Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

Chubb appears to be a high-quality insurance business with strong returns on capital and a moderate earnings valuation, but the market is already pricing in a significant portion of these strengths. Its P/E is below the industry median and its P/FCF also looks attractive, which supports the valuation; however, P/B is noticeably above the industry level and limits re-rating potential. Return on capital is strong: ROE, ROA, ROI, and return on tangible equity are all materially above the median, and their trend over recent periods is generally positive, which points to good business quality. Net and operating margins remain stable and show no signs of deterioration, although gross margin looks weaker relative to the industry. Revenue, net income, operating income, and shareholders’ equity are growing, confirming fundamental resilience and the ability to generate profits. At the same time, EBITDA in the latest period declined versus earlier levels, so the short-term momentum is not ideal. The company’s balance sheet is strong in terms of debt-to-capital, but current and quick ratios look weak, which is typical for the insurance sector but still warrants caution. Long-term debt does not appear critical relative to capital, but its presence together with low liquidity does not allow for a materially higher target valuation. Dividend yield is low and is not the main driver of the investment case, so the dividend factor is rather neutral here. Overall, fundamentals support a fair value above the current price, but due to the expensive P/B, weak liquidity, and lack of clear growth acceleration, upside potential is limited. For an investor, this is more a story of a high-quality, stable, and profitable insurer than an undervalued growth opportunity. Therefore, the target forecast should be adjusted only slightly downward, while maintaining a conservative view of a valuation that is already close to fair value.

Chubb Limited

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Слабый индекс, незначительно упал

Chubb has strong return on capital and profitability, but its expensive P/B and weak liquidity limit re-rating potential.

Shares of Berkshire Hathaway Inc. BRK.B have gained 7.3% in a year, underperforming the industry’s 9.8% increase, the Finance sector’s rise of 14.2% and the Zacks S&P 500 composite’s gain of 19.2% in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 in a Year
Image Source: Zacks Investment Research
BRK.B’s peer, Chubb Limited CB, has gained 36.3% in a year, while another peer, The Progressive Corporation PGR, has lost 8.4% in the same time frame.
BRK.B is Expensive
Shares of Berkshire Hathaway are trading on par with its industry. The stock is currently trading at a price-to-book multiple of 1.52, but above the five-year median of 1.45. It has a Value Score of D.
Image Source: Zacks Investment Research
Berkshire Hathaway is relatively cheap compared with PGR and CB.
The Case for BRK.B Stock
Berkshire Hathaway’s insurance operations remain central to its business, generating nearly a quarter of total revenues and supporting long-term value creation. Disciplined underwriting, extensive market reach and consistent profitability across economic cycles strengthen the segment. Its greatest advantage is the substantial insurance float, which provides low-cost capital for investments across Berkshire’s diversified portfolio.
The company continues to reshape its investment portfolio to enhance income stability and geographic diversification. Recent moves include increasing stakes in Japanese trading houses, expanding housing-related investments and strengthening airline exposure while reducing holdings in payment companies.
Berkshire’s operating subsidiaries further stabilize earnings. Berkshire Hathaway Energy generates predictable cash flows through its regulated utility operations while expanding renewable-energy capacity. This positions the business to benefit from electrification, decarbonization and the transition to cleaner energy.
BNSF Railway also remains a valuable asset. Its extensive freight network and exposure to essential transportation demand provide a durable competitive advantage, although softer freight volumes and lower fuel-surcharge revenues may put pressure on near-term results.
The Manufacturing, Service and Retail businesses add another layer of diversification. Although more sensitive to economic conditions, these operations offer meaningful upside when stronger demand supports higher sales and margins.
Berkshire’s exceptional financial strength remains a key advantage. Cash and U.S. Treasury holdings exceeded $370 billion at the end of 2025, providing substantial acquisition capacity and steady investment income. Meanwhile, insurance float reached $176.9 billion as of March 31, 2026, reinforcing Berkshire’s ability to fund investments efficiently and compound shareholder value over the long term.
Berkshire Hathaway’s Return on Capital
Return on equity (ROE) in the trailing 12 months was 6.6%, underperforming the industry average of 7.4%. Return on equity, a key profitability measure, reflects how effectively a company utilizes its shareholders’ funds. It is noteworthy that though BRK.B’s ROE lags the industry average, the metric has been improving consistently.
The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B’s efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.4%, lower than the industry average of 5.7%.
Optimistic Analyst Sentiment on BRK.B
The Zacks Consensus Estimate for 2026 revenues indicates a 3.8% year-over-year increase, while the same for earnings implies a 1.2% year-over-year increase. The consensus estimate for 2027 revenues and EPS indicates a year-over-year increase.
The consensus estimate for 2026 and 2027 earnings has moved 0.2% north each, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for CB’s 2026 earnings has moved north, but that for 2027 has moved south in the past 30 days.
Estimates for PGR’s 2026 earnings have moved north but those for 2027 have moved south in the same time frame.
Parting Thoughts on BRK.B Shares
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight now shifts to the next chapter, with Greg Abel as CEO, while Buffett remains executive chairman.
Given analysts' optimism and solid growth prospects, it’s time to add this Zacks Rank #2 (Buy) stock to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BRK.B Lags Industry in a Year: Is the Stock Still a Buy?

