We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chubb (CB) to Report Q2 Earnings: Is a Beat in the Cards?
Read MoreHide Full Article
Chubb Limited (CB - Free Report) is slated to report second-quarter 2019 results on Jul 23 after market close. The company has a stellar record of delivering positive earing surprise in the last 11 quarters.
Let’s see how things are shaping up for this announcement.
The company’s leadership position, expanded product portfolio, increased scale, and improved commercial property and casualty pricing and prudent underwriting are expected to boost premiums. It is expected to witness policy renewal and new business volume growth.
Strategic buyouts are expected to add to the upside. The Zacks Consensus Estimate for net premiums written is pegged at $8.1 billion.
Continued focus on capitalizing on growth opportunities in its North American business along with prudent management of risk is likely to aid the business.
Overseas General Insurance segment is expected to benefit from its middle–market and small commercial business.
A benign catastrophe environment is likely to aid underwriting profitability. The Zacks Consensus Estimate for underwriting income is pegged at $783 million while that for combined ratio is pegged at 89%.
Improved interest rate environment is also expected to aid investment results in the to-be-reported quarter. The company estimates quarterly adjusted net investment income between $880 million and $890 million. The Zacks Consensus Estimate for investment income is pegged at $883 million, indicating an upside of 7.5% year over year.
Expenses may rise due to higher loss and loss expenses, policy acquisition costs, administrative expenses and policy benefits. However, expense management is likely to lead to combined ratio improvement in the to-be-reported quarter. The Zacks Consensus Estimate for combined ratio is pegged at 89%, indicating an improvement of 100 basis points year over year.
Sustained buyback should provide additional boost to the bottom line.
The Zacks Consensus Estimate for earnings stands at $2.58, implying a decline of 3.7% from the year-ago quarter.
What Our Quantitative Model States
Our proven model shows that Chubb is likely to beat on earnings in the to-be-reported quarter. This is because the stock has the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Chubb has an Earnings ESP +1.52%. This is because the Most Accurate Estimate of $2.62 is higher than the Zacks Consensus Estimate of $2.58. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chubb carries a Zacks Rank #3, which increases the predictive power of ESP.
We caution against the Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some stocks from the insurance industry with the apt combination of elements to surpass estimates this reporting cycle are as follows:
W.R. Berkley Corporation (WRB - Free Report) has an Earnings ESP of +13.27% and is a Zacks #3 Ranked player. The company is slated to announce second-quarter earnings on Jul 23.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank of 2. The company is anticipated to release second-quarter earnings on Jul 29.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Chubb (CB) to Report Q2 Earnings: Is a Beat in the Cards?
Chubb Limited (CB - Free Report) is slated to report second-quarter 2019 results on Jul 23 after market close. The company has a stellar record of delivering positive earing surprise in the last 11 quarters.
Let’s see how things are shaping up for this announcement.
The company’s leadership position, expanded product portfolio, increased scale, and improved commercial property and casualty pricing and prudent underwriting are expected to boost premiums. It is expected to witness policy renewal and new business volume growth.
Strategic buyouts are expected to add to the upside. The Zacks Consensus Estimate for net premiums written is pegged at $8.1 billion.
Continued focus on capitalizing on growth opportunities in its North American business along with prudent management of risk is likely to aid the business.
Overseas General Insurance segment is expected to benefit from its middle–market and small commercial business.
A benign catastrophe environment is likely to aid underwriting profitability. The Zacks Consensus Estimate for underwriting income is pegged at $783 million while that for combined ratio is pegged at 89%.
Improved interest rate environment is also expected to aid investment results in the to-be-reported quarter. The company estimates quarterly adjusted net investment income between $880 million and $890 million. The Zacks Consensus Estimate for investment income is pegged at $883 million, indicating an upside of 7.5% year over year.
Expenses may rise due to higher loss and loss expenses, policy acquisition costs, administrative expenses and policy benefits. However, expense management is likely to lead to combined ratio improvement in the to-be-reported quarter. The Zacks Consensus Estimate for combined ratio is pegged at 89%, indicating an improvement of 100 basis points year over year.
Sustained buyback should provide additional boost to the bottom line.
The Zacks Consensus Estimate for earnings stands at $2.58, implying a decline of 3.7% from the year-ago quarter.
What Our Quantitative Model States
Our proven model shows that Chubb is likely to beat on earnings in the to-be-reported quarter. This is because the stock has the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Chubb has an Earnings ESP +1.52%. This is because the Most Accurate Estimate of $2.62 is higher than the Zacks Consensus Estimate of $2.58. 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 carries a Zacks Rank #3, which increases the predictive power of ESP.
We caution against the Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some stocks from the insurance industry with the apt combination of elements to surpass estimates this reporting cycle are as follows:
RenaissanceRe Holdings Ltd. (RNR - Free Report) is set to report second-quarter earnings on Jul 23 and has an Earnings ESP of +2.16%. The company has a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley Corporation (WRB - Free Report) has an Earnings ESP of +13.27% and is a Zacks #3 Ranked player. The company is slated to announce second-quarter earnings on Jul 23.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank of 2. The company is anticipated to release second-quarter earnings on Jul 29.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>