Property and casualty insurer Chubb Corp (CB.N: Quote, Profile, Research) said on Tuesday earnings rose in the second quarter, helped by lower payouts, and it raised its full-year outlook.
Net earnings were $709 million, or $1.75 per share, up from $598 million, or $1.41 per share, in the year-earlier quarter.
Chubb, based in Warren, New Jersey, said operating earnings, which analysts use to measure performance because it excludes investments, rose to $648 million, or $1.60 per share.
Analysts on average had expected the high-end property insurer to earn $1.39 a share, according to Reuters Estimates.
In the year-ago quarter, Chubb had operating income of $571 million, or $1.35 per share.
Chubb raised its outlook for operating earnings for the full year to a range of $5.70 to $6.10 per share from its previous view of $5.00 to $5.40.
"They had a very good quarter, earnings-wise, but revenue growth remains sluggish." said Donald Light, an analyst with Celent LLC. "
While earnings rose, total net written premiums for the quarter declined 1 percent to $3.1 billion.
But payouts and expenses also dropped as Chubb maintained "underwriting discipline," said Chief Executive John Finnegan in a statement -- meaning Chubb would not take policies where it could not make money.
The company's "combined ratio," a measure of premiums earned against payouts and expenses, improved by 2.5 percentage points to 82.7 percent, a record for the company.
Catastrophe losses represented 3.2 percentage points of that ratio in the first half, due in part to storms in Northeastern United States and flooding in England, but Chubb warned they could be higher in the second half, which is hurricane season in the United States.
Property and casualty investment income increased 9 percent to $313 million.
But some areas showed softness. Chubb's professional liability unit recorded a 1 percent decline in premiums, reflecting fierce competition to insure executives and boards.
Commercial insurance renewal rates dropped 3 percent in the U.S.
Chubb shares closed down 2.34 percent at $49.63 in regular trading on the New York Stock Exchange before rising slightly to $51 in after-hours trading.
The stock is little changed from a year ago. In the same period, the Standard & Poor's insurance index (.GSPINSC: Quote, Profile, Research) has risen about 13 percent.
Thursday, July 26, 2007
Sunday, July 22, 2007
Brazil Lula tries to blunt crash criticism
Brazil's president pledged a thorough investigation into the plane crash that killed as many as 200 people in a televised address Friday that aimed to blunt criticism of his response to the country's deadliest aviation accident.
President Luiz Inacio Lula da Silva's appearance, the first since the crash on Tuesday, followed a flurry of complaints that Lula had been absent since the disaster to avoid jeopardizing his high approval ratings.
"Let our affection and solidarity help to alleviate the irreparable pain" of relatives and friends of those who died, Lula said. "The government is and will be doing all that is possible and impossible to find the causes of the accident."
Despite his warm words, Lula looked stiff and lacking the usual charisma that have made him one of Brazil's most popular presidents ever.
Earlier, a close adviser was filmed apparently celebrating reports suggesting the crash was caused by a mechanical error and not government negligence during a long-running aviation crisis.
Lula spoke after the focus of the investigation shifted from a faulty runway that could imply government responsibility to potential pilot error or mechanical failure.
Since the crash of an Airbus A320 at Sao Paulo's Congonhas airport, Brazilians have been clamoring for explanations and someone to take responsibility for the country's second major aviation accident in 10 months.
Lula, elected to a second term last year, had not made a public appearance or visited the crash site, unlike his longtime political rival, Sao Paulo state Gov. Jose Serra, who comforted mourning family members.
Marco Aurelio Garcia, a foreign policy adviser to the president, was shown on national television on Thursday making obscene gestures after news that pointed to problems with the braking system of the doomed A320.
Garcia apologized, saying it was his private expression of indignation at attempts to blame the government for the crash.
The opposition Brazilian Social Democracy Party said Garcia's gesture was "an offence to the Brazilian people."
BLUNDERS
The incident is the latest in a series of apparent blunders by members of Lula's Cabinet in the country's aviation crisis, which has seen chronic delays and flight cancellations.
Finance Minister Guido Mantega has tried to put a positive spin on the crisis, calling it a byproduct of Brazil's improving economy, and Tourism Minister Marta Suplicy said irritated travellers should "relax and enjoy."
Lula has a history of retreating at difficult times. During a previous aviation crisis that disrupted air travel at the end of last year, he took a beach vacation.
When he was booed during the opening ceremony of the Pan-American Games in Rio de Janeiro last Friday, he scrapped plans for a widely expected speech inaugurating the games.
