Solid Earnings Coming from Our Insurer

After a recent rally, Chubb (CB) is down less than one percent today after reporting first-quarter earnings last night.

Earnings per share (EPS) of $2.54 in first quarter of 2019 versus $2.30 same period last year were $0.02 below expectations, with currency fluctuations driving the shortfall. Otherwise, the report was quite solid, with premiums up 2.9% or 5.1% in constant dollars, and catastrophic losses down 30% from a year ago.

CB is close to my $145 target following the recent strength in financial stocks. Hold the shares for now, and I will soon tell you whether I am raising my target or decide to take profits.

This new guidance also applies to Inner Circle subscribers.