ITEM 4. Controls and Procedures Chubb's management, with the participation of Chubb's Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of Chubb's disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 as of June 30, 2024. Based upon that evaluation, Chubb's Chief Executive Officer and Chief Financial Officer concluded that Chubb's disclosure controls and procedures are effective in allowing information requ ...

Chubb Limited (CB) reported second-quarter 2024 core operating income of $5.38 per share, which outpaced the Zacks Consensus Estimate by 6.8%. The bottom line increased 9.3% year over year. Chubb's results reflect double-digit premium revenue growth, with strong results in North America P&C, International P&C and Life Insurance divisions, solid underwriting margins and sturdy investment income, partially offset by a higher level of catastrophe. Shares gained more than 1% in the after-market trading session ...

Financial Data and Key Metrics Changes - The company reported losses of $580 million compared to $400 million in the prior year, aligning with modeled expectations, while underwriting income of $1.8 billion was up over 11% with a combined ratio of 83.2%, both record results [2][70]. - Core operating EPS increased by 9.3% to $5.38, with operating income for the quarter at $2.2 billion, bringing year-to-date operating earnings to $4.4 billion, up 13.5% [58][69]. - Investment income reached $1.56 billion, up nearly 26%, with a reinvestment rate averaging 5.9% [59][44]. Business Line Data and Key Metrics Changes - North America P&C premiums, excluding agriculture, increased by 8%, with personal lines growing by 12.3% and commercial lines by 6.7% [3][60]. - The International personal lines business grew by 32%, driven by Asia Pacific and Latin America [50]. - Life segment income was $276 million, aligning with plans, and International Life earnings grew over 15% in constant dollars [43][62]. Market Data and Key Metrics Changes - The underwriting environment in North America is generally favorable, with P&C pricing up 8.3%, while financial lines pricing decreased by 3.2% [98][60]. - International commercial business grew nearly 14%, with Asia Pacific leading at 36% growth [72][50]. - Loss-cost inflation across the International retail commercial portfolio is trending at 5.8% [50]. Company Strategy and Development Direction - The company is focused on maintaining a disciplined underwriting approach, trading growth for reasonable underwriting margins, particularly in financial lines [4][18]. - The company is expanding its digital distributed consumer lines business, particularly in accident and health and personal lines across various global markets [20][19]. - The management emphasized the importance of leadership in addressing structural issues in the litigation environment, indicating a proactive approach to industry challenges [41][178]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue growing operating earnings through P&C revenue growth, underwriting margins, and investment income [100]. - The company noted that loss-cost trends remain stable and in line with expectations, with a focus on maintaining adequate pricing above loss-costs [185][129]. - Management highlighted the strong performance in high net-worth personal lines, with premium growth of over 12% and new business growth of 30% [99][118]. Other Important Information - The company returned $939 million of capital to shareholders in the quarter, including $570 million in share repurchases and $369 million in dividends [171]. - The tangible book value per share increased by 2.6% for the quarter, benefiting from core operating income [7]. - The company closed two small acquisitions during the quarter, which diluted tangible book value by about $300 million [7]. Q&A Session Summary Question: What are the growth drivers for North America personal lines? - Management indicated that the personal lines business is growing at a healthy rate, driven by high net-worth customers seeking differentiated coverage and service [118][86]. Question: How is the company addressing the litigation environment? - Management discussed hiring an executive to focus on the litigation environment and emphasized the need for corporate America to work together to influence changes in the regulatory arena [41][178]. Question: What is the outlook for casualty pricing and growth? - Management noted that casualty pricing is growing in areas where the company can earn adequate returns, while some classes are being restructured to improve margins [188][97].

Chubb (CB) reported $13.86 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 13.2%. EPS of $5.38 for the same period compares to $4.92 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $13.69 billion, representing a surprise of +1.19%. The company delivered an EPS surprise of +6.75%, with the consensus EPS estimate being $5.04. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Chubb has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Ahead of this earnings release, the estimate revisions trend for Chubb: unfavorable. Wh ...

Chubb Limited Chubb Limited Investment Portfolio - 2 (in millions of U.S. dollars) (Unaudited) Mortgage-backed Fixed Income Portfolio Mortgage-backed securities Investment Portfolio - 3 (in millions of U.S. dollars) (Unaudited) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------|-------|--------|-------------|----------|----------------|-------------|-------------|-------|--------| | Non-U.S. Corporate Securitie ...

Image Source: Zacks Investment Research The consensus estimate for earnings is pegged at $5.07 per share. The Zacks Consensus Estimate for CB's second-quarter earnings has moved down 4.2% in the past 30 days. The estimate suggests year-over-year growth of 3.1%. Chubb's earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 23.78%. Our proven model does not conclusively predict an earnings beat for Chubb this time around. The combination of a positive Ea ...

For the full year, the Zacks Consensus Estimates are projecting earnings of $20.93 per share and revenue of $55.94 billion, which would represent changes of -7.14% and +9.57%, respectively, from the prior year. It is also worth noting that CB currently has a PEG ratio of 6.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Insurance - Property and Casualty industry ha ...

By nature of its operations, Chubb has substantial exposure to losses from natural disasters and man-made catastrophes, which have been inducing volatility in its underwriting profitability and weighing on its combined ratio. Chubb had insured Baltimore's Francis Scott Key Bridge. Following the Baltimore bridge collapse, Chubb has to dish out about $4 billion per an analyst in a report published in Insurance Journal. The report states that this insurer has braced up to pay the first installment of $350 mill ...

Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 0.32% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to t ...