(Updates shares in second paragraph.)
July 22 (Bloomberg) -- Chubb Corp., the insurer of commercial property and high-end homes, rose the most since last year in New York trading after profit beat analysts’ estimates and the company boosted its forecast for 2011.
Chubb advanced $1.90, or 3 percent, to $64.46 at 4 p.m. in New York Stock Exchange composite trading. The insurer gained 8.1 percent this year, compared with a 6.4 percent drop in the 24-company KBW Insurance Index.
Second-quarter operating profit was $1.27 a share, the Warren, New Jersey-based insurer said in a statement late yesterday, beating by 28 cents the average estimate of 20 analysts surveyed by Bloomberg. Sales advanced, led by gains outside the U.S.
“Underwriting income was much better than we modeled and the biggest reason for the beat,” said Steven Labbe, an analyst at Janney Montgomery Scott LLC’s Langen McAlenney division. “Additionally, investment income and buyback activity were each better than we modeled and guidance was increased.”
Chubb raised its forecast for 2011 operating earnings to a range of $5.55 to $5.85 a share, compared with a January forecast of $5.35 to $5.75.
Net income fell 19 percent to $419 million on increased claims from catastrophes including U.S. storms. Competitor Travelers Cos. posted its first loss in seven years yesterday on losses from the natural disasters.
--Editors: Dan Kraut, William Ahearn
To contact the reporters on this story: Brooke Sutherland in New York at firstname.lastname@example.org; Noah Buhayar in New York at email@example.com.
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org