UPDATE: Credit Suisse Raises PT on The Chubb Corporation Following Good Operating EPS

In a report published Tuesday, Credit Suisse analyst Michael Zaremski reiterated an Outperform rating on The Chubb Corporation (NYSE: CB), and slightly raised the price target from $95.00 to $96.00.In the report, Zaremski noted, “Our 2013/2014 EPS estimates increase an average of 1% to $7.17/$7.92 from $6.82/$7.89 as a result of the 1Q13 beat and margin improvement. Our target price increases $1 to $96 from $95. The AYCR (ex. CATs) was 90.3% vs. our estimate of 90.0% and compares to 92.1% y/y and 88.5% q/q. We believe margin improvement will likely continue for the foreseeable future as CB indicated it is achieving 400bps of margin in CCI (8% avg renewal rate vs. 4% loss cost inflation) and 450bps in CSI (9% avg renewal rate vs. 4.5% loss cost inflation). Furthermore, CB continues to improve its book of business, pushing through rate increases of 30%+ on its worst buckets of business while accepting retention levels in those buckets in the 65-70% range as compared to low-single-digit levels of renewal rate increases on their best accounts to offset loss cost inflation.”The Chubb Corporation closed on Monday at $87.97.