Chubb Limited (NYSE:CB) is included among the 13 Cheapest Dividend Aristocrats to Invest in. BMO Lifts Chubb (CB) Target After Q4, Flags Reserve and Investment Income Tailwinds On February 10, BMO Capital’s Michael Zaremski revisited his outlook on Chubb Limited (NYSE:CB) following the company’s Q4 results, raising his price recommendation to $326 from $286. The analyst reiterated a Market Perform rating on the stock. While broader consensus expects margin expansion to level off from here, Zaremski sugge ...

Company Overview - Lemonade (NYSE: LMND) is an online insurer utilizing AI chatbots and algorithms to simplify the insurance-buying process, significantly increasing its customer base from 1.00 million to 2.87 million between the end of 2020 and Q3 2025 [1] - The company initially focused on homeowners and renters' insurance but has since expanded into term life, pet, and auto insurance markets following its 2020 IPO [2] Growth Projections - Lemonade aims to grow its in-force premium from $1.16 billion in the latest quarter to $10 billion in the coming years through state expansion, new insurance products, and enhanced AI capabilities [2] - Analysts project Lemonade's revenue to grow at a 42% CAGR from 2025 to 2027, with adjusted EBITDA expected to turn positive in the final year [3] Valuation and Profitability - Lemonade has an enterprise value of $5.7 billion, valued at five times next year's sales, but remains unprofitable and faces competition from larger insurers adopting similar AI technologies [3] Comparison with Competitors - Chubb (NYSE: CB), the world's largest publicly traded insurance provider, is suggested as a more stable investment alternative to Lemonade in a volatile market [4] - Chubb's combined property and casualty (P&C) ratio was 85.7% at the end of 2025, significantly below the industry average of 96.6%, indicating strong profitability [5] - Analysts expect Chubb to generate approximately 43 times Lemonade's revenue in 2026, with a revenue growth forecast of 5% CAGR from 2025 to 2027 and an EPS growth of 6% CAGR during the same period [6]

Core Insights - Chubb Limited (NYSE:CB) is recognized as one of the 13 Best Long Term Low Risk Stocks to Buy Now [1] - Roth Capital Partners has raised its price target for Chubb Limited to $360 from $330, maintaining a Buy rating after the company's Q4 earnings exceeded expectations [2] - The company reported a strong underwriting performance with a combined ratio of 81.2% and an underlying combined ratio of 80.6% [2] Financial Performance - Chubb reported a higher fourth-quarter profit, driven by increased investment income and a significant reduction in catastrophe losses [3] - Pre-tax net investment income reached a record $1.69 billion, reflecting an 8% increase [4] - Catastrophe losses decreased to $365 million from $607 million year-over-year, indicating a reduction in earnings volatility for the company [4] - Core operating income rose to $2.98 billion, or $7.52 per share, compared to $2.45 billion, or $6.02 per share, in the same period last year [5] Market Context - Insurance spending remains robust despite broader cutbacks by businesses and consumers, highlighting ongoing efforts to mitigate risks from climate-related events and cyber threats [3] - Chubb Limited operates as a holding company based in Switzerland, providing insurance and reinsurance products globally [5]

Core Insights - Chubb is a leading global insurance company with a comprehensive range of products, including property and casualty, accident and health, reinsurance, and life insurance [1] - Goldman Sachs maintains a "Buy" rating for Chubb and raises the price target from $351 to $366, indicating positive market sentiment [1][5] - Chubb's stock price is currently $331.28, reflecting a 0.56% increase, and has reached a year-high of $334.28 [3][5] Financial Performance - Chubb's market capitalization is approximately $130.38 billion, showcasing its significant presence in the insurance industry [4] - The stock has fluctuated between a low of $327.49 and a high of $334.28 today, indicating strong performance and investor confidence [3] Strategic Initiatives - Chubb has partnered with Arctic Wolf to enhance its cyber insurance offerings, selecting Arctic Wolf as a preferred Managed Detection and Response (MDR) provider for policyholders with over 100 employees [2] - This collaboration aims to minimize cyber risk and leverage advanced threat detection capabilities, strengthening Chubb's position in the competitive cyber insurance market [4][5]

