Chubb Limited (CB) | Investment Case

1. Company Snapshot

1.a. Company Description

Chubb Limited provides insurance and reinsurance products worldwide.The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses.Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services.

The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products.Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels.The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies.

Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts.The company markets its products primarily through insurance and reinsurance brokers.The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016.

Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

Show Full description

1.b. Last Insights on CB

Chubb Limited's recent stock performance was driven by solid Q4 earnings, beating estimates, and a compelling portfolio with strong renewal retention, positive rate increases, and a solid capital position. The company's Q4 results reflected solid results in North America P&C, Overseas General, and Life Insurance divisions, as well as improved investment income. Additionally, Chubb's dividend hike to 6.5% reflects its strong capital position and ability to share profits with shareholders.

1.c. Company Highlights

Last Price	295
Change Percentage	0.12%
Open	294.52
Previous Close	294.64
Market Cap ( Millions)	118039
Volume	2289711
Year High	306.91
Year Low	252.16
M A 50	285.6
M A 200	283.38

FCF Yield	11.29%
Dividend Yield	1.27%
ROE	14.28%
Debt / Equity	23.97%
Net Debt / EBIDTA	127.88%
Price To Book	1.66
Price Earnings Ratio	12.29
Price To FCF	8.86
Price To sales	2.01
EV / EBITDA	10.04

2. Chubb's Q3 2025 Earnings: A Showcase of Diversified Strength

Chubb Limited reported an excellent third quarter in 2025, with core operating income of $3 billion, up 29%, and EPS of $7.49 per share, significantly beating estimates of $6.17. The results were supported by record underwriting and investment results, as well as solid premium revenue growth of 7.5% globally. The company's diversified business model, with a presence in North America, Asia, Latin America, and U.K., Europe, contributed to the strong performance.

Publication Date: Oct -26

                                    📋 Highlights
                                    Core Operating Income & EPS Surge:
                                                Core operating income reached $3 billion (+29%), with EPS at $7.49 (+31% YoY), driven by record underwriting and investment results.
Record Underwriting Income:
                                                Underwriting income hit $2.3 billion (+55% YoY), with a combined ratio of 81.8% (6-point improvement), and accident year underwriting income at $2.2 billion (+10%).
Capital Returns to Shareholders:
                                                $1.6 billion returned via $385 million in dividends and $1.2 billion in share repurchases, reflecting strong capital management.
ROE Outlook Raised:
                                                Core operating return on tangible equity at 24.5%, with ROE targeting 14%+ over the medium term, driven by underwriting, life income, and invested assets.

                                

Underwriting and Investment Performance

The underwriting income was a record $2.3 billion, up 55% from a year ago, with a combined ratio of 81.8%, nearly 6 percentage points better than a year earlier. The current accident year underwriting income, excluding cats, was a record $2.2 billion, up 10%, supported by a combined ratio of 82.5%. The invested asset side also performed well, with adjusted net investment income a record $1.8 billion, up 8.3%. Evan Greenberg, CEO, attributes Chubb's success to its culture, discipline, and ability to monitor and survey its business at a granular level.

Geographic and Business Segment Performance

Overseas General division premiums were up 9.7% or nearly 7.5% in constant dollars, driven by growth in consumer lines, which grew more than 25% in Asia and more than 12.5% in Latin America. The North America Excess & Surplus (E&S) business grew 7% in the quarter, driven by property rate increases, with casualty lines also growing.

Valuation and Outlook

With a Price-to-Book Ratio of 1.46 and an ROE of 14.48%, Chubb's valuation appears reasonable. The company's guidance for a 14%+ ROE over the medium term is supported by its diversified earnings growth engines: underwriting, life income, and invested assets. Analysts estimate next year's revenue growth at 6.0%, indicating a stable outlook.

Dividend and Share Buyback

The company returned $1.6 billion of capital to shareholders during the quarter, including $385 million in dividends and $1.2 billion in share repurchases. With a Dividend Yield of 1.33%, Chubb offers a relatively stable income stream.

Key Drivers and Risks

Chubb's small to middle market commercial business is a significant contributor, with a strong field operation and industry practice expertise. However, the company faces risks from potential increased competition and market fluctuations. The company's focus on service, product richness, and risk engineering sets it apart, making it less vulnerable to price competition.

3. NewsRoom

Chubb 2025 Wealth Survey: The Resilient Mindset

Dec -03

Source: prnewswire.com

Boston Partners Reduces Holdings in Chubb Limited $CB

Nov -26

Source: defenseworld.net

Chubb Limited (NYSE:CB) Receives Average Rating of “Hold” from Brokerages

Nov -26

Source: defenseworld.net

4 Dividend Stocks to Buy With $5,000 and Hold Forever

Nov -23

Source: fool.com

3 Dividend Champions That Could Double Their Dividends From Here

Nov -23

Source: fool.com

3 Warren Buffett Stocks to Buy Hand Over Fist in November

Nov -22

Source: fool.com

Chubb Limited Board Declares Quarterly Dividend

Nov -20

Source: prnewswire.com

Chubb Appoints Bill Hazelton Chief Operating Officer, North America Field Operations

Nov -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.63%)

6. Segments

North America Commercial P&C Insurance

Expected Growth: 4.5%

Chubb’s North America Commercial P&C segment growth is driven by increasing demand for cyber insurance, rising premiums, and a growing middle market. The segment will benefit from Chubb’s strong underwriting discipline and its ability to offer a broad range of products.

