Chubb Q4 Earnings & Revenues Top Estimates on Solid Underwriting

Chubb Limited CB 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.Total operating revenues improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%.Chubb’s 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.Chubb Limited Price, Consensus and EPS Surprise Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited QuoteCB’s Quarter in DetailNet 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.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.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.Pre-tax catastrophe losses were $365 million, much lower than the year-ago loss of $607 million.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%.Segmental UpdateNorth 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%.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’s 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%.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%.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%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.  The Life Insurance segment income was $322 million, up 19.3% in constant dollars. The Zacks Consensus Estimate was pegged at $322.7 million.Full-Year Highlights of CBChubb 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.Net premiums written of $54.8 billion increased 6.6%.P&C underwriting income of $6.5 billion improved 11.6% year over year. Combined ratio was 85.7%, up 90 bps.Financial Update of CBThe cash balance of $2.5 billion, as of Dec. 31, 2025, decreased 3.1% from the 2024-end level.Total shareholders’ equity grew 16.7% from the 2024-end level to about $80 billion as of Dec. 31, 2025.Book value per share, as of Dec. 31, 2025, was $188.59, up 18% from the figure as of Dec. 31, 2024.Core operating return in the fourth quarter of 2025 on tangible equity expanded 150 bps year over year to 23.5%.Operating cash flow was $4.06 billion in the quarter under consideration, while adjusted operating cash flow was $4.17 billion.Capital Deployment of CBIn 2025, Chubb returned $4.91 billion to shareholders, including $3.39 billion in share repurchases and $381 million in dividends.CB’s 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 InsurersThe Travelers Companies, Inc. TRV reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year.AXIS Capital Holdings Limited AXS reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment, and growth of 5% in the Reinsurance segment.Selective Insurance Group SIGI reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year.Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report Axis Capital Holdings Limited (AXS): Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI): 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