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What's in the Cards for Chubb (CB) This Earnings Season?

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Chubb Limited (CB - Free Report) is slated to report first-quarter 2022 earnings on Apr 26, after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 12%.

Factors to Consider

Premiums in the first quarter are expected to have benefited from positive rate increases, higher new business, increased exposure and higher renewal retention and positive growth in consumer lines and commercial property and casualty (P&C) lines. The Zacks Consensus Estimate for net premiums earned is pegged at $8.4 billion.

Net investment income is likely to have benefited from higher income received from private equity partnerships and increased dividends on public equities. Chubb continue to estimate the adjusted net investment income run rate to be around $900 million in the quarter. The Zacks Consensus Estimate for investment income is pegged at $9.8 million, indicating a 5.2% increase from the year-ago reported figure.

The top line is likely to have benefited from improved premium revenues from North America Commercial and Personal P&C businesses as well as North America Agricultural Insurance and Overseas General Insurance business. The Zacks Consensus Estimate for revenues is pegged at $9.7 billion, indicating an increase of 1.5% from the year-ago reported figure.

Expenses are expected to have risen on higher loss and loss expenses, policy acquisition costs and administrative expenses.

A not-so-active catastrophe environment is likely to have aided underwriting profitability and combined ratio. The Zacks Consensus Estimate for combined ratio is pegged at 87, indicating an improvement from the year-ago reported figure of 92.

Continued share buyback is likely to have aided the bottom line.

The Zacks Consensus Estimate for first-quarter 2022 earnings of $3.52 per share indicates an increase of 39.7% from the year-ago quarter reported figure.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Chubb this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. That is not the case below.

Earnings ESP: Chubb has an Earnings ESP of -0.74%. This is because the Most Accurate Estimate of $3.49 is pegged lower than the Zacks Consensus Estimate of $3.52. 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 and EPS Surprise

Chubb Limited price-eps-surprise | Chubb Limited Quote

Zacks Rank: Chubb currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for the first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.

NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.15% and a Zacks Rank #3. The Zacks Consensus Estimate for the first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.

ALL beat earnings estimates in three of the four reported quarters of 2021 and missed in one.

ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.

PRA’s earnings beat estimates in each of the four trailing quarters of 2021.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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