Chubb Limited

Chubb had a mixed start to 2023 and delivered a mixed result with revenues above Wall Street expectations. However, it failed to meet earnings expectations of analysts despite managing a double-digit operating earnings growth. The company had double-digit premium growth in revenue that was broad-based, global, and driven by robust results in its commercial as well as consumer P&C business and its International Life business. Chubb experienced world-class underwriting results, high net investment, as well as life income more than doubled. The P&C rate in North America and price increases reaccelerated in this quarter. Life Insurance premium revenue and Life earnings doubled. This was an outcome of Chubb’s business in Asia. Also, this was because of the addition of the Cigna operation, which was largely A&H and product makeup. The fundamentals of its business and business model are broad-based and very strong. The consolidated net written premium increased. P&C premium growth in this quarter was balanced. In the quarter, pricing and rates for North America, aggregate and financial lines were down. Internationally, it continued to achieve an improved exposure rate over its commercial portfolio. Premiums in its international personal lines business were down. We give Chubb Limited a ‘Hold’ rating with a revised target price.