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Valued at a market cap of $109.8 billion, Chubb Limited (CB) is a property and casualty insurance company that provides commercial, personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. This Zurich, Switzerland-based company is scheduled to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, Apr. 22.
Ahead of this event, analysts project this insurance giant to report a profit of $3.26 per share, down 39.7% from $5.41 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. In Q4 2024, CB’s EPS of $6.02 surpassed the forecasted figure by 10.3%.
For fiscal 2025, analysts expect Chubb to report a profit of $20.88 per share, down 7.2% from $22.51 in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026 and grow by 20.7% year over year to $25.21.
Shares of CB have soared 8.5% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 2.7% downtick, and the Financial Select Sector SPDR Fund’s (XLF) 6.1% rise over the same time frame.
Shares of CB surged 1.3% on the day following its Q4 earnings release on Jan. 28. Its total net premiums written surged 4% year-over-year to $12.1 billion, supported by a 6.7% rise in global P&C net premiums written, excluding agriculture, and a 7.6% increase in its life insurance net premiums written. However, its core operating income fell 27.5% year-over-year to $6.02 per share. The decline can be largely attributed to elevated catastrophe losses, which rose to $607 million, from $300 million in the same quarter last year. A significant portion of this increase was due to losses from Hurricane Milton.
Wall Street analysts are moderately optimistic about CB’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, 10 recommend "Strong Buy," two suggest “Moderate Buy,” eight advise “Hold,” one gives a “Moderate Sell,” and one advocates a “Strong Sell” rating. The mean price target for Chubb is $306.33, which indicates a 11.7% potential upside from the current levels.
