Barclays Reduces Estimates on Chubb (CB) After Pre-Announcement; Expect Other P&C Insurers To Follow Suit

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Barclays maintains an 'Overweight' on Chubb Corporation (NYSE: CB) price target of $85.00.

Analyst, Jay Gelb, said, "Chubb expects 2Q12 catastrophe losses of $200-$240mn before-tax (7-8 CR points and $0.48-$0.57/shr after-tax) due to U.S. hail and windstorms, which is higher than we modeled. As a result, we are reducing our 2Q12 EPS estimate to $1.10 from $1.45 and our 2012 EPS estimate to $5.65 from $6.00 (consensus=$5.94)." (FY13 unchanged at $6.00)."

Gelb notes that he anticipates some other companies in the sector will pre-announce catastrophic Q2 exposure including Allstate (NYSE: ALL), Travelers (NYSE: TRV), Hartford (NYSE: HIG), Hanover Insurance (NYSE: THG), Progressive (NYSE: PGR) Berkshire (NYSE: BRK-A)(NYSE: BRK-B), MetLife (NYSE: MET), Ameriprise Financial (NYSE: AMP), AIG (NYSE: AIG), Arch Capital (Nasdaq: ACGL) and XL Capital (NYSE: XL).

For an analyst ratings summary and ratings history on Chubb Corporation click here. For more ratings news on Chubb Corporation click here.

Shares of Chubb Corporation closed at $71.64 yesterday, with a 52 week range of $55.39-$74.40.

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