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Chubb Limited (CB), headquartered in Zurich, Switzerland, provides insurance and reinsurance products worldwide. Valued at $104.08 billion by market cap, the company has operations in 54 countries and territories and offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. The insurance giant is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, Jul. 23.
Ahead of the event, analysts expect CB to report a profit of $5.14 per share on a diluted basis, up 4.5% from $4.92 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, the insurer’s core operating income rose double-digit, investment income was up by more than 23%, and life insurance income increased by nearly 10%.
For fiscal 2024, analysts expect CB to report EPS of $21.03, down 6.7% from $22.54 in fiscal 2023.
CB stock has outperformed the S&P 500’s ($SPX) 26.4% gains over the past 52 weeks, with shares up 33.3% during this period. Similarly, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 23.4% gains over the same time frame.
On Jun. 28, CB shares closed down more than 2% after William Blair analyst Adam Klauber downgraded the stock from Market Perform to Underperform.
CB’s overall performance can be attributed to its robust Q1 results and Berkshire Hathaway’s recent investment in the company. Its adjusted EPS was $5.41, beating the consensus estimates of $5.29. The insurer’s revenue stood at $12.89 billion, surpassing Wall Street’s forecast of $12.63 billion. On May 16, CB shares closed up more than 4% after Warren Buffett-led Berkshire Hathaway revealed a stake worth $6.7 billion in the company.
Analysts’ consensus opinion on CB stock is bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, seven advise a “Strong Buy” rating, two have a “Moderate Buy” rating, ten recommend a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for CB is $269.75, indicating a 5.2% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
