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Chubb Banks on Prudent Underwriting Amid Cat Loss Woes
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Chubb Limited (CB - Free Report) is well-poised for growth, riding on global presence, compelling product portfolio and a sturdy capital position. The company boasts being one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and largest publicly traded P&C insurers, based on market capitalization.
This company has a stellar history of delivering earnings surprise in the last 15 quarters. Its operating earnings grew 68% in the last 11 years (2009-2019), better than its peers’ average of 40% over the same time.
Chubb is well poised to continue to generate solid premiums, given its compelling product portfolio, solid retention, improved pricing, prudent underwriting, and solid global presence. It is also looking to capitalize on the potential of middle-market businesses, both domestic and international. Chubb made investments in various strategic initiatives that paved the way for long-term growth.
Banking on prudent underwriting, Chubb remains focused on delivering industry-leading combined ratio. Its combined ratio is about 800 bps better than its peers’ average over the past 10 years.
Chubb boasts a strong capital position, with sufficient cash generation capabilities. Given its operational strength, the company has increased its dividend for 27 straight years. Its effective capital management strategy helps to generate solid return on equity significantly in excess of its cost of equity. Chubb envisions double-digit return on equity over time.
However, substantial exposure to cat loss has been inducing volatility in its underwriting results. In fact, Chubb estimates the COVID-19 pandemic and its impact on economic growth to weigh on its operating income and revenues in the near term. Increasing expenses are also a concern.
Given a low rate environment, Chubb expects net investment income to remain under pressure in the near term. The company estimates adjusted net investment income run rate to be in the range of $850 million to $860 million, down from the earlier guidance of $885 million to $890 million.
Donegal Group delivered an earnings surprise of 134.62% in the last-reported quarter.
Markel came up with an earnings surprise of 57.01% in the last-reported quarter.
Fidelity National delivered an earnings surprise of 53.52% in the last-reported quarte
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Chubb Banks on Prudent Underwriting Amid Cat Loss Woes
Chubb Limited (CB - Free Report) is well-poised for growth, riding on global presence, compelling product portfolio and a sturdy capital position. The company boasts being one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and largest publicly traded P&C insurers, based on market capitalization.
This company has a stellar history of delivering earnings surprise in the last 15 quarters. Its operating earnings grew 68% in the last 11 years (2009-2019), better than its peers’ average of 40% over the same time.
Chubb is well poised to continue to generate solid premiums, given its compelling product portfolio, solid retention, improved pricing, prudent underwriting, and solid global presence. It is also looking to capitalize on the potential of middle-market businesses, both domestic and international. Chubb made investments in various strategic initiatives that paved the way for long-term growth.
Banking on prudent underwriting, Chubb remains focused on delivering industry-leading combined ratio. Its combined ratio is about 800 bps better than its peers’ average over the past 10 years.
Chubb boasts a strong capital position, with sufficient cash generation capabilities. Given its operational strength, the company has increased its dividend for 27 straight years. Its effective capital management strategy helps to generate solid return on equity significantly in excess of its cost of equity. Chubb envisions double-digit return on equity over time.
However, substantial exposure to cat loss has been inducing volatility in its underwriting results. In fact, Chubb estimates the COVID-19 pandemic and its impact on economic growth to weigh on its operating income and revenues in the near term. Increasing expenses are also a concern.
Given a low rate environment, Chubb expects net investment income to remain under pressure in the near term. The company estimates adjusted net investment income run rate to be in the range of $850 million to $860 million, down from the earlier guidance of $885 million to $890 million.
Key Players
Key players from the Property and Casualty Insurance industry include Donegal Group (DGICA - Free Report) , Markel Corporation (MKL - Free Report) and Fidelity National Financial (FNF - Free Report) .
Donegal Group delivered an earnings surprise of 134.62% in the last-reported quarter.
Markel came up with an earnings surprise of 57.01% in the last-reported quarter.
Fidelity National delivered an earnings surprise of 53.52% in the last-reported quarte
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>