Aon plc AON reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year.
Total revenues of $4.2 billion grew 2% year over year. The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%.
The quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions.
Aon plc Price, Consensus and EPS Surprise
AON’s Q2 Operations
Total operating expenses inched up 1% year over year to $3.3 billion due to higher expenses related to organic revenue growth, investments in long-term growth and unfavorable foreign currency translation. This was partly offset by lower expenses associated with the sale of NFP Wealth. The metric was in line with our estimate.
Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate. The metric benefited from organic revenue growth, scale improvements in ABS and net restructuring savings, partially offset by growth investments. Adjusted operating margin improved 70 basis points year over year to 28.9%.
Q2 Segmental Performance
Risk Capital
Commercial Risk Solutions: Organic revenues rose 5% year over year in the second quarter on the back of new business and strong retention rates across North America and EMEA. Revenues in this solution line advanced 5% year over year to $2.3 billion, in line with the Zacks Consensus Estimate.
Reinsurance Solutions: Organic revenues grew 5% year over year, driven by increased treaty placements, new business wins and strong client retention, along with growth in facultative placements. Revenues amounted to $711 million, which improved 3% year over year but missed the consensus mark by 1%.
Human Capital
Health Solutions: Organic revenues inched up 5% year over year as a result of new business growth, strong retention rates and positive market impact. The solution line’s revenues increased 6% year over year to $818 million, which beat the Zacks Consensus Estimate by 0.4%.
Wealth Solutions: Organic revenue growth of 5% was driven by expansion in Retirement and continued demand for advisory services in the UK and EMEA amid ongoing regulatory changes. Revenues totaled $426 million, down 18% year over year. The metric lagged the consensus mark by 3.2%.
AON’s Q2 Financial Position
Aon exited the second quarter with cash and cash equivalents of $1.1 billion, which declined 11.1% from the 2025-end level. Total assets of $53.3 billion increased 5% from the 2025-end figure.
Long-term debt amounted to $12.9 billion, down 11.7% from the figure as of Dec. 31, 2025. Short-term debt and the current portion of long-term debt totaled $2 billion.
Aon generated cash flow from operations of $556 million, which decreased 30% year over year. Adjusted free cash flow decreased 34% year over year to $483 million.
Aon’s Capital Deployment Update
Aon bought back 1.9 million Class A ordinary shares for roughly $600 million in the second quarter of 2026. It also returned $175 million to shareholders through dividends. As of June 30, 2026, the company had approximately $7.7 billion remaining under its share repurchase authorization.
AON Reaffirms Its 2026 Outlook
Revenues are expected to witness mid-single-digit or higher organic growth in 2026. The company anticipates adjusted operating margin expansion of 70-80 basis points. It projects strong growth in adjusted EPS for the year. Free cash flow is likely to grow at a double-digit rate, while the tax rate is expected to be in the 19.5-20.5% range.
AON’s Zacks Rank & Key Picks
AON currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported second-quarter 2026 results so far, the bottom-line figures of RenaissanceRe Holdings Ltd. RNR, Chubb Limited CB and First American Financial Corporation FAF beat their respective Zacks Consensus Estimate.
RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%. The bottom line also improved 5.1% year over year. Total operating revenues declined 6.7% year over year to $2.64 billion. The top line missed the consensus mark by 1%. Net premiums earned declined 8.8% year over year to $2.2 billion. Net investment income of $432.5 million advanced 4.7% year over year. RenaissanceRe's underwriting income declined 0.4% year over year to $599.1 million. The combined ratio improved to 72.8% from 75.1% in the year-ago quarter. The Property segment’s net premiums earned of $881.6 million increased 1.6% year over year.
Chubb’s second-quarter 2026 core operating earnings of $7.26 per share beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%.Consolidated net premiums written increased 3.6% year over year to $14.71 billion. Pre-tax net investment income increased 12.3% to a record $1.76 billion. Chubb’s Global P&C net premiums written, excluding agriculture, advanced 2.8% to $11.99 billion. Life insurance net premiums written grew 7.5% to $1.94 billion.
First American Financial reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. First American’s Investment income totaled $183.7 million, up 14.7% year over year. In the Title Insurance and Services unit, total revenues rose 16.9% year over year to $2 billion. Investment income increased 11% to $164 million. Adjusted pretax margin expanded 310 bps to 15.7%. Title open orders increased 0.7% to 188,200, while closed orders declined 0.7% to 137,300.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Aon Q2 Earnings Beat Estimates on New Business Wins, Strong Retention

