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CB Q1 Earnings & Revenues Beat on Higher Underwriting Profit
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Key Takeaways
Chubb Limited Q1 EPS of $6.82 beat estimates by 5.2%, up 85.2% year over year.
Net premiums grew 10.7% to $14B, while P&C underwriting income surged fourfold.
Cat losses fell to $500M, driving combined ratio improvement to 84% in the quarter.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Chubb Limited’s strong performance was driven by strong growth in P&C underwriting income, investment income and life income. These results were further supported by lower catastrophe losses, leading to an improved combined ratio.
Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion.
Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, and our estimate was $2 billion.
Property and casualty (P&C) underwriting income was $1.8 billion, reflecting a fourfold increase year over year. Global P&C underwriting income, excluding Agriculture, was $1.6 billion, up more than fourfold year over year.
Chubb Limited incurred pre-tax net catastrophe losses of $500 million, narrower than the year-ago quarter’s loss of $1.64 billion. The losses include $1.47 billion from the California wildfires.
The P&C combined ratio improved 1,170 basis points (bps) on a year-over-year basis to 84% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 83, while our estimate was 76.4.
Segmental Update
North America Commercial P&C Insurance: Net premiums written increased 2.3% year over year to $4.7 billion. Our estimate was $5 billion. The combined ratio deteriorated 190 bps to 84%. Our estimate was 72.6%.
North America Personal P&C Insurance: Net premiums written climbed 8.3% year over year to $1.7 billion. Our estimate was $1.7 billion. The combined ratio improved 7,550 bps to 84%. Our estimate was 125.6%.
North America Agricultural Insurance: Net premiums written increased 12.7% from the year-ago quarter to $311 million. Our estimate was $313.8 million. The combined ratio improved 3,000 bps to 37.5%. Our estimate was 74.3%.
Overseas General Insurance: Net premiums written jumped 14.4% year over year to $4.4 billion. Our estimate was $4.2 billion. The combined ratio deteriorated 20 bps to 83.6%. Our estimate was 75%.
Life Insurance: Net premiums written increased 33.1% year over year to $2.3 billion. Our estimate was $1.8 billion. The Life Insurance segment income was $316 million, up 8.5%.
Financial Update
The cash balance of $2.6 billion as of March 31, 2026, increased 6.6% from the 2025-end level. Total shareholders’ equity grew 0.2% from the level at 2025 end to $79.9 billion as of March 31, 2026. Book value per share, as of March 31, 2026, was $189.93, up 0.7% from the figure as of Dec. 31, 2025.
Core operating return on tangible equity expanded 760 bps year over year to 20.6%. Operating cash flow was $3.95 billion in the quarter under consideration, while adjusted operating cash flow was $3.80 billion.
Capital Deployment
In the quarter, Chubb Limited bought back shares worth $1.14 billion and paid $380 million in dividends.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Catastrophe loss was $761 million, pre-tax, narrower than a loss of $2.3 billion, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting gain of $1.1 billion against a $305 million loss in the year-ago quarter.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
W.R. Berkley Corporation’s (WRB - Free Report) first-quarter 2026 operating income of $1.30 per share outpaced the Zacks Consensus Estimate by 15%. The bottom line increased 23.4% year over year. W.R. Berkley’s net premiums written were about $3.7 billion, up 2.8% year over year. Operating revenues totaled $3.6 billion, up 4% year over year. However, the top line missed the consensus estimate by 0.28%.
Net investment income grew 6.6% to $338.2 million. Total expenses increased 2.2% to $3 billion. The loss ratio decreased 100 basis points (bps) to 62.2, while the expense ratio improved 80 bps year over year to 28.6.
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CB Q1 Earnings & Revenues Beat on Higher Underwriting Profit
Key Takeaways
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
Chubb Limited’s strong performance was driven by strong growth in P&C underwriting income, investment income and life income. These results were further supported by lower catastrophe losses, leading to an improved combined ratio.
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote
Quarter in Detail
Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion.
Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, and our estimate was $2 billion.
Property and casualty (P&C) underwriting income was $1.8 billion, reflecting a fourfold increase year over year. Global P&C underwriting income, excluding Agriculture, was $1.6 billion, up more than fourfold year over year.
Chubb Limited incurred pre-tax net catastrophe losses of $500 million, narrower than the year-ago quarter’s loss of $1.64 billion. The losses include $1.47 billion from the California wildfires.
The P&C combined ratio improved 1,170 basis points (bps) on a year-over-year basis to 84% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 83, while our estimate was 76.4.
Segmental Update
North America Commercial P&C Insurance: Net premiums written increased 2.3% year over year to $4.7 billion. Our estimate was $5 billion. The combined ratio deteriorated 190 bps to 84%. Our estimate was 72.6%.
North America Personal P&C Insurance: Net premiums written climbed 8.3% year over year to $1.7 billion. Our estimate was $1.7 billion. The combined ratio improved 7,550 bps to 84%. Our estimate was 125.6%.
North America Agricultural Insurance: Net premiums written increased 12.7% from the year-ago quarter to $311 million. Our estimate was $313.8 million. The combined ratio improved 3,000 bps to 37.5%. Our estimate was 74.3%.
Overseas General Insurance: Net premiums written jumped 14.4% year over year to $4.4 billion. Our estimate was $4.2 billion. The combined ratio deteriorated 20 bps to 83.6%. Our estimate was 75%.
Life Insurance: Net premiums written increased 33.1% year over year to $2.3 billion. Our estimate was $1.8 billion. The Life Insurance segment income was $316 million, up 8.5%.
Financial Update
The cash balance of $2.6 billion as of March 31, 2026, increased 6.6% from the 2025-end level. Total shareholders’ equity grew 0.2% from the level at 2025 end to $79.9 billion as of March 31, 2026. Book value per share, as of March 31, 2026, was $189.93, up 0.7% from the figure as of Dec. 31, 2025.
Core operating return on tangible equity expanded 760 bps year over year to 20.6%. Operating cash flow was $3.95 billion in the quarter under consideration, while adjusted operating cash flow was $3.80 billion.
Capital Deployment
In the quarter, Chubb Limited bought back shares worth $1.14 billion and paid $380 million in dividends.
Zacks Rank
Chubb Limited currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Catastrophe loss was $761 million, pre-tax, narrower than a loss of $2.3 billion, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting gain of $1.1 billion against a $305 million loss in the year-ago quarter.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
W.R. Berkley Corporation’s (WRB - Free Report) first-quarter 2026 operating income of $1.30 per share outpaced the Zacks Consensus Estimate by 15%. The bottom line increased 23.4% year over year. W.R. Berkley’s net premiums written were about $3.7 billion, up 2.8% year over year. Operating revenues totaled $3.6 billion, up 4% year over year. However, the top line missed the consensus estimate by 0.28%.
Net investment income grew 6.6% to $338.2 million. Total expenses increased 2.2% to $3 billion. The loss ratio decreased 100 basis points (bps) to 62.2, while the expense ratio improved 80 bps year over year to 28.6.