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Chubb Limited (CB) to Report Q1 Earnings: What's in Store?
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Chubb Limited (CB - Free Report) is set to report first-quarter 2024 earnings on Apr 23. The insurer delivered an earnings surprise in each of the last four quarters, the average beat being 23.44%.
Factors to Note
Growth across the product lines, strong premium retention, including rate and exposure increases, and solid new business are likely to have aided Chubb Limited’s premium in the to-be-reported quarter. The acquisition of Cigna's Asian business and consolidation of Huatai are likely to have added to the upside. 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 $10.9 billion, indicating an increase of 8% from the year-ago reported figure. We expect net premiums earned to be $10 billion.
Net investment income is likely to have benefited from higher reinvestment rates on fixed maturities. In the first quarter, Chubb anticipates adjusted net investment income to be $1.45 billion. We expect net investment income to increase 11.4% to $1.23 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 $12.6 billion, indicating an increase of 11.4% from the year-ago reported figure.
Underwriting profit is likely to have benefited from better pricing and increased exposure. The Zacks Consensus Estimate for the combined ratio is pegged at 85, indicating an improvement of 100 basis points from the year-ago reported figure. We estimate underwriting income to be $1.1 billion and the combined ratio to be 81.7.
Expenses are expected 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 $8.8 billion.
The continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $5.26, indicating a 19.2% increase from the year-ago quarter’s reported number.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Chubb Limited this time around. This is because 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). This is not the case, as u can see below.
Earnings ESP: Chubb Limited has an Earnings ESP of -0.99%. This is because the Most Accurate Estimate of $5.20 is pegged lower than the Zacks Consensus Estimate of $5.26. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chubb Limited currently carries a Zacks Rank #3.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.58, indicating a year-over-year increase of 77.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings (AXS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year increase of 15%.
AXS’ earnings beat estimates in each of the last four reported quarters.
Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.69% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.95, implying an increase of 403.8% from the year-ago reported figure.
ALL’s earnings beat estimates in three of the last four reported quarters while missing in one.
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Chubb Limited (CB) to Report Q1 Earnings: What's in Store?
Chubb Limited (CB - Free Report) is set to report first-quarter 2024 earnings on Apr 23. The insurer delivered an earnings surprise in each of the last four quarters, the average beat being 23.44%.
Factors to Note
Growth across the product lines, strong premium retention, including rate and exposure increases, and solid new business are likely to have aided Chubb Limited’s premium in the to-be-reported quarter. The acquisition of Cigna's Asian business and consolidation of Huatai are likely to have added to the upside. 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 $10.9 billion, indicating an increase of 8% from the year-ago reported figure. We expect net premiums earned to be $10 billion.
Net investment income is likely to have benefited from higher reinvestment rates on fixed maturities. In the first quarter, Chubb anticipates adjusted net investment income to be $1.45 billion. We expect net investment income to increase 11.4% to $1.23 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 $12.6 billion, indicating an increase of 11.4% from the year-ago reported figure.
Underwriting profit is likely to have benefited from better pricing and increased exposure. The Zacks Consensus Estimate for the combined ratio is pegged at 85, indicating an improvement of 100 basis points from the year-ago reported figure. We estimate underwriting income to be $1.1 billion and the combined ratio to be 81.7.
Expenses are expected 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 $8.8 billion.
The continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $5.26, indicating a 19.2% increase from the year-ago quarter’s reported number.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Chubb Limited this time around. This is because 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). This is not the case, as u can see below.
Earnings ESP: Chubb Limited has an Earnings ESP of -0.99%. This is because the Most Accurate Estimate of $5.20 is pegged lower than the Zacks Consensus Estimate of $5.26. 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 Limited currently carries a Zacks Rank #3.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.58, indicating a year-over-year increase of 77.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings (AXS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year increase of 15%.
AXS’ earnings beat estimates in each of the last four reported quarters.
Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.69% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.95, implying an increase of 403.8% from the year-ago reported figure.
ALL’s earnings beat estimates in three of the last four reported quarters while missing in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.