A month has gone by since the last earnings report for Chubb (CB Quick QuoteCB - Free Report) . Shares have lost about 1.3% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Chubb due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Chubb's Q1 Earnings Beat Estimates on Lower Cat Loss

Chubb Limited reported first-quarter 2022 core operating income of $3.82 per share, which outpaced the Zacks Consensus Estimate by 8.5%. This outperformance was driven by higher premium revenues and lower catastrophe loss. The bottom line also improved 51.6% from the year-ago quarter.

Chubb's results reflected record operating earnings and underwriting results, double-digit commercial premium growth, rate increases in excess of loss cost, and growing momentum in the consumer businesses globally.

Quarter in Detail

Net premiums written improved 6.2% year over year to $9.1 billion in the quarter. Net premiums earned rose 6.4% to $8.7 billion. Net investment income was $822 million, down 4.8%.

Property and casualty (P&C) underwriting income was a record $1.3 billion, up 106.2% from the year-ago quarter. Global P&C underwriting income, excluding Agriculture, was $1.2 billion, up 101%. Chubb incurred an after-tax catastrophe loss of $290 million, down 49% year over year.

The combined ratio improved 250 basis points (bps) on a year-over-year basis to a record 84.3% in the quarter under review.

Segmental Update

North America Commercial P&C Insurance: Net premiums written increased 10.2% year over year to $4 billion. The combined ratio improved 950 bps to 81.1%.

North America Personal P&C Insurance: Net premiums written climbed 7.4% year over year to $1.2 billion. The combined ratio improved 1160 bps to 83.5%

North America Agricultural Insurance: Net premiums written dropped 65.9% from the year-ago quarter to $62 million.

Overseas General Insurance: Net premiums written rose 6.5% year over year to $3.1 billion. The combined ratio deteriorated 80 bps to 88.9%.

Global Reinsurance: Net premiums written increased 22% from the year-ago quarter to $253 million. The combined ratio of 79% improved 1740 bps.

Life Insurance: Net premiums written were down 5.5% year over year to $586 million.

Financial Update

The cash balance of $1.7 billion, as of Mar 31, 2022, increased 4.5% from the 2021-end level. Total shareholders’ equity decreased 5.1% from the level at 2021 end to $56.7 billion as of Dec 31, 2021.

Book value per share, as of Mar 31, 2022, was $139.99, down 4.4% from the figure as of Dec 31, 2021. Core operating return on equity expanded 310 bps year over year to 11.3%.

Operating cash flow was $2.4 billion in the quarter under consideration.

Capital Deployment

In the quarter, CB bought back shares worth $1 billion and paid $34 million in dividends.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Chubb has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Chubb has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.