Core Insights - Arctic Wolf has been selected by Chubb as a preferred Managed Detection and Response (MDR) provider for its cyber policyholders with over 100 employees, highlighting a mutual commitment to reducing cyber risk [1][5] Group 1: Partnership Details - Chubb's decision to partner with Arctic Wolf is influenced by the effectiveness of the Arctic Wolf Aurora Platform, which significantly reduces the likelihood and impact of major cyber incidents [2] - The Aurora Platform processes over nine trillion security events weekly, consolidating thousands of daily alerts into an average of one actionable ticket per customer per day, thereby enhancing operational efficiency [2] Group 2: Service Offerings - Arctic Wolf operates global security operations centers across North America, EMEA, and APAC, providing 24/7 operations and local personnel to support its services [3] - The company has a dedicated "insurance alliance" team that collaborates with brokers and carrier partners to promote the adoption of their security products [3] Group 3: Cyber Threat Insights - Both the Q2 2025 Chubb Cyber Threat Intelligence Report and the 2025 Arctic Wolf Threat Report identify unsecured Remote Desktop Protocol (RDP) and compromised VPN credentials as primary causes of major cyber incidents like ransomware [4] - Arctic Wolf's Concierge Experience and Security Journey provide ongoing guidance to customers, helping them implement critical security controls to enhance their security posture and reduce risk over time [4] Group 4: Customer Benefits - Joint customers of Arctic Wolf and Chubb may qualify for preferred pricing and promotional benefits aimed at strengthening their security posture and mitigating cyber risk [6]

Financial Performance - Chubb reported net income of $3.2 billion for Q4 2025, a 24.7% increase from $2.5 billion in Q4 2024 [1] - Core operating income for the quarter reached $2.98 billion, reflecting a year-over-year growth of 21.7% [1] - Earnings per share for Q4 were $8.10, up 28% compared to the previous year [1] - For the full year 2025, net income was $10.3 billion, an 11.2% increase from $9.2 billion in 2024 [3] - Annual earnings per share stood at $25.68, a 13.1% increase [3] Premiums and Underwriting - Consolidated net premiums written for Q4 totaled $13.1 billion, an 8.9% increase year-over-year [1] - Property and casualty (P&C) net premiums written reached $11.31 billion, up 7.7% [1] - For the full year, consolidated net premiums written were $54.8 billion, rising by 6.6% [3] - Annual P&C net premiums written were $47.56 billion, an increase of 5.4% [3] Regional Performance - In North America, P&C premiums rose 6.6%, with commercial insurance up 6.7% and personal insurance up 6.1% [2] - Overseas General saw a growth of 10.8%, driven by an 18.7% rise in consumer insurance and a 5.6% increase in commercial insurance [2] - By region, Latin America grew by 14.7%, Asia by 13%, and Europe by 7.2% [2] Underwriting Income and Ratios - P&C underwriting income for Q4 was $2.2 billion, up 39.6%, with a combined ratio of 81.2% [2] - For the full year, P&C underwriting income was $6.53 billion, reflecting an increase of 11.6%, with a combined ratio of 85.7% [4] Catastrophe Losses - Pre-tax catastrophe losses for Q4 were $365 million, down from $607 million in the previous year [3] - For the full year, pre-tax catastrophe losses were reported at $2.92 billion, compared to $2.39 billion last year [4] Life Insurance Segment - Life Insurance net premiums written rose to $1.83 billion for Q4, up 16.9%, with segment income at $322 million, an increase of 19.3% [2] - For the full year, Life Insurance net premiums written increased to $7.28 billion, a 15.1% rise, with segment income at a record $1.24 billion, up by 13.1% [5]

Core Thesis - Chubb Limited is viewed positively due to its strong financial performance, disciplined capital allocation, and long-standing reputation for stability in the insurance sector [1][6]. Financial Performance - Chubb reported Q4 2025 results with revenue of $11.2 billion, net income of $2.58 billion, operating income of $2.45 billion, and EPS of $6.33, reflecting revenue growth of 16.8% and EPS growth of 18.4% year-over-year [4]. - The company has a current dividend yield of 1.28% and a conservative payout ratio of 16.19%, indicating a balance between shareholder returns and reinvestment for growth [3]. Growth Drivers - Chubb's client base has expanded by over 9% in the past year, with recurring revenue accounting for approximately 73% of total revenue, providing stable cash flows [4]. - Strategic acquisitions, particularly in Asia, have broadened market presence and added new premium streams [5]. - Investments in digital transformation and automation are enhancing efficiency and customer experience [5]. Historical Performance - Chubb has a 31-year consecutive dividend growth record, demonstrating its commitment to returning value to shareholders [3]. - The company has achieved 24% dividend growth over the past five years, ensuring sustainable payouts even during economic uncertainty [4]. Market Position - Chubb operates in 54 countries, serving a diverse range of clients through various insurance products, which contributes to its strong reliability and consistent dividend growth [3][5]. - The company's legacy of over 140 years reinforces its track record of innovation, adaptability, and shareholder value creation [5].

