Chubb CB reported stronger-than-expected earnings for the third quarter on Tuesday. The company posted quarterly earnings of $5.72 per share which beat the analyst consensus estimate of $4.98 per share. The company reported quarterly sales of $12.28 billion which missed the analyst consensus estimate of $12.54 billion. Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented, "We had an outstanding quarter which contributed to record year- to-date results. Core operating income an ...

Financial Performance - Net income attributable to Chubb was $2.3 billion, up 21.9% from $2.0 billion in the prior year period, driven by strong underwriting results and record net investment income [205]. - Consolidated net premiums written were $13.8 billion, an increase of 5.5%, or 6.6% in constant dollars, with commercial insurance up 5.1% and consumer insurance up 9.4% [206]. - Total revenues increased to $14.8 billion, up 7.2% from $13.9 billion in the prior year [204]. - Operating cash flow was $4.3 billion, down from $4.7 billion in the prior year period [211]. - The total consolidated net premiums earned increased by $3.4 billion, or 10.2%, for the nine months ended September 30, 2024, compared to the same period last year [217]. - The company reported a favorable PPD adjustment of $643 million, contributing positively to net premiums earned [303]. - The company anticipates continued growth in net premiums earned, driven by strategic market expansions and product innovations [304]. Investment Income - Pre-tax net investment income reached a record $1.5 billion, a 14.7% increase from $1.3 billion in the prior year period, primarily due to strong operating cash flow and higher reinvestment rates [207]. - Net investment income increased by 14.7% to $1,508 million for the three months ended September 30, 2024, and by 22.5% to $4,367 million for the nine months ended September 30, 2024, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai Group [310]. - The total mark-to-market gain on private equity was $170 million for the three months ended September 30, 2024, compared to $90 million for the same period in 2023 [312]. Catastrophe Losses - Total pre-tax catastrophe losses were $765 million, contributing 6.4 percentage points to the P&C combined ratio, compared to $670 million and 6.0 percentage points in the prior year [208]. - Catastrophe losses for the three months ended September 30, 2024, were $765 million, compared to $670 million in the same period last year, primarily due to severe weather-related events [219]. - Catastrophe losses for Q3 2024 were $340 million, compared to $246 million in Q3 2023, with significant losses attributed to flooding, hail, tornadoes, and winter storms [234]. Combined Ratio - The P&C combined ratio improved to 87.7% from 88.4% in the prior year, with the current accident year combined ratio excluding catastrophe losses at 83.4% [210]. - The combined ratio for Q3 2024 was 86.5%, up from 84.2% in Q3 2023, reflecting higher catastrophe losses and lower favorable prior period development [238]. - The combined ratio for Q3 2024 was 94.4%, an increase from 81.3% in Q3 2023, primarily due to higher catastrophe losses [266]. Policy Benefits and Premiums - Policy benefits rose to $1.1 billion, a 17.1% increase from $938 million in the prior year [210]. - Life insurance premiums increased by 6.8% to $1.6 billion for the three months ended September 30, 2024, driven by strong growth in Asia and the consolidation of Huatai Group's life business [213][215]. - Policy benefits increased to $1,099 million for Q3 2024, up from $938 million in Q3 2023, and $3,498 million for the nine months ended September 30, 2024, compared to $2,565 million in the same period of 2023, primarily due to the consolidation of Huatai Group [229]. Shareholder Equity and Dividends - Chubb's shareholders' equity increased by $4.7 billion in the quarter, driven by net income of $2.3 billion and net unrealized gains of $3.3 billion from the investment portfolio, partially offset by $782 million returned to shareholders [212]. - The annual dividend approved in May 2024 was $3.64 per share, representing a $0.20 per share increase over the prior year dividend [347]. Acquisitions and Consolidation - The company completed the acquisition of a controlling majority interest in Huatai Group on July 1, 2023, with its results included in the consolidated results from the acquisition date [203]. - The Life Insurance segment now includes 100% of Huatai Group's life and asset management business effective July 1, 2023, impacting overall results [273]. Debt and Financing - Total financial debt increased to $16.131 billion as of September 30, 2024, compared to $14.495 billion at December 31, 2023, reflecting a rise in long-term debt from $13.035 billion to $14.560 billion [342]. - Cash used for financing decreased to $0.1 billion in the nine months ended September 30, 2024, from $3.3 billion in the prior year, primarily due to net proceeds from long-term debt issuance [354]. Risk Management - The company actively manages catastrophe risk accumulation and utilizes sophisticated modeling techniques to assess potential losses [333]. - The U.S. hurricane modeled losses for a 1-in-100 return period could exceed $3,786 million, or 5.8% of total Chubb shareholders' equity [335]. Operational Efficiency - The loss and loss expense ratio for the P&C segment was 62.9%, reflecting a slight improvement from the previous year [304]. - Administrative expenses increased by $6 million (6.5%) for the three months and by $20 million (7.0%) for the nine months ended September 30, 2024, primarily due to increased spending on digital growth initiatives [282].

