A month has gone by since the last earnings report for Chubb (CB). Shares have added about 1.4% in that time frame, outperforming the S&P 500.<\/p>\n
Will the recent positive trend continue leading up to its next earnings release, or is Chubb due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the latest earnings report in order to get a better handle on the important catalysts.<\/p>\n
Chubb Q4 Earnings & Revenues Top Estimates on Solid Underwriting<\/p>\n
Chubb Limited reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.<\/p>\n
Total operating revenues improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%.<\/p>\n
Chubb\u2019s strong performance was driven by solid underwriting, robust premium growth and record investment income. These results were further supported by a significant reduction in catastrophe-related pressure compared with the prior year, leading to an improved combined ratio.<\/p>\n
CB\u2019s Quarter in Detail<\/p>\n
Net premiums written improved 8.9% year over year to $13.1 billion. Our estimate was $13 billion, while the Zacks Consensus Estimate was pegged at $12.9 billion.<\/p>\n
Net investment income was a record $1.7 billion, up 8%, while adjusted net investment income was $1.8 billion, up 7.3% year over year.<\/p>\n
Property and casualty (P&C) underwriting income was a record $2.2 billion, which rose 39.6% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion. P&C current accident year underwriting income ex cats was $2.3 billion, up 16.5% year over year.<\/p>\n
Pre-tax catastrophe losses were $365 million, much lower than the year-ago loss of $607 million.<\/p>\n
The P&C combined ratio improved 450 basis points (bps) on a year-over-year basis to 81.2% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 83.6%.<\/p>\n
Segmental Update<\/p>\n
North America Commercial P&C Insurance: Net premiums written increased 4.3% year over year to $5.1 billion. Our estimate was $5 billion. The combined ratio improved 180 bps to 78.8%. Our estimate was 79.6%.
North America Personal P&C Insurance: Net premiums written climbed 6.1% year over year to $1.72 billion. Our estimate was $1.75 billion. The combined ratio improved 850 basis points to 74.1%, reflecting lower catastrophe losses and higher favourable prior-period development. Our estimate was 78.8%.<\/p>\n
North America Agricultural Insurance: Net premiums written increased 45.1% from the year-ago quarter to $459 million, primarily due to a rise in exposure in the company\u2019s crop insurance business, which more than offset year-over-year declines in commodity prices. The consensus estimate was $366.5 million. The combined ratio improved 910 bps to 67%.<\/p>\n
Overseas General Insurance: Net premiums written jumped 10.8% year over year to $3.8 billion. The Zacks consensus estimate was 3.7 billion. The combined ratio improved 460 bps to 83%. Our estimate was 85.7%.<\/p>\n
Global Reinsurance: Net premiums written declined 3.9% year over year to $217 million. Our estimate was $235.1 million. The combined ratio improved 2,830 bps to 71.6%. Our estimate was 84.4%<\/p>\n
Life Insurance: Net premiums written increased 16.9% year over year to $1.8 billion, which matched our estimates. The growth covers 17.8% in International Life and 17.0% in Chubb Benefits.\u00a0 The Life Insurance segment income was $322 million, up 19.3% in constant dollars. The Zacks Consensus Estimate was pegged at $322.7 million.<\/p>\n
Full-Year Highlights of CB<\/p>\n
Chubb 2025 core operating income of $24.79 per share marginally missed the Zacks Consensus Estimate of $24.83. The bottom line increased 10.8% year over year.<\/p>\n
Net premiums written of $54.8 billion increased 6.6%.<\/p>\n
P&C underwriting income of $6.5 billion improved 11.6% year over year. Combined ratio was 85.7%, up 90 bps.<\/p>\n
Financial Update of CB<\/p>\n
The cash balance of $2.5 billion, as of Dec. 31, 2025, decreased 3.1% from the 2024-end level.<\/p>\n
Total shareholders\u2019 equity grew 16.7% from the 2024-end level to about $80 billion as of Dec. 31, 2025.<\/p>\n
Book value per share, as of Dec. 31, 2025, was $188.59, up 18% from the figure as of Dec. 31, 2024.<\/p>\n
Core operating return in the fourth quarter of 2025 on tangible equity expanded 150 bps year over year to 23.5%.<\/p>\n
Operating cash flow was $4.06 billion in the quarter under consideration, while adjusted operating cash flow was $4.17 billion.<\/p>\n
Capital Deployment of CB<\/p>\n
In 2025, Chubb returned $4.91 billion to shareholders, including $3.39 billion in share repurchases and $381 million in dividends.<\/p>\n
Since the earnings release, investors have witnessed a upward trend in estimates review.<\/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 this investment strategy.<\/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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Chubb has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.<\/p>\n
Chubb is part of the Zacks Insurance – Property and Casualty industry. Over the past month, W.R. Berkley (WRB), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended December 2025 more than a month ago.<\/p>\n
W.R. Berkley reported revenues of $3.72 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $1.13 for the same period compares with $1.13 a year ago.<\/p>\n
For the current quarter, W.R. Berkley is expected to post earnings of $1.16 per share, indicating a change of +14.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.<\/p>\n
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for W.R. Berkley. Also, the stock has a VGM Score of B.<\/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 W.R. Berkley Corporation (WRB) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n