Will Chubb Limited Pull Off a Surprise This Earnings Season?

Chubb Limited CB is expected to register an improvement in its top and bottom lines when it reports third-quarter 2025 results on Oct. 21, after market close.The Zacks Consensus Estimate for CB’s third-quarter revenues is pegged at $15.88 billion, indicating 5.7% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at $5.94 per share. The Zacks Consensus Estimate for CB’s third-quarter earnings has moved up 9.3% in the past 30 days. The figure suggests a year-over-year increase of 3.8%.What the Zacks Model Unveils for CBOur proven model predicts an earnings beat for CB this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.Earnings ESP: Chubb Limited has an Earnings ESP of +5.24%. This is because the Most Accurate Estimate of $6.25 is pegged higher than the Zacks Consensus Estimate of $5.94. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Chubb Limited Price and EPS Surprise Chubb Limited price-eps-surprise | Chubb Limited QuoteZacks Rank: Chubb Limited currently carries a Zacks Rank of 3.Factors Likely to Shape Q3 ResultsPremiums in the third quarter are likely to have benefited from growth across most product lines, driven by strong premium retention, including rate and exposure increases, and strong new business.The high net-worth personal lines business is likely to have benefited from strong new business and retention, including positive rates and exposure increases across all lines.Premiums at International Life Insurance are expected to have gained from strong new business in North Asia, notably in Hong Kong, Taiwan and Korea through broker distribution channels. The Zacks Consensus Estimate for net premiums earned is pegged at $14.2 billion, indicating an increase of 6.6% from the year-ago reported figure. We expect net premiums earned to be $14.1 billion.Net investment income is likely to have benefited from higher average invested assets and higher reinvestment rates on fixed maturities. Chubb Limited expects the quarterly adjusted net investment income to have a run rate between $1.72 billion and $1.74 billion in the third quarter of 2025. We expect net investment income to be $1.9 billion in the to-be-reported quarter.  The Zacks Consensus Estimate is pegged at $1.8 billion, indicating an increase of 19.8% from the year-ago reported figure.Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which is expected to have led to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 88.Expenses are expected to have increased because of higher losses and loss expenses, policy benefits, policy acquisition costs, administrative expenses and interest expenses. We estimate the metric to be $13.2 billion.Nevertheless, share buybacks in the to-be-reported quarter are likely to have aided the bottom line.Other Stocks to ConsiderHere are three P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat: Arch Capital Group Ltd. ACGL has an Earnings ESP of +2.00% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.10, indicating a year-over-year increase of 5.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.ACGL’s earnings beat estimates in each of the last four reported quarters.Kinsale Capital Group, Inc. KNSL has an Earnings ESP of +1.53% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.79, indicating a year-over-year increase of 14%.KNSL’s earnings beat estimates in each of the last four reported quarters.Cincinnati Financial Corporation CINF has an Earnings ESP of +6.07% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.92, indicating a year-over-year increase of 35.2%. CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.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 Chubb Limited (CB): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): 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