The Company in a Nutshell
- The combination of ACE and Chubb created a large international insurer with footprints in all insurance lines.
- The insurance company is particularly strong in the personal and commercial (P&C) insurance business.
- Instead of going for niche business, Chubb is doing the opposite; it’s going for economy of scale due to its size.
- We do not cover Chubb at the moment
Date Reviewed | N/A |
Company Name | Chubb Ltd |
Symbol | CB |
Sector | Financials |
Industry | Insurance - Property & Casualty |
Beta | 0.674 |
PRO Rating | 4 |
Dividend Safety | 3 |
Business Model
Chubb Limited is a Switzerland-based holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.
Current price | 290.7 |
ROE | 16.40 % |
ROIC | 0.00 % |
Shareholder Yield | 0.05 % |
5-Yr Total Return | 101.90 % |
1-Yr Total Return | 37.85 % |
Next Earnings Date | 10-22-24 |
Latest Quarter Information
What the CEO said:
We had another great quarter which contributed to record six-month results. Per-share core operating income in the quarter was up 9.3% while record year-to-date operating income was up 15.7%. Our P&C underwriting results in the quarter were simply excellent in spite of a higher level of catastrophe losses, highlighted by a published combined ratio of 86.8%, and supported by record ex-CAT current accident year underwriting income of $1.8 billion and a combined ratio of 83.2%. Adjusted investment income topped $1.5 billion, up nearly 26% and a record, and we grew life segment income about 11.5% in constant dollars with international life up over 15%.
What we say:
08-06-2024, Q2 was marked by 11.2% higher global P&C net premiums written, driven by growth in commercial insurance (9.6%) and consumer insurance (15.2%). North America was up 8%, Overseas General was up 15.6%, and Asia-Pacific, Latin America, and Europe were up 32.9%, 13.7%, and 10.8%, respectively. CB's P&C combined ratio was 86.8% versus 86% in the prior quarter. CB's P&C underwriting income reached $1.42B in the quarter. The company generated an operating cash flow of $4.08B and returned $939M, including share repurchases of $570M and dividends of $369M. CB's tangible book value (excl. AOCI) per share increased by 3.15%+ Q/Q and stood at $109.08.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 8.80 % |
5-Yr EPS Growth | 20.75 % |
5-Yr Div Growth | 3.30 % |
Potential Risks
Debt/Equity | 0.25 |
Financial Debt to EBITDA (TTM) | 1.40 |
Current Ratio (Quarterly) | 0.00 |
Credit Score | 83 |
Dividend Growth Perspective
Dividend ($) | 3.64 |
Dividend Yield Fwd | 1.25 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.70 % |
Payout Ratio (%) | 15.50 |
Cash Payout Ratio (%) | 9.25 |
DGR 1-Yr | 5.80 |
DGR 3-Yr | 3.35 |
DGR 5-Yr | 3.30 |
DGR Streak | 30 |
Chowder Score | 4.55 |
Next DVD PMT | 10-04-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 117 B |
PE Ratio | 12.30 |
Fwd PE | 12.65 |
Price to Book Ratio | 1.90 |
DDM Valuation | N/A |
Average 5-Yr PE | 15.47 |
Value Score | 55 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.