Unum Group’s UNM second-quarter 2026 operating net income of $2.16 per share surpassed the Zacks Consensus Estimate by 1%. The bottom line increased 4.4% year over year.
The quarterly results benefited from premium growth across core businesses, improved performance in Unum U.S. and Colonial Life, and strong sales momentum. However, lower net investment income, higher total costs and weaker Closed Block results partly offset these gains.
Unum Group Price, Consensus and EPS Surprise
UNM’s Operational Update
Total operating revenues of Unum Group were $3.4 billion, down 0.1% year over year. The top line surpassed the Zacks Consensus Estimate by 14.3%.
Premium increased 2.5% from the prior-year quarter to $2.8 billion, which was higher than our estimate of $2.5 billion. The Zacks Consensus Estimate was pegged at $2.6 billion.
Net investment income declined 14.7% year over year to $478.4 million, primarily due to lower returns from alternative investments.
Total benefits and expenses increased 3.3% year over year to $3 billion, largely attributable to higher policy benefits, commissions and other expenses. The figurewas higher than our estimate of $2.5 billion.
UNM’s Quarterly Segment Update
Unum U.S.: Premium income was $1.86 billion, up 3.3% year over year.
Adjusted operating income decreased 22.8% year over year to $261 million, primarily due to less favorable disability experience and higher benefit costs. It excluded the amortization of the deferred gain on reinsurance of $4.4 million and the impact of non-contemporaneous reinsurance of $0.7 million. Our estimate was $314 million.
The group disability line of business reported a 17.4% decrease in adjusted operating income while the group life and accidental death and dismemberment line of business reported a 32.8% increase. The supplemental and voluntary line of business reported an increase of 8.2%.
Unum International: Premium income of $289.3 million increased 6.7% year over year.
Adjusted operating income was $24.3 million, down 41.6% year over year. Our estimate was $51.7 million.
The Unum U.K. line of business premium income totaled £175.5 million, up 5.2% from the year-ago quarter, primarily due to in-force block growth, sales and favorable persistency. Adjusted operating income, in local currency, was £15.3 million, down 48% year over year.
The benefit ratio, excluding the reserve assumption updates, was 82.2%, which deteriorated 720 basis points (bps), primarily due to higher average claim size and increased claim incidence in the group long-term disability business.
Sales decreased 14.9% to £32.6 million.
Persistency decreased in the supplemental product line, the group long-term disability and the group life product line.
Colonial Life: Premium income increased 3.3% from the prior-year figure to $477.4 million, driven by stable overall persistency and prior period sales.
Sales increased 0.9% from the year-ago figure to $106.3 million.
Adjusted operating income increased 11.9% from the prior-year period to $131.4 million. Our estimate was $113.4 million.
Persistency was 78.2% for the first half of 2026, improved 30 bps year over year. The benefit ratio, excluding the reserve assumption updates, improved 300 bps year over year to 46.7%.
Closed Block: Premium income decreased 10.8% to $192.9 million. The segment reported an adjusted operating loss of $61.2 million, compared with a loss of $10.8 million in the year-ago quarter. The decrease was primarily due to lower net investment income and the amortization of the cost of reinsurance. Our estimate for loss was $55 million.
Corporate: The segment incurred an adjusted operating loss of $44.5 million, wider than the year-ago quarter’s loss of $31.7 million, primarily due to decreased net investment income. Our estimate for loss was $45.1 million.
UNM’s Capital Management
As of June 30, 2026, the weighted average risk-based capital ratio for Unum Group’s traditional U.S. insurance companies was approximately 480%.
Unum Group exited the second quarter with holding company liquidity worth $1.5 billion.
Book value per share grew 3.8% year over year to $68.28 as of June 30, 2026.
UNM repurchased approximately $200 million of common shares and paid $73.5 million in common stock dividends during the second quarter.
UNM’s 2026 Guidance
UNM expects that after-tax adjusted operating income per share will increase to 22.2% from 21.2% in the year-ago period.
Management expects 2026 EPS of $8.60-$8.90, implying 8-12% growth.
UNM’s Zacks Rank
UNM currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UNM Q2 Earnings and Revenues Beat Estimates on Solid Premium Growth

AXIS Capital Holdings Limited AXS reported second-quarter 2026 operating income of $2.84 per share, which missed the Zacks Consensus Estimate of $3.23 and fell 12.1% year over year.
The quarterly results reflected higher net premiums earned and continued premium growth. However, higher catastrophe losses, lower net investment income and increased operating expenses weighed on performance.
Axis Capital Holdings Limited Price, Consensus and EPS Surprise
AXS’ Quarterly Operational Update
Total operating revenues of $1.7 billion marginally missed the Zacks Consensus Estimate by 1%. The top line rose 7.4% year over year on higher premiums earned.
Net premiums written decreased 1.8% to $1.6 billion, reflecting lower premiums in the Reinsurance segment, partially offset by growth in the Insurance segment.
Net investment income decreased 3% year over year to $181.6 million, due to lower income from alternative investments and cash. The Zacks Consensus Estimate was pegged at $208.7 million.
Total expenses in the reported quarter increased 6.2% year over year to $1.4 billion due to higher net losses and loss expenses, acquisition costs and reorganization expenses. Our estimate was pegged at $1.4 billion.
Pre-tax catastrophe and weather-related losses, net of reinsurance, totaled $152 million, including $95 million from natural catastrophes. The remaining $57 million was attributable to weather-related events.
AXIS Capital’s underwriting income of $142.9 million decreased 24.5% year over year. The combined ratio deteriorated to 93.1 in the second quarter from 88.9 a year ago, reflecting higher catastrophe and weather-related losses. The Zacks Consensus Estimate was pegged at 93.2. Our estimate was 93.8.
Segment Results
Insurance: Gross premiums written improved 15.3% year over year to $2.2 billion. Our estimate was $2.1 billion. Net premiums earned increased 14.9% year over year to $1.2 billion, driven by premium growth across most business lines. Our estimate was $1.1 billion.
Underwriting income of $119.4 million decreased 21.3% year over year. The combined ratio deteriorated 470 basis points to 90. The Zacks Consensus Estimate for the combined ratio was pegged at 89.7.
Reinsurance: Gross premiums written decreased 24.7% year over year to $439.5 million, mainly due to lower renewals and portfolio optimization compared to our estimate of $554.9 million. Net premiums earned declined 8% year over year to $331.8 million. Our estimate was pinned at $399.5 million.
Underwriting income of $23.6 million decreased 37.3% year over year. The combined ratio deteriorated 250 basis points to 94.5. The Zacks Consensus Estimate for the combined ratio was pegged at 94.1.
AXS’ Financial Update
AXIS Capital exited the second quarter with cash and cash equivalents of $780 million, down 4.9% from the 2025-end level. Debt remained essentially unchanged at $1.32 billion.
Shareholders' equity increased 2.3% from the 2025-end level to $6.5 billion.
Book value per diluted common share was $79.01, up from $78.19 as of Dec. 31, 2025.
Annualized operating return on average common equity (operating ROACE) was 14.3%, down from 19% a year ago.
Capital Deployment
AXIS Capital returned $84 million to common shareholders in the second quarter, including $52 million in share repurchases and $32 million in dividends. The company also declared a quarterly dividend of 44 cents per common share.
AXS’ Zacks Rank
AXIS Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, a 2% drop in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AXIS Capital Q2 Earnings Miss Estimates on Higher Catastrophe Losses

