Core Viewpoint - Chubb Limited has established a new division within its North America Middle Market organization to enhance its focus on middle-market businesses, aiming for growth in both domestic and international markets [1][2]. Group 1: New Division and Strategy - The new unit, named North America Small & Lower Midmarket, combines the Lower Middle Market and Digital Small Business divisions, indicating a strategic focus on small business and lower middle market segments, which are seen as significant growth opportunities [2][4]. - The division will provide a comprehensive suite of products and services, including property and casualty (P&C), Financial Lines, Cyber, Multinational, and Accident & Health, while offering agents a choice between a fully digital experience or a digitally augmented service model [4]. Group 2: Market Growth and Opportunities - Chubb has noted that the middle market is experiencing growth not only in the United States but also globally, with Asia and Latin America presenting additional opportunities in both life and non-life insurance sectors [3]. - The strategic formation of this new division is timely, aligning with the global growth trends in the middle market [3]. Group 3: Financial Performance and Position - Chubb's stock has gained 4.1% year to date, which is below the property and casualty insurance industry's increase of 8.4% [7]. - The company maintains a strong capital position and cash generation capabilities, which support steady payouts to investors and contribute to long-term growth [8].

Leverages Digital Operating Model to Apply Chubb's Underwriting and Service Capabilities Across Small and Lower Middle Market Segments Rob Poliseno appointed Division President, Small & Lower Midmarket; Jason Ranucci named Chief Operating Officer, Small & Lower Midmarket WHITEHOUSE STATION, N.J., March 12, 2025 /PRNewswire/ -- Chubb (NYSE: CB) today announced the creation of a new division within its North America Middle Market organization, combining Chubb's Lower Middle Market and Digital Small Business ...

Core Viewpoint - Chubb Limited (CB) is trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 1.69X versus the industry average of 1.44X, indicating strong market positioning and investor interest [1]. Company Overview - Chubb has a market capitalization of $115 billion, making it one of the largest providers of property and casualty (P&C) insurance and reinsurance globally, as well as the largest publicly traded P&C insurer [2]. Stock Performance - Year-to-date, Chubb's stock has increased by 2.8%, which is underperforming the industry and sector but outperforming the Zacks S&P 500 composite [3]. - The stock is trading significantly above its 50-day moving average, suggesting a bullish trend [5]. Analyst Sentiment - The Zacks Consensus Estimate for Chubb's 2025 earnings indicates a year-over-year decrease of 4.4%, while the estimate for 2026 suggests a 16.8% increase [6]. - The consensus estimate for 2025 earnings has decreased by 1.6% in the past 30 days, while the estimate for 2026 has increased by 0.2% during the same period [6]. Financial Metrics - Chubb's return on equity over the trailing 12 months is 13.6%, surpassing the industry average of 8.3%, indicating effective utilization of shareholder funds [7]. - The return on invested capital (ROIC) has been rising, currently at 8.9%, which is better than the industry average of 7.3% [9]. Growth Strategy - Chubb is focusing on capitalizing on middle-market businesses and enhancing traditional core packages and specialty products for long-term growth [10]. - The company is pursuing strategic mergers and acquisitions to diversify its portfolio and expand its geographic footprint, including a recent agreement to acquire Liberty Mutual's insurance businesses in Thailand and Vietnam [11]. Investment Income - Despite the Federal Reserve lowering interest rates, Chubb expects its quarterly adjusted net investment income to range between $1.67 billion and $1.75 billion over the next six months, supported by strong cash generation capabilities [12]. Market Position - Chubb's average target price from 22 analysts is $302.77 per share, suggesting a potential upside of 6.6% from the last closing price [14]. - The company has a strong dividend history, having increased dividends for 31 consecutive years, with a projected hike of 6.5% this year, resulting in a dividend yield of 1.3%, which is better than the industry average of 0.3% [15].

