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Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings?Chubb NYSE: CB reported a strong second quarter of 2026, with Chairman and Chief Executive Officer Evan Greenberg pointing to underwriting performance, investment income, life insurance growth and global diversification as key contributors to results.

Core operating earnings were $2.8 billion, or $7.26 per share, up 14.6% and 18.2%, respectively, from the prior year, Greenberg said on the company’s earnings call. Tangible book value per share rose 17.1% year over year, which Greenberg described as the company’s “most important measure of shareholder wealth creation.”

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3 Insurance Stocks That Can Act as a New Inflation Hedge The insurer posted an annualized core operating return on tangible equity of 21.2% for the quarter and a core operating return on equity of 14.5%. Property and casualty underwriting income exceeded $1.9 billion, up almost 19%, with a combined ratio of 83.8%. On a current accident year basis excluding catastrophe losses, the combined ratio was 82.2%.

Investment Income Hits Record Level Adjusted net investment income reached a record $1.88 billion, up more than 11%, supported by performance in fixed income and alternative asset portfolios. Greenberg said the fixed income portfolio yield was 5.1%, while the current new money rate averaged 5.5% as of June 30. Chubb’s invested assets stood at $175 billion, up from $161 billion a year earlier.

Looking to Insure Your Portfolio? Start With These 3 StocksChief Financial Officer Peter Enns said adjusted operating cash flow totaled $3.5 billion in the quarter. He also noted that Chubb issued $2.2 billion of debt across several currencies at a weighted average cost of 4.2% and an average term of about 7.5 years, with proceeds intended for general corporate purposes, including repayment and refinancing of debt.

Enns said Chubb returned $1.4 billion of capital to shareholders in the quarter, including $979 million of share repurchases at an average price of $327.18 per share and $395 million in dividends. The company ended the quarter with book value of $75 billion, or $195.45 per share. Book value per share and tangible book value per share excluding accumulated other comprehensive income grew 2.8% and 3.8%, respectively, during the quarter.

Chief Investment Officer Chris Hogan said the public fixed income portfolio generated $1.63 billion of income, up 12% year over year, while private investments, representing 12% of the portfolio, contributed $250 million, up 9.5%. Hogan called the current environment “ideal” for investment-grade bond investors, citing reinvestment rates above the portfolio’s book yield.

Premium Growth Varies by Business Line Global property and casualty premiums rose 3%, or 6.3% excluding large account and excess and surplus property, Greenberg said. Overseas general premiums grew 10.2%, or 4.8% in constant dollars. North America premiums increased about 0.5%, as commercial lines declined 2.3%, while personal lines and accident and health each rose 6%.

Greenberg said the “substantial majority” of Chubb’s businesses are growing, while some are flat or shrinking because of inadequate pricing or terms. He specifically cited U.S. large account and E&S property as an area where the company again reduced premium volume.

International retail, which Greenberg said produces more than $17 billion in annual gross premiums and operates in 51 countries, grew almost 12%, or about 6% in constant dollars. Consumer-related businesses, including accident and health and personal lines, were up more than 12%, while commercial lines rose more than 11%. Latin America grew 15.6%, Asia grew 12% and Europe grew nearly 7.5%.

In North America commercial, middle market and small commercial premiums grew almost 9%, with property and casualty lines up 12% and financial lines down about 3%. Premiums in major account and specialty, including E&S, declined 9% because of property.

In North America personal lines, Chubb’s high-net-worth business generated 6% premium growth and renewal retention of 90% on an account basis. Greenberg said the North America personal lines business now produces more than $8 billion in annual gross premiums.

Greenberg Warns on Casualty Pricing Greenberg said soft market conditions have begun to extend beyond property into more casualty lines, particularly in E&S. He said certain classes of large account and middle market business are becoming more competitive, and pricing in multiple casualty areas is not keeping pace with loss costs.

“U.S. casualty loss costs are rising at a pretty steady 6%-7% for primary casualty, and 9.5%-12% for excess,” Greenberg said, adding that pricing can become inadequate quickly under those conditions. He said financial lines remain soft, with some newer market participants and managing general agents underwriting at prices and terms he considers inadequate.

In North America, commercial property and casualty pricing excluding financial lines and workers’ compensation was up 1.3%, with rates down 1.4% and exposure change of 2.7%. Property pricing was down about 6%, while casualty pricing rose 7.1%, including a 6.4% rate increase and 0.7% exposure growth. Financial lines pricing was up 0.3%.

Asked during the question-and-answer session about casualty pricing, Greenberg said the issue was not limited to commercial auto. “It’s across casualty,” he said, adding that there is “zero evidence across the industry” that loss costs have abated.

