Chubb Limited (CB, Financial) reported a robust financial performance for the first quarter, achieving $1.5 billion in core operating income. The company's results were notably impacted by the significant losses from California wildfires, yet they delivered $441 million in underwriting income. This was achieved despite $1.6 billion in catastrophe losses. Chubb's combined ratio stood at 95.7%, with a notable improvement in the accident year combined ratio, excluding catastrophe losses, which was 82.3%, a 1.5-point enhancement from the previous year.
Investment income and life insurance also saw substantial growth. The adjusted investment income rose by 12.7% to $1.7 billion, while life income increased by 8.6% to $291 million. Total company premiums grew by 5.7% in constant dollars, affected by foreign exchange rates due to a strong dollar earlier in the year.
North American premiums were adjusted for one-time effects, resulting in a 6.4% increase, with personal insurance growing by 10.1% and commercial by 5.3%. Similarly, Chubb's Overseas General division recorded a 6.5% rise in premiums in constant dollars, with notable gains in Asia, Latin America, and Europe.
The current political and economic environment presents challenges, with uncertainty surrounding trade policies impacting business and consumer confidence. Despite these external pressures, Chubb remains optimistic about ongoing double-digit growth in operating income and earnings per share.
Evan Greenberg, Chubb's CEO, emphasized the strength of the company's underlying results and expressed confidence in continued growth, even amidst economic headwinds, inflation concerns, and geopolitical uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Chubb Ltd (CB, Financial) is $302.40 with a high estimate of $335.00 and a low estimate of $245.22. The average target implies an upside of 4.13% from the current price of $290.42. More detailed estimate data can be found on the Chubb Ltd (CB) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Chubb Ltd's (CB, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Chubb Ltd (CB, Financial) in one year is $247.71, suggesting a downside of 14.71% from the current price of $290.42. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Chubb Ltd (CB) Summary page.