Arch Capital Group Ltd. ACGL reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year.
Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
ACGL's Underwriting Results Weaken
Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion.
Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%. Catastrophe losses totaled $201 million, while favorable prior-year reserve development was $165 million.
Arch Capital's Insurance Segment Faces Cat Losses
Insurance gross premiums written declined 2.9% year over year to $2.60 billion. The figure was lower than our estimate of $2.7 billion. Net premiums written fell 5.1% to $1.93 billion. The figure was lower than our estimate of $1.95 billion.
Underwriting income plunged 79.1% to $27 million. The figure was lower than our estimate of $70.2 million. The combined ratio worsened by 510 basis points to 98.5%. The combined ratio excluding catastrophe activity and prior-year development was 91.6%, up 100 basis points.
ACGL's Reinsurance Profitability Remains Strong
Reinsurance gross premiums written inched up 0.2% to $3.20 billion. The figure was lower than our estimate of $3.06 billion. Net premiums written dropped 10.4% to $1.84 billion, partly due to non-renewals, reduced participations and targeted increases in retrocessions. The figure was lower than our estimate of $2 billion.
Underwriting income decreased 9.1% to $410 million. The figure was higher than our estimate of $384.2 million. However, the combined ratio improved 100 basis points to 77.5%. The underlying combined ratio increased 270 basis points to 79.9%.
Arch Capital's Mortgage Results Moderate
Mortgage gross premiums written rose 0.3% year over year to $324 million, while net premiums written increased 7.5% to $272 million. Growth in international business offset lower U.S. monthly premium volume. The figure for gross premiums written was higher than our estimate of $314.9 million, while that for net premiums written was higher than our estimate of $247.6 million.
Underwriting income declined 7.6% to $220 million. The figure was lower than our estimate of $226.7 million. The combined ratio deteriorated 760 basis points to 22.8%. Excluding prior year development, the combined ratio was 39.8% compared with 39.3% a year earlier.
ACGL's Investment Portfolio Adds Support
Pre-tax net investment income increased 3% year over year to $417 million, supported by growth in average invested assets and strong operating cash flows. The figure was higher than our estimate of $420.9 million. Equity in net income from investments accounted for under the equity method rose to $196 million from $162 million.
Arch Capital ended the quarter with $1.11 billion in cash and $4.29 billion in senior notes. Book value per share rose 2.8% sequentially to $68.04. Net cash provided by operating activities increased 17.6% year over year to $1.32 billion.
Arch Capital's Returns and Capital Actions
Net income available to common shareholders was $1.05 billion, or $3 per share, compared with $1.23 billion, or $3.23 per share, in the year-ago quarter. Annualized net income return on average common equity was 18%, which contracted 490 basis points year over year, while annualized operating return was 15.3%, which contracted 290 basis points year over year.
The company completed a $2 billion senior notes offering in June and used part of the proceeds for debt refinancing and tender offers. Interest expense increased to $44 million from $38 million. Arch Capital also repurchased $1.2 billion of shares during the quarter, contributing to an 8.2% year-over-year decline in diluted weighted-average shares.
Zacks Rank
Arch Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property and Casualty Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%.
Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Total benefits and expenses increased 12.8% year over year to $2.7 billion.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ACGL Q2 Earnings Beat on Reserve Gains, Investment Income

Brown & Brown, Inc.’s BRO second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year.
Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
BRO's Q2 Details
Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million.
Adjusted EBITDAC margin contracted 100 basis points to 35.7%.
Adjusted net income attributable to the company increased 18.4% to $361 million. However, a 14% increase in the diluted weighted-average share count limited per-share growth. GAAP net income rose 24.7% to $288 million, while diluted GAAP earnings increased 7.7% to 84 cents.
Brown & Brown's Organic Growth Slips
Organic revenues decreased 0.7% to $1.18 billion. Organic revenues with contingent commissions increased 0.7% to $1.24 billion, supported by higher profit-sharing commissions from insurance carriers.
Core commissions and fees increased 30.3% year over year to $1.57 billion.
Investment income and other income decreased 39% year over year to $22 million.
BRO's Retail Segment Expands
Retail revenues increased 35.9% year over year to $947 million, primarily due to acquisition activity. Organic revenues advanced 1.5% to $678 million, while organic revenues with contingents increased 2.5% to $692 million.
Net new business and exposure-unit expansion supported organic growth. These gains were partially offset by declines in catastrophe property rates and lower revenues from a specialty pharmacy business. Adjusted EBITDAC climbed 46.9% to $282 million, and the margin expanded 230 basis points to 29.8%.
Brown & Brown's Specialty Unit Softens
Specialty Distribution revenues increased 28.1% to $721 million, aided by acquisitions and higher contingent commissions. Organic revenues, however, declined 3.5% to $498 million, while organic revenues with contingents fell 1.6% to $545 million.
Declining catastrophe property rates and approximately $10 million of new-business timing pressure weighed on the segment. Adjusted EBITDAC rose 17.1% to $308 million, but the adjusted margin contracted 400 basis points to 42.7% amid weaker organic revenues and investments in European capabilities.
BRO's Costs and Margins
Total expenses increased 32.8% year over year to $1.29 billion. Employee compensation and benefits rose 31% to $838 million, while other operating expenses increased 28.4% to $271 million. Amortization more than doubled to $110 million, and interest expense increased 96% to $100 million.
Adjusted EBITDAC rose 27% to $598 million, but growth trailed the top-line increase, resulting in margin contraction. Adjusted income before taxes increased 17.4% to $480 million.
Brown & Brown's Cash Flow and Capital
Net cash provided by operating activities increased 13% to $608 million during the first six months of 2026. Cash and cash equivalents were $918 million as of June 30, down from $1.08 billion at the end of 2025.
The company repurchased $250 million of stock during the second quarter. Brown & Brown also paid $112 million in dividends and declared a quarterly dividend of 16.5 cents per share, up 10% year over year.
BRO's Market Outlook
Management expects rate changes across most admitted insurance lines in the second half of 2026 to remain relatively similar to second-quarter levels. Casualty and auto rates continued to increase, while property and workers’ compensation pricing was flat to lower.
Excess-and-surplus casualty rates are expected to keep rising because of the legal environment. Brown & Brown does not expect catastrophe property rates to change materially in the second half compared with the first. Capital deployment will focus on share repurchases; internal investment, debt reduction and acquisitions centered on specialty businesses.
Zacks Rank
Brown & Brown currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%.
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Brown & Brown Q2 Earnings Miss Estimates on Weak Organic Growth

Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year.
Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Strong underwriting, higher net revenues and margin expansion supported earnings.
Principal Financial Group, Inc. Price, Consensus and EPS Surprise
PFG's Costs Rise With Benefit Outlays
Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.
Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Principal's Retirement Business Gains Ground
Retirement and Income Solutions’ net revenues increased 9% year over year to $779 million. Favorable market performance and business growth supported the increase.
Pre-tax operating earnings rose 11% to $323.3 million, while the operating margin expanded 60 basis points to 41.5%. Transfer deposits increased 30% to $9 billion, and recurring deposits advanced 6% to $13 billion. Participant roll-ins totaled $1.7 billion in the quarter.
PFG's Asset Management Results Stay Mixed
Investment Management’s operating revenues less pass-through expenses increased 1% to $431.6 million. Pre-tax operating earnings edged up 1% to $159.4 million, while the operating margin remained stable at 37.5%.
International Pension delivered stronger growth. Net revenues increased 16% to $184.8 million, and pre-tax operating earnings rose 24% to $97 million. Assets under management reached a record $168.5 billion, up 18%, aided by more favorable encaje returns and foreign-currency tailwinds.
PFG's Benefits Unit Drives Profit Growth
Specialty Benefits’ premiums and fees increased 4% to $873.3 million. Pre-tax operating earnings rose 25% to $158.9 million, driven by premium growth and more favorable underwriting. Specialty Benefits’ loss ratio improved 280 bps to 57.4%. This was driven by improvements across all products.
The unit’s operating margin improved 300 basis points to 18.2%, while the incurred loss ratio declined 280 basis points. Life Insurance revenues fell 6% to $224.1 million, but pre-tax operating earnings increased 26% to $25.2 million on improved mortality experience. Its operating margin expanded 280 basis points to 11.2%.
PFG's AUM Rises Despite Net Outflows
Principal Financial’s assets under management increased 7% year over year to $808 billion. The total was included within assets under administration of $1.89 trillion.
AUM net cash outflows were $11.1 billion compared with $2.6 billion a year earlier. Investment Management recorded $12 billion of net outflows, concentrated in a small number of U.S. active equity strategies. Market performance added $47.5 billion to AUM during the quarter.
Principal Financial's Capital Returns Remain Strong
The company returned $426.7 million to shareholders during the quarter. This included $250.2 million of share repurchases and $176.5 million of dividends.
Principal Financial ended the quarter with $1.6 billion of excess and available capital, an estimated 400% risk-based capital ratio and a 23.6% debt-to-capital ratio. Book value per share, excluding certain fair-value and accumulated other comprehensive income effects, was $58.40.
PFG's SMB Strategy Adds Scale
Principal Financial agreed to acquire Beam Benefits, a provider of dental, vision, life, disability and supplemental health products for small and midsized businesses. Beam serves more than 25,000 employer customers and generated $175 million in premiums during 2025.
The transaction is expected to close in the second half of 2026. Principal Financial maintained its 2026 earnings-per-share and capital targets and expects Specialty Benefits growth to be at or above the high end of its 5-9% target range in 2027. The board also raised the third-quarter dividend by 2 cents to 84 cents per share.
Zacks Rank
Principal Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.
Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Y/Y

