(Updates to say record in first paragraph.)
Oct. 21 (Bloomberg) -- Chubb Corp., the insurer of commercial property and high-end homes, rose to a record after earnings beat analysts’ estimates.
Chubb, based in Warren, New Jersey, climbed $3.36, or 5.1 percent, to $68.71 at 4:08 p.m. in New York Stock Exchange composite trading, its highest closing price. It reached $68.78 earlier in the day.
Third-quarter operating profit was 88 cents a share, the company said in a statement yesterday after the close of regular trading. That beat the 77-cent average estimate of 21 analysts surveyed by Bloomberg.
“We believe its premium valuation is warranted based on its strong franchise, excess capital and our outlook for Chubb to generate among the highest return on equity of property and casualty insurers,” Jay Gelb, senior analyst at Barclays Plc, said in a statement yesterday. He rates Chubb “overweight.”
Net income fell to $298 million from $572 million a year earlier as pretax catastrophe costs surged to $420 million from $58 million. Hurricane Irene pounded the U.S. East Coast in August with flooding rains and high winds. The storm may cost insurers as much as $5.5 billion, modeling firm Risk Management Solutions Inc. said in a September statement.
Chubb posted its smallest profit since it had net income of $246.4 million for the third quarter of 2005, when Hurricanes Katrina and Rita slammed the U.S. Gulf Coast.
--Editors: Dan Reichl, Dan Kraut
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