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Should You Retain Chubb Limited (CB) Stock in Your Portfolio?
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Chubb Limited (CB - Free Report) is has been gaining momentum on the back of new business, expanding underwriting margins, strong renewal retention and sufficient liquidity.
Growth Projections
The Zacks Consensus Estimate for Chubb’s 2022 and 2023 earnings per share is pegged at $14.9 and $16.6, indicating year-over-year increases of 18.7% and 11%, respectively.
Earnings Surprise History
Chubb has a decent earnings surprise history, beating estimates in each of the last four quarters, the average being 13.4%.
Zacks Rank & Price Performance
Chubb currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 16.8% against the industry’s decrease of 6%.
Image Source: Zacks Investment Research
Style Score
Chubb has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Being the world’s largest publicly traded property and casualty (P&C) insurer, Chubb continues to witness robust premium revenue growth globally. We expect the momentum to continue, driven by its commercial businesses, double-digit commercial P&C rate increases and expanding underwriting margins, new business and strong renewal retention.
Riding on higher income received from private equity partnerships and increased dividends on public equities, CB’s net investment income is likely to increase in the long run. Riding on the rising rate environment, Chubb expects adjusted investment income for the second quarter in the range of $915 million to $925 million.
Chubb has always considered acquisitions as an effective strategy for inorganic growth and global expansion. Through acquisitions, CB has expanded its international and domestic footprint and built a superior portfolio of products and services.
Earlier this month, Chubb acquired the life and non-life insurance companies of Cigna Corporation (CI - Free Report) across six of Asia Pacific’s markets. With this buyout, Chubb’s Asia-Pacific portfolio will increase to $7 billion in premiums. Chubb's global A&H writings will increase to nearly $6 billion in premium, while CB's life insurance segment will become a $5.4 billion business.
Chubb’s financial position remained strong, with $73 billion in total capital. The insurer continues to remain liquid with cash and short-term investments of over $5 billion.
Banking on solid cash flow, Chubb has increased dividends at an eight-year CAGR (2015-2022) of 4.8%. The dividend yield is 1.7%, better than the industry average of 0.4%, making the stock an attractive pick for yield-seeking investors. At present, CB is left with $1.6 billion under its authorization.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are United Fire Group, Inc. (UFCS - Free Report) and Everest Re Group, Ltd. . While United Fire sports a Zacks Rank #1 (Strong Buy), Everest Re carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.8%. In the past year, UFCS's stock has gained 37.5%.
The Zacks Consensus Estimate for UFCS’ 2022 earnings has moved 23.5% north in the past 60 days.
Everest Re’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 20.3%. In the past year, RE’s stock has gained 12.9%.
The Zacks Consensus Estimate for Everest Re’s 2022 and 2023 earnings per share is pegged at $34.8 and $39.3, indicating year-over-year increases of 20.1% and 13%, respectively.
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Should You Retain Chubb Limited (CB) Stock in Your Portfolio?
Chubb Limited (CB - Free Report) is has been gaining momentum on the back of new business, expanding underwriting margins, strong renewal retention and sufficient liquidity.
Growth Projections
The Zacks Consensus Estimate for Chubb’s 2022 and 2023 earnings per share is pegged at $14.9 and $16.6, indicating year-over-year increases of 18.7% and 11%, respectively.
Earnings Surprise History
Chubb has a decent earnings surprise history, beating estimates in each of the last four quarters, the average being 13.4%.
Zacks Rank & Price Performance
Chubb currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 16.8% against the industry’s decrease of 6%.
Image Source: Zacks Investment Research
Style Score
Chubb has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Being the world’s largest publicly traded property and casualty (P&C) insurer, Chubb continues to witness robust premium revenue growth globally. We expect the momentum to continue, driven by its commercial businesses, double-digit commercial P&C rate increases and expanding underwriting margins, new business and strong renewal retention.
Riding on higher income received from private equity partnerships and increased dividends on public equities, CB’s net investment income is likely to increase in the long run. Riding on the rising rate environment, Chubb expects adjusted investment income for the second quarter in the range of $915 million to $925 million.
Chubb has always considered acquisitions as an effective strategy for inorganic growth and global expansion. Through acquisitions, CB has expanded its international and domestic footprint and built a superior portfolio of products and services.
Earlier this month, Chubb acquired the life and non-life insurance companies of Cigna Corporation (CI - Free Report) across six of Asia Pacific’s markets. With this buyout, Chubb’s Asia-Pacific portfolio will increase to $7 billion in premiums. Chubb's global A&H writings will increase to nearly $6 billion in premium, while CB's life insurance segment will become a $5.4 billion business.
Chubb’s financial position remained strong, with $73 billion in total capital. The insurer continues to remain liquid with cash and short-term investments of over $5 billion.
Banking on solid cash flow, Chubb has increased dividends at an eight-year CAGR (2015-2022) of 4.8%. The dividend yield is 1.7%, better than the industry average of 0.4%, making the stock an attractive pick for yield-seeking investors. At present, CB is left with $1.6 billion under its authorization.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are United Fire Group, Inc. (UFCS - Free Report) and Everest Re Group, Ltd. . While United Fire sports a Zacks Rank #1 (Strong Buy), Everest Re carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 270.8%. In the past year, UFCS's stock has gained 37.5%.
The Zacks Consensus Estimate for UFCS’ 2022 earnings has moved 23.5% north in the past 60 days.
Everest Re’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 20.3%. In the past year, RE’s stock has gained 12.9%.
The Zacks Consensus Estimate for Everest Re’s 2022 and 2023 earnings per share is pegged at $34.8 and $39.3, indicating year-over-year increases of 20.1% and 13%, respectively.