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Should You Retain Chubb Limited (CB) Stock in Your Portfolio?
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Chubb Limited (CB - Free Report) has been in investors’ good books owing to new business, strong renewal retention, well performing commercial businesses and sufficient liquidity.
Growth Projections
The consensus estimate for 2023 and 2024 earnings is pegged at $17.42 and $19.17, indicating 14.3% and 10% increase from the year-ago reported figure, driven by 8.2% and 5.9% higher revenues of $48.1 billion and $50.9 billion, respectively.
Northbound Estimate Revision
The Zacks Consensus Estimate for Chubb’s 2023 earnings has moved 1.3% north in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
Chubb has a decent earnings surprise history, beating estimates in three of the last four quarters and missed in one, the average being 6.61%.
Zacks Rank & Price Performance
Chubb currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 3.6%, outperforming the industry’s increase of 0.5%.
Image Source: Zacks Investment Research
Style Score
Chubb has a favorable VGM Score of A. 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.
A solid commercial business, continued commercial P&C rate increases, improving underwriting margins, new business and strong renewal retention should continue to support premium growth.
Chubb has always considered acquisition as an effective strategy for inorganic growth and global expansion. It closed 17 acquisitions over the past 15 years. Chubb has acquired the life and non-life insurance companies of Cigna Corporation in seven Asia-Pacific markets. The addition will boost Chubb’s A&H business as well as expand its Asia-based life insurance presence. With this addition, Asia-Pacific's share of Chubb's global portfolio will grow to nearly $7 billion in premium, representing about 18% of the total company premiums.
Riding on increasing interest rates and widening spreads, investment income should continue to