What's In The Cards For Chubb (CB) This Earnings Season?
Zacks Investment Research | Oct 24, 2019 11:15PM ET
Chubb (NYSE:CB) is set to report third-quarter 2019 earnings on Oct 29, after market close. The company delivered positive surprise of 2.60% in the last reported quarter, driven by higher premium revenues.
Factors at Play
Chubb’s third-quarter results are likely to have benefited from premium growth, expanded invested assets and a solid market presence.
Premiums in the to-be-reported quarter are likely to have benefited from improved commercial property and casualty insurance pricing, prudent underwriting, higher policy renewal and new business volume growth.
Growth in invested assets and strong cash flows is likely to have aided net investment income in the to-be reported quarter. The company estimates quarterly adjusted net investment income between $890 million and $900 million.
Continued focus on capitalizing on growth opportunities in its North American business along with prudent management of risk is likely to have aided the business.
Overseas General Insurance segment is likely to have gained from its middle–market and small commercial business.
The top-line is likely to have benefited from improved premium revenues from North America Commercial and Personal P&C businesses.
Sustained buyback is likely to have provided additional boost to the bottom line.
Expenses are expected to have increased due to higher interest, higher losses, administrative expenses and policy acquisition costs.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.64, implying an increase of 9.5% from the year-ago reported figure.
What Our Quantitative Model States
Our proven model predicts an earnings beat for Chubb in the soon-to-be-reported quarter because it has the right combination of two key ingredients. A stock needs to have both a positive Zacks Investment Research
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