Chubb Q2 Earnings, Revenues Top Estimates on Strong Underwriting

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year.The quarter benefited solid underwriting and strong investment income, and double-digit growth in life income.Chubb Limited Price, Consensus and EPS Surprise Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited QuoteQuarter in DetailNet premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.Property and casualty (P&C) underwriting income was $1.6 billion, up 15% year over year.  Premium growth and underwriting margin improvement drove underwriting income. Global P&C underwriting income, excluding Agriculture, was $1.56 billion, up 13.2% year over year.Chubb incurred a pre-tax P&C catastrophe loss, net of reinsurance and including reinstatement premiums of $630 million, which was wider than the year-ago catastrophe loss of $580 million. The P&C combined ratio improved by 120 basis points (bps) on a year-over-year basis to 85.6% in the quarter under review. The Zacks Consensus Estimate for combined ratio was pegged at 85, while our estimate was 72.6.Segmental UpdateNorth America Commercial P&C Insurance: Net premiums written increased 4.1% year over year to $5.7 billion. Our estimate was $6 billion. The combined ratio deteriorated 60 bps to 83.5%, reflecting higher catastrophe losses. Our estimate was 68.1.North America Personal P&C Insurance: Net premiums written climbed 9.1% year over year to $1.9 billion. Our estimate was $1.8 billion. The Zacks Consensus Estimate was pegged at $1.7 billion. The combined ratio improved 1000 bps to 73.5%, reflecting higher favorable prior period development and lower catastrophe losses. Our estimate was 82.5.North America Agricultural Insurance: Net premiums written decreased 3.3% from the year-ago quarter to $733 million, primarily due to lower commodity prices. Our estimate was $773.9 million. The combined ratio improved 530 bps to 89.1%, reflecting lower catastrophe losses and higher favorable prior period development. Overseas General Insurance: Net premiums written climbed 8.5% year over year to $3.6 billion. Our estimate was $3.5 billion. The Zacks Consensus Estimate was pegged at $3.6 billion. The combined ratio deteriorated 210 bps to 90.3% due to higher catastrophe losses.  Our estimate was 77.Global Reinsurance: Net premiums written decreased 7.6% year over year to $380 million. Our estimate was $438.4 million. The Zacks Consensus Estimate was pegged at $445 million. The combined ratio improved 170 bps to 71%. Our estimate was 76.3.Life Insurance: Net premiums written increased 14.1% year over year to $1.8 billion with growth of 17.8% in International Life and 18.1% in Combined Insurance North America. Our estimate was $1.5 billion. The Zacks Consensus Estimate was pegged at $1.7 billion.The Life Insurance segment income was $305 million, up 10.4% year over year. Financial UpdateThe cash and restricted cash balance of $2.4 billion, as of June 30, 2025, decreased 7% from the 2024-end level. Total shareholders’ equity grew 8.8% from the level at 2024-end to $74.4 billion as of June 30, 2025. Book value per share, as of June 30, 2025, was $174.07, up 8.9% from the figure as of Dec. 31, 2024.Core operating return on tangible equity declined 10 bps year over year to 21%. Operating cash flow was $3.5 billion in the quarter under consideration, while adjusted operating cash flow was $3.2 billion.Capital DeploymentIn the quarter, Chubb bought back shares worth $676 million and paid $388 million in dividends.Zacks RankChubb 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 InsurersW.R. Berkley's WRB second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03 per share. The bottom line increased about 1% year over year.  Operating revenues came in at $3.6 billion, up 7.9% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 1.8%.Catastrophe losses of $99.2 million in the quarter were wider than $89.7 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. The Zacks Consensus Estimate was 91.RLI Corp. RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%.  The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net investment income increased 16% year over year to $39.4 million, which is in line with our estimate. The Zacks Consensus Estimate was pegged at $38.9 million. The investment portfolio’s total return was 2.9% in the quarter.The Progressive Corporation’s PGR second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year.Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues. The top line beat the Zacks Consensus Estimate by 96.4%.Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 RLI Corp. (RLI): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks