We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why You Should You Retain Chubb (CB) Stock in Your Portfolio
Read MoreHide Full Article
Shares of Chubb Limited (CB - Free Report) gained 4.44% year to date, outperforming the Zacks categorized Property and Casualty Insurance industry’s increase of 2.58%. Return on equity of 9.9% is higher than the industry average of 6.7%. The company also witnessed estimates moving north over the last one month.
The Zacks Rank #3 (Hold) Property and Casualty (P&C) insurer pursues strategic initiatives to ensure long-term growth. Recently, the insurer came up with a new workers' compensation system for small businesses. However, it has lowered the guidance for net premiums written in a few portfolios for 2017. This is because the company is unlikely to generate enough underwriting returns and may have to reduce its catastrophe-related exposure.
Chubb considers acquisitions to be an effective strategy for inorganic growth and global expansion. With enhanced capabilities, the entity increases its diversity and product mix alongside lesser exposure to the P&C industry pricing sequence.
Banking on its strong capital position, the company has increased its dividend for the straight 23rd quarter and also announced its intention of further dividend hikes. This apart, the insurer has $1 billion worth share buyback program under its authorization. Chubb aims to achieve a dividend payout ratio of 30% of its operating earnings. These make the stock an attractive pick for yield seeking investors.
Also, the company’s balance sheet strength should bolster growth. Chubb expects initiatives – both organic and inorganic – undertaken in the U.S., Latin America and Asia to drive improvement. The expected long-term earnings growth is currently pegged at10%.
Stocks to Consider
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Progressive Corp (PGR - Free Report) .
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.23% year to date. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial offers P&C insurance products in the U.S. Shares of the company gained 7.29% year to date. The stock has Zacks Rank #1
Everest Re offers reinsurance and insurance products. Shares of the company gained 8.04% year to date. The stock carries Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why You Should You Retain Chubb (CB) Stock in Your Portfolio
Shares of Chubb Limited (CB - Free Report) gained 4.44% year to date, outperforming the Zacks categorized Property and Casualty Insurance industry’s increase of 2.58%. Return on equity of 9.9% is higher than the industry average of 6.7%. The company also witnessed estimates moving north over the last one month.
The Zacks Rank #3 (Hold) Property and Casualty (P&C) insurer pursues strategic initiatives to ensure long-term growth. Recently, the insurer came up with a new workers' compensation system for small businesses. However, it has lowered the guidance for net premiums written in a few portfolios for 2017. This is because the company is unlikely to generate enough underwriting returns and may have to reduce its catastrophe-related exposure.
Chubb considers acquisitions to be an effective strategy for inorganic growth and global expansion. With enhanced capabilities, the entity increases its diversity and product mix alongside lesser exposure to the P&C industry pricing sequence.
Banking on its strong capital position, the company has increased its dividend for the straight 23rd quarter and also announced its intention of further dividend hikes. This apart, the insurer has $1 billion worth share buyback program under its authorization. Chubb aims to achieve a dividend payout ratio of 30% of its operating earnings. These make the stock an attractive pick for yield seeking investors.
Also, the company’s balance sheet strength should bolster growth. Chubb expects initiatives – both organic and inorganic – undertaken in the U.S., Latin America and Asia to drive improvement. The expected long-term earnings growth is currently pegged at10%.
Stocks to Consider
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Progressive Corp (PGR - Free Report) .
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.23% year to date. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial offers P&C insurance products in the U.S. Shares of the company gained 7.29% year to date. The stock has Zacks Rank #1
Everest Re offers reinsurance and insurance products. Shares of the company gained 8.04% year to date. The stock carries Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>