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Chubb Limited (CB) Q3 Earnings Coming Up: Is a Beat in Store?
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Chubb Limited (CB - Free Report) is scheduled to report third-quarter 2023 earnings on Oct 24, after market close. The insurer delivered an earnings surprise in the last two reported quarters of 2023.
Factors to Note
Growing property and casualty (P&C) business, particularly in Asia, strong renewal retention, positive rate increases, new business, growth in life premiums and Cigna's business in Asia are likely to have aided Chubb’s premium in the to-be-reported quarter. CB’s commercial and consumer P&C businesses in North America and internationally as well as its Life business are likely to have witnessed a strong performance. The Zacks Consensus Estimate for net premiums earned is pegged at $12.1 billion, indicating an increase of 4.5% from the year-ago reported figure. We expect net premiums earned to be $11.3 billion.
Net investment income is likely to have benefited from higher reinvestment rates. In the third quarter, Chubb projects adjusted net investment income to be $1.27 billion. We expect net investment income to increase 21% to $1.27 billion.
The top line is likely to have benefited from improved premium revenues as well as higher investment income. The Zacks Consensus Estimate for revenues is pegged at $13.2 billion, indicating an increase of 4.6% from the year-ago reported figure.
Underwriting profit is likely to have benefited from better pricing, increased exposure and favorable prior period reserve development. The Zacks Consensus Estimate for combined ratio is pegged at 90, indicating an improvement of 300 basis points from the year-ago reported figure. We estimate underwriting income to increase 27.8% to $1.2 billion and the combined ratio to be 84.9, an improvement of 820 basis points.
Expenses are likely to have increased because of higher losses and loss expenses, policy benefits, policy acquisition costs, administrative expenses, interest expense, amortization of purchased intangibles and Cigna integration expenses. We estimate the metric to be $10.3 billion.
The continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for third-quarter 2023 earnings of $4.21 per share indicates an increase of 32.8% from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Chubb this time around. 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).
Earnings ESP: Chubb has an Earnings ESP of +2.25%. This is because the Most Accurate Estimate of $4.31 is pegged higher than the Zacks Consensus Estimate of $4.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chubb currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other stocks from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.48, indicating an increase of 428.6% from the year-ago reported figure.
ACGL’s earnings beat estimates in the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.14, indicating an increase of 12.9%.
WRB’s earnings beat estimates in three of the last four reported quarters and missed in one.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +3.00% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2023 earnings stands at $1.07, implying an increase of 46.6% from the year-ago reported quarter.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Image: Bigstock
Chubb Limited (CB) Q3 Earnings Coming Up: Is a Beat in Store?
Chubb Limited (CB - Free Report) is scheduled to report third-quarter 2023 earnings on Oct 24, after market close. The insurer delivered an earnings surprise in the last two reported quarters of 2023.
Factors to Note
Growing property and casualty (P&C) business, particularly in Asia, strong renewal retention, positive rate increases, new business, growth in life premiums and Cigna's business in Asia are likely to have aided Chubb’s premium in the to-be-reported quarter. CB’s commercial and consumer P&C businesses in North America and internationally as well as its Life business are likely to have witnessed a strong performance. The Zacks Consensus Estimate for net premiums earned is pegged at $12.1 billion, indicating an increase of 4.5% from the year-ago reported figure. We expect net premiums earned to be $11.3 billion.
Net investment income is likely to have benefited from higher reinvestment rates. In the third quarter, Chubb projects adjusted net investment income to be $1.27 billion. We expect net investment income to increase 21% to $1.27 billion.
The top line is likely to have benefited from improved premium revenues as well as higher investment income. The Zacks Consensus Estimate for revenues is pegged at $13.2 billion, indicating an increase of 4.6% from the year-ago reported figure.
Underwriting profit is likely to have benefited from better pricing, increased exposure and favorable prior period reserve development. The Zacks Consensus Estimate for combined ratio is pegged at 90, indicating an improvement of 300 basis points from the year-ago reported figure. We estimate underwriting income to increase 27.8% to $1.2 billion and the combined ratio to be 84.9, an improvement of 820 basis points.
Expenses are likely to have increased because of higher losses and loss expenses, policy benefits, policy acquisition costs, administrative expenses, interest expense, amortization of purchased intangibles and Cigna integration expenses. We estimate the metric to be $10.3 billion.
The continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for third-quarter 2023 earnings of $4.21 per share indicates an increase of 32.8% from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Chubb this time around. 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).
Earnings ESP: Chubb has an Earnings ESP of +2.25%. This is because the Most Accurate Estimate of $4.31 is pegged higher than the Zacks Consensus Estimate of $4.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chubb Limited Price and EPS Surprise
Chubb Limited price-eps-surprise | Chubb Limited Quote
Zacks Rank: Chubb currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other stocks from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.48, indicating an increase of 428.6% from the year-ago reported figure.
ACGL’s earnings beat estimates in the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.14, indicating an increase of 12.9%.
WRB’s earnings beat estimates in three of the last four reported quarters and missed in one.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +3.00% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2023 earnings stands at $1.07, implying an increase of 46.6% from the year-ago reported quarter.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.