Company Performance - Chubb's stock closed at $284.15, reflecting a -1.91% change from the previous trading day's closing, underperforming the S&P 500's daily loss of 1.22% [1] - Over the past month, Chubb's shares gained 5.75%, outperforming the Finance sector's gain of 0.91% and the S&P 500's loss of 2.31% [1] Earnings Expectations - Analysts expect Chubb to report earnings of $3.50 per share, indicating a year-over-year decline of 35.3% [2] - The revenue forecast for the upcoming earnings report is $14.14 billion, representing an 8.24% growth compared to the same quarter last year [2] - For the full year, earnings are expected to be $21.52 per share and revenue at $60.31 billion, reflecting changes of -4.4% and +7.27% respectively from the previous year [3] Analyst Projections - Recent shifts in analyst projections for Chubb should be monitored, as positive estimate revisions are seen as a good sign for the company's business outlook [4] - Estimate revisions are correlated with near-term share price momentum, which is utilized in the Zacks Rank system to provide actionable ratings [5] Zacks Rank and Valuation - Chubb currently holds a Zacks Rank of 3 (Hold), with a 2.75% decline in the Zacks Consensus EPS estimate over the past month [6] - The company is trading at a Forward P/E ratio of 13.46, which is a premium compared to the industry average Forward P/E of 11.44 [7] - Chubb has a PEG ratio of 3.64, significantly higher than the industry average PEG ratio of 1.77 [8] Industry Context - The Insurance - Property and Casualty industry, part of the Finance sector, has a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [9]

Core Viewpoint - Chubb Limited has announced agreements to acquire the insurance businesses of Liberty Mutual in Thailand and Vietnam, representing an opportunity to enhance and expand its business operations [1]. Group 1: Acquisition Details - The acquisition includes LMG Insurance in Thailand and Liberty Insurance in Vietnam, which provide a variety of consumer and commercial property and casualty (P&C) products, including automotive, accident & health, and non-motor insurance such as fire/property and industrial all-risk [2]. - The combined operations of these businesses generated approximately $275 million in net premiums written in 2024 [2]. Group 2: Transaction Timeline - The transactions are expected to be completed by the second quarter of 2025 for Thailand and late 2025 to early 2026 for Vietnam, pending regulatory approvals and customary closing conditions [3]. Group 3: Company Overview - Chubb is a global leader in insurance, operating in 54 countries and territories, offering a wide range of insurance products including commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance [4]. - The company is characterized by its extensive product offerings, broad distribution capabilities, strong financial position, and local operations worldwide [4]. - Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is part of the S&P 500 index, employing approximately 43,000 people globally [4].

Core Viewpoint - Chubb Limited's board of directors is proposing a 6.5% increase in its annual dividend, marking the 32nd consecutive year of dividend growth [1] Dividend and Yield - If approved, the new annual dividend will be $3.88, translating to 97 cents per share quarterly [1] - The company's dividend yield stands at 1.3%, significantly higher than the industry average of 0.2%, making it appealing for yield-seeking investors [2] - Chubb has demonstrated a consistent track record of dividend increases, with a nine-year compound annual growth rate (CAGR) of 3.1% from 2017 to 2024 [2] Financial Strength and Capital Management - Chubb is one of the largest property and casualty insurers globally, focusing on cyber insurance, which has substantial growth potential [4] - The company reported operating cash flow of $16.18 billion and adjusted operating cash flow of $15.90 billion in 2024, indicating strong cash generation capabilities [5] - Chubb's capital position is robust, with a conservative leverage level and strong liquidity, allowing for share buybacks in addition to dividend payments [5] Share Repurchase Activity - In 2024, Chubb repurchased $2.0 billion in shares and an additional $148 million from January 1, 2025, to February 26, 2025, under its share repurchase program [6] - As of February 26, 2025, there remains $1.5 billion available in its share repurchase authorization [6] Profitability Metrics - Chubb's return on equity (ROE) is 13.7%, significantly above the industry average of 7.6%, and has been steadily increasing over recent years [7] Market Performance - Year-to-date, Chubb's shares have gained 12%, compared to the industry's growth of 15.4%, with expectations for recovery due to superior underwriting discipline and a solid capital structure [8] Industry Context - Other insurers, such as Cincinnati Financial, Principal Financial, and CNA Financial, are also enhancing shareholder value through effective capital deployment, including dividend increases and share buybacks [10]