Overseas General Insurance

Expected Growth: 7.4%

Chubb Limited's international general insurance business is driven by increasing demand for risk management solutions from multinational corporations and local businesses, particularly in Asia and Latin America, where economic growth and urbanization are fueling growth.

North America Personal P&C Insurance

Expected Growth: 7.4%

Chubb’s strong underwriting discipline, diverse product portfolio, and expanding distribution channels drive growth in North America’s personal and commercial property and casualty insurance market.

North America Agricultural Insurance

Expected Growth: 5.3%

None

Life Insurance

Expected Growth: 4.5%

Chubb Limited's Life Insurance segment is expected to grow due to increasing demand for protection and savings products, especially in emerging markets, and the company's strong global presence and diversified product offerings.

Global Reinsurance

Expected Growth: 4.5%

Chubb's Global Reinsurance segment is driven by increasing demand for risk management solutions, growing awareness of catastrophic events, and expansion into emerging markets.

Unallocated Net Realized Gains (Losses)

Expected Growth: 5.4%

Chubb Limited's net realized gains or losses on investments are driven by a diversified investment portfolio, a strong balance sheet and a disciplined investment approach, which are expected to generate steady returns.

Corporate

Expected Growth: 4.5%

Chubb's Corporate segment growth driven by increasing demand for commercial property and casualty insurance products, expansion into new markets, and a strong brand reputation.

Unallocated Market Risk Benefits Gains (Losses)

Expected Growth: 4.5%

Chubb's unallocated market risk benefits gains losses are driven by interest rates, equity market performance, and foreign currency movements, which are expected to contribute to a steady growth in the segment.

7. Detailed Products

Property Insurance

Provides coverage for physical damage to or loss of property, including buildings, equipment, and inventory.

Casualty Insurance

Covers liability for accidents, injuries, or damages to others, including workers' compensation and general liability.

Marine Insurance

Provides coverage for goods in transit, including ocean and air cargo, as well as marine liability.

Energy Insurance

Covers risks associated with energy-related operations, including oil and gas, renewable energy, and utilities.

Reinsurance

Provides insurance for insurance companies, helping them manage risk and increase capacity.

Cyber Insurance

Covers losses resulting from cyber-attacks, data breaches, and other cyber-related risks.

Accident and Health Insurance

Provides coverage for accidental death, dismemberment, and disability, as well as group life and supplemental health insurance.

Specialty Insurance

Offers customized coverage for unique risks, including aviation, aerospace, and entertainment.

8. Chubb Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Chubb Limited operates in the insurance industry, where substitutes are limited. However, customers may opt for self-insurance or alternative risk management strategies, posing a moderate threat.

Bargaining Power Of Customers

Chubb Limited's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings, making it difficult for customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Chubb Limited has a diversified supply chain, and its suppliers have limited bargaining power due to the company's large scale and global presence.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with established players like Chubb Limited.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. Chubb Limited faces intense rivalry from other major insurers, which can lead to pricing pressures and reduced margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	23.03%
Debt Cost	3.95%
Equity Weight	76.97%
Equity Cost	7.11%
WACC	6.38%
Leverage	29.92%

11. Quality Control: Chubb Limited passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BBVA

A-Score: 7.8/10

Value: 7.1

Growth: 9.2

Quality: 7.0

Yield: 8.1

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

DNB Bank

A-Score: 7.2/10

Value: 6.2

Growth: 4.9

Quality: 5.5

Yield: 9.4

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Swiss Re

A-Score: 6.6/10

Value: 4.2

Growth: 3.0

Quality: 7.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

Chubb

A-Score: 6.0/10

Value: 6.1

Growth: 7.3

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.95%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.38%

Chubb Limited - CH0044328745

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CB

1.c. Company Highlights

Lower Yield

Higher Growth

Less Volatile

Earnings Beats

Revenues Beats

Stable Momentum

Average Growth

Strong Momentum

Revenues Miss

Average Yield

Medium Volatility

Weak Momentum

2. Chubb's Q3 2025 Earnings: A Showcase of Diversified Strength

Underwriting and Investment Performance

Geographic and Business Segment Performance

Valuation and Outlook

Dividend and Share Buyback

Key Drivers and Risks

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.63%)

6. Segments

North America Commercial P&C Insurance

Expected Growth: 4.5%

Overseas General Insurance

Expected Growth: 7.4%

North America Personal P&C Insurance

Expected Growth: 7.4%

North America Agricultural Insurance

Expected Growth: 5.3%

Life Insurance

Expected Growth: 4.5%

Global Reinsurance

Expected Growth: 4.5%

Unallocated Net Realized Gains (Losses)

Expected Growth: 5.4%

Corporate

Expected Growth: 4.5%

Unallocated Market Risk Benefits Gains (Losses)

Expected Growth: 4.5%

7. Detailed Products

Property Insurance

Casualty Insurance

Marine Insurance

Energy Insurance

Reinsurance

Cyber Insurance

Accident and Health Insurance

Specialty Insurance

8. Chubb Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Chubb Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

12.e Scoring ^Insights

12.f DCF ^BETA