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The board of directors of Chubb Limited (CB - Free Report) recently announced a new buyback plan to buy back up to $5 billion worth of the company’s common shares. This program will be effective from Jul 1, 2023, and its earlier program will remain effective through Jun 30, 2023.
This Zacks Rank #3 (Hold) insurer is the world’s largest publicly traded property and casualty (P&C) insurer, and it continues to witness robust premium revenue growth globally. The momentum is expected to continue, driven by its commercial business, consumer P&C business and International Life business. Better pricing, business growth, high renewal rates and other positives should help the company continue its effective capital deployment.
The insurer bought back $471 million worth of shares in the first four months of 2023. Apart from the recent share buyback approval, Chubb has been increasing its dividendfor the last 30 years. The dividend yield is 1.7%, which is better than the industry’s average of 0.4%. Apart from being attractive to investors, the yield also represents a steady income stream. Chubb’s superior underwriting discipline and sound capital structure should help shares bounce back.
Chubb’s past performance depicted a robust earnings picture. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, with a surprise of 4.7%, on average.
Shares of CB have lost 12.1% in the past six months against the industry’sgrowth of 4.7%.
HCI Group beat estimates in three of the last four quarters and missed once, the average being 308.8%. The Zacks Consensus Estimate for 2024 earnings has moved 14% north in the past 30 days.
The Zacks Consensus Estimate for HCI’s 2024 earnings per share is pegged at $3.65, indicating a year-over-year increase of 35.2%.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.8%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $10.37 and $12.41, indicating a year-over-year increase of 33% and 19.7%, respectively.
RLI Corp beat estimates in each of the last four quarters, the average being 43.5%.
The Zacks Consensus Estimate for RLI’s 2023 earnings per share is pegged at $4.88, indicating a year-over-year increase of 4.1%. The same for 2023 revenues indicates 15.2% growth from the past year’s reported figure.
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Chubb (CB) Announces Share Buyback Authorization Worth $5B
The board of directors of Chubb Limited (CB - Free Report) recently announced a new buyback plan to buy back up to $5 billion worth of the company’s common shares. This program will be effective from Jul 1, 2023, and its earlier program will remain effective through Jun 30, 2023.
This Zacks Rank #3 (Hold) insurer is the world’s largest publicly traded property and casualty (P&C) insurer, and it continues to witness robust premium revenue growth globally. The momentum is expected to continue, driven by its commercial business, consumer P&C business and International Life business. Better pricing, business growth, high renewal rates and other positives should help the company continue its effective capital deployment.
The insurer bought back $471 million worth of shares in the first four months of 2023. Apart from the recent share buyback approval, Chubb has been increasing its dividendfor the last 30 years. The dividend yield is 1.7%, which is better than the industry’s average of 0.4%. Apart from being attractive to investors, the yield also represents a steady income stream. Chubb’s superior underwriting discipline and sound capital structure should help shares bounce back.
Chubb’s past performance depicted a robust earnings picture. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, with a surprise of 4.7%, on average.
Shares of CB have lost 12.1% in the past six months against the industry’sgrowth of 4.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the P&C insurance industry are HCI Group, Inc. (HCI - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and RLI Corp. (RLI - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group beat estimates in three of the last four quarters and missed once, the average being 308.8%. The Zacks Consensus Estimate for 2024 earnings has moved 14% north in the past 30 days.
The Zacks Consensus Estimate for HCI’s 2024 earnings per share is pegged at $3.65, indicating a year-over-year increase of 35.2%.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.8%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $10.37 and $12.41, indicating a year-over-year increase of 33% and 19.7%, respectively.
RLI Corp beat estimates in each of the last four quarters, the average being 43.5%.
The Zacks Consensus Estimate for RLI’s 2023 earnings per share is pegged at $4.88, indicating a year-over-year increase of 4.1%. The same for 2023 revenues indicates 15.2% growth from the past year’s reported figure.