A month has gone by since the last earnings report for Chubb (CB). Shares have lost about 0.7% in that time frame, underperforming the S&P 500. <\/p>\n
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Chubb due for a breakout? Well, first let’s take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Chubb Limited before we dive into how investors and analysts have reacted as of late. <\/p>\n
CB Q2 Earnings Beat on Higher Underwriting and Investment Income<\/p>\n
Chubb Limited reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income and higher life insurance income supported results. Net premiums earned increased 5.8% to $13.89 billion. <\/p>\n
CB’s Underwriting Profit Rises <\/p>\n
P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Current accident year underwriting income, excluding catastrophe losses, advanced 5.8% to $2.13 billion. The corresponding combined ratio improved 10 basis points to 82.2%, indicating steady underlying profitability. <\/p>\n
Chubb’s Catastrophe Losses Decline <\/p>\n
Pre-tax net catastrophe losses were $475 million, down from $630 million in the year-ago quarter. Favorable prior-period reserve development increased to $283 million from $249 million.\u00a0These factors helped offset softer conditions in selected property lines. Management said pricing pressure remained most pronounced in large-account and excess and surplus property, while softness was spreading to parts of casualty and financial lines. <\/p>\n
CB’s Premium Growth Remains Broad <\/p>\n
Consolidated net premiums written increased 3.6% year over year to $14.71 billion. The Zacks Consensus Estimate was $15 billion while our estimate was $15.1 billion. P&C net premiums written rose 3.0% to $12.77 billion and increased 6.3% when large-account and excess and surplus property were excluded.\u00a0Global P&C net premiums written, excluding agriculture, advanced 2.8% to $11.99 billion. Life insurance net premiums written grew 7.5% to $1.94 billion, adding balance to the company’s premium expansion. <\/p>\n
Story Continues <\/p>\n
Chubb’s North America Results Diverge <\/p>\n
North America Commercial P&C net premiums written declined 2.3% to $5.59 billion. Our estimate was $5.9 billion. Major accounts and specialty fell 9.0% as underwriting actions weighed on property business, while middle-market and small commercial premiums increased 8.9% to $2.34 billion.\u00a0North America Personal P&C net premiums written grew 6.0% to $2.05 billion (our estimate was $2 billion), while its combined ratio improved 620 basis points to 67.3%. Agricultural premiums rose 6.0% to $776 million (our estimate was $769 billion), though the segment’s combined ratio increased 60 basis points to 89.7%. <\/p>\n
CB’s Overseas Business Delivers Growth <\/p>\n
Overseas General Insurance net premiums written jumped 10.2% to $3.99 billion, or 4.8% in constant dollars. Our estimate was $4.2 billion. Commercial P&C premiums increased 8.8%, while consumer P&C premiums advanced 12.1%.\u00a0The segment’s combined ratio improved 810 basis points to 82.2%. Latin America, Asia and Europe posted premium growth of 15.6%, 12.0% and 5.1%, respectively, underscoring the benefit of Chubb’s geographic diversification. <\/p>\n
Chubb’s Investment and Life Income Rise <\/p>\n
Pre-tax net investment income increased 12.3% to a record $1.76 billion. Adjusted net investment income rose 11.4% to $1.88 billion, supported by fixed-income and alternative asset portfolios.\u00a0Life Insurance segment income increased 9.0% to $332 million. Net premiums written and deposits collected climbed 14.4% to $2.65 billion, with International Life income up 13.0%. <\/p>\n
CB’s Cash Flow Funds Shareholder Returns <\/p>\n
Operating cash flow totaled $3.73 billion, while adjusted operating cash flow was $3.48 billion. Chubb returned $1.37 billion to shareholders during the quarter.\u00a0Share repurchases totaled $979 million at an average price of $327.18 per share. Dividend payments were $395 million, bringing the total capital returned during the first six months of 2026 to $2.90 billion. <\/p>\n
Chubb’s Book Value Strengthens <\/p>\n
Book value per share was $195.45 as of June 30, 2026, up 12.3% year over year. Tangible book value per share increased 17.1% to $131.93.\u00a0Annualized core operating return on tangible equity was 21.2%, while annualized core operating return on equity was 14.5%. Total invested assets were $175.40 billion, supporting the company’s investment income base. <\/p>\n
How Have Estimates Been Moving Since Then? <\/p>\n
It turns out, estimates revision have trended upward during the past month. <\/p>\n
VGM Scores <\/p>\n
Currently, Chubb has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors. <\/p>\n
Overall, the stock has an aggregate VGM Score of C. If you aren’t focused on one strategy, this score is the one you should be interested in. <\/p>\n
Outlook <\/p>\n
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Chubb has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. <\/p>\n
Performance of an Industry Player <\/p>\n
Chubb is part of the Zacks Insurance – Property and Casualty industry. Over the past month, Progressive (PGR), a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended June 2026 more than a month ago. <\/p>\n
Progressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago. <\/p>\n
Progressive is expected to post earnings of $3.66 per share for the current quarter, representing a year-over-year change of -9.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%. <\/p>\n
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Progressive. Also, the stock has a VGM Score of C. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n Chubb Limited (CB) : Free Stock Analysis Report<\/a> <\/p>\n The Progressive Corporation (PGR) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n