The government announced measures on Friday to help reduce air traffic at the domestic Congonhas airport, including restrictions on charter flights and stopovers. It will ban new international routes to Sao Paulo and reroute flights from Congonhas to the city's international airport, Guarulhos.
Lula acknowledged Congonhas was overloaded and the air sector was "going through difficulties," but said Brazil's air travel safety was compatible with international standards.
The government also said it was studying the construction of a new airport in the greater Sao Paulo area.
TAM Linhas Aereas said late on Thursday the doomed aircraft had been flying without one of its thrust reversers, which help slow the plane at landing. But the company said the device, which was turned off after a malfunction last week, was not essential to safe landing.
TAM's chief executive, Marco Antonio Bologna, had said on Wednesday the aircraft was in perfect condition.
TAM initially said 186 people were on the flight but revised the figure on Friday to 187.
An Airbus spokeswoman in France said an A320 could fly for up to 10 days with a broken thrust reverser. Aviation experts say the device is complementary but not necessary to braking and that it is usually safe to fly without it.
President Luiz Inacio Lula da Silva's appearance, the first since the crash on Tuesday, followed a flurry of complaints that Lula had been absent since the disaster to avoid jeopardizing his high approval ratings.
"Let our affection and solidarity help to alleviate the irreparable pain" of relatives and friends of those who died, Lula said. "The government is and will be doing all that is possible and impossible to find the causes of the accident."
Despite his warm words, Lula looked stiff and lacking the usual charisma that have made him one of Brazil's most popular presidents ever.
Earlier, a close adviser was filmed apparently celebrating reports suggesting the crash was caused by a mechanical error and not government negligence during a long-running aviation crisis.
Lula spoke after the focus of the investigation shifted from a faulty runway that could imply government responsibility to potential pilot error or mechanical failure.
Since the crash of an Airbus A320 at Sao Paulo's Congonhas airport, Brazilians have been clamoring for explanations and someone to take responsibility for the country's second major aviation accident in 10 months.
Lula, elected to a second term last year, had not made a public appearance or visited the crash site, unlike his longtime political rival, Sao Paulo state Gov. Jose Serra, who comforted mourning family members.
Marco Aurelio Garcia, a foreign policy adviser to the president, was shown on national television on Thursday making obscene gestures after news that pointed to problems with the braking system of the doomed A320.
Garcia apologized, saying it was his private expression of indignation at attempts to blame the government for the crash.
The opposition Brazilian Social Democracy Party said Garcia's gesture was "an offence to the Brazilian people."
BLUNDERS
The incident is the latest in a series of apparent blunders by members of Lula's Cabinet in the country's aviation crisis, which has seen chronic delays and flight cancellations.
Finance Minister Guido Mantega has tried to put a positive spin on the crisis, calling it a byproduct of Brazil's improving economy, and Tourism Minister Marta Suplicy said irritated travellers should "relax and enjoy."
Lula has a history of retreating at difficult times. During a previous aviation crisis that disrupted air travel at the end of last year, he took a beach vacation.
When he was booed during the opening ceremony of the Pan-American Games in Rio de Janeiro last Friday, he scrapped plans for a widely expected speech inaugurating the games.
The government announced measures on Friday to help reduce air traffic at the domestic Congonhas airport, including restrictions on charter flights and stopovers. It will ban new international routes to Sao Paulo and reroute flights from Congonhas to the city's international airport, Guarulhos.
Lula acknowledged Congonhas was overloaded and the air sector was "going through difficulties," but said Brazil's air travel safety was compatible with international standards.
The government also said it was studying the construction of a new airport in the greater Sao Paulo area.
TAM Linhas Aereas said late on Thursday the doomed aircraft had been flying without one of its thrust reversers, which help slow the plane at landing. But the company said the device, which was turned off after a malfunction last week, was not essential to safe landing.
TAM's chief executive, Marco Antonio Bologna, had said on Wednesday the aircraft was in perfect condition.
TAM initially said 186 people were on the flight but revised the figure on Friday to 187.
An Airbus spokeswoman in France said an A320 could fly for up to 10 days with a broken thrust reverser. Aviation experts say the device is complementary but not necessary to braking and that it is usually safe to fly without it.
Tuesday, July 10, 2007
BC Life & Health Insurance Company Adds Additional Face Amount Offerings for Individual Term Life Policies
Financial security for the future is a worry item for many Americans, and life insurance is an affordable solution. According to LIMRA International (LIMRA), life insurance leads all other sources of financial assets or income that Americans expect to use to help pay bills and to maintain their lifestyle if the primary wage earner dies. BC Life & Health Insurance Company, through affiliate company Blue Cross of California, today announced an increase in individual term life insurance benefit amounts options to $15,000, $30,000, $50,000, $75,000 or $100,000 for most ages.
