Chubb (CB) Up 1.4% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Chubb (CB). Shares have added about 1.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Chubb due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Chubb Q4 Earnings & Revenues Top Estimates on Solid Underwriting

Chubb Limited reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.

Total operating revenues improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%.

Chubb’s strong performance was driven by solid underwriting, robust premium growth and record investment income. These results were further supported by a significant reduction in catastrophe-related pressure compared with the prior year, leading to an improved combined ratio.

CB’s Quarter in Detail

Net premiums written improved 8.9% year over year to $13.1 billion. Our estimate was $13 billion, while the Zacks Consensus Estimate was pegged at $12.9 billion.

Net investment income was a record $1.7 billion, up 8%, while adjusted net investment income was $1.8 billion, up 7.3% year over year.

Property and casualty (P&C) underwriting income was a record $2.2 billion, which rose 39.6% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion. P&C current accident year underwriting income ex cats was $2.3 billion, up 16.5% year over year.

Pre-tax catastrophe losses were $365 million, much lower than the year-ago loss of $607 million.

The P&C combined ratio improved 450 basis points (bps) on a year-over-year basis to 81.2% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 83.6%.

Segmental Update

North America Commercial P&C Insurance: Net premiums written increased 4.3% year over year to $5.1 billion. Our estimate was $5 billion. The combined ratio improved 180 bps to 78.8%. Our estimate was 79.6%.
North America Personal P&C Insurance: Net premiums written climbed 6.1% year over year to $1.72 billion. Our estimate was $1.75 billion. The combined ratio improved 850 basis points to 74.1%, reflecting lower catastrophe losses and higher favourable prior-period development. Our estimate was 78.8%.

North America Agricultural Insurance: Net premiums written increased 45.1% from the year-ago quarter to $459 million, primarily due to a rise in exposure in the company’s crop insurance business, which more than offset year-over-year declines in commodity prices. The consensus estimate was $366.5 million. The combined ratio improved 910 bps to 67%.

Overseas General Insurance: Net premiums written jumped 10.8% year over year to $3.8 billion. The Zacks consensus estimate was 3.7 billion. The combined ratio improved 460 bps to 83%. Our estimate was 85.7%.

Global Reinsurance: Net premiums written declined 3.9% year over year to $217 million. Our estimate was $235.1 million. The combined ratio improved 2,830 bps to 71.6%. Our estimate was 84.4%

Life Insurance: Net premiums written increased 16.9% year over year to $1.8 billion, which matched our estimates. The growth covers 17.8% in International Life and 17.0% in Chubb Benefits.  The Life Insurance segment income was $322 million, up 19.3% in constant dollars. The Zacks Consensus Estimate was pegged at $322.7 million.


Full-Year Highlights of CB

Chubb 2025 core operating income of $24.79 per share marginally missed the Zacks Consensus Estimate of $24.83. The bottom line increased 10.8% year over year.

Net premiums written of $54.8 billion increased 6.6%.

P&C underwriting income of $6.5 billion improved 11.6% year over year. Combined ratio was 85.7%, up 90 bps.

Financial Update of CB

The cash balance of $2.5 billion, as of Dec. 31, 2025, decreased 3.1% from the 2024-end level.

Total shareholders’ equity grew 16.7% from the 2024-end level to about $80 billion as of Dec. 31, 2025.

Book value per share, as of Dec. 31, 2025, was $188.59, up 18% from the figure as of Dec. 31, 2024.

Core operating return in the fourth quarter of 2025 on tangible equity expanded 150 bps year over year to 23.5%.

Operating cash flow was $4.06 billion in the quarter under consideration, while adjusted operating cash flow was $4.17 billion.

Capital Deployment of CB

In 2025, Chubb returned $4.91 billion to shareholders, including $3.39 billion in share repurchases and $381 million in dividends.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Chubb has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Chubb has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Chubb is part of the Zacks Insurance - Property and Casualty industry. Over the past month, W.R. Berkley (WRB), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended December 2025 more than a month ago.

W.R. Berkley reported revenues of $3.72 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $1.13 for the same period compares with $1.13 a year ago.

For the current quarter, W.R. Berkley is expected to post earnings of $1.16 per share, indicating a change of +14.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for W.R. Berkley. Also, the stock has a VGM Score of B.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research