NYSE$CB

Chubb Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Chubb reported increased fourth quarter net income and core operating income, with growth in consolidated net premiums written.

Chubb's Q4 2019 results showed a significant increase in net income, rising to $1,173 million from $355 million in the prior year. Core operating income also increased to $1,040 million from $935 million. The P&C combined ratio improved slightly to 92.7% compared to 93.1% in the previous year.

  • Net income increased to $1,173 million, or $2.57 per share, compared to $355 million, or $0.76 per share, in the prior year.
  • Core operating income rose to $1,040 million, or $2.28 per share, from $935 million, or $2.02 per share, year-over-year.
  • P&C net premiums written increased by 9.0% to $7.4 billion, or 9.8% in constant dollars.
  • The P&C combined ratio was 92.7%, an improvement from 93.1% in the prior year.

Headline financials

Total Revenue

$7.38B

Previous: $6.77B+9.0%
EPS (adj)

$2.28

Previous: $2.02+12.9%
P&C Combined Ratio

92.7%

Previous: 93.1%-0.4%
P&C Underwriting Income

$533M

No prior period
Net Income

$1.17B

Previous: $355M+230.4%
Operating Income

$1.04B

No prior period
Gross Profit

$8.76B

Previous: $7.61B+15.2%
Cash & Equivalents

$1.54B

Previous: $1.25B+23.3%
Total Assets

$177B

Previous: $168B+5.5%

Revenue & EPS history

Chubb · Revenue · Quarterly

$7.38B

Q4 2019+9%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Chubb · $7.27B total across 2 segments · Q4 2019

  • NA P&C
    $4.89B
  • Overseas General
    $2.38B

Forward guidance

The company has started the new year in excellent shape and with a lot of momentum. They are focused on executing their many long-term strategic initiatives that will position them for long-term revenue and earnings growth.

Tailwinds

  • Organization built to capitalize on market conditions
  • Focus on executing long-term strategic initiatives
  • Positioned for long-term revenue growth
  • Positioned for long-term earnings growth
  • Rates increasing at an accelerated pace quarter on quarter while spreading to more classes of business, risk types and countries.

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 Q4 2019

Historical avgQ4 2019

+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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