A BC Life & Health Insurance Company individual term life insurance policy can help protect loved ones and cover such costs as mortgage repayments, salary replacement and child care costs. BC Life & Health Insurance Company individual term life insurance policies are available to applicants at the same time they apply for Blue Cross of California individual medical coverage or if already a Blue Cross of California individual medical member. When BC Life & Health Insurance Company's individual term life insurance policies are purchased with individual medical coverage members benefit from:
- One bill for all of life and health insurance needs
- No additional forms to fill out
- No medical exams
- Coverage for children for as little as $1.50 per month
- Coverage for adults for as little as $2.80 per month
"It is important to ask yourself, 'Have I prepared for my family's financial future? How much coverage do I need to maintain my family's current standard of living?' The new face amounts BC Life & Health Insurance Company is offering will help families better prepare for their financial future," said Nicholas L. Brecker, president of BC Life & Health Insurance Company. "We recommend that you review your life insurance coverage annually to be sure your family's financial needs will be met now and in the future."
BC Life & Health Insurance Company individual term life insurance policies are designed to pay out the policy face amount in the event of the policyholder's death. The policy stays in-force until age 65, and as long as the premium payments are made. The face amount is guaranteed, and remains unchanged throughout the life of the policy.
"No one can predict the future or likes to plan for the worst," said Brian A. Sassi, president and general manager of BCC. "With BC Life & Health Insurance Company, you can enjoy security and peace of mind, knowing your family will have financial support at a difficult time."
You can access BC Life & Health Insurance Company at www.bluecrossca.com. Blue Cross of California is an affiliate of BC Life & Health Insurance Company and offers the convenience of health, prescription, dental, vision and employee assistance programs. Life products are underwritten by BC Life & Health Insurance Company, an independent licensee of the Blue Cross Association.
About Blue Cross of California:
Blue Cross of California is a subsidiary of WellPoint, Inc. (NYSE: WLP - News), whose mission is to improve the lives of the people it serves and the health of its communities. It is the largest publicly traded commercial health benefits company in terms of membership in the United States, and an independent licensee of the Blue Cross Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Blue Cross Blue Shield in 10 New York City metropolitan counties and as Blue Cross or Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through UniCare. Additional information about Blue Cross of California is available at www.bluecrossca.com
A BC Life & Health Insurance Company individual term life insurance policy can help protect loved ones and cover such costs as mortgage repayments, salary replacement and child care costs. BC Life & Health Insurance Company individual term life insurance policies are available to applicants at the same time they apply for Blue Cross of California individual medical coverage or if already a Blue Cross of California individual medical member. When BC Life & Health Insurance Company's individual term life insurance policies are purchased with individual medical coverage members benefit from:
- One bill for all of life and health insurance needs
- No additional forms to fill out
- No medical exams
- Coverage for children for as little as $1.50 per month
- Coverage for adults for as little as $2.80 per month
"It is important to ask yourself, 'Have I prepared for my family's financial future? How much coverage do I need to maintain my family's current standard of living?' The new face amounts BC Life & Health Insurance Company is offering will help families better prepare for their financial future," said Nicholas L. Brecker, president of BC Life & Health Insurance Company. "We recommend that you review your life insurance coverage annually to be sure your family's financial needs will be met now and in the future."
BC Life & Health Insurance Company individual term life insurance policies are designed to pay out the policy face amount in the event of the policyholder's death. The policy stays in-force until age 65, and as long as the premium payments are made. The face amount is guaranteed, and remains unchanged throughout the life of the policy.
"No one can predict the future or likes to plan for the worst," said Brian A. Sassi, president and general manager of BCC. "With BC Life & Health Insurance Company, you can enjoy security and peace of mind, knowing your family will have financial support at a difficult time."
You can access BC Life & Health Insurance Company at www.bluecrossca.com. Blue Cross of California is an affiliate of BC Life & Health Insurance Company and offers the convenience of health, prescription, dental, vision and employee assistance programs. Life products are underwritten by BC Life & Health Insurance Company, an independent licensee of the Blue Cross Association.
About Blue Cross of California:
Blue Cross of California is a subsidiary of WellPoint, Inc. (NYSE: WLP - News), whose mission is to improve the lives of the people it serves and the health of its communities. It is the largest publicly traded commercial health benefits company in terms of membership in the United States, and an independent licensee of the Blue Cross Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Blue Cross Blue Shield in 10 New York City metropolitan counties and as Blue Cross or Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through UniCare. Additional information about Blue Cross of California is available at www.bluecrossca.com
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