A month has gone by since the last earnings report for Chubb (CB). Shares have added about 3.5% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Chubb due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Chubb's Q4 Earnings Surpass on Underwriting Strength

Chubb Limited reported fourth-quarter 2023 core operating income of $8.30 per share, which outpaced the Zacks Consensus Estimate by 63.7%. The bottom line doubled year over year.

Chubb's results reflected record underwriting income, lower catastrophe loss, improved combined ratio across most of the segments and higher premium growth across all the segments.

Quarter in Detail

Net premiums written improved 13.4% year over year to $11.6 billion in the quarter, which matched our estimate, while the Zacks Consensus Estimate was pegged at $11.4 billion. Net premiums earned rose 12.8% to $11.9 billion. Our estimate was $10.8 billion.

Net investment income was $1.37 billion, up 30.2%. The Zacks Consensus Estimate was pegged at $1.3 billion, while our estimate was pinned at $1.2 billion. Property and casualty (P&C) underwriting income was $1.52 billion, which increased 35.2% from the year-ago quarter. Global P&C underwriting income, excluding Agriculture, was $1.5 billion, up 27.4%.

Chubb incurred a pre-tax P&C catastrophe loss, net of reinsurance and including reinstatement premiums, of $300 million, which was narrower than the year-ago catastrophe loss of $400 million. The P&C combined ratio improved 250 basis points (bps) on a year-over-year basis to 85.5% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 86, while our estimate was 81.7.

Segmental Update

North America Commercial P&C Insurance: Net premiums written increased 4.4% year over year to $4.7 billion, which matched our estimate. The Zacks Consensus Estimate was pegged at $4.8 million. The combined ratio improved 790 bps to 76.4%. The Zacks Consensus Estimate was pegged at 83.

North America Personal P&C Insurance: Net premiums written climbed 12.1% year over year to $1.5 billion. Our estimate was $1.4 billion. The combined ratio improved 310 bps to 86.2%. The Zacks Consensus Estimate was pegged at 87.

North America Agricultural Insurance: Net premiums written increased 58.2% from the year-ago quarter to $607 million. Our estimate was $418.4 million, while the Zacks Consensus Estimate was pegged at $386 million. The combined ratio improved 1,140 bps to 105.8%. The Zacks Consensus Estimate was pegged at 94.

Overseas General Insurance: Net premiums written jumped 19.3% year over year to $3.2 billion, which matched our estimate. The combined ratio deteriorated 630 bps to 85.9%, representing lower favorable prior period development and higher catastrophe losses.

Life Insurance: Net premiums written soared 20.3% year over year to $1.45 billion. Our estimate was $1.6 billion.

The Life Insurance segment income was $263 million, up 43.5%. The increase was principally driven by growth in International life, which grew $102 million, representing earnings from Huatai and higher net investment income.