ZURICH - Chubb Limited (NYSE: NYSE:CB) delivered robust first-quarter financial results, surpassing analyst expectations with earnings per share (EPS) of $5.41, which was $0.10 higher than the consensus estimate of $5.31.
The company's revenue reached $12.22 billion, also exceeding the $11.75 billion analyst forecast. The stock was trading flat after-hours.
The insurer reported a 13.3% increase in net income to $2.14 billion and a 20.3% rise in core operating income to $2.22 billion. These improvements were slightly influenced by two one-time items: a $55 million deferred tax benefit related to the Bermuda tax law and a $30 million contribution to the Chubb Charitable Foundation.
Global property and casualty (P&C) net premiums written saw a significant uptick of 13.3%, with commercial and consumer insurance growing by 11.1% and 19.3%, respectively. Notably, P&C underwriting income climbed by 15.4% to $1.40 billion, and the combined ratio improved to 86.0%. Excluding catastrophe losses, the P&C current accident year underwriting income increased by 10.3%, with a combined ratio of 83.7%.
Life Insurance also performed well, with net premiums written up by 26.3% and segment income growing by 9.8%. The company's pre-tax net investment income surged by 25.7%, and adjusted net investment income grew by 23.5%.
Despite the strong results, Chubb's stock experienced a modest decline of 0.64% following the earnings release, indicating a neutral market response.
Evan G. Greenberg, Chairman and CEO, attributed the quarter's success to double-digit growth in core operating income, P&C underwriting income, investment income, and life insurance income. He highlighted the company's balanced sources of earnings and enduring quality, with significant contributions from P&C underwriting, adjusted net investment income, and life segment income.
Greenberg expressed confidence in Chubb's ability to continue growing operating earnings rapidly through P&C revenue growth, underwriting margins, investment income, and life income, citing the company's strong start to the year.
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