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Chubb (CB) Q1 Earnings Beat Estimates, Premiums up Y/Y
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Chubb Limited (CB - Free Report) reported first-quarter 2020 core operating income of $2.68 per share, which outpaced the Zacks Consensus Estimate by 2.6%. The bottom line also improved 5.5% from the prior-year quarter. This upside can primarily be attributed to high premium revenues and strong net investment income.
Quarter in Detail
Net premiums written improved 9.1% year over year to nearly $8 billion in the quarter. Net premiums earned rose 9.2% to $7.8 billion.
Net investment income was $861 million, up 3% year over year.
Property and casualty (P&C) underwriting income was $778 million, up 9.3% from the year-ago quarter. Global P&C underwriting income excluding Agriculture was $764 million, up 19.5% year over year.
Chubb incurred after-tax catastrophe loss of $199 million in the first quarter, down 1% year over year.
North America Commercial P&C Insurance: Net premiums written increased 10.2% year over year to $3.3 billion. Combined ratio deteriorated 20 bps to 86.8%.
North America Personal P&C Insurance: Net premiums written climbed 4.8% year over year to $1.1 billion. Combined ratio improved 850 bps to 83%.
North America Agricultural Insurance: Net premiums written improved 21.2% from the year-ago quarter to $157 million. Combined ratio came in at 84.8%.
Overseas General Insurance: Net premiums written rose 8.5% year over year to $2.6 billion. Combined ratio deteriorated 120 bps to 93.5%.
Global Reinsurance: Net premiums written advanced 8.4% from the year-ago quarter to $218 million. Combined ratio improved 70 bps to 76.1%.
Life Insurance: Net premiums written were up 11.4% year over year to $645 million on the back of growth in the Asian international life operations.
Financial Update
Cash balance of $1.5 billion as of Mar 31, 2020 declined 1.6% from the 2019-end level.
Total shareholders’ equity plunged 5.7% from the level at 2019 end to $52.2 billion as of Mar 31, 2020.
Book value per share as of Mar 31, 2020 was down 5.5% from the figure as of Dec 31, 2019.
Core operating ROE was 9.4%.
Operating cash flow was $1.7 billion.
Share Repurchase Update
In the quarter, the company bought back shares worth $326 million.
Some stocks from the insurance space with the right combination of elements to surpass estimates this reporting cycle are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
Cincinnati Financial Corporation (CINF - Free Report) currently has an Earnings ESP of +1.67% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 results on Apr 27.
Selective Insurance Group, Inc. (SIGI - Free Report) presently has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is set to report first-quarter 2020 results on May 5.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Chubb (CB) Q1 Earnings Beat Estimates, Premiums up Y/Y
Chubb Limited (CB - Free Report) reported first-quarter 2020 core operating income of $2.68 per share, which outpaced the Zacks Consensus Estimate by 2.6%. The bottom line also improved 5.5% from the prior-year quarter. This upside can primarily be attributed to high premium revenues and strong net investment income.
Quarter in Detail
Net premiums written improved 9.1% year over year to nearly $8 billion in the quarter. Net premiums earned rose 9.2% to $7.8 billion.
Net investment income was $861 million, up 3% year over year.
Property and casualty (P&C) underwriting income was $778 million, up 9.3% from the year-ago quarter. Global P&C underwriting income excluding Agriculture was $764 million, up 19.5% year over year.
Chubb incurred after-tax catastrophe loss of $199 million in the first quarter, down 1% year over year.
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote
Segmental Update
North America Commercial P&C Insurance: Net premiums written increased 10.2% year over year to $3.3 billion. Combined ratio deteriorated 20 bps to 86.8%.
North America Personal P&C Insurance: Net premiums written climbed 4.8% year over year to $1.1 billion. Combined ratio improved 850 bps to 83%.
North America Agricultural Insurance: Net premiums written improved 21.2% from the year-ago quarter to $157 million. Combined ratio came in at 84.8%.
Overseas General Insurance: Net premiums written rose 8.5% year over year to $2.6 billion. Combined ratio deteriorated 120 bps to 93.5%.
Global Reinsurance: Net premiums written advanced 8.4% from the year-ago quarter to $218 million. Combined ratio improved 70 bps to 76.1%.
Life Insurance: Net premiums written were up 11.4% year over year to $645 million on the back of growth in the Asian international life operations.
Financial Update
Cash balance of $1.5 billion as of Mar 31, 2020 declined 1.6% from the 2019-end level.
Total shareholders’ equity plunged 5.7% from the level at 2019 end to $52.2 billion as of Mar 31, 2020.
Book value per share as of Mar 31, 2020 was down 5.5% from the figure as of Dec 31, 2019.
Core operating ROE was 9.4%.
Operating cash flow was $1.7 billion.
Share Repurchase Update
In the quarter, the company bought back shares worth $326 million.
Zacks Rank
Chubb carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Some stocks from the insurance space with the right combination of elements to surpass estimates this reporting cycle are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
Cincinnati Financial Corporation (CINF - Free Report) currently has an Earnings ESP of +1.67% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 results on Apr 27.
Selective Insurance Group, Inc. (SIGI - Free Report) presently has an Earnings ESP of +1.37% and a Zacks Rank of 3. The company is set to report first-quarter 2020 results on May 5.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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