Chubb Limited CB reported third-quarter 2026 core operating earnings of $7.66 per share, which beat the Zacks Consensus Estimate of $6.53 by 17.3%. The bottom line increased 0.8% year over year. Revenues of $16.81 billion surpassed the consensus mark of $16.72 billion by 0.55%.
Record investment income and higher life insurance income supported results, while increased catastrophe losses weighed on underwriting profitability. Consolidated net premiums earned rose 3.9% year over year to $14.92 billion.
CB’s Underwriting Profit Declines in Q3
P&C underwriting income declined 8.8% year over year to $2.06 billion. The combined ratio deteriorated 230 basis points to 84.1%, reflecting higher catastrophe losses and weaker underwriting margins in certain commercial businesses. The Zacks Consensus Estimate is pegged at 87.
Current accident year underwriting income, excluding catastrophe losses, increased 3.3% to $2.26 billion. The corresponding combined ratio deteriorated 10 basis points to 82.6%, indicating relatively stable underlying underwriting profitability despite more competitive market conditions.
Chubb Limited Price, Consensus and EPS Surprise 
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote
Chubb’s Catastrophe Losses Increase
Pre-tax net catastrophe losses increased to $705 million from $285 million in the year-ago quarter. The higher catastrophe burden contributed to the decline in reported underwriting income despite growth in underlying underwriting profits.
Favorable prior-period reserve development increased to $511 million from $361 million. This provided some relief against catastrophe losses, while management maintained its underwriting discipline amid increasing competition in commercial P&C insurance, particularly in the United States and London.
CB’s Premium Growth Reflects Diversification
Consolidated net premiums written increased 1.9% year over year to $15.14 billion, or 1.8% in constant dollars. The Zacks Consensus estimate is pegged at $15.11 billion. Our estimate is pegged at $15.4 billion.
P&C net premiums written advanced 1.9% to $13.18 billion, reflecting contributions from personal insurance, agriculture and overseas operations.
Global P&C net premiums written, excluding agriculture, increased 1.5% to $11.65 billion. The corresponding underwriting income declined 8.9% to $1.89 billion, while the combined ratio deteriorated 240 basis points to 83.4%. The results reflected continued premium expansion alongside pressure on reported underwriting profitability.
Chubb’s Q3 North America Results Remain Mixed
North America Commercial P&C net premiums written declined 2.7% to $5.51 billion. Our estimate is pegged at $5.8 billion. The Zacks Consensus Estimate is pegged at $5.7 billion.
Major accounts and excess and surplus wholesale premiums fell 5% to $3.21 billion, reflecting underwriting-related exposure reductions and additional reinsurance. Middle-market and small commercial premiums increased 0.8% to $2.30 billion.
North America Personal P&C premiums rose 5.3% to $1.91 billion (our estimate is pegged at $2 billion, the Zacks Consensus Estimate is pegged at $1.9 billion), while the combined ratio improved 480 basis points to 60.3%.
Agricultural premiums increased 5.1% to $1.53 billion (our estimate is pegged at $1.6 billion, the Zacks Consensus Estimate is pegged at $1.5 billion), although the segment’s combined ratio deteriorated 130 basis points to 89.3%. Commercial P&C’s combined ratio increased 480 basis points to 86.3%.
CB’s Overseas Business Delivers Growth
Overseas General Insurance net premiums written increased 6.7% year over year to $3.94 billion (our estimate is pegged at $3.8 billion), or 5.2% in constant dollars. Commercial P&C premiums advanced 6.3% to $2.25 billion, while consumer P&C premiums increased 7.2% to $1.70 billion.
Latin America, Asia and Europe recorded premium growth of 11.7%, 7.5% and 6.8%, respectively. However, the segment’s combined ratio deteriorated 310 basis points to 86.4%, primarily reflecting higher catastrophe losses and acquisition expenses, partly offset by favorable reserve development and an improved underlying loss ratio.
Chubb’s Investment and Life Income Rise in Q3
Pre-tax net investment income increased 8.6% year over year to a record $1.79 billion. Adjusted net investment income advanced 6.3% to a record $1.89 billion, benefiting from rising interest rates and favorable fixed-income investment conditions.
The Life Insurance segment income increased 11.4% to $369 million. Net premiums written rose 1.4% to $1.96 billion, while premiums written and deposits collected advanced 15.2% to $2.80 billion. International life insurance premiums and deposits collected increased 15.7% to $2.44 billion, supporting growth in the business.
CB’s Cash Flow Supports Shareholder Returns
Operating cash flow reached a record $6.07 billion, while adjusted operating cash flow totaled a record $5.55 billion. The strong cash generation supported shareholder distributions during the quarter.
Chubb returned $1.57 billion to its shareholders, comprising share repurchases of $1.18 billion at an average price of $344.32 per share and dividends of $393 million. Total capital returned during the first nine months of 2026 reached $4.47 billion.
Chubb’s Book Value Reflects Investment Losses
Book value per share was $191.43 as of Sept. 30, 2026, up 5.1% year over year. Tangible book value per share increased 5.7% to $126.96. Investment portfolio valuation losses pressured reported book value during the quarter.
Excluding accumulated other comprehensive income, tangible book value per share increased 15.4% year over year to $150.70. Annualized core operating return on tangible equity was 21.6%, while annualized core operating return on equity was 14.9%. Total invested assets stood at $175.52 billion.
CB’s Zacks Rank
Chubb currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s PGR third-quarter 2026 earnings per share of $4.60 beat the Zacks Consensus Estimate by 3.1%. The bottom line increased 13.6% year over year. PGR’s net premiums written were $22.3 billion in the quarter, up 4% from $21.4 billion a year ago. Combined ratio improved 80 basis points from the prior-year quarter’s level to 88.7. The Zacks Consensus Estimate was pegged at 89.4.
The Travelers Companies, Inc. TRV reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. TRV’s combined ratio improved 50 basis points year over year to 86.8%, reflecting stronger reserve development, partially offset by higher catastrophe losses. The underlying combined ratio deteriorated 20 basis points to 84.1%, while underlying underwriting income reached $1.74 billion pre-tax. The Zacks Consensus Estimate for combined ratio was pegged at 92.
W.R. Berkley Corporation WRB reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%. W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion, driven by growth in the Insurance segment. The combined ratio, a measure of underwriting profitability, improved 10 bps to 90.8%. Our estimate was pegged at 92.8%, while the Zacks Consensus Estimate was pegged at 90.95%.
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