$11.8 billion in 3Q17.

    By Raymond Anderson
  • uploads///Commercial
    Company & Industry Overviews

    Reinsurance, P&C Weigh on AIG’s Commercial Business

    AIG’s Commercial division saw a loss ratio of 71.9 in 1Q17. AIG saw its book value expand ~2.5% in 1Q17 on a year-over-year basis.

    By Robert Karr
  • uploads///Operating efficiency
    Company & Industry Overviews

    AIG’s Restructuring Costs Consistent amid Strategic Transactions

    In 4Q16, American International Group (AIG) spent $206.0 million on restructuring initiatives that target inefficiencies and expense reduction.

    By Robert Karr
  • uploads///Estimates
    Company & Industry Overviews

    Why AIG Rose 14% in a Quarter despite Missing Estimates

    In this series, we’ll study AIG’s expected performance, investment profitability, operating divisions, expansion, balance sheet, dividends, and valuations.

    By Robert Karr
  • uploads///Operating efficiency
    Company & Industry Overviews

    AIG’s Restructuring Initiatives to Take Further Shape in 3Q

    American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Prudential’s Valuations Are Weak on 2Q16 Operating Performance

    Prudential’s stock has risen by 16% in the past six months, mainly due to expectations of improved fundamentals and higher investment and underwriting income.

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    Prudential Saw a Fall in 2Q16 on Lower US Sales

    Prudential Financial (PRU) reported its 2Q16 earnings results on August 3, 2016. It reported adjusted operating income per share of $1.84 in the quarter.

    By Robert Karr
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    Company & Industry Overviews

    The Impact of an Interest Rate Hike on Different Industries

    Since insurance companies are highly dependent on their ability to generate interest income, rising interest rates can significantly boost profits.

    By Lynn Noah
  • uploads///Hits and misses
    Company & Industry Overviews

    Is Prudential Financial on the Road to Recovery in 2016?

    In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.

    By Robert Karr
  • uploads///Dividend payout
    Company & Industry Overviews

    How Prudential Has Boosted Shareholder Payout

    Since 2010, Prudential Financial (PRU) has returned approximately $10 billion to shareholders in the form of dividends and buybacks.

    By Robert Karr
  • uploads///US Individual
    Company & Industry Overviews

    Prudential’s US Individual Division to Benefit from Lower Charges

    Prudential Financial’s (PRU) US Individual Life and Group Insurance division saw a fall in operating income on lower group insurance revenues.

    By Robert Karr
  • uploads///Capital structure
    Macroeconomic Analysis

    How’s AIG Doing in Its Simplification Process?

    In 2015, AIG continued its simplification process for its balance sheet. In 2016, AIG is expected to strengthen its balance sheet with higher operating cash flows.

    By Robert Karr
  • uploads///Commercial insurance
    Macroeconomic Analysis

    AIG’s Commercial Insurance: Will It Post a Profit in 1Q16?

    AIG reported a pre-tax operating loss of $2.1 billion for its commercial insurance business in 4Q15 compared to a pre-tax operating income of $1.2 billion in 4Q14.

    By Robert Karr
  • uploads///International insurance
    Company & Industry Overviews

    Strong Dollar Continues to Impact Prudential Internationally

    On a constant dollar basis, Prudential Financial’s (PRU) International Insurance segment reported a 7% rise in revenues in 4Q15.

    By Robert Karr
  • uploads///Operating efficiency
    Macroeconomic Analysis

    Could Icahn and Citi Be Suggesting an AIG Sale?

    As AIG continues to decline, there are suggestions as well as speculation of an AIG sale. These speculations, although they seem unlikely to happen, can push AIG’s stock prices.

    By Robert Karr
  • uploads///Repurchase
    Macroeconomic Analysis

    The Rationale behind AIG’s Heavy Repurchases

    In 4Q15, AIG repurchased 53 million shares for an aggregate purchase price of $3.2 billion. It made additional repurchases of $2.5 billion through the end of February 11, 2016.

    By Robert Karr
  • uploads///Stock
    Company & Industry Overviews

    Prudential Financial Expected to See Higher Profits in 1Q16

    Prudential Financial’s (PRU) stock has risen by 7% in the past month and has fallen by 13% in the past quarter.

    By Robert Karr
  • uploads///Operating efficiency
    Earnings Report

    What AIG Is Suggesting as an Alternative to Icahn’s Proposal

    American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.

    By Robert Karr
  • uploads///adcafaafdaedebc
    Macroeconomic Analysis

    Why RSP Has a Smart Investment Strategy

    SPY is the underlying index of the Guggenheim S&P 500 Equal Weight ETF (RSP). The index is equally weighted. The size of the market cap isn’t very important.

    By Ivan Kading
  • uploads///Stock
    Earnings Report

    Prudential Financial’s 2Q15 Earnings Beat Estimates

    Prudential Financial’s 2Q15 revenue rose by 12% year-over-year to $12.5 billion, exceeding consensus estimates of $11.2 billion. Its net income was $1.4 billion, up by 29% compared with 2Q14.

    By Robert Karr
  • uploads///CB ACE Strategic Rationale
    Miscellaneous

    What Is the Rationale for the ACE–Chubb Merger?

    The biggest rationale for the ACE–Chubb merger is the potential for cost-cutting. By combining with Chubb, ACE Limited is creating a leading player in property and casualty insurance.

    By Brent Nyitray, CFA, MBA
  • uploads///Contribution to combined company
    Miscellaneous

    ACE–Chubb: The US Insurance Industry’s Biggest-Ever Acquisition

    The ACE–Chubb deal will create the second-largest listed property and casualty insurer, by market capitalization, in the US.

    By Robert Karr
  • uploads///Largest PC
    Miscellaneous

    ACE to Acquire Chubb: The Strength of a Healthy Balance Sheet

    With the acquisition of Chubb, ACE will be better positioned to compete with rivals including Warren Buffett’s Berkshire Hathaway and Allstate, among others.

    By Robert Karr
  • uploads///P
    Miscellaneous

    Ace Merges with Chubb to Create Insurance Giant

    Shares of Chubb Group (CB) surged by 26.12% on July 1 on news of an acquisition by global property giant Ace (ACE).

    By Rebecca Keats
  • uploads///Stock performance
    Company & Industry Overviews

    AIG Advances on Risk Reduction and Balance Sheet Simplification

    As of June 2015, AIG’s stock has appreciated by about 12% over the past six months and by 11% over the last year.

    By Robert Karr
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    Macroeconomic Analysis

    A Closer Look at the Costliest Catastrophes

    Hurricanes Sandy, Ike, and Andrew remain near the top of the list of the costliest catastrophes in terms of insured losses.

    By Sean Millard
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    Macroeconomic Analysis

    Making Sense of Economic and Insured Losses

    Insured losses are the ones that impact the profitability of insurance companies.

    By Sean Millard
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    Macroeconomic Analysis

    How Catastrophes Impact a P&C Insurer’s Combined Ratio

    The percentage points for catastrophe losses in the combined ratio have increased in recent years.

    By Sean Millard
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    Macroeconomic Analysis

    Higher Premium Rates in Personal Auto and Home Insurance Lines

    Auto insurance and homeowner’s insurance form two important product types of the personal lines business.

    By Sean Millard
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    Macroeconomic Analysis

    Personal Lines Rates Were Up 2% in February

    The US personal lines businesses have seen improved profitability from the 2011 levels.

    By Sean Millard
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    Macroeconomic Analysis

    How Underwriting Cycles Impact the Top Line and the Bottom Line

    The underwriting cycle moves between hard and soft market conditions, which have different sets of characteristics that determine the profitability of the insurance industry.

    By Sean Millard
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    Macroeconomic Analysis

    The Underwriting Profits of a Property and Casualty Insurer

    The property and casualty insurance business is cyclical in nature. The underwriting cycle alternates between two phases: the hard market and the soft market.

    By Sean Millard
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    Earnings Report

    AIG delivers on its financial objectives

    AIG’s financial objectives focus on profitability improvement, expense management, and balance sheet growth, achieving a sustainable ROE.

    By Sean Millard
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