Download PDF

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 performance has been driven by robust earnings growth, strong underwriting, and a favorable combined ratio of 81.5%. The company's Q4 2025 earnings call highlighted record earnings, with core operating income nearly $3 billion, up 22% year-over-year. Total company net premiums grew almost 9%, with P&C up 7.7%. Premium growth, investment income, and strong retention across lines are expected to drive a Q4 earnings beat. Institutional investors, including CX Institutional, Sequoia Financial Advisors, and Cooke & Bieler LP, have increased their stakes in the company.

1.c. Company Highlights

2. Chubb's Record-Breaking Earnings: A Closer Look

Chubb Limited reported an outstanding fourth quarter and record year in 2025, with core operating income of nearly $3 billion or $7.52 per share, up 22% and 25%, respectively. For the full year, core operating income was almost $10 billion or $24.79 per share, up 9% and 11%. The company's P&C underwriting income was $2.2 billion in the quarter, up 40% with a record low combined ratio of 81.2%, and $6.5 billion for the year, up 11.6%. Adjusted net investment income was $1.8 billion in the quarter, up 7.3%, and $7 billion for the year, up 9%. The actual EPS of $7.52 beat estimates of $6.77, indicating a strong performance.

Publication Date: Feb -05

📋 Highlights
  • Record Core Operating Income:: 2025 full-year core operating income reached $10B ($24.79/share), up 9% and 11% respectively.
  • P&C Underwriting Growth:: Q4 P&C underwriting income surged 40% to $2.2B, with a record-low 81.2% combined ratio.
  • Capital Returns:: Chubb returned $1.5B to shareholders in 2025, including $3.4B in share repurchases and $1.5B in dividends.
  • International P&C Premiums:: Q4 international premiums rose 10.8%, driven by 14.7% growth in Latin America and 13% in Asia.
  • Investment Income Growth:: Full-year adjusted net investment income hit $7B, up 9% year-over-year.

Business Segment Performance

The company achieved record earnings, with total company net premiums growing almost 9% in the quarter and over 6.5% for the year. International P&C premiums were up 10.8% in the quarter, with Latin America growing 14.7% and Asia growing 13%. North America P&C premiums were up over 6.5%, with agriculture premiums up over 45%. The growth in these segments was driven by a combination of factors, including selective expansion in markets with adequate pricing, as noted by John Keogh, who attributed financial lines growth to "selective expansion in markets with adequate pricing."

Valuation and Dividend Yield

With a Price-to-Book Ratio of 1.77, Chubb's valuation appears reasonable, especially considering its strong underwriting profitability, as indicated by a combined ratio of 81.2%. The company's Dividend Yield of 1.16% is also attractive, given its history of returning capital to shareholders. In 2025, Chubb returned $1.5 billion of capital to shareholders, including $3.4 billion in share repurchases and $1.5 billion in dividends.

Outlook and Guidance

The company expects adjusted net investment income in the first quarter of 2026 to be between $1.81 billion to $1.84 billion and a core operating effective tax rate for 2026 to be in the range of 19.5% to 20%. Analysts estimate next year's revenue growth at 5.7%, which is slightly lower than the company's historical growth rate. However, Chubb's strong performance in 2025 and its guidance for 2026 suggest that it is well-positioned for continued growth.

Digital Transformation and Alternative Capital

Chubb is focused on digital transformation, with a goal of achieving a 150-basis-point combined ratio improvement over 3-4 years, mainly driven by expense reductions in OpEx and cost of claims. The company is also mindful of its alternative capital allocation, with a target of raising private investments from 12% to 15%. Evan G. Greenberg emphasized the company's approach to alternative capital, stating that they are "mindful of statutory and S&P implications on capital usage."

3. NewsRoom

Card image cap

Chubb Appoints Scott Henck Global Chief Actuary

Feb -19

Source: prnewswire.com

Card image cap

The Best Warren Buffett Stocks to Buy With $2,000 Right Now

Feb -19

Source: fool.com

Card image cap

David Rolfe's Strategic Moves: Chubb Ltd Takes Center Stage with 3.29% Portfolio Share

Feb -17

Source: gurufocus.com

Card image cap

Timothy Alan Boroughs Sells 27,817 Shares of Chubb (NYSE:CB) Stock

Feb -12

Source: defenseworld.net

Card image cap

Chubb (NYSE:CB) Sets New 12-Month High After Analyst Upgrade

Feb -10

Source: defenseworld.net

Card image cap

Forget Lemonade (LMND) Stock and Buy This Instead

Feb -09

Source: fool.com

Card image cap

Chubb Limited (NYSE:CB) Given Average Rating of “Hold” by Brokerages

Feb -09

Source: defenseworld.net

Card image cap

Thrivent Financial for Lutherans Trims Position in Chubb Limited $CB

Feb -08

Source: defenseworld.net

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 9.4

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
BBVA

A-Score: 7.4/10

Value: 6.4

Growth: 9.2

Quality: 5.9

Yield: 7.5

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
DNB Bank

A-Score: 7.0/10

Value: 5.5

Growth: 5.7

Quality: 5.1

Yield: 9.4

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Erste Bank

A-Score: 6.4/10

Value: 5.1

Growth: 5.4

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Chubb

A-Score: 6.1/10

Value: 5.5

Growth: 7.3

Quality: 6.9

Yield: 2.5

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Swiss Re

A-Score: 5.8/10

Value: 3.0

Growth: 3.0

Quality: 6.1

Yield: 8.8

Momentum: 5.5

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

331.62$

Current Price

331.62$

Potential

-0.00%

Expected Cash-Flows