Key Points
Insurance companies collect premiums up front and pay out on claims in the future, which creates what is known as the float.
Insurance companies like Berkshire Hathaway get to use the premiums they collect until claims are paid.
Insurance companies invest the float in very different ways.
There are two aspects of an insurance company that investors need to monitor. The first is how well they run their insurance operations. The second is how well they manage the float. The float is why insurance companies can be some of the market's best long-term compounders.
There are material differences between how insurance companies manage the float. At one extreme are companies like Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) and Cincinnati Financial (NASDAQ: CINF), and at the other are companies like Progressive (NYSE: PGR) and Chubb (NYSE: CB). Here's what you need to know before buying any of these insurance stocks.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Warren Buffett created a model that others want to follow
All insurance companies try to write policies profitably, so they collect more in premiums than they pay out in claims. The key metric to monitor on this front is the combined ratio. A number below 100% means a company is making a profit. Big events can push that number above 100% temporarily, so you really want to see it below 100% most of the time, not all of the time.
That said, the main reason insurance companies are powerful compounders is that they can invest the premiums they collect while they wait for claims to come in. This money is known as the float. Warren Buffett, the former CEO of Berkshire Hathaway, often spoke about this. It was one of the keys to his company's long-term success.
Buffett was particularly aggressive with the float, investing it in stocks and even buying whole companies. Eventually, Berkshire Hathaway turned into a giant conglomerate. Buffett's successor, Greg Abel, for example, recently bought homebuilder Taylor Morrison. His plan is to eventually integrate this business with other housing-related businesses Berkshire Hathaway owns. Some of the stocks in which Berkshire Hathaway is invested include iconic companies like Coca-Cola (NYSE: KO) and American Express (NYSE: AXP).
Other companies have tried to use the same approach Buffett has, including Market Group (NYSE: MKL) and, more recently, Brookfield Corporation (NYSE: BN) and Howard Hughes (NYSE: HHH). All three could be defined as investment-led insurance companies.
Cincinnati Financial has a similar approach, but isn't as aggressive. The company releases its full portfolio of holdings every quarter. At the end of the first quarter of 2026, equities accounted for approximately 39% of the company's investment portfolio. However, Cincinnati Financial doesn't buy entire companies. For less aggressive investors, it could be a better option than companies that follow the more aggressive Berkshire Hathaway model.
A more traditional approach
Most insurance companies are much less aggressive. For example, Progressive's equity investments were around 4.5% of its total portfolio at the end of the first quarter of 2026. Chubb's equity exposure was higher at around 16.5%, including private equity investments. Both are well below the 50% that Cincinnati Financial approaches.
Most of Progressive and Chubb's investments are in bonds. The goal is simply to generate a reliable income stream from the float to support earnings. Meanwhile, the bonds remain available for sale should a large event push claims higher. Investing more in stocks increases the risk that a large claim event could come during a bear market, forcing equity to be sold at a loss. That said, while bonds tend to be less volatile, they don't provide the capital gains opportunity of stocks. There's a balance, and most insurance companies tend to err on the side of caution.
That doesn't mean that investors should avoid companies like Progressive and Chubb. It simply suggests that they don't provide the upside potential of Berkshire Hathaway. A lower risk profile, however, may be more appropriate for some long-term investors. With greater equity exposure comes greater risk during a bear market, when the value of an equity portfolio generally falls. It is also worth noting that many companies that follow the Berkshire model don't pay dividends, whereas Progressive and Chubb do.
The middle ground?
Cincinnati Financial is probably a good middle ground for investors who want to benefit from the compounding power of owning stocks, but don't want the risk of buying entire companies. This insurer is a Dividend King, with over 50 years of annual dividend increases. Still, the float is the secret sauce that turns a boring business like writing insurance into a powerful compounding tool for shareholders. But don't just buy an insurance company, dig in and make sure you understand how it uses the float.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
American Express is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Brookfield Corporation, Howard Hughes, and Markel Group. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Insurance Stocks Can Be Some of the Market's Best Long-Term Compounders

