Core Insights - Chubb is a leading global insurance company with a market capitalization exceeding $100 billion and holds top ratings for capital strength [1] - The company has over $120 billion in float, positioning it as a premier blue-chip insurance firm, second only to Berkshire Hathaway [1] Company Overview - Chubb operates as a global insurance giant, recognized for its financial stability and strong market presence [1] - The company is noted for its high ratings in capital strength, indicating robust financial health [1] Investment Potential - The article suggests a potential interest in initiating a long position in Chubb's stock, indicating a favorable outlook for future performance [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File No. 1-11778 CHUBB LIMITED (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or org ...

Industry Overview - The Zacks Property and Casualty Insurance (P&C) industry is expected to benefit from improved pricing, prudent underwriting, and exposure growth despite an increase in catastrophic events [1] - The industry includes companies providing commercial and personal property insurance, casualty insurance products, and services, with premiums being the primary revenue source [3] - The industry is currently facing a decline in pricing after several years of increases, with three interest rate cuts last year and potential further cuts this year [2] Trends and Projections - Global commercial insurance rates fell by 4% in Q2, but personal auto insurance is projected to remain strong, supported by better investment returns and reduced claims [4] - Deloitte estimates gross premiums to grow sixfold to $722 billion by 2030, with China and North America accounting for over two-thirds of the total [4] - Swiss Re predicts premium growth of 5% in 2025 and 4% in 2026 [4] Catastrophe Impact - The industry is vulnerable to catastrophe events, which can negatively impact underwriting profits; the 2025 hurricane season is expected to be above normal with 23 named storms [5] - Global insured losses from natural disasters in the first half of 2025 are estimated to be at least $100 billion [5] - The combined ratio is expected to improve from 2023 to 98.5% in 2025 but may deteriorate to 99% in 2026 [5] Mergers and Acquisitions - Consolidation in the P&C industry is anticipated to continue as companies seek to diversify operations and gain market share [6] Technology Adoption - The industry is increasingly adopting technologies such as blockchain, artificial intelligence, and advanced analytics to enhance operations and reduce costs [8] - Insurtechs are emerging, focusing on the P&C insurance sector, with significant investments in technology expected to improve efficiency [8] Industry Performance - The Zacks Property and Casualty Insurance industry ranks 92, placing it in the top 38% of over 250 Zacks industries, indicating positive near-term prospects [9] - The industry has underperformed compared to its sector and the S&P 500, with a year-to-date increase of 4.7% compared to 9.8% for the sector and 6.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 1.53X, compared to the S&P 500's 8.5X and the sector's 4.27X [13] Company Highlights - Progressive Corporation is a major auto insurer with a Zacks Rank 2, expected to see 23.4% year-over-year earnings growth in 2025 [17][18] - Berkshire Hathaway, with a Zacks Rank 3, continues to benefit from its diverse operations and is expected to see a 5% increase in earnings for 2026 [21][23] - Chubb Limited, also a Zacks Rank 3, is focusing on middle-market businesses and cyber insurance, with an expected 18.9% growth in earnings for 2026 [25][26] - Travelers Companies, carrying a Zacks Rank 3, is well-positioned for growth with a projected 20.5% increase in earnings for 2026 [29][30] - Allstate, the third-largest P&C insurer, is expected to see earnings growth of 0.1% in 2025 and 22% in 2026, supported by rate increases and strategic acquisitions [32][33]

Investors weren't wowed by the insurer's latest earnings report.Chubb (CB -3.48%) stock seemed to be primed for a good Wednesday on the market after it reported quarterly results, however, investors had other plans for the storied insurance company. While it beat analyst estimates for its latest quarter, some of its fundamentals raised concerns. As a result they collectively traded out of the stock, leaving it with a more than 4% loss in price on the day around 3 p.m. ET.Negative reaction to positive develo ...

Key Takeaways CB reported Q2 2025 core operating income of $6.14 per share, up 14.1% year over year. Premium growth in P&C and Life Insurance fueled revenue gains despite higher catastrophe losses. CB's P&C combined ratio improved 120 bps year over year to 85.6%, indicating strong underwriting margins.Chubb Limited (CB) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year.The quarter benef ...

Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, driven by record underwriting, strong investment results, and premium revenue growth [5][6] - Core operating income was $2.5 billion, a 13% increase, indicating broad-based growth across the company's diversified operations [6] - Adjusted net investment income was nearly $1.7 billion, up 8%, with a fixed income portfolio yield of 5.1% [8][9] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter, with an annualized core operating return on tangible equity of 21% [9][22] Business Line Data and Key Metrics Changes - North America P&C premiums, excluding agriculture, increased by 5.3%, with personal insurance growing by 9.1% and commercial by 4.1% [12] - The life insurance division saw premiums grow almost 17.5%, while global P&C premiums grew 5.86% in constant dollars [10][12] - The middle market and small commercial segments showed strong growth, with premiums in the leading middle market division up 8.4% [13] Market Data and Key Metrics Changes - In North America, casualty pricing increased by 11.6%, while financial lines pricing decreased by 1.2% [15] - Internationally, premiums grew 8.5% or over 10% in constant dollars, with Asia growing over 12.5% and Latin America over 17% [17] - The London wholesale business saw premiums rise over 7%, while the international retail commercial business experienced a slight increase in P&C pricing [18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is stepping away from unprofitable large account property business while focusing on middle market and small commercial growth [11][20] - The management highlighted the importance of global diversification and a talented workforce to support long-term growth [20] - The company is actively pursuing opportunities in emerging markets, particularly in Latin America and Asia, with expectations of double-digit growth [44][58] Management's Comments on Operating Environment and Future Outlook - The management noted a dynamic economic and geopolitical environment, with potential headwinds from budget deficits and trade policies, but remains confident in the company's fundamentals and growth prospects [19][20] - The company expects continued growth in both revenue and earnings, supported by a disciplined approach to underwriting and a diversified portfolio [20][22] Other Important Information - The company authorized a new $5 billion share repurchase program, reflecting confidence in its capital management strategy [22] - The quarter produced adjusted operating cash flow of $3.2 billion, supporting ongoing investments [22] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and emphasized the need for public policy reform to address these issues [28][30] Question: Growth in Latin America - Management highlighted strong growth in Mexico and Argentina, driven by various segments including auto and small commercial [41][44] Question: Stability of global P&C growth - Management confirmed that growth remains durable, particularly in middle market and small commercial segments, despite stepping away from some large account property business [53][54] Question: Medical cost inflation's effect on workers' comp - Management clarified that medical inflation trends differ from those affecting workers' comp, and they are using conservative factors in reserving [71] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened in response to social inflation, impacting coverage demands [75][76] Question: Breakdown of international growth - Management explained that growth is driven by new buyers and industries, alongside market share gains [79][80] Question: Investment income trends - Management indicated that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [99][100] Question: Share buybacks strategy - Management stated that share buybacks will be flexible based on market conditions and opportunities, with a recent authorization for $5 billion in repurchases [106] Question: Reinsurance market attractiveness - Management mentioned a disciplined approach to reinsurance, avoiding trades they deemed unattractive [110]

Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, supported by record underwriting and strong investment results [5][6] - Core operating income was $2.5 billion, a 13% increase from the previous year [6] - Published underwriting income was $1.6 billion, up 15% year-over-year, leading to a combined ratio of 85.6, an improvement of over one percentage point [7] - Adjusted net investment income was nearly $1.7 billion, an 8% increase [7] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter [8] Business Line Data and Key Metrics Changes - North America P&C premiums excluding agriculture grew 5.3%, with personal insurance up 9.1% and commercial up 4.1% [12] - Premiums in the life insurance division grew almost 17.5% [10] - Middle market and small commercial property lines showed disciplined growth, with rates continuing to rise [11] - Casualty pricing in North America increased by 11.6% [15] - International general insurance operations saw premiums up 8.5% or over 10% in constant dollars [16] Market Data and Key Metrics Changes - Global P&C premiums grew 5.86% in constant dollars, with commercial up 4.2% and consumer up 11.9% [10] - Asia's premiums grew over 12.5% in constant dollars, while Europe and Latin America grew over 8% and 17%, respectively [17] - In the U.S., large account commercial property pricing has become competitive, leading to price softening [10][18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is not pursuing business below adequate pricing [11] - Focus on growth in middle market and small commercial segments, which are expected to continue expanding [59] - The company is leveraging its global diversification and a talented workforce to drive growth [21] - Continued investment in digital and direct marketing strategies in Latin America and Asia [44][59] Management's Comments on Operating Environment and Future Outlook - Management noted a complex economic environment with potential headwinds from budget deficits and trade policies [20] - The company expects continued growth in both revenue and earnings, driven by strong fundamentals and market positioning [21] - Management remains optimistic about the durability of growth in the majority of its business segments [56] Other Important Information - The company authorized a new $5 billion share repurchase program [23][24] - Adjusted net investment income is expected to be approximately $1.72 billion to $1.74 billion next quarter [27] - The company closed on the acquisition of Liberty Mutual's P&C business in Thailand, which slightly diluted tangible book value growth [25] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and the need for public policy reform to address these issues [32][33] Question: Growth in Latin America - Management highlighted strong growth driven by significant presence in Mexico and partnerships in Brazil and Chile [44][46] Question: Potential phase-out of FEMA and its impact on high net worth business - Management indicated that while FEMA provides modest coverage, the private flood market is growing and Chubb is well-positioned [50] Question: Stability of global P&C growth - Management confirmed that growth remains stable and durable, particularly in middle market and small commercial segments [56] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened due to increased litigation and social inflation, impacting coverage demand [78] Question: Investment income trends - Management explained that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [102] Question: Reinsurance market attractiveness - Management stated that growth in the reinsurance business was muted due to a disciplined approach to underwriting [110] Question: Capital management and share buybacks - Management emphasized a flexible approach to capital deployment, balancing between supporting insurance business and returning capital to shareholders [112]

