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Zurich, Switzerland-based Chubb Limited (CB) is an insurance and reinsurance company that provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. Valued at a market cap of $103.9 billion, it is expected to announce its fiscal Q4 earnings results after the market closes on Tuesday, Jan. 28.
Prior to this event, analysts project the insurance company to report a profit of $5.48 per share, down 34% from $8.30 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, CB’s adjusted EPS of $5.72 outpaced the Wall Street estimates by a notable margin of 16%.
For fiscal 2024, analysts expect Chubb to report an EPS of $21.93, down 2.7% from $22.54 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow 5.5% year-over-year to $23.14.
Shares of CB have gained 14.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 21.8% rise and the Financial Select Sector SPDR Fund’s (XLF) 25.2% return over the same time frame.
Chubb’s shares plunged 1.2% after its Q3 earnings release on Oct. 29 as its revenues of $15 billion, which grew 6.5% from the year-ago quarter, could not meet the Wall Street estimates of $15.2 billion. Higher catastrophe losses in the quarter somewhat affected CB’s otherwise strong performance in North America P&C, Overseas General, and Life Insurance divisions. On the brighter side, its adjusted earnings of $5.72 per share outpaced the Wall Street estimates of $4.93 and improved by 15.6% year-over-year. Solid underwriting income and improved investment income also aided the results.
Wall Street analysts are moderately optimistic about CB’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 11 recommend a "Strong Buy," two indicate “Moderate Buy,” nine suggest “Hold,” one indicates a “Moderate Sell,” and one suggests a “Strong Sell” rating.
The average price target for Chubb is $301.96, which indicates a 17.2% potential upside from the current levels.
