Multi-Line Insurance Stocks Q3 Earnings: Chubb (NYSE:CB) Best of the Bunch

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Chubb (NYSE:CB) and the rest of the multi-line insurance stocks fared in Q3.

Multi-line insurance companies operate a diversified business model, offering a broad suite of products that span both Property & Casualty (P&C) and Life & Health (L&H) insurance. This diversification allows them to generate revenue from multiple, often uncorrelated, underwriting pools while also earning investment income on their combined float. Interest rates matter for the sector (and make it cyclical), with higher rates allowing insurers to reinvest their fixed-income portfolios at more attractive yields and vice versa. The market environment also matters for P&C operations specifically, with a 'hard market' characterized by pricing increases that outstrip claim costs, resulting in higher profits while a 'soft market' is the opposite. On the other hand, a key headwind is increasing volatility and severity of catastrophe losses, driven by climate change, which poses a significant threat to P&C underwriting results.

The 4 multi-line insurance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 11.4%.

In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results.

Best Q3: Chubb (NYSE:CB)

Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE:CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.

Chubb reported revenues of $16.14 billion, up 7.5% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.

Chubb scored the fastest revenue growth of the whole group. The stock is up 15.5% since reporting and currently trades at $311.00.

Is now the time to buy Chubb? Access our full analysis of the earnings results here, it’s free.

AIG (NYSE:AIG)

With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE:AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.

AIG reported revenues of $7.06 billion, up 3.2% year on year, outperforming analysts’ expectations by 2.9%. The business had a strong quarter with a beat of analysts’ EPS and net premiums earned estimates.

The market seems unhappy with the results as the stock is down 3.3% since reporting. It currently trades at $78.08.

Is now the time to buy AIG? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Kemper (NYSE:KMPR)

Originally known as Unitrin until rebranding in 2011, Kemper (NYSE:KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.

Kemper reported revenues of $1.24 billion, up 4.9% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a significant miss of analysts’ book value per share estimates.

Kemper delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $39.69.

Read our full analysis of Kemper’s results here.

Hartford (NYSE:HIG)

Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE:HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.

Hartford reported revenues of $7.23 billion, up 7.1% year on year. This result topped analysts’ expectations by 38.9%. It was a strong quarter as it also produced an impressive beat of analysts’ net premiums earned estimates and a solid beat of analysts’ revenue estimates.

Hartford delivered the biggest analyst estimates beat among its peers. The stock is up 10.3% since reporting and currently trades at $137.88.

Read our full, actionable report on Hartford here, it’s free.

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