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Chubb (CB) Q3 Earnings Top Estimates, Premiums Improve Y/Y

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Chubb Limited CB reported third-quarter 2021 core operating income of $2.64 per share, which beat the Zacks Consensus Estimate by 6.45%. Further, the bottom line increased 32% year over year.

The company’s results reflect improvement in premiums in most segments and higher net investment income, partly offset by higher catastrophe losses.

Chubb Limited Price, Consensus and EPS Surprise

Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited Price, Consensus and EPS Surprise

Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote

Quarter in Detail

Net premiums written increased 15.8% year over year to $10.5 billion in the quarter. Net premiums earned rose 14.1% year over year to $10 billion.

Pre-tax net investment income was $866 million, up 3.1% year over year.

Property and casualty (P&C) reported underwriting income was $617 million, which increased 57.5% year over year. Global P&C underwriting income excluding Agriculture was $482 million, which increased 47.5% year over year.

Chubb incurred after-tax catastrophe losses of $943 million in the third quarter, which increased 18.3% year over year.

Segmental Update

North America Commercial P&C Insurance: Net premiums written increased 15.6% year over year to $4.4 billion. The combined ratio improved 180 basis points (bps) year over year to 90.1%.

North America Personal P&C Insurance: Net premiums written climbed 1.2% year over year to $1.3 billion. The combined ratio improved 920 bps to 94.3%.

North America Agricultural Insurance: Net premiums written improved 43.6% from the year-ago quarter to $1.4 billion. The combined ratio improved 340 bps to 89.9%.

Overseas General Insurance: Net premiums written increased 15.9% year over year to $2.6 billion. The combined ratio deteriorated 280 bps to 92.2%.

Global Reinsurance: Net premiums written increased 22.3% from the year-ago quarter to $221 million. The combined ratio deteriorated 310 bps to 121.4%.

Life Insurance: Net premiums written slid 0.2% year over year to $609 million.

Financial Update

Cash balance of $1.6 billion as of Sep 30, 2021 decreased 7.3% from the 2020-end level.

Total shareholders’ equity declined 0.2% from the level at 2020 end to $59.3 billion as of Sep 30, 2021.

As of Sep 30, 2021, book value per share of $137.67 was up 4.4% from the figure as of Dec 31, 2020. Operating cash flow was $3.32 billion.

Zacks Rank & Performance of Other Insurers

Chubb currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other P&C Insurers

Of the insurance industry players that have reported third-quarter results so far, RLI Corp. RLI, The Travelers Companies TRV and W.R. Berkley Corporation WRB beat the respective Zacks Consensus Estimate for earnings.


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RLI Corp. (RLI) : Free Stock Analysis Report

The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report

Chubb Limited (CB) : Free Stock Analysis Report

W.R. Berkley Corporation (WRB) : Free Stock Analysis Report

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