Financial Data and Key Metrics Changes - Core operating EPS growth exceeded 15.5% for the quarter, with core operating income reaching $2.3 billion, up 14.3% [6][7] - Global P&C premium revenue grew 7.6%, or 8.5% in constant dollars, reflecting strong contributions from various business segments [6][13] - Net and operating income for the year increased by 16.9% and 13.8% respectively, with record levels achieved [7][29] - The published combined ratio for the quarter was 87.7%, with P&C underwriting income of $1.5 billion, up over 11.5% [8][9] Business Line Data and Key Metrics Changes - Life insurance segment income was $284 million, ahead of plan, with annualized core operating ROE for the quarter at 13.9% [12] - North America P&C premiums excluding agriculture increased by 7.8%, with personal insurance growing by 10% and commercial by 7.2% [16] - International general insurance operations saw net premiums up 4.9%, or 7.5% in constant dollars, with Asia Pacific leading growth at 9.2% [23][24] Market Data and Key Metrics Changes - Commercial premiums increased by 8.1%, while consumer premiums rose by 9.4% [13] - Life premiums grew 10.6% in constant dollars, with international life growing by 10% and North America by 15% [14] - The property book is well-priced, with terms and conditions remaining steady, while casualty pricing in North America was up 12.7% [20][22] Company Strategy and Development Direction - The company aims to continue growing operating earnings and EPS at a superior rate, focusing on P&C revenue growth, investment income, and life income [28] - Management emphasized the importance of risk selection and pricing in maintaining competitive advantages in the underwriting market [36] - The company is confident in its ability to reinvest cash flows at rates that will enhance overall portfolio yield [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that loss cost inflation remains steady and is accounted for in pricing and reserving [15] - The company expects the Fed to take a cautious approach to lowering rates, which will support future reinvestment rates [10] - Management expressed confidence in the ability to navigate competitive pressures, particularly in the London wholesale market [65] Other Important Information - The company returned $782 million to shareholders in the quarter, including $413 million in share repurchases and $369 million in dividends [30] - Adjusted net investment income for the quarter was $1.64 billion, with a fixed income portfolio yield of 4.9% [10][29] - The company issued $700 million of 5-year debt and $600 million of 10-year debt at an attractive average cost of under 5% [30] Q&A Session Summary Question: North America commercial growth expectations - Management refrained from providing specific guidance but indicated confidence in continued growth due to strong new business and retention rates [35][36] Question: Impact of competition in London on international growth - Management clarified that London wholesale business is only 10% of international operations, with strong growth expected from Asia and other regions [37][38] Question: Expectations for property lines amid hurricane activity - Management noted that pricing remains firm and continues to increase due to active weather events [41] Question: Details on adverse development in casualty - Adverse development was primarily from general casualty, with mixed results across long-tail classes [42] Question: Outlook for troubled classes in North America commercial - Management indicated that there are still a few quarters to go before fully addressing troubled classes, but the impact is not significant relative to total premiums [44][45] Question: Casualty pricing dynamics and adequacy - Management emphasized that pricing varies by area and that the majority of their portfolio is adequately priced [68][90] Question: Growth in invested asset base - Management confirmed that the growth in the invested asset base is driven by overall business growth and strong margins [71] Question: Financial lines premium performance - Management stated that they are not writing business unless it is profitable, indicating a focus on maintaining profitability in D&O and other financial lines [73]

Chubb Limited (CB) reported third-quarter 2024 core operating income of $5.72 per share, which beat the Zacks Consensus Estimate by 16%. The bottom line increased 15.6% year over year. Chubb's results reflect strong performance in North America P&C, Overseas General and Life Insurance divisions, solid underwriting income and improved investment income, partially offset by a higher level of catastrophe. Quarter in Detail Net premiums written improved 5.5% year over year to $13.8 billion in the quarter. Our e ...

