- Chubb’s net premiums written for Q1 totaled $12.65 billion, marking a 3.5% increase year-over-year (y/y). However, this figure was below the estimated $13.03 billion.
- The company’s core operating earnings per share (EPS) were reported at $3.68, compared to $5.41 in the previous year.
- Net premiums earned rose 3.6% y/y to reach $12.00 billion, falling short of the $12.52 billion estimate.
- Chubb’s core operating return on equity (ROE) dropped to 8.6% from 13.7% y/y, closely meeting the estimate of 8.57%.
- Book value per share increased to $164.01 from $149.09 y/y, slightly below the $164.83 estimate.
- Tangible book value per share was reported at $104.27, slightly above the estimated $104.05.
- The property & casualty combined ratio was 95.7%, higher than last year’s 86% but improved against the estimated 97.3%.
- The loss and loss expense ratio increased to 67.8% from 58.1% y/y, which was better than the estimated 69.8%.
- Total investments by Chubb were $152.30 billion, a 1.1% increase quarter-over-quarter (q/q).
- The combined ratio of 95.7% resulted in an underwriting income of $441 million, despite $1.6 billion in catastrophe losses.
- Income and premium revenue were adversely affected by a strong U.S. dollar, which has since weakened.
- Premiums faced impact from reinstatement premiums due to wildfires and unusual, one-off structured transactions in North America.
- Market analyst recommendations include 13 buys, 9 holds, and 2 sells for Chubb.
Chubb on Smartkarma
Analysts at Baptista Research on Smartkarma provided detailed insights into Chubb Limited, showcasing a positive outlook on the company’s performance. In one report titled “Chubb Limited: How Its Focus on Underwriting Excellence Is Paying Off!” the analysts highlighted Chubb’s strong financial results for the fourth quarter and the entire year. Despite facing challenges like natural disasters and competitive pressures, Chubb demonstrated continued growth across its business segments. The report praised the firm’s record Property & Casualty (P&C) underwriting income, global premium revenue growth, and substantial increase in investment income.
Furthermore, another report by Baptista Research, “Chubb Limited: Geographic Diversification As A Vital Tool For Growth! – Major Drivers”, emphasized Chubb’s robust performance in the third quarter of 2024. The analysts noted significant growth in the P&C underwriting, investment income, and life insurance segments. With core operating income up by 14.3% year-over-year and a 16.9% rise in net income, Chubb showcased strong performance across diversified international markets. The report highlighted a 7.6% growth in global P&C premium revenue, underlining the company’s strategic geographic diversification for sustainable growth.
A look at Chubb Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are looking favorably at Chubb Limited’s long-term prospects as the company scores well in several key areas. With a solid Smart Score of 4 for Growth, Resilience, and Momentum, Chubb is showing strong potential for future expansion and stability. Additionally, the company has a respectable score of 3 for Value, indicating that it is reasonably priced in relation to its intrinsic value. While the Dividend score of 2 is not as high as the other factors, Chubb’s overall outlook appears promising.
Chubb Limited, a property and casualty insurance company, offers a diverse range of insurance products to both commercial and personal clients. The company’s robust performance in Growth, Resilience, and Momentum highlights its ability to adapt and thrive in various market conditions. These scores suggest that Chubb is well-positioned for continued success and growth in the years to come, making it an attractive prospect for investors seeking a stable and progressive investment option.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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