Chubb beats Q3 estimates amid record underwriting performance

NEW YORK - Chubb Limited (NYSE:CB) shares rose 1% after the global insurer reported third-quarter earnings that significantly exceeded analyst expectations, driven by record underwriting performance and strong premium growth across its diversified business lines.

The company posted adjusted earnings of $7.49 per share, handily beating the analyst consensus of $6.14, while revenue reached $14.87 billion, surpassing estimates of $14.56 billion. Net income increased 20.5% to $2.80 billion, or $6.99 per share.

Chubb achieved a record P&C combined ratio of 81.8%, improving by nearly six percentage points from the previous year. This exceptional underwriting performance was supported by lower catastrophe losses of $285 million compared to $765 million in the same quarter last year.

"We had a simply outstanding quarter," said Evan G. Greenberg, Chairman and Chief Executive Officer. "The results again put a point on the broad-based, diversified nature of our company geographically, by customer segment both and within commercial and consumer, by product and distribution channel."

Total premium growth was 7.5% YoY, with P&C premiums up 5.3% and life insurance premiums surging 24.6%. North America premiums increased 4.4%, with personal insurance rising 8.1% and commercial insurance up 3.5%. Overseas General Insurance saw 9.7% growth, with particularly strong performance in Asia (14.3%) and Latin America (10.6%).

Pre-tax net investment income reached a record $1.65 billion, up 9.3% YoY, while adjusted net investment income rose 8.3% to $1.78 billion.

The company reported annualized core operating return on tangible equity of 24.5% and annualized core operating ROE of 16.3%.

Chubb also increased share repurchases during the quarter, buying back $1.23 billion of stock at an average price of $277.67 per share, while paying $385 million in dividends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.