Why Is Chubb (CB) Down 0.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Chubb (CB). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Chubb due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Chubb Limited before we dive into how investors and analysts have reacted as of late.

CB Q2 Earnings Beat on Higher Underwriting and Investment Income

Chubb Limited reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income and higher life insurance income supported results. Net premiums earned increased 5.8% to $13.89 billion.

CB's Underwriting Profit Rises

P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Current accident year underwriting income, excluding catastrophe losses, advanced 5.8% to $2.13 billion. The corresponding combined ratio improved 10 basis points to 82.2%, indicating steady underlying profitability.

Chubb's Catastrophe Losses Decline

Pre-tax net catastrophe losses were $475 million, down from $630 million in the year-ago quarter. Favorable prior-period reserve development increased to $283 million from $249 million. These factors helped offset softer conditions in selected property lines. Management said pricing pressure remained most pronounced in large-account and excess and surplus property, while softness was spreading to parts of casualty and financial lines.

CB's Premium Growth Remains Broad

Consolidated net premiums written increased 3.6% year over year to $14.71 billion. The Zacks Consensus Estimate was $15 billion while our estimate was $15.1 billion. P&C net premiums written rose 3.0% to $12.77 billion and increased 6.3% when large-account and excess and surplus property were excluded. Global P&C net premiums written, excluding agriculture, advanced 2.8% to $11.99 billion. Life insurance net premiums written grew 7.5% to $1.94 billion, adding balance to the company's premium expansion.

Chubb's North America Results Diverge

North America Commercial P&C net premiums written declined 2.3% to $5.59 billion. Our estimate was $5.9 billion. Major accounts and specialty fell 9.0% as underwriting actions weighed on property business, while middle-market and small commercial premiums increased 8.9% to $2.34 billion. North America Personal P&C net premiums written grew 6.0% to $2.05 billion (our estimate was $2 billion), while its combined ratio improved 620 basis points to 67.3%. Agricultural premiums rose 6.0% to $776 million (our estimate was $769 billion), though the segment's combined ratio increased 60 basis points to 89.7%.

CB's Overseas Business Delivers Growth

Overseas General Insurance net premiums written jumped 10.2% to $3.99 billion, or 4.8% in constant dollars. Our estimate was $4.2 billion. Commercial P&C premiums increased 8.8%, while consumer P&C premiums advanced 12.1%. The segment's combined ratio improved 810 basis points to 82.2%. Latin America, Asia and Europe posted premium growth of 15.6%, 12.0% and 5.1%, respectively, underscoring the benefit of Chubb's geographic diversification.

Chubb's Investment and Life Income Rise

Pre-tax net investment income increased 12.3% to a record $1.76 billion. Adjusted net investment income rose 11.4% to $1.88 billion, supported by fixed-income and alternative asset portfolios. Life Insurance segment income increased 9.0% to $332 million. Net premiums written and deposits collected climbed 14.4% to $2.65 billion, with International Life income up 13.0%.

CB's Cash Flow Funds Shareholder Returns

Operating cash flow totaled $3.73 billion, while adjusted operating cash flow was $3.48 billion. Chubb returned $1.37 billion to shareholders during the quarter. Share repurchases totaled $979 million at an average price of $327.18 per share. Dividend payments were $395 million, bringing the total capital returned during the first six months of 2026 to $2.90 billion.

Chubb's Book Value Strengthens

Book value per share was $195.45 as of June 30, 2026, up 12.3% year over year. Tangible book value per share increased 17.1% to $131.93. Annualized core operating return on tangible equity was 21.2%, while annualized core operating return on equity was 14.5%. Total invested assets were $175.40 billion, supporting the company's investment income base.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

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 value investors.

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 looks promising. Notably, 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, Progressive (PGR), a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended June 2026 more than a month ago.

Progressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago.

Progressive is expected to post earnings of $3.66 per share for the current quarter, representing a year-over-year change of -9.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Progressive. Also, the stock has a VGM Score of C.

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

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