Chubb Limited CB reported fourth-quarter 2024 core operating income of $6.02 per share, which beat the Zacks Consensus Estimate by 10.3%. The bottom line decreased 27.5% year over year.
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Chubb's results reflected strong performance in North America P&C, Overseas General and Life Insurance divisions, solid underwriting income and improved investment income, partially offset by a higher level of catastrophe.
Net premiums written improved 4% year over year to $12.1 billion in the quarter. Our estimate was $13.2 billion while and the Zacks Consensus Estimate was pegged at $12.6 billion.
Pre-tax net investment income was a record $1.6 billion, up 14%, while adjusted net investment income was $1.7 billion, up 13.7% year over year.
Revenues of $14.3 billion missed the consensus estimate by 1.3% but improved 6.8% year over year.
Property and casualty (P&C) underwriting income was a record $1.6 billion, up 3.8% year over year. The Zacks Consensus Estimate was pegged at $1.3 billion. Global P&C underwriting income, excluding Agriculture, was $1.5 billion, down 7.5%.
Pre-tax catastrophe losses were $607 million, including $309 million from Hurricane Milton, wider than year ago loss of $300 million.
The P&C combined ratio deteriorated 20 basis points (bps) on a year-over-year basis to 85.7% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 86%.
CB’s Segmental Update
North America Commercial P&C Insurance: Net premiums written increased 5.1% year over year to $4.9 billion. Our estimate was $5.1 billion. The combined ratio deteriorated 420 bps to 80.6%. Our estimate was 89.6%.
North America Personal P&C Insurance: Net premiums written climbed 10% year over year to $1.6 billion. Our estimate was $1.7 billion. The combined ratio improved 360 bps to 81.3%. Our estimate was 94.2%.
North America Agricultural Insurance: Net premiums written decreased 47.8% from the year-ago quarter to $317 million. Our estimate was $544.7 million. The combined ratio improved 2970 bps to 76.1%. Our estimate was 115.4%.
Overseas General Insurance: Net premiums written jumped 6.8% year over year to $3.4 billion. Our estimate was $4.4 billion and the Zacks Consensus Estimate was pegged at $3.5 billion. The combined ratio deteriorated 170 bps to 87.6%. Our estimate was 91.5%.
Global Reinsurance: Net premiums written jumped 19.9% year over year to $224 million. Our estimate was $315 million. The combined ratio deteriorated 2300 bps to 99.1%. Our estimate was 105.4%.
Life Insurance: Net premiums written increased 6.8% year over year to $1.6 billion. Our estimate was $1.9 billion.
The Life Insurance segment income was $270 million, up 2.7% in constant dollars, with International Life up 8.1%. The Zacks Consensus Estimate was pegged at $290 million.
Full-Year Highlights of CB
Chubb 2024 core operating income of $22.51 per share beat the Zacks Consensus Estimate of $21.95. The bottom line decreased 0.1% year over year.
Net premiums written of $51.5 billion increased 4%.
P&C underwriting income of $5.9 billion increased more than 7%. Combined ratio was 86.6%, deteriorated 10 bps.
CB’s Financial Update
The cash balance of $2.5 billion, as of Dec. 30, 2024, decreased 27.5% from the 2023-end level. Total shareholders’ equity grew 7.4% from the level of 2023-end to $68.4 billion as of Dec. 30, 2024. Book value per share, as of Dec. 30, 2024, was $159.77, up 8.8% from the figure as of Dec. 31, 2023.
Core operating return on equity contracted 150 bps year over year to 13.9%. Operating cash flow was $4.6 billion in the quarter under consideration, while adjusted operating cash flow was $4.2 billion.
Capital Deployment of CB
In 2024, Chubb bought back shares worth $2.02 million and paid $1.46 million in dividends.
CB’s 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 fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%'
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.
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