Financial Performance - The company reported gross losses of $84,004 million and net losses of $66,270 million as of December 31, 2024, compared to gross losses of $80,122 million and net losses of $62,238 million as of December 31, 2023, indicating an increase in gross losses by 4.8% and net losses by 6.5%[262]. - Net income attributable to Chubb reached a record $9.27 billion in 2024, up 2.7% from $9.03 billion in 2023, driven by strong underwriting results and net investment income[319]. - The total net income attributable to Chubb was a loss of $3,703 million in 2024, a 42.3% increase in loss compared to $2,602 million in 2023[390]. - Consolidated net premiums written increased by 8.7% to $51.47 billion, with P&C net premiums written rising 7.7%[319]. - Net premiums earned rose by $4.1 billion, a 9.0% increase in 2024, with P&C net premiums earned increasing by 8.1%[328]. Losses and Reserves - Losses and loss expenses incurred for 2024 were $32,534 million, up from $31,346 million in 2023, reflecting a year-over-year increase of 3.8%[262]. - The company paid out $27,970 million in losses and loss expenses in 2024, compared to $27,802 million in 2023, representing a slight increase of 0.6%[262]. - The company’s loss reserves are subject to considerable uncertainty, influenced by factors such as inflation and climate change, which may affect future claims[264]. - A one percentage point change in the tail factor for Workers' Compensation could result in a change of approximately $1.1 billion, impacting recorded net loss and loss expense reserves of about $10.2 billion by approximately 10.9%[270]. - A five percentage point change in the tail factor for U.S. Excess/Umbrella portfolios could lead to a change of approximately $0.8 billion, representing an impact of about 18% relative to recorded net loss and loss expense reserves of approximately $4.3 billion[272]. Premiums and Underwriting - The P&C combined ratio was 86.6%, slightly up from 86.5% in 2023, while the current accident year combined ratio excluding catastrophe losses improved to 83.1%[319]. - The underwriting income for the North America Personal P&C Insurance segment increased by 78.5% to $1,014 million in 2024[351]. - The combined ratio increased to 83.9% in 2024, up from 81.6% in 2023, primarily due to higher catastrophe losses[349]. - The North America Personal P&C Insurance segment saw net premiums written increase by $654 million, or 11.1%, in 2024[354]. - Personal automobile premiums grew by 25.1% to $2,491 million in 2024, compared to $1,991 million in 2023[323]. Investment Income - Pre-tax net investment income set a record at $5.93 billion, a 20.1% increase from $4.94 billion in 2023, attributed to strong operating cash flow and higher reinvestment rates[319]. - Net investment income rose by 32.7% to $1,003 million in 2024, compared to $756 million in 2023[383]. - Average invested assets increased to $131,926 million in 2024 from $118,357 million in 2023, contributing to the growth in net investment income[411]. - The total mark-to-market gain on private equity investments was $661 million in 2024, up from $504 million in 2023[412]. - The yield on average invested assets improved to 4.5% in 2024 from 4.2% in 2023, indicating better returns on investments[411]. Catastrophe and Risk Management - Total pre-tax catastrophe losses amounted to $2.39 billion in 2024, compared to $1.83 billion in 2023[319]. - The estimated net pre-tax cost of the recent California wildfire disaster is $1.5 billion, highlighting the company's commitment to policyholders[321]. - The modeled net probable maximum loss (PML) for U.S. hurricane events is estimated at $3,831 million, representing 6.0% of total Chubb shareholders' equity as of December 31, 2024[435]. - Chubb's assessment of pandemic exposure includes stress scenarios considering mortality and morbidity, which could adversely affect operations[443]. - The Global Property Catastrophe Reinsurance Program was renewed effective April 1, 2024, through March 31, 2025, covering natural catastrophes impacting primary property operations[446]. Regulatory and Compliance - The effective tax rate increased to 15.8% in 2024, up from 5.4% in 2023, primarily due to a one-time deferred tax benefit recorded in 2023[394]. - The company applies rigorous risk transfer analyses for structured products to ensure compliance with accounting requirements[302]. - The company has not purchased any retroactive ceded reinsurance contracts since 1999, focusing instead on cost-effective multi-year excess of loss contracts[303]. - The company actively monitors terrorism risk and manages exposures through risk limits and reinsurance, with TRIPRA covering 81% of insured losses above a deductible of approximately $3.2 billion[439]. - The company holds no collateralized debt obligations in its investment portfolio and has strict contractual investment rules for managers[417].

