Triple treat for insurance giants
Three of the world’s insurance juggernauts continue to outperform in the face of softening rates.
International broker Willis and insurers Ace and Chubb all released first-quarter earnings last week. Rising new business offsetting falling premiums was a common theme.
Willis says its first-quarter earnings rose 21% to $US169 million ($204 million), or $US1.10 ($1.33) per share, from the previous corresponding quarter, beating analysts’ forecasts by US8 cents (9.6 cents) a share.
Willis, one of most vocal advocates against contingency commissions in the US, increased its revenue to $US739 million ($893 million), up from $US671 million ($811 million) in the previous quarter.
Its share price on the New York Stock Exchange has risen 13% in the past 12 months, well clear of rivals Aon and Marsh & McLennan, whose stocks have flatlined.
Ace joined other Bermuda-based insurers last week to lodge higher-than-expected first-quarter results, helped by bullish underwriting and investment growth. Earnings reached $US701 million ($847 million) from $US489 million ($591 million) previously. Operating earnings, which excludes investments, rose to $US663 million ($801 million).
Chubb posted first-quarter results showing a $US38 million ($45 million) increase in earnings to $US710 million ($858 million). CEO John Finnegan says the company has done well in a slower growth environment.
International broker Willis and insurers Ace and Chubb all released first-quarter earnings last week. Rising new business offsetting falling premiums was a common theme.
Willis says its first-quarter earnings rose 21% to $US169 million ($204 million), or $US1.10 ($1.33) per share, from the previous corresponding quarter, beating analysts’ forecasts by US8 cents (9.6 cents) a share.
Willis, one of most vocal advocates against contingency commissions in the US, increased its revenue to $US739 million ($893 million), up from $US671 million ($811 million) in the previous quarter.
Its share price on the New York Stock Exchange has risen 13% in the past 12 months, well clear of rivals Aon and Marsh & McLennan, whose stocks have flatlined.
Ace joined other Bermuda-based insurers last week to lodge higher-than-expected first-quarter results, helped by bullish underwriting and investment growth. Earnings reached $US701 million ($847 million) from $US489 million ($591 million) previously. Operating earnings, which excludes investments, rose to $US663 million ($801 million).
Chubb posted first-quarter results showing a $US38 million ($45 million) increase in earnings to $US710 million ($858 million). CEO John Finnegan says the company has done well in a slower growth environment.