Barclays Maintains an 'Overweight' on Chubb Corp (CB); Reducing EPS Outlook for 3Q11 Catastrophe Losses

Barclays maintains an 'Overweight' on Chubb Corporation (NYSE: CB) price target of $72.00.

Barclays analyst says, "Chubb pre-announced 3Q11 catastrophe losses of $400-$475mn pre-tax ($0.09-$1.07/share after-tax, 2% of book value), including $300-$375mn of losses from Hurricane Irene, which is higher than we anticipated and will likely be the largest quarter of cat losses for CB since Hurricane Katrina in 2005."

"We are reducing our EPS estimate for Chubb to $4.95 in 2011 from $5.65 to reflect higher-than-projected 3Q11 catastrophe losses. No change to our 2012 EPS estimate of $5.85."

Laterals: Losses from Irene will likely impact primary commercial insurers and homeowner's insurers more than the reinsurers. As a result, investors should also brace for large cat losses from Travelers (NYSE: TRV) & Hartford (NYSE: THG), and to a lesser extent ACE Ltd (NYSE: ACE) & AIG (NYSE: AIG).

For more ratings news on Chubb Corporation click here and for the rating history of Chubb Corporation click here.

Shares of Chubb Corporation closed at $58.94 yesterday.

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