Chubb beats third-quarter estimates as its KKR partnership cashes out of USI

Revenue reached $15.14 billion, well above the $13.86 billion Wall Street had expected.

Chubb reported third-quarter earnings of $7.66 a share, $0.65 above analyst expectations. Revenue came in at $15.14 billion, above the $13.86 billion forecast.

The insurer returned $1.57 billion to shareholders during the quarter. That included $1.18 billion in share buybacks, done at an average price of $344.32 a share, and $393 million in dividends.

Chairman and CEO Evan Greenberg said Strategic Holdings, Chubb's investment partnership with KKR, has agreed to sell its stake in USI Insurance Services to Aon. The sale is expected to produce a $460 million realized gain on a $740 million investment.

The USI sale gives a concrete payoff to financing activity tied earlier to Aon's acquisition debt, including its term loans and revolver. Landing on top of a quarter that already beat on both earnings and revenue, the gain adds a one-time boost to an already strong set of results. It also places Chubb among a string of recent exits across KKR's portfolio, following the firm's sale of Infinity Transportation, as realized gains flow back to its limited partners this cycle.