Chubb Limited CB reported first-quarter 2025 core operating income of $5.68 per share, which outpaced the Zacks Consensus Estimate by 12.8%. However, the bottom line decreased 30.1% year over year.
Chubb Limited's results reflected higher catastrophe losses and poor underwriting income, which were partially offset by higher premiums and improved net investment income. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Quarter in Detail
Net premiums written improved 3.5% year over year to $12.6 billion in the quarter. Our estimate was $13.2 billion, while the Zacks Consensus Estimate was pegged at $13 billion.
Net investment income was $1.5 billion, up 12.2% year over year. The Zacks Consensus Estimate and our estimate for the same were both pegged at $1.6 billion.
Property and casualty (P&C) underwriting income was $441 million, down 68.5% year over year. Global P&C underwriting income, excluding Agriculture, was $387 million, down 71.2%.
Chubb Limited incurred pre-tax net catastrophe losses of $1.64 billion, wider than the year-ago quarter’s loss of $435 million. The losses include $1.47 billion from the California wildfires. Total after-tax net catastrophe losses were $1.30 billion.
The P&C combined ratio deteriorated 970 basis points (bps) on a year-over-year basis to 95.7% in the quarter under review. The Zacks Consensus Estimate for combined ratio was pegged at 96, while our estimate was 79.5.
Segmental Update
North America Commercial P&C Insurance: Net premiums written increased 2.1% year over year to $4.8 billion. Our estimate was $5 billion. The combined ratio improved 380 bps to 82.1%. Our estimate was 86.6.
North America Personal P&C Insurance: Net premiums written climbed 6.6% year over year to $1.5 billion. Our estimate was $1.6 billion. The combined ratio deteriorated 7,210 bps to 159.5%. Our estimate was 84.6.
North America Agricultural Insurance: Net premiums written increased 11% from the year-ago quarter to $276 million. Our estimate was $251.8 million. The combined ratio deteriorated 1,090 bps to 67.5%.
Overseas General Insurance: Net premiums written jumped 1.8% year over year to $3.9 billion, in line with our estimate. The combined ratio improved 40 bps to 83.4%. Our estimate was 82.9.
Life Insurance: Net premiums written increased 5.3% year over year to $1.7 billion. Our estimate was $1.8 billion. The Life Insurance segment income was $291 million, up 8.6%.
Financial Update
The cash balance of $2.2 billion, as of March 31, 2025, decreased 11.7% from the 2024-end level. Total shareholders’ equity grew 3.4% from the level at 2024 end to $70.7 billion as of March 31, 2025. Book value per share, as of March 31, 2025, was $164.01, up 2.6% from the figure as of Dec. 31, 2024.
Core operating return on tangible equity contracted 830 bps year over year to 13%. Operating cash flow was $1.57 billion in the quarter under consideration, while adjusted operating cash flow was $2 billion.
Capital Deployment
In the quarter, Chubb Limited bought back shares worth $385 million and paid $366 million in dividends.
Zacks Rank
Chubb 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 TRV reported first-quarter 2025 core income of $1.91 per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line, however, declined 29.3% year over year. Travelers’ total revenues increased 6.1% from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate of $12.1 billion.
Net written premiums increased 3% year over year to a record $10.5 billion, driven by strong growth across all three segments. Our estimate was $10.2 billion. Underlying underwriting income of $1.6 billion improved more than 30% year over year, driven by strong net earned premiums. The consolidated underlying combined ratio of 84.8 improved 290 basis points (bps) year over year. The combined ratio deteriorated 860 bps year over year to 102.5 due to higher catastrophe losses. The Zacks Consensus Estimate was pegged at 105.
The Progressive Corporation’s PGR first-quarter 2025 earnings per share of $4.65 missed the Zacks Consensus Estimate of $4.72. The bottom line, however, increased 24.6% year over year. Operating revenues increased 20.7% year over year to $20.6 billion, driven by 20.2% higher net premiums earned, a 31.7% increase in net investment income, a 21.6% rise in fees and 32.1% higher service revenues. The top line beat the Zacks Consensus Estimate of $20.4 billion.
Net premiums earned grew 20% to $19.4 billion. The reported figure surpassed the Zacks Consensus Estimate of $19.2 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 10 basis points (bps) from the prior-year quarter’s level to 86.
W.R. Berkley Corporation’s WRB first-quarter 2025 operating income of $1.01 per share matched the Zacks Consensus Estimate. The bottom line, however, declined 2.9% year over year. W.R. Berkley’s net premiums written were $3.1 billion, up 9.9% year over year. The figure was higher than our estimate of $3 billion.
Operating revenues came in at $3.5 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 2.2%. Net investment income grew 12.6% to $360.3 million. The figure was lower than our estimate of $380.4 million. The Zacks Consensus Estimate was pegged at $346 million. Solid operating cash flow continues to drive growth in net investable assets.
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