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,translatingto97centspersharequarterly[1]−Thecompany′sdividendyieldstandsat1.316.18 billion and adjusted operating cash flow of 15.90billionin2024,indicatingstrongcashgenerationcapabilities[5]−Chubb′scapitalpositionisrobust,withaconservativeleveragelevelandstrongliquidity,allowingforsharebuybacksinadditiontodividendpayments[5]ShareRepurchaseActivity−In2024,Chubbrepurchased2.0 billion in shares and an additional 148millionfromJanuary1,2025,toFebruary26,2025,underitssharerepurchaseprogram[6]−AsofFebruary26,2025,thereremains1.5 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]
Chubb(CB) ZACKS·2025-02-28 17:16