Core Insights - Chubb Limited reported a fourth-quarter 2025 core operating income of $7.52 per share, exceeding the Zacks Consensus Estimate by 13.9% and showing a year-over-year improvement of 24.9% [1][2] - Total operating revenues increased by 7.4% year over year to $15.3 billion, surpassing the Zacks Consensus Estimate by 1.7% [1][2] Financial Performance - Net premiums written rose by 8.9% year over year to $13.1 billion, exceeding both internal estimates and the Zacks Consensus Estimate [4][9] - Record net investment income reached $1.7 billion, an increase of 8%, while adjusted net investment income was $1.8 billion, up 7.3% year over year [4][9] - Property and casualty (P&C) underwriting income hit a record $2.2 billion, up 39.6% year over year, significantly above the Zacks Consensus Estimate of $1.8 billion [5][9] - The P&C combined ratio improved by 450 basis points year over year to 81.2%, better than the Zacks Consensus Estimate of 83.6% [6][9] Segment Performance - North America Commercial P&C Insurance saw net premiums written increase by 4.3% year over year to $5.1 billion, with a combined ratio improvement of 180 basis points to 78.8% [7] - North America Personal P&C Insurance reported a 6.1% increase in net premiums written to $1.72 billion, with a combined ratio improvement of 850 basis points to 74.1% [10] - North America Agricultural Insurance experienced a significant 45.1% increase in net premiums written to $459 million, driven by growth in crop insurance [11] - Overseas General Insurance net premiums written increased by 10.8% year over year to $3.8 billion, with a combined ratio improvement of 460 basis points to 83% [12] - Life Insurance net premiums written rose by 16.9% year over year to $1.8 billion, with segment income increasing by 19.3% in constant dollars [12] Full-Year Highlights - For the full year 2025, Chubb's core operating income was $24.79 per share, slightly missing the Zacks Consensus Estimate of $24.83, but showing a year-over-year increase of 10.8% [13] - Total net premiums written for the year reached $54.8 billion, up 6.6%, while P&C underwriting income improved by 11.6% year over year to $6.5 billion [13] Financial Position - As of December 31, 2025, Chubb's cash balance was $2.5 billion, a decrease of 3.1% from the previous year, while total shareholders' equity grew by 16.7% to approximately $80 billion [14] - Book value per share increased by 18% to $188.59 [14] - Operating cash flow for the quarter was $4.06 billion, with adjusted operating cash flow at $4.17 billion [15] Capital Deployment - In 2025, Chubb returned $4.91 billion to shareholders, including $3.39 billion in share repurchases and $381 million in dividends [16]

Chubb (NYSE:CB) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBrian Meredith - Managing DirectorEvan Greenberg - Chairman and CEOJohn Keogh - President and COOMatthew Heimermann - Managing DirectorPeter Enns - CFOSusan Spivak - SVP of Investor RelationsConference Call ParticipantsAndrew Kligerman - AnalystBob Huang - Equity Research AnalystDavid Motemaden - Senior Equity Research AnalystGreg Peters - AnalystRyan Tunis - Equity Research AnalystTracy Benguigui - Director and Senior R ...

Chubb (NYSE:CB) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBrian Meredith - Managing DirectorEvan Greenberg - Chairman and CEOJohn Keogh - President and COOMatthew Heimermann - Managing DirectorPeter Enns - CFOSusan Spivak - SVP of Investor RelationsConference Call ParticipantsAndrew Kligerman - AnalystBob Huang - Equity Research AnalystDavid Motemaden - Senior Equity Research AnalystGreg Peters - AnalystRyan Tunis - Equity Research AnalystTracy Benguigui - Director and Senior R ...