The Chubb Corp., a Warren, N.J.-based insurer of commercial property and high-end homes, has announced that its board of directors has authorized a new share repurchase program of up to $1.2 billion of the company's common stock. Purchases may be made from time to time in the open market or in privately negotiated transactions, and the program has no expiration date.
Chubb's previous repurchase program, which was approved by its board of directors on Dec. 9, 2010, and provided for the repurchase of up to 30 million shares, has already been completed.Â
‘Today's actions result from the board's continued confidence in Chubb's strong financial condition as well as an ongoing commitment to the importance of our capital management strategy,’ says John D. Finnegan, chairman, president and CEO of Chubb.
Simultaneously, Chubb announced that its earnings fell 27% during the fourth quarter of 2011. However, Finnegan believes that the quarter was a successful period for the company.
‘We secured an average renewal rate increase of six percent in our U.S. standard commercial business, and average renewal rates in our U.S. professional liability business turned positive for the first time in two years,’ Finnegan says.