Chubb's Q4 net income rises,  expects annual double-digit growth in EPS

Overview

• Insurance co's Q4 net income rose 24.7% to $3.21 bln

• Core operating income for Q4 increased 21.7% to $2.98 bln

• P&C net premiums written in Q4 grew 7.7%

Outlook

• Chubb anticipates strong growth in operating earnings for 2026

• Company sees opportunities for growth in commercial insurance despite competitive market

• Chubb expects double-digit growth in EPS and tangible book value

Result Drivers

• P&C UNDERWRITING - P&C underwriting income increased 39.6% to $2.20 bln, aided by a record low combined ratio of 81.2% and reduced catastrophe losses

• LIFE INSURANCE GROWTH - Life Insurance net premiums written rose 16.9% to $1.83 bln, with segment income up 19.3%

• INVESTMENT INCOME - Record pre-tax net investment income of $1.69 bln, up 8.0%, contributed to profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "hold"

• Wall Street's median 12-month price target for Chubb Ltd is $326.00, about 4.7% above its February 2 closing price of $311.25

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPnFtzyxa

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