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Chubb to Expand in Thailand and Vietnam With Strategic Buyouts

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Chubb Limited (CB - Free Report) agreed to acquire the insurance businesses of Liberty Mutual in Thailand and Vietnam. This strategic move bears testimony that Chubb has always considered acquisition as an effective strategy for inorganic growth and global expansion. Though the terms were not disclosed, the transactions are expected to be completed by the second quarter of 2025 (Thailand) and late 2025 / early 2026 (Vietnam) pending regulatory approvals and customary closing conditions. 

Chubb will buy LMG Insurance in Thailand and Liberty Insurance in Vietnam. The companies offer a range of consumer and commercial P&C products, including Automotive, Accident & Health and Non-Motor insurance, such as fire/property and industrial all-risk. The combined operations produced about $275 million in net premiums written in 2024.

Impressive Inorganic Story

Strategic acquisitions have improved premium revenues. The insurer has acquired 17 businesses over the past 15 years. The most notable in recent times being the buyout of the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna in several Asian markets. The strategic acquisition expands Chubb’s presence and advances long-term growth opportunity in Asia. 

CB also acquired an additional stake in Huatai Group, which brings its total aggregate ownership to 85.5%. This also makes Chubb the first foreign financial institution to majority-own a Chinese financial service holding company, with separate P&C, life, asset management and mutual fund subsidiaries. China being the second largest insurance market after the United States, management believes Huatai to significantly contribute to Chubb’s revenue and earnings. Chubb’s Catalyst Aviation Insurance buy expands its capabilities, expertise and presence in an important aviation market, solidifying its foothold in Australia and New Zealand.

Price Performance

Shares of Chubb have lost 4.2% year to date, underperforming the industry’s decline of 12%.

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Chubb's suite of compelling products, as well as services, focuses on capitalizing on the potential of middle-market businesses and investments in various strategic initiatives that pave the way for long-term growth. An impressive inorganic growth story helps to achieve a higher long-term return on equity. Chubb boasts a strong capital position with sufficient cash generation capabilities that ensure steady payouts to investors. 

Chubb carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks from the property and casualty insurance industry are The Progressive Corporation (PGR - Free Report) , Kingstone Companies (KINS - Free Report) and Palomar Holdings (PLMR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present.

The Zacks Consensus Estimate for PGR’s 2025 and 2026 earnings indicates a year-over-year increase of 7.3% and 3.3%. Shares gained 9.6% year to date. The consensus estimate moved 2.1% and 1.2% north in the last seven days.

The Zacks Consensus Estimate for KINS’ 2025 and 2026 earnings indicates a year-over-year increase of 298% and 24.1%. Shares gained 18% year to date. The consensus estimate moved 3.6% and 16.1% north in the last seven days.

The Zacks Consensus Estimate for PLMR’s 2025 and 2026 earnings indicates a year-over-year increase of 31.8% and 18.5%. Shares gained 20.2% year to date. The consensus estimate moved 2.6% and 1.8% north in the last seven days.

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