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Hurricane Isaias has moved into the Gulf of Mexico, forcing oil companies to shut in about 1.3 million barrels of daily production. This represents more than half of the total U.S. output from the region as refineries and offshore platforms prepare for the storm's impact.
For Chubb, major storms are a double-edged sword. While they often lead to a spike in insurance claims for property damage and business interruptions, they also tend to push insurance prices higher across the industry. As a major insurer of large corporations and energy infrastructure, Chubb's results in the coming months will likely reflect how well it prepared for this season's storm activity.
Source: CNBC
Chubb will share its latest quarterly results on Tuesday, October 20. Analysts are looking for revenue of about 15.7 billion dollars and profit of roughly $6.65 per share. For a long-term owner, the most important numbers to watch are the combined ratio and premium growth. The combined ratio measures how much the company pays out in claims and expenses for every dollar it takes in; keeping this well below 90 percent is the best sign that Chubb is pricing its insurance policies more accurately than its rivals.
Chubb named two new leaders to its digital business team on Thursday. This move follows the recent appointment of a Chief Scientist to oversee the company's use of data and AI. These roles are focused on how the insurer sells policies and handles claims through digital channels. While these are senior appointments, they represent a routine update to the team rather than a shift in direction. For a long-term owner, the focus remains on whether these digital efforts actually help the company keep its costs low and price its insurance more accurately than rivals.
Source: PRNewsWire
Chubb named Sean Ringsted as Chief Scientist and Executive Vice President. He will lead the company's efforts to use artificial intelligence and data analytics across its global business.
This role is important because Chubb's main advantage is its ability to price risk more accurately than rivals. By using better data to decide what to charge for a policy, the company can avoid bad bets and keep its profit margins higher than the rest of the industry. This move shows the company is doubling down on that technical edge.
Source: PRNewsWire
The Federal Reserve raised interest rates by a quarter of a percentage point this week. While higher rates make borrowing more expensive for people and businesses, they are generally good news for insurance companies like Chubb.
Chubb holds a massive portfolio of over 100 billion dollars, mostly in bonds, which it uses to pay out future claims. As interest rates rise, the company can reinvest the cash from older, lower-yielding bonds into new ones that pay more. This helps boost the investment income that supports its overall profit.
Management has a perfect record of beating their own profit targets for two straight years, showing they set conservative bars and have total control over their costs.
| Expectation | |
|---|---|
| EPS | $6.65 |
| Revenue | $15.71B |