Chubb Stock Rises After Q4 Profit Beat: Retail Stays Bullish But Gets More Cautious

Chubb Ltd (CB) shares rose 2.8% on Wednesday after the insurance company beat Wall Street estimates for quarterly profit.

The Zurich-based company reported core operating earnings of $6.02 per share, compared with the average analysts’ estimate of $5.45 per share, according to Koyfin data.

However, its net income slumped 22% to $2.58 billion compared to last year when it had booked a tax benefit in Bermuda.

The company said its global fourth-quarter property and casualty net premiums, excluding agriculture, rose 6.7%, its commercial insurance gained 6.4%, and consumer insurance rose 7.5%.

The insurer’s pretax net investment income increased 14% to a record $1.56 billion, while overall net premiums rose 4% to $12.06 billion.

It recorded catastrophe losses of $607 million during the fourth quarter, including $309 million from Hurricane Milton. Last year it had booked $300 million in catastrophe losses.

The company added that it expects a $1.5 billion hit during the first quarter due to the California wildfires.

“Overall market conditions are quite favorable, and we see really good growth opportunity for over 80% of our global P&C business, commercial and consumer, as well as our life business,” said CEO Evan Greenberg.

Retail sentiment on Stocktwits stayed in ‘bullish’ (55/100) territory, albeit with a lower score, while retail chatter jumped to ‘extremely high.’

BofA Global Research raised the price target of stock to $269 from $266 following the earnings report.

Over the past year, Chubb stock has gained 16.2%.

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