Life Insurance and Worksite Benefits Grow Life income was $332 million, up 9% from a year earlier. Greenberg said international life insurance premiums and deposits rose almost 14.5%, with most exposure in Asia and most growth in North Asia, including China, Hong Kong, Korea and Taiwan.

Chubb’s North America Worksite Benefits business grew premiums 14%. Greenberg said the business has been built steadily over more than five years, through brokerage distribution tied to small and middle market commercial relationships and through a retooled agency force focused on small and lower middle market employers.

Greenberg said the company sees “a tremendous opportunity” to continue growing Worksite Benefits organically at double-digit rates, and expects it to become a more significant contributor to Chubb’s top and bottom line over time.

Reserves, Catastrophe Losses and Capital Pre-tax catastrophe losses were $475 million, principally from weather-related events in the U.S., Enns said. Chubb recorded favorable pre-tax prior period development of $441 million in active companies, with 89% from short-tail lines and 11% from long-tail lines. The corporate runoff portfolio had adverse development of $158 million, more than two-thirds of which came from molestation-related claims development.

Net loss reserves increased to nearly $69 billion, up 4% from the second quarter of 2025. The paid-to-incurred ratio was 90% for the quarter, or 86% excluding catastrophe losses, prior period development and agriculture. When asked why the ratio remains below pre-pandemic levels, Greenberg said it “speaks to overall the strength of our reserves.”

Enns said the core operating effective tax rate was 19.2% for the quarter, below the company’s previously guided range because of shifts in income mix and discrete tax benefits. Chubb continues to expect a full-year core operating effective tax rate of 19.5% to 20%.

Greenberg said Chubb remains confident in its ability to generate strong operating earnings growth and double-digit tangible book value growth over time, while acknowledging softer commercial property and casualty market conditions. “We have many sources and handles to pull,” he said, citing the company’s global mix, life business, invested assets and capital management.

About Chubb (NYSE:CB)Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.

In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Chubb (CB - Free Report) came out with quarterly earnings of $7.26 per share, beating the Zacks Consensus Estimate of $6.63 per share. This compares to earnings of $6.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.50%. A quarter ago, it was expected that this insurer would post earnings of $6.48 per share when it actually produced earnings of $6.82, delivering a surprise of +5.25%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Chubb, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $15.77 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.8%. This compares to year-ago revenues of $14.81 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Chubb shares have added about 13% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Chubb?While Chubb has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Chubb was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.33 on $16.81 billion in revenues for the coming quarter and $26.77 on $64.36 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, The Hartford Insurance Group (HIG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 23.

This insurance and financial services company is expected to post quarterly earnings of $3.13 per share in its upcoming report, which represents a year-over-year change of -8.2%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level.

The Hartford Insurance Group's revenues are expected to be $5.19 billion, up 6% from the year-ago quarter.

Key Takeaways Chubb is expected to report Q2 revenue growth of 7.3% and EPS growth of 7.5%. Premium growth and higher investment income are expected to support results. CB's underwriting discipline and share buybacks are likely to support earnings. Chubb Limited (CB - Free Report) is expected to have registered an improvement in both top and bottom lines when it reports second-quarter 2026 results on July 21, after market close.

The Zacks Consensus Estimate for CB’s second-quarter revenues is pegged at $15.89 billion, indicating 7.3% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at $6.60 per share.

The Zacks Consensus Estimate for CB’s second-quarter earnings has moved up 0.5 % in the past 60 days. The figure suggests a year-over-year rise of 7.5%.

What the Zacks Model Unveils for CBOur proven model predicts an earnings beat for Chubb this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:

Earnings ESP: Chubb has an Earnings ESP of +1.09%. This is because the Most Accurate Estimate of $6.67 is pegged higher than the Zacks Consensus Estimate of $6.60. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Factors Likely to Shape CB's Q2 ResultsChubb's second-quarter revenues are likely to have benefited from higher investment income and solid premium growth, driven by strong new business generation, healthy policy retention, favorable pricing in casualty and specialty lines, increased insured exposures and continued expansion across international markets. The high-net-worth personal lines business is also likely to have contributed through robust new business, strong retention and favorable pricing. Additionally, digital initiatives and AI-enabled underwriting are also expected to have supported premium growth and operational efficiency.

Premium growth in the Life Insurance segment is also expected to have been supported by strong new business in North Asia, particularly in Huatai, Hong Kong, Taiwan and Korea, reflecting continued momentum across Chubb's international life operations. The Zacks Consensus Estimate for net premiums earned is pegged at $14 billion. We expect net premiums earned to be $13.9 billion, indicating a 6.6% year-over-year increase.

