NYSE$CB

Chubb Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Chubb's second quarter performance was marked by record core operating income and a strong P&C combined ratio.

Chubb Limited reported a decrease in net income but a record core operating income for the second quarter of 2022. The P&C combined ratio was a record 84.0%, and P&C net premiums written were up 9.0%. The company also completed the acquisition of Cigna’s accident and health (A&H) and life business.

  • Net income was $1.22 billion, while core operating income reached a record $1.79 billion.
  • Consolidated net premiums written increased by 7.9%.
  • P&C underwriting income was a record $1.44 billion, resulting in a record P&C combined ratio of 84.0%.
  • Pre-tax net investment income was $888 million, and adjusted net investment income was $950 million, both records.

Headline financials

Total Revenue

$9.94B

Previous: $9.66B+2.9%
EPS (adj)

$4.20

Previous: $3.62+16.0%
P&C Combined Ratio

84.0%

Previous: 85.5%-1.8%
Annualized ROE

9.0%

No prior period
Free Cash Flow

$1.22B

Previous: $2.27B-46.4%
Net Income

$1.22B

Previous: $2.27B-46.4%
Operating Income

$1.5B

Previous: $2.55B-41.5%
Gross Profit

$2.49B

Previous: $2.63B-5.2%
Cash & Equivalents

$7.12B

Previous: $1.84B+286.4%
Total Assets

$196B

Previous: $197B-0.8%

Revenue & EPS history

Chubb · Revenue · Quarterly

$9.94B

Q2 2022+2.9%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Chubb · $4.66B total across 2 segments · Q3 2023

  • Overseas General
    $3.21B+21.4%
  • Life Insurance
    $1.45B+14.1%

Forward guidance

Chubb is optimistic about its future prospects, driven by commercial P&C growth and pricing, increasing investment income, accelerating consumer lines growth, and the addition of Cigna’s business in Asia.

Tailwinds

  • Commercial P&C growth and pricing remain strong.
  • Investment income is increasing due to rising rates and strong cash flow.
  • Consumer lines growth is accelerating globally.
  • Life company revenue and earnings will benefit from the addition of Cigna’s business in Asia.
  • These factors will continue to drive strong EPS growth.

Headwinds

  • Unfavorable foreign currency movement negatively impacted P&C net premiums written growth by 2.0 percentage points.
  • Strength of the dollar impacted published growth.
  • Net income in the quarter was adversely impacted by realized losses of $565 million after tax, principally due to the mark-to-market impact on private and public equities and from sales in fixed income securities.
  • Book value was unfavorably impacted by after-tax net realized and unrealized losses of $4.91 billion in the company’s investment portfolio, principally due to the mark-to-market impact from rising interest rates in the fixed income portfolio.
  • The company is mindful of the world around us.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.2%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+7.9%

Q4 2019

Best reaction

-7.3%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.7%-1.4%-0.4%
Q4 2025+5.1%+4.1%+4.7%
Q3 2025+2.7%+4.6%+10.8%
Q2 2025+1.0%+0.5%+2.7%
Q1 2025-2.2%-2.8%-1.5%
Q4 2024+1.3%+0.6%+4.9%
Q3 2024-2.2%-4.3%+0.1%
Q2 2024-0.8%+3.1%+4.1%
Q1 2024-3.4%-2.4%+4.6%
Q4 2023+0.9%+1.6%+3.7%
Q3 2023+4.4%+1.0%+9.8%
Q2 2023+2.7%+2.7%+0.3%
Q1 2023-1.1%+0.5%-5.0%
Q4 2022-5.6%-7.2%-7.8%
Q3 2022+0.4%+5.5%+5.3%
Q2 2022-0.1%+0.8%+5.5%
Q1 2022+1.6%-0.4%+0.2%
Q4 2021+5.2%+4.7%+4.4%
Q3 2021+1.2%+3.9%+1.2%
Q2 2021-1.3%+0.4%+9.6%
Q1 2021-1.2%+3.3%+2.0%
Q4 2020+4.9%+9.8%+12.1%
Q3 2020+1.1%+3.1%+21.1%
Q2 2020-0.3%-3.9%-3.5%
Q1 2020-7.3%-9.3%-1.4%
Q4 2019+7.9%+6.2%-5.4%
Q3 2019+3.5%+1.5%+2.6%
Q2 2019+2.6%+3.5%+5.0%
Q1 2019+0.4%+1.0%+1.5%
Q4 2018-3.0%-2.7%-0.9%
Q3 2018-1.7%-2.9%+4.1%
Q2 2018+1.3%+2.9%-0.5%
Q1 2018-0.7%-0.7%-3.5%
Q4 2017+1.3%-0.6%-9.3%
Q3 2017-0.9%-2.2%-3.4%
Q2 2017-2.0%-1.0%-2.8%
Q1 2017+1.6%+0.3%+4.4%
Q4 2016-2.5%-0.3%+5.1%
Q3 2016+3.9%+4.3%+3.6%
Q2 2016-0.6%-2.1%-1.5%
Q1 2016+3.6%
Q4 2015+0.1%
Q3 2015+3.7%
Q2 2015-0.1%
Q1 2015+0.6%
Q4 2014-1.2%
Q3 2014+1.0%
Q2 2014-0.9%
Q1 2014+0.1%
Q4 2013-0.2%
Q3 2013-0.2%
Q2 2013+0.5%
Q1 2013-0.7%
Q4 2012+2.0%
Q3 2012-0.5%
Q2 2012+1.7%
Q1 2012+1.4%
Q4 2011-0.7%
Q3 2011+0.3%
Q2 2011-5.5%
Q1 2011+0.8%
Q4 2010+1.0%
Q3 2010-2.7%
Q2 2010+0.9%
Q1 2010+1.8%
Q1 2009+1.8%
Q4 2007-0.7%
Q4 2009-0.7%
Q3 2008+2.0%
Q3 2009+2.0%
Q2 2008-1.3%
Q4 2008-1.3%
Q2 2009-1.3%

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