Core Viewpoint - Chubb Limited (CB.US) is a leading global insurance group with strong financial performance and strategic acquisitions aimed at expanding its business and enhancing shareholder value [1][7]. Financial Performance - In Q2 2025, Chubb reported net income of $2.968 billion, a 33.1% increase year-over-year, with core operating income reaching a record $2.48 billion, up 12.9% [3]. - The company achieved net premiums of $14.196 billion, slightly above market expectations of $14.16 billion, reflecting a 6.3% year-over-year growth [4][8]. - The combined ratio for Q2 2025 was 85.6%, an improvement from 86.8% in the same quarter last year, indicating stronger underwriting profitability [3][13]. - The return on equity (ROE) for Q2 was 17.6%, significantly up from 8.2% in Q1, showcasing a recovery from previous challenges [3][8]. Business Segments - The property and casualty insurance segment generated net premiums of $12.39 billion, a 5.2% increase, while life insurance premiums reached $1.8 billion, growing 14.1% [5]. - North American property and casualty premiums grew by 4.5%, with commercial insurance up 4.1% and personal insurance up 9.1% [5]. - Internationally, the combined insurance segment saw an 8.5% increase in premiums, with a combined ratio of 90.3% [5]. Shareholder Returns - Chubb has demonstrated stable premium income, with a projected net premium income of $51.47 billion for 2024, reflecting an 8.7% year-over-year growth [8]. - The company has returned a total of $10.6 billion to shareholders in Q2 2025, including $6.76 billion in stock buybacks and $3.88 billion in dividends [9]. Strategic Acquisitions - Chubb has expanded its business through strategic acquisitions, including increasing its stake in Huatai Group in China and acquiring pet insurance provider Healthy Paws [7]. - The company aims to diversify its portfolio and enhance revenue streams through these acquisitions, contributing to long-term shareholder value [7]. Risk Management - Chubb maintains strong risk management capabilities, employing teams to help clients mitigate risks and stabilize underwriting performance [11]. - The company has a ten-year average combined ratio of 89.8%, outperforming the industry average of 97.8% [11]. Investment Strategy - Chubb's investment strategy focuses on high-quality fixed-income products, with 89% of total investment assets in fixed income and a significant portion maturing within ten years [14]. - The company plans to increase the allocation to less liquid private investments from 11% to 15% as investment assets grow [14]. Market Sentiment - As of Q2 2025, Chubb received a "Moderate Buy" rating from analysts, with an average target price of approximately $313, reflecting positive market sentiment following strong earnings [16].

Group 1 - Chubb's shares have increased by only 6% over the past year, underperforming the market which has reached new highs [1] - Currently, Chubb's shares are approximately 7% below their pre-Liberation Day level, raising concerns about the sustainability of underwriting profitability [1] - The upcoming Q2 results are anticipated to provide further insights into the company's performance [1]

Chubb (CB) came out with quarterly earnings of $6.14 per share, beating the Zacks Consensus Estimate of $5.89 per share. This compares to earnings of $5.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.24%. A quarter ago, it was expected that this insurer would post earnings of $3.26 per share when it actually produced earnings of $3.68, delivering a surprise of +12.88%.Over the last four quarters, the company has surpass ...