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Chubb Limited CB reported second-quarter 2021 core operating income of $3.62 per share, which surpassed the Zacks Consensus Estimate by 22.3% on the back of improved premium revenues. The bottom line rebounded from the year-ago loss of 52 cents per share.
The company’s results benefited from highest organic P&C growth in over 15 years, driven by commercial P&C businesses and supported by continued robust commercial P&C pricing. The quarter marked record core operating earnings and underwriting results.
Chubb Limited Price, Consensus and EPS Surprise
Chubb Limited price-consensus-eps-surprise-chart | Chubb Limited Quote
Quarter in Detail
Net premiums written climbed 14.3% year over year to $9.5 billion in the quarter. Net premiums earned improved 8.4% to $8.8 billion.
Net investment income amounted to $884 million, increased 6.9% year over year.
In the second quarter, P&C underwriting income was $1.2 billion, rebounding from the year-ago loss of $0.9 billion.
Chubb incurred $226 million of after-tax catastrophe losses, net of reinsurance and including reinstatement premiums in the second quarter, narrower than the year-ago loss of $1.5 billion.
Combined ratio improved 2680 basis points (bps) year over year to 85.5 in the quarter under review.
North America Commercial P&C Insurance: Net premiums written increased 15.2% from the prior-year quarter to $4.3 billion. Combined ratio improved 3420 bps to 83.1.
North America Personal P&C Insurance: Net premiums written increased 2.6% from the prior-year quarter to $1.4 billion. Combined ratio improved 40 bps to 79.2.
North America Agricultural Insurance: Net premiums written improved 11% year over year to $512 million. Combined ratio improved 310 bps to 90.9.
Overseas General Insurance: Net premiums written advanced 23.6% from the year-ago quarter to $2.5 billion. Combined ratio improved 230 bps to 88.7.
Global Reinsurance: Net premiums written increased 32.4% year over year to $274 million. Combined ratio deteriorated 1000 bps to 86.6
Life Insurance: Net premiums written dipped 0.7% year over year to $615 million.
As of Jun 30, 2021, cash balance of $1.8 billion improved 5.5% from the figure at 2020 end.
Total shareholders’ equity increased about 1% from the level at 2020 end to $60.1 billion as of Jun 30, 2021.
Book value per share as of Jun 30, 2021 was $136.90, up 3.8% from the figure as of Dec 31, 2020.
Core operating return on equity (ROE) came in at 11.5% in the quarter under consideration.
During the quarter, operating cash flow totaled $3.1 billion.
In the quarter, the company bought back shares worth $2.27 billion including share repurchases of $1.92 billion and dividends of $352 million.
Chubb currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other insurers that have already reported their second-quarter results, the bottom line at The Progressive Corporation PGR, The Travelers Companies’ TRV and RLI Corp RLI beat the respective Zacks Consensus Estimate.
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