Is a Beat in the Cards for Chubb Limited This Earnings Season?

Chubb Limited CB is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 22, after market close.

The Zacks Consensus Estimate for CB’s second-quarter revenues is pegged at $14.83 billion, indicating 7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $5.85 per share. The Zacks Consensus Estimate for CB’s second-quarter earnings has moved up 0.1% in the past 30 days. The estimate suggests a year-over-year increase of 8.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What the Zacks Model Unveils for CB

Our proven model predicts an earnings beat for CB this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP: Chubb Limited has an Earnings ESP of +1.11%. This is because the Most Accurate Estimate of $5.91 is pegged higher than the Zacks Consensus Estimate of $5.85. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Chubb Limited Price and EPS Surprise

Chubb Limited price-eps-surprise | Chubb Limited Quote

Zacks Rank: Chubb Limited currently carries a Zacks Rank of 3.

Factors Likely to Shape Q2 Results

Premiums in the second quarter are likely to have benefited from growth across most product lines, driven by strong premium retention, including rate and exposure increases, and strong new business.

The high net-worth personal lines business is likely to have benefited from strong new business and retention, including positive rates and exposure increases across all lines.

Premiums at International Life Insurance are expected to have gained from strong new business in North Asia, notably in Hong Kong, Taiwan and Korea through broker distribution channels. 

The Zacks Consensus Estimate for net premiums earned is pegged at $13.1 billion, indicating an increase of 6.7% from the year-ago reported figure. We expect net premiums earned to be $13.1 billion.

Net investment income is likely to have benefited from higher average invested assets and higher reinvestment rates on fixed maturities. Chubb expects the quarterly adjusted net investment income to be at the midpoint of our previously guided six-month guidance. We expect net investment income to be $1.9 billion in the to-be-reported quarter.  The Zacks Consensus Estimate is pegged at $1.8 billion.

Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which is expected to have led to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 85%, an improvement of 200 basis points.

Expenses are expected to have increased because of higher losses and loss expenses, policy benefits, policy acquisition costs, administrative expenses and interest expenses. We estimate the metric to be $10.3 billion.

Nevertheless, share buybacks in the to-be-reported quarter are likely to have aided the bottom line.

Other Stocks to Consider

Here are three P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat: 

Root, Inc. ROOT has an Earnings ESP of +58.29% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.06, indicating a year-over-year increase of 303.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ROOT’s earnings beat estimates in each of the last four reported quarters.

Kinsale Capital Group, Inc. KNSL has an Earnings ESP of +1.03% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.41, calling for a year-over-year increase of 17.6%. 

KNSL’s earnings beat estimates in each of the last four reported quarters.

NMI Holdings Inc. NMIH has an Earnings ESP of +0.93% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.16, indicating a year-over-year decrease of 3.3%. 

NMIH’s earnings beat estimates in three of the last four reported quarters and missed in one.

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This article originally published on Zacks Investment Research (zacks.com).

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