Insurer Chubb Limited (CB) is bracing for a $1.5 billion net pre-tax loss due to a wildfire disaster in LA in the first quarter of 2025. Notably, the LA wildfire is the costliest tragedy in U.S. history, according to various estimates. On the other hand, Chubb reported a strong fourth quarter, contributing to a solid full-year performance in 2024. CB shares fell 1.53% on Tuesday.
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Chubb Reports Robust Investment, Underwriting Gains
Chubb reported a record $1.69 billion in adjusted net investment income in Q4, marking a 13.7% year-over-year surge. The investment income grew because of a market boost from the Federal Reserve cutting interest rates and expectations of lower corporate taxes and less regulation under President Donald Trump. Additionally, the core operating income, excluding tax benefits, increased to $2.45 billion in Q4, up from $2.28 billion in the same period last year.
Meanwhile, the company’s P&C (Property & Casualty) underwriting gain rose 3.8% to a record $1.58 billion in Q4, driven by an 8.1% increase in net earned premiums. For the full year, underwriting income reached a record $5.85 billion in 2024, marking a 7.1% increase.
Overall, insurance spending has remained strong even with ongoing economic and environmental challenges.
In 2024, the company returned $3.48 billion to its shareholders, including $2.02 billion in share repurchases and $1.46 billion in dividends. Earlier this month, Chubb paid a quarterly dividend of $0.91.
Is Chubb a Good Buy Right Now?
As per the consensus rating on TipRanks, CB stock has received a Moderate Buy rating, based on six Buy, five Hold, and one Sell recommendation. The Chubb share price forecast is $305.64, which is 12.26% above the current trading level.