The Hartford Insurance Group, Inc. HIG delivered second-quarter fiscal 2026 earnings per share of $3.42, up 6% year over year and above the Zacks Consensus Estimate of $3.12 by 9.6%.
Revenues came in at $5.23 billion, topping the consensus mark of $5.19 billion by 0.8%. The top line improved 6.8% year over year.
The quarterly results benefited from higher investment income, premium growth in Business Insurance and improving Personal Insurance profitability. Strong new business expansion in Small Business and favorable pricing trends supported results. However, the upside was partly offset by an increased expense level, higher catastrophe losses and weaker Employee Benefits profitability.
The Hartford Insurance Group, Inc. Price, Consensus and EPS Surprise
The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote
HIG Benefits From Investment Income Growth
The Hartford’s second-quarter core earnings inched up 1% year over year to $945 million. Net income available to common stockholders rose 31% year over year to $1.3 billion, helped by stronger operating performance and income from discontinued operations.
Earned premiums grew 5.3% year over year to $6.3 billion, marginally higher than the Zacks Consensus Estimate. Net investment income, before tax, advanced 22% year over year to $800 million, higher than the consensus mark of $746 million. The increase reflected higher income from limited partnerships and other alternative investments, along with growth in invested assets.
Total benefits, losses and expenses escalated 8.8% year over year to $6 billion due to higher amortization of DAC and insurance operating expenses.
P&C current accident year catastrophe losses were $222 million, up 4.7% year over year.
HIG Business Insurance Delivers Steady Growth
The Business Insurance unit remained the largest contributor to operating performance, with written premiums rising 5% year over year to $4 billion. Net income rose 1% to $704 million, while core earnings declined marginally year over year to $695 million, as higher premium growth and investment income were offset by underwriting pressures.
The segment’s combined ratio deteriorated to 91.4 from 87 in the prior-year quarter, pressured by less favorable prior-year development and higher catastrophe losses. The metric compared favorably with the Zacks Consensus Estimate of 92.
Small Business delivered improvement, with written premiums increasing 7% year over year and the combined ratio improving to 85.9. Growth was supported by double-digit new business expansion.
HIG Personal Insurance Improves Profitability
Personal Insurance continued its turnaround, with core earnings rising 36% year over year to $128 million. Written premiums declined 7% to $915 million as competitive market conditions weighed on growth.
Profitability improved significantly, with the combined ratio improving to 90.1 from 94.1 in the prior-year quarter. The metric compared favorably with the consensus mark of 97.
The segment’s underlying loss and loss adjustment expense ratio improved 280 basis points to 60. Pricing increases outpaced loss cost trends, helping offset pressure from lower earned premiums and higher expenses.
HIG P&C Other Ops Remain Stable
P&C Other Operations reported core earnings of $17 million, up 21% year over year. Revenues increased 35.3% year over year to $23 million.
HIG’s Employee Benefits Faces Cost Pressure
Employee Benefits reported core earnings of $139 million, down 15% year over year. The decline reflected higher losses, particularly in group disability, although premium growth remained positive.
Fully insured ongoing premiums increased 5% to $1.7 billion. The segment’s core earnings margin was 7.4%, supported by strong life results and solid disability performance.
The loss ratio deteriorated to 72.5% from 69.1% in the prior-year quarter, while the expense ratio improved to 25.2% from 25.7% due to earned premium growth and lower commissions, partially offset by higher technology costs.
The Hartford Funds Sale Boosts Corporate Results
Hartford Funds was reclassified as discontinued operations following the agreement to sell Hartford Funds Management, Inc. The transaction resulted in income from discontinued operations of $318 million before tax in the second quarter of fiscal 2026 compared with $57 million in the prior-year quarter, primarily due to a $251 million income tax benefit related to the sale.
Corporate reported net income of $300 million in the quarter compared with $45 million a year ago, while core earnings resulted in a loss of $34 million, narrower than a loss of $36 million in the prior-year period. The improvement in reported results was primarily driven by the Hartford Funds transaction impact.
HIG’s Financial Update (as of June 30, 2026)
The Hartford exited the second quarter with total assets of $88 billion, up 2.3% from 2025-end, while total investments inched up 0.8% from 2025-end level to $64 billion. Cash rose 2.5% to $125 million during the same period.
Debt remained largely stable at $4.4 billion. Total stockholders’ equity came in at $19.6 billion, up 3.4% from year-end 2025. Book value per share excluding AOCI improved 7.2% year over year to $78.91.
Operating cash flow was $2.2 billion in the first half of 2026, down marginally from the prior-year comparable period.
HIG Strengthens Capital Returns
The Hartford continued its capital deployment efforts during the quarter, returning $615 million to shareholders. The company repurchased $450 million of shares and paid $165 million in common stock dividends.
The board also authorized a new $4.2 billion share repurchase program effective Aug. 1, 2026, through the end of 2028. This authorization represents a 27% increase from the previous program.
HIG Maintains Strong Operating Metrics
The company generated a trailing 12-month core earnings return on equity of 18.7%, which improved 270 basis points year over year.
HIG’s Zacks Rank
The Hartford currently has a Zacks Rank #4 (Sell).
Performance of Other Insurers
Of the insurance industry players that have reported second-quarter 2026 results so far, the bottom-line results of RenaissanceRe Holdings Ltd. RNR, Chubb Limited CB and First American Financial Corporation FAF beat the respective Zacks Consensus Estimate.
RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%. The bottom line also improved 5.1% year over year. Total operating revenues declined 6.7% year over year to $2.64 billion. The top line missed the consensus mark by 1%. Net premiums earned declined 8.8% year over year to $2.2 billion. Net investment income of $432.5 million advanced 4.7% year over year in the quarter.
RenaissanceRe's underwriting income declined 0.4% year over year to $599.1 million. The combined ratio improved to 72.8% from 75.1% in the year-ago quarter. The Property segment’s net premiums earned of $881.6 million increased 1.6% year over year. It generated an underwriting income of $642.7 million, which increased 2% year over year. The Casualty & Specialty Segment unit recorded net premiums earned of $1.3 billion, which tumbled 14.7% year over year to $1.32 billion.
Chubb’s second-quarter 2026 core operating earnings of $7.26 per share beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%. Consolidated net premiums written increased 3.6% year over year to $14.71 billion. Pre-tax net investment income increased 12.3% to a record $1.76 billion.
Global P&C net premiums written, excluding agriculture, advanced 2.8% to $11.99 billion. Life insurance net premiums written grew 7.5% to $1.94 billion. North America Commercial P&C net premiums written declined 2.3% to $5.59 billion. Major accounts and specialty fell 9.0% as underwriting actions weighed on property business, while middle-market and small commercial premiums increased 8.9% to $2.34 billion. Overseas General Insurance net premiums written jumped 10.2% to $3.99 billion, or 4.8% in constant dollars.
First American Financial reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million in the second quarter, up 14.7% year over year.
In the Title Insurance and Services unit, total revenues rose 16.9% year over year to $2 billion. Investment income increased 11% to $164 million. Adjusted pretax margin expanded 310 bps to 15.7%. Title open orders increased 0.7% to 188,200, while closed orders declined 0.7% to 137,300. Average revenue per direct title order increased to $4,572, reflecting a 31% increase in commercial average revenue per order. In the Home Warranty segment, total revenues rose 3.3% to $113.8 million, exceeding our model estimate of $111 million. Pretax income climbed 8.5% year over year to $24.2 million.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HIG's Q2 Earnings Beat Estimates on Strong Investment Income

Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year.
Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Results benefited from stronger investment income and improved underwriting, while lower premiums written reflected continued portfolio actions.
Selective Insurance Group, Inc. Price, Consensus and EPS Surprise
SIGI's Underwriting Results Improve
Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion.
Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.
The combined ratio improved 220 basis points to 98%. Lower catastrophe and non-catastrophe property losses, along with no prior-year casualty reserve development, supported the improvement. Higher current-year casualty loss costs partly offset these benefits.
SIGI's Investment Income Adds Support
After-tax net investment income increased 18% year over year to $119.2 million. Net investment income per common share rose 20% to $1.98.
The after-tax yield was 4.4% for fixed-income securities and 4.2% for the overall portfolio. Investment income contributed 13.9 percentage points to annualized return on equity, up from 13 points a year ago.
SIGI's Commercial Lines Performance Strengthens
Standard Commercial Lines net premiums written fell 6% year over year to $961.9 million as lower new business weighed on production. Our estimate was $1 billion.
Net premiums earned rose 3% to $962 million, while retention was 81%.
The segment's combined ratio improved 350 basis points to 99.3%. The improvement reflected no prior-year casualty reserve development and lower non-catastrophe property losses, partly offset by higher current-year casualty loss costs.
SIGI's Personal Lines Margin Narrows
Standard Personal Lines net premiums written declined 8% to $101.5 million, while net premiums earned decreased 5% to $97.6 million. Our estimate for net premiums written was $111.4 million. New business fell 36%, renewal pure price increased 8.9% and retention remained at 79%.
The segment's combined ratio deteriorated 390 basis points to 95.5%. Higher non-catastrophe property losses and a higher expense ratio pressured the result, though lower catastrophe losses provided some relief.
SIGI's Excess and Surplus Results Stay Profitable
Excess and Surplus Lines net premiums written decreased 2% year over year to $157.3 million. Our estimate was $174.7 million. Net premiums earned increased 5% to $155.8 million, while average renewal pure price rose 3.4%.
The segment's combined ratio increased 200 basis points to 91.8%. Higher current-year casualty loss costs and non-catastrophe property losses more than offset lower catastrophe losses.
SIGI's Profitability and Capital Improve
After-tax underwriting income was $19.3 million against a loss of $1.9 million a year earlier. Non-GAAP operating income climbed 46% to $117.6 million, while net income available to common stockholders increased 52% to $127.1 million.
Operating return on common equity improved 340 basis points year over year to 13.7%. The company marked its eighth consecutive quarter of double-digit operating returns.
Total expenses increased slightly to $1.22 billion from $1.21 billion, reflecting higher other insurance expenses. Our estimate was $1.24 billion.
SIGI's Balance Sheet Gains Ground
Selective Insurance ended the quarter with total assets of $15.62 billion, up 3% from year-end 2025. Total investments increased 2% to $11.58 billion, while common stockholders' equity rose 2% to $3.46 billion.
Book value per common share was $58.13, up 3% sequentially, while adjusted book value per share increased 3% to $60.56. During the quarter, the company repurchased $32 million of shares at an average price of $84.72.
Selective Insurance Raises Investment Income Outlook
For 2026, Selective Insurance continues to expect a GAAP combined ratio of 96.5-97.5, including 6 points of catastrophe losses. The outlook assumes no prior-year casualty reserve development.
The company raised its after-tax net investment income guidance to $480 million from $465 million. It continues to project an effective tax rate of 21.5% and now expects weighted average diluted shares of 60.2 million.
Zacks Rank
Selective Insurance currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property and Casualty Insurers
Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%.
Stronger P&C underwriting, record investment income, and higher life insurance income supported results. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.
The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion.
Operating revenues totaled $ 3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. Net investment income grew 10.4% to $418.7 million, supported by higher invested assets and higher portfolio yields. The figure topped our estimate of $407 million. The consensus estimate was $395.6 million.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	CB	Industry	CB	Industry	Volume, $
Yesterday 354.0 - 360.2	2.51	3.41	7.14	1.04	603.71M
Week 338.1 - 360.2	3.48	5.06	1.31	2.78	3.54B
Month 331.4 - 365.3	8.81	2.76	3.79	5.70	10.87B
3 Months 308.6 - 365.3	12.69	5.20	8.13	10.01	25.82B
6 Months 299.1 - 365.3	20.16	13.03	11.37	14.05	49.69B
Year 264.1 - 365.3	34.72	9.45	19.12	22.01	91.78B
3 years 198.1 - 365.3	76.11	26.21	32.64	54.25	192.63B
5 years 164.1 - 365.3	117.90	4.30	45.46	69.00	276.86B
All time 33.3 - 302.0	93.54	8.83	—	—	210.19B

Chubb Limited

Price and volatility history

Risk ratios