Chubb Q2 Earnings, Revenues Top Estimates on Strong Underwriting

Core Insights - Chubb Limited (CB) reported a second-quarter 2025 core operating income of $6.14 per share, exceeding the Zacks Consensus Estimate by 4.2% and reflecting a 14.1% year-over-year increase [1] - The quarter's performance was driven by solid underwriting, strong investment income, and double-digit growth in life insurance income [1] Quarterly Performance Details - Net premiums written rose 6.3% year over year to $14.2 billion, aligning with the Zacks Consensus Estimate of $14 billion [2] - Net investment income reached $1.5 billion, a 6.8% increase year over year, though it fell short of the Zacks Consensus Estimate of $1.8 billion [2] - Total revenues were $14.8 million, slightly missing the Zacks Consensus Estimate but improving 6.9% year over year [2] Underwriting and Losses - Property and casualty (P&C) underwriting income was $1.6 billion, up 15% year over year, driven by premium growth and improved underwriting margins [3] - The P&C combined ratio improved by 120 basis points year over year to 85.6%, indicating strong underwriting margins [4] Segment Performance - North America Commercial P&C Insurance: Net premiums written increased 4.1% year over year to $5.7 billion, with a combined ratio of 83.5% [5] - North America Personal P&C Insurance: Net premiums written climbed 9.1% year over year to $1.9 billion, with a combined ratio improving to 73.5% [6] - North America Agricultural Insurance: Net premiums written decreased 3.3% year over year to $733 million, with a combined ratio improving to 89.1% [7] - Overseas General Insurance: Net premiums written increased 8.5% year over year to $3.6 billion, with a combined ratio deteriorating to 90.3% [8] - Global Reinsurance: Net premiums written decreased 7.6% year over year to $380 million, with a combined ratio improving to 71% [9] - Life Insurance: Net premiums written increased 14.1% year over year to $1.8 billion, with segment income rising to $305 million [9][10] Financial Position - As of June 30, 2025, cash and restricted cash balance was $2.4 billion, down 7% from the end of 2024 [11] - Total shareholders' equity grew 8.8% to $74.4 billion, with book value per share increasing to $174.07 [11] - Core operating return on tangible equity declined 10 basis points year over year to 21% [12] Capital Management - In the quarter, Chubb repurchased shares worth $676 million and paid $388 million in dividends [13]