Chubb (CB) reported $15.01 billion in revenue for the quarter ended September 2024, representing a year-overyear increase of 6.6%. EPS of $5.72 for the same period compares to $4.95 a year ago. The reported revenue represents a surprise of -1.56% over the Zacks Consensus Estimate of $15.25 billion. With the consensus EPS estimate being $4.93, the EPS surprise was +16.02%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Chubb (CB) reported $15.01 billion in revenue for the quarter ended September 2024, representing a year-overyear increase of 6.6%. EPS of $5.72 for the same period compares to $4.95 a year ago. The reported revenue represents a surprise of -1.56% over the Zacks Consensus Estimate of $15.25 billion. With the consensus EPS estimate being $4.93, the EPS surprise was +16.02%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Chubb (CB) came out with quarterly earnings of $5.72 per share, beating the Zacks Consensus Estimate of $4.93 per share. This compares to earnings of $4.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.02%. A quarter ago, it was expected that this insurer would post earnings of $5.04 per share when it actually produced earnings of $5.38, delivering a surprise of 6.75%.Over the last four quarters, the company has surpassed ...

Financial Performance - Chubb Limited reported net premiums written of $13,829 million for the quarter ended September 30, 2024, representing a 5.5% increase from $13,104 million in the same quarter of 2023[4]. - The company achieved a core operating income of $2,334 million, up 14.3% from $2,041 million year-over-year[4]. - Chubb's net income for the quarter was $2,324 million, a 13.8% increase from $2,043 million in the previous year[4]. - The company reported a diluted earnings per share of $5.70, which is a 15.2% increase from $4.95 in the same quarter of 2023[4]. - The effective tax rate for the quarter was 17.7%, slightly higher than the 16.8% reported in the same quarter last year[4]. - The company reported net realized gains of $198 million in Q3 2024, up from $104 million in Q2 2024[5]. - The company reported a net income of $2,324 million for Q3 2024, up from $2,043 million in Q3 2023, reflecting a year-over-year increase of 13.7%[39]. Underwriting Performance - The P&C combined ratio improved to 87.7%, down from 88.4% in the same quarter last year, indicating better underwriting performance[4]. - Chubb's P&C underwriting income was $1,457 million, reflecting an 11.7% increase from $1,305 million year-over-year[4]. - The combined ratio for Q3 2024 improved to 86.5%, compared to 84.2% in Q3 2023, indicating a slight deterioration in underwriting performance[11][12]. - The loss and loss expense ratio for Q3 2024 was 63.1%, an increase from 60.6% in Q2 2024[6]. - The CAY combined ratio excluding catastrophes for Q3 2024 was 80.8%, compared to 84.0% in Q3 2023, showing an improvement in operational efficiency[11][12]. Premiums and Revenue - Life Insurance net premiums written increased by 6.8% to $1,552 million, compared to $1,452 million in the prior year[4]. - Gross premiums written for Q3 2024 reached $16,761 million, an increase from $16,491 million in Q2 2024 and $14,425 million in Q1 2024[5]. - Total consolidated premiums reached $13.829 billion in Q3 2024, a 5.5% increase from $13.104 billion in Q3 2023[10]. - Total net premiums written for Q3 2024 reached $13,829 million, an increase from $13,104 million in Q3 2023, representing a growth of 5.5% year-over-year[11][12]. Investment Income - Adjusted net investment income rose to $1,640 million, reflecting a 15.9% increase compared to $1,415 million in the prior year[4]. - Adjusted net investment income for Q3 2024 was $1,640 million, up from $1,415 million in Q3 2023, reflecting a growth of 15.9% year-over-year[11][12]. - The investment portfolio's total market value reached $153,327 million as of September 30, 2024, compared to $146,304 million in June 2024, marking a growth of 4.4%[25]. Expenses - Policy acquisition costs in Q3 2024 were $2,324 million, an increase from $2,226 million in Q2 2024 and $2,207 million in Q1 2024[5]. - Administrative expenses for Q3 2024 remained stable at $1,094 million, consistent with Q2 2024[5]. - The company reported total administrative expenses for Q3 2024 were $104 million, up from $99 million in Q2 2024[22]. Assets and Liabilities - Total assets increased to $250.557 billion as of September 30, 2024, up from $238.551 billion in June 2024, representing a 5.3% increase[8]. - Total liabilities increased to $180.437 billion as of September 30, 2024, compared to $173.976 billion in June 2024, marking a 7.9% increase[8]. - The company reported a total financial debt of $16,131 million as of September 30, 2024, an increase from $14,731 million in June 30, 2024[34]. Market and Economic Conditions - The average market yield of fixed income investments decreased to 5.2% in September 2024 from 5.9% in June 2024[25]. - The company emphasizes the importance of non-GAAP measures for understanding overall results, despite their differing definitions across companies[37]. - Future outlook includes a focus on enhancing underwriting performance and managing market risks effectively[37].

