Chubb Limited (CB) shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.69X is higher than the industry average of 1.44X.It also has a Value Score of B. Back-tested results have shown that stocks with a solid Value Score and a favorable Zacks Rank are the most attractive and their returns are better. With a capitalization of $115 billion, Chubb is one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and t ...

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]

Leadership Changes - Ana Robic has been appointed as Regional President for Europe, Middle East and Africa, succeeding David Furby who becomes Executive Chairman [1][2] - Melissa Scheffler has been promoted to Division President of Personal Risk Services, succeeding Robic [1][5] Responsibilities and Oversight - In her new role, Robic will oversee Chubb's European business, including the UK, continental Europe, and the Middle East and Africa, reporting to Paul McNamee [2][4] - Furby will have executive oversight of Chubb's general insurance business strategy and governance in the region, while continuing as a member of Chubb's European Group's Board [3][4] Company Performance and Talent - McNamee highlighted the appointments as a demonstration of Chubb's talent pool and growth aspirations, praising Robic's leadership and Furby's contributions over the past seven years [4] - Ortega noted Robic's strong performance in PRS North America and expressed confidence in Scheffler's ability to lead the business moving forward [5] Executive Backgrounds - Robic joined Chubb in 1999 and has held various leadership roles, including Division President of Chubb Personal Risk Services since 2021 [6] - Furby has 43 years of experience in the insurance industry, with 29 years at Chubb, previously serving in various leadership roles [7] - Scheffler has been with Chubb since 1994, with a diverse background in underwriting, marketing, and management [8] Company Overview - Chubb is a leading global insurance provider with operations in 54 countries, offering a wide range of insurance products and services [9]

Core Viewpoint - Chubb Limited (NYSE: CB) is recognized as a member of the dividend insurance aristocrat club, although its current dividend yield may not attract dividend-seeking investors [1] Group 1: Company Overview - Chubb Limited is part of the dividend insurance aristocrat club, indicating a strong history of dividend payments [1] - The current dividend yield is described as potentially anemic for those specifically seeking dividends [1] Group 2: Analyst Insights - The CrickAnt, an actuary for an insurance company, provides analysis on insurance and reinsurance companies, contributing to the Cash Flow Club [1] - The Cash Flow Club focuses on company cash flows and access to capital, targeting a yield of 6% or more [1]