Core Viewpoint - Chubb Limited reported strong second-quarter earnings, with core operating income exceeding estimates, driven by solid underwriting and investment income growth [2][3]. Financial Performance - Core operating income for Q2 2025 was $6.14 per share, surpassing the Zacks Consensus Estimate by 4.2% and reflecting a year-over-year increase of 14.1% [2]. - Net premiums written rose 6.3% year over year to $14.2 billion, aligning with the Zacks Consensus Estimate [3]. - Net investment income increased by 6.8% year over year to $1.5 billion, although it fell short of the Zacks Consensus Estimate of $1.8 billion [3]. - Total revenues reached $14.8 million, a 6.9% year-over-year improvement, but slightly missed the Zacks Consensus Estimate [3]. Underwriting and Combined Ratio - Property and casualty (P&C) underwriting income was $1.6 billion, up 15% year over year, driven by premium growth and improved underwriting margins [4]. - The P&C combined ratio improved by 120 basis points year over year to 85.6%, although it was higher than the Zacks Consensus Estimate of 85 [5]. Segment Performance - North America Commercial P&C Insurance saw net premiums written increase by 4.1% to $5.7 billion, with a combined ratio of 83.5% [6]. - North America Personal P&C Insurance reported a 9.1% increase in net premiums written to $1.9 billion, with a combined ratio improving to 73.5% [7]. - North America Agricultural Insurance experienced a 3.3% decline in net premiums written to $733 million, with a combined ratio of 89.1% [8]. - Overseas General Insurance net premiums written increased by 8.5% to $3.6 billion, with a combined ratio of 90.3% [9]. - Global Reinsurance saw a 7.6% decrease in net premiums written to $380 million, with a combined ratio improving to 71% [10]. - Life Insurance net premiums written rose by 14.1% to $1.8 billion, with segment income increasing by 10.4% year over year [11]. Financial Health - As of June 30, 2025, cash and restricted cash totaled $2.4 billion, down 7% from the end of 2024, while total shareholders' equity grew by 8.8% to $74.4 billion [12]. - Book value per share increased by 8.9% to $174.07 [12]. - Core operating return on tangible equity declined by 10 basis points year over year to 21% [13]. Capital Deployment - In the quarter, Chubb repurchased shares worth $676 million and paid $388 million in dividends [14]. Market Outlook - Estimates for Chubb have been trending upward, indicating a potential for stable returns in the coming months, with a Zacks Rank of 3 (Hold) [17]. - The stock has a subpar Growth Score of D and a Momentum Score of F, but a Value Score of B [16].
Why Is Chubb (CB) Up 3.5% Since Last Earnings Report?