Core Viewpoint - Analysts forecast a quarterly earnings per share (EPS) of $4.92 for Chubb, indicating a year-over-year decline of 0.6%, while revenues are expected to reach $15.24 billion, reflecting an increase of 8.2% compared to the previous year [1] Financial Estimates - The consensus estimate for 'Net Premiums written - North America Personal Lines' is projected at $1.67 billion, showing a year-over-year increase of 9.5% [2] - Analysts anticipate 'Net investment income - Overseas General' to be $286.89 million, representing a year-over-year growth of 15.7% [2] - The estimate for 'Global Reinsurance - Net investment income' is $56.31 million, indicating a year-over-year increase of 19.8% [2] Key Ratios - 'Net Premiums written - P&C' is expected to reach $12.61 billion, reflecting an 8.2% increase from the prior year [3] - The 'Loss and loss expense ratio' is projected at 64.7%, up from 60.1% in the previous year [3] - The estimated 'Combined ratio' is 89.6%, compared to 87.6% a year ago [3] - The 'North America Agricultural Insurance - Combined ratio' is expected to be 89.5%, down from 93.2% in the previous year [3] - The 'North America Agricultural Insurance - Loss and loss expense ratio' is forecasted at 84.0%, compared to 88.1% last year [3] - 'North America Commercial P&C Insurance - Combined ratio' is expected to be 86.6%, up from 84.2% in the same quarter last year [3][4] - The 'North America Commercial P&C Insurance - Loss and loss expense ratio' is projected at 66.3%, compared to 63.9% in the previous year [4] - The 'Overseas General Insurance - Combined ratio' is expected to be 88.1%, compared to 87% last year [4] - The 'Overseas General Insurance - Loss and loss expense ratio' is projected at 52.3%, slightly up from 52.1% in the previous year [4] Stock Performance - Chubb shares have increased by 1.6% over the past month, slightly outperforming the Zacks S&P 500 composite, which rose by 1.5% [4]

Core Viewpoint - Chubb Limited (CB) is expected to report third-quarter 2024 earnings on October 29, with a history of beating earnings estimates in the previous four quarters [1] Group 1: Earnings and Premiums - Premiums in the third quarter are anticipated to benefit from growth across product lines, strong premium retention, rate and exposure increases, and solid new business [2] - The acquisition of Cigna's Asia business and strong performance in distribution channels are likely to have positively impacted life insurance premiums [2] - The Zacks Consensus Estimate for net premiums earned is $13.5 billion, reflecting a 6.9% increase from the previous year, while the expectation for net premiums earned is $13.3 billion [2] Group 2: Investment Income and Revenue - Chubb expects adjusted net investment income to be between $1.57 billion and $1.63 billion, with an anticipated increase of 13.7% to $1.5 billion [3] - The Zacks Consensus Estimate for revenues is $15.2 billion, indicating an 8.2% rise from the year-ago figure [3] - The combined ratio is estimated at 90, indicating a deterioration of 200 basis points from the previous year, with underwriting income expected to be $1.3 billion and the combined ratio at 84.1 [3] Group 3: Expenses and Share Buybacks - Expenses are expected to rise due to higher losses, policy benefits, acquisition costs, administrative expenses, interest expense, and integration costs related to Cigna [3] - Share buybacks in the upcoming quarter are anticipated to positively impact the bottom line [3] Group 4: Earnings Per Share and Predictions - The Zacks Consensus Estimate for third-quarter earnings per share is $4.92, indicating a decrease of 0.6% from the previous year [4] - The model predicts an earnings beat for Chubb due to a positive Earnings ESP of +1.75%, with the Most Accurate Estimate at $5.01 [5] Group 5: Other Stocks to Consider - Arch Capital Group (ACGL) has an Earnings ESP of +7.91% and a Zacks Rank 3, with a consensus estimate of $1.98, reflecting a year-over-year decrease of 14.3% [6] - American Financial Group (AFG) has an Earnings ESP of +1.91% and a Zacks Rank 3, with a consensus estimate of $2.51, indicating a year-over-year increase of 2.5% [6] - Axis Capital Holding (AXS) has an Earnings ESP of +2.87% and a Zacks Rank 3, with a consensus estimate of $2.50, reflecting a year-over-year increase of 6.8% [7]