Core Insights - Chubb's Excess and Surplus Lines Division appointed Alex Faynberg as Executive Vice President and Head of Healthy Paws, effective March 3, 2025, to enhance the company's market presence and operational priorities [1][2] - Healthy Paws is recognized as a leading pet insurance company in the U.S., serving over 520,000 animals and known for its commitment to pet health [4] Company Overview - Chubb operates in 54 countries, providing a wide range of insurance products including property and casualty, personal accident, supplemental health, reinsurance, and life insurance [3] - Chubb Limited is listed on the NYSE and is part of the S&P 500 index, employing approximately 43,000 people globally [3] Healthy Paws Overview - Healthy Paws, acquired by Chubb in 2024, has been a pioneer in the pet insurance sector since its founding in 2009 and has been underwritten by Chubb since 2013 [4] - The company utilizes a digital proprietary platform for program and claims administration, enhancing customer experience [4]

Core Points - Chubb Limited's Board of Directors will recommend an increase in its quarterly dividend to shareholders at the 2025 Annual General Meeting, marking the thirty-second consecutive year of dividend increases [1] - The proposed annual dividend will be $3.88 per share, distributed in four quarterly installments of $0.97 per share, up from the current quarterly dividend of $0.91 per share [1] - The Board also declared a quarterly dividend of $0.91 per share, payable on April 4, 2025, to shareholders of record as of March 14, 2025 [2] Company Overview - Chubb is a leading global insurance provider, operating in 54 countries and territories, offering a wide range of insurance products including commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance [3] - The company is characterized by its extensive product offerings, broad distribution capabilities, strong financial position, and local operations worldwide [3] - Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is part of the S&P 500 index, employing approximately 43,000 people globally [3]

Group 1 - Chubb's stock closed at $273.66, down 1.37% from the previous session, underperforming the S&P 500's gain of 0.01% [1] - Over the past month, Chubb's stock has increased by 1.9%, outperforming the Finance sector's loss of 0.09% and the S&P 500's loss of 2.26% [1] Group 2 - Chubb is expected to report an EPS of $3.50, reflecting a 35.3% decline year-over-year, while revenue is projected at $14.14 billion, an increase of 8.24% compared to the same quarter last year [2] - For the fiscal year, earnings are projected at $21.52 per share and revenue at $60.31 billion, indicating a decline of 4.4% in earnings and an increase of 7.27% in revenue from the prior year [3] Group 3 - Recent analyst estimate revisions indicate changing business trends, with upward revisions suggesting positive sentiment towards Chubb's operations and profit generation [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Chubb at 3 (Hold), with a consensus EPS projection that has decreased by 6.03% in the last 30 days [6] Group 4 - Chubb's Forward P/E ratio stands at 12.9, which is higher than the industry's Forward P/E of 11.08, indicating a premium valuation [6] - The company has a PEG ratio of 3.49, compared to the industry average PEG ratio of 1.94, suggesting a higher valuation relative to projected earnings growth [7] Group 5 - The Insurance - Property and Casualty industry, which includes Chubb, ranks in the top 18% of all industries according to the Zacks Industry Rank, indicating strong performance potential [7][8]