Net investment income is likely to have benefited from higher average invested assets and higher reinvestment rates on fixed maturities. Chubb expects quarterly adjusted net investment income of $1.825-$1.85 billion in the second quarter of 2026. We expect net investment income to be $2 billion in the quarter to be reported, indicating a 27.6% year-over-year increase. The Zacks Consensus Estimate is pegged at $1.86 billion, indicating an 19.2% year-over-year increase.

Prudent pricing in casualty and specialty lines, disciplined underwriting and favorable prior-year reserve development are expected to have supported underwriting profitability and the combined ratio. However, softer commercial property pricing and higher catastrophe losses from severe weather events are likely to have partially offset these benefits. The Zacks Consensus Estimate for the combined ratio is pegged at 85.6.

Expenses are expected to have increased because of higher policy acquisition costs, administrative expenses and interest expenses. We estimate the metric to be $12.6 billion, indicating an 13.5% year-over-year increase.

Nevertheless, share buybacks in the to-be-reported quarter are likely to have aided the bottom line.

Other Stocks to ConsiderHere are three P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +8.84% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 7.6%.

CINF’s earnings beat estimates in each of the last four reported quarters.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +23.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92, indicating a year-over-year decrease of 17.1%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Kinsale Capital Group, Inc. (KNSL - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.09 per share, indicating a year-over-year increase of 6.5%.

KNSL’s earnings beat estimates in each of the last four reported quarters.

Key Takeaways CB raised its quarterly dividend by 5.2%, extending its streak to 33 consecutive annual dividend increases. CB authorized a new $7.5 billion share repurchase program, enhancing capital return flexibility. Strong underwriting, investment income and cash flow support reinvestment and shareholder distributions. Chubb Limited (CB - Free Report) follows a disciplined and balanced capital deployment strategy that prioritizes profitable business growth while consistently returning excess capital to shareholders. Its strong underwriting performance, substantial operating cash flow and recurring investment income enable the company to maintain financial strength and deploy capital efficiently.

Chubb has a long track record of increasing its dividend. In 2026, the board approved a 5.2% increase in the quarterly dividend to $1.02 per share, marking the 33rd consecutive year of dividend increases. Share buybacks are a key component of Chubb's capital allocation strategy. Effective July 1, 2026, the board authorized a new $7.5 billion share repurchase program, providing management with significant flexibility to return excess capital when valuations are attractive.

Several factors that provide Chubb with the financial flexibility to deploy capital effectively are strong underwriting profitability and disciplined risk selection; robust operating cash flow generated from recurring insurance premiums; significant investment income; and excellent capital adequacy and balance sheet strength.

Chubb invests heavily in expanding its global insurance franchise through product innovation, geographic expansion, technology, AI-driven underwriting, digital claims capabilities and distribution partnerships to support long-term profitable growth.

Chubb prioritizes preserving its superior capitalization and liquidity, enabling it to support underwriting growth and maintain high financial strength ratings across market cycles.

Chubb's combination of steady dividend growth, substantial share repurchases, disciplined reinvestment and selective acquisitions reflects a prudent capital allocation philosophy. Backed by industry-leading underwriting performance, strong cash generation, and a fortress balance sheet, the company is well-positioned to create sustainable long-term shareholder value.

What About Its Peers?First American Financial Corporation (FAF - Free Report) follows a balanced capital-return strategy that combines a steadily growing dividend with opportunistic share repurchases. FAF generally uses a combination of regular dividend increases and selective share repurchases to distribute excess capital. FAF has increased its dividend for more than 15 consecutive years, reflecting management's commitment to returning capital through various housing market environments.

American Financial Group, Inc. (AFG - Free Report) has one of the most shareholder-friendly capital allocation policies in the U.S. insurance sector. AFG regularly generates capital that is needed to support underwriting operations. Returning excess capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of American Financial’s capital management strategy. The combination of growing regular dividends, frequent special dividends, opportunistic buybacks and strong underwriting profitability has enabled the company to deliver substantial cash returns to investors over time.

CB’s Price PerformanceShares of CB have gained 26.6% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

CB’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.72, higher than the industry average of 1.49. It carries a Value Score of B.

Image Source: Zacks Investment Research

Estimate Movement for CBThe Zacks Consensus Estimate for CB’s second-quarter 2026 has moved up 0.1%, and the third-quarter 2026 EPS has moved down 0.1% in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved down 0.1% and 0.2%, respectively, in the past 30 days.

Image Source: Zacks Investment Research