Wells Fargo Securities Lowers Chubb Corporation (CB) EPS Estimates

Wells Fargo Securities analysts John Hall, Susan Ross and Elyse Greenspan rated shares of Chubb Corporation (NYSE: CB) with a Market Perform rating and a valuation range of $53-$56.

Chubb Corporation reported catastrophe losses of
$290 million pretax or $189 million after-tax ($0.56 per share) for the first quarter of 2010, which prompted the Wells Fargo Securities analysts to lower their EPS estimates for the property & casualty insurer.

The analysts lowered their EPS estimate for the 1st quarter of 2010 from $1.36 to 95 cents per share and lowered their fiscal 2010 EPS estimate from $5.35 to $4.94, while leaving their 2011 estimates unchanged at $5.40 per share.

The Wells Fargo Securities analysts wrote, "premium growth prospects remain dim, as the weak global economy is pressuring nearly all of Chubb's business lines. Despite current strong profitability, we remain cautious given the company's exposure to D&O claims over the long term."