FILE - In this Jan. 3, 2013 photo, a beach front home that was severely damaged by Superstorm Sandy rests in the sand in Bay Head, N.J. (AP Photo/Mel Evans)
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FILE - In this Jan. 3, 2013 photo, a beach front home that was severely damaged by Superstorm Sandy rests in the sand in Bay Head, N.J. (AP Photo/Mel Evans)
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In this Wed. Dec. 5, 2012, photo, containers are unloaded from cargo ships at the Port of Los Angeles. Most economists agree that the snapshot of U.S. economic growth released Wednesday, Jan. 30, 2012, is going to look dismal. (AP Photo/Nick Ut)
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New York Mayor Michael Bloomberg unveils a proposed budget that totals just over $70 billion, in the Blue Room of New York's City Hall, Tuesday, Jan. 29, 2013. It's Mayor Bloomberg's final budget plan. (AP Photo/Richard Drew, Pool)
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New York Mayor Michael Bloomberg unveils a proposed budget that totals just over $70 billion, in the Blue Room of New York's City Hall, Tuesday, Jan. 29, 2013. It's Mayor Bloomberg's final budget plan. (AP Photo/Richard Drew, Pool)
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New York Mayor Michael Bloomberg unveils a proposed budget that totals just over $70 billion, in the Blue Room of New York's City Hall, Tuesday, Jan. 29, 2013. It's Mayor Bloomberg's final budget plan. (AP Photo/Richard Drew, Pool)
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New York Mayor Michael Bloomberg leaves the Blue Room of New York's City Hall after he unveiled a proposed budget that totals just over $70 billion, Tuesday, Jan. 29, 2013. It's Mayor Bloomberg's final budget plan. (AP Photo/Richard Drew, Pool)
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Mark Page, the New York City's Director of the Office of Management and Budget, discusses New York Mayor Michael Bloomberg's proposed budget that totals just over $70 billion, in the Blue Room of New York's City Hall, Tuesday, Jan. 29, 2013. (AP Photo/Richard Drew, Pool)
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In this Wed. Dec. 5, 2012, photo, containers are unloaded from cargo ships at the Port of Los Angeles. The U.S. economy unexpectedly shrank from October through December, the first quarterly drop since 2009 and a reminder of the economy's vulnerability as automatic cuts in government spending loom. (AP Photo/Nick Ut)
Chubb's Q4 profit drops on big Sandy costs
WARREN, N.J. (
AP) — Property and casualty insurer
Chubb Corp. on Thursday said fourth-quarter net income dropped 77.4 percent as it suffered heavy costs related to Superstorm
Sandy.
The company also announced a plan to repurchase as much as $1.3 billion of its common stock. Chubb bought back 369,900 shares at a total cost of $28 million, or an average cost of $76.54 a share, during the fourth quarter.
Net income was $102 million, or 38 cents a share, down from $452 million, or $1.60 a share, in the fourth quarter of 2011.
Pre-tax costs related to Sandy totaled $882 million. The Oct. 29 storm was one of the worst ever to strike the Northeast and is blamed for more than 130 deaths and tens of billions of dollars in property damage. Chubb, along with Allstate Corp. and Travelers Cos., had a major share of the coverage in areas with heavy damage from Sandy, which hit densely populated areas in New York and New Jersey.
Excluding after-tax investment gains and losses, Chubb's operating income was $44 million, or 16 cents a share. That compared with $460 million, or $1.63 a share, in last year's fourth quarter.
Chubb expects 2013 operating income of $6.40 to $6.80 a share, with net written premiums up 2 to 4 percent.
Net premiums written in the fourth quarter slipped 2 percent to $2.91 billion from $2.97 billion a year earlier.
Chubb's net income for all of 2012 was $1.55 billion, or $5.69 a share, compared with $1.68 billion or $5.76 a share in 2011.
Shares of Warren, N.J.-based Chubb fell 14 cents to close at $80.31. They rose $1.21 to $81.52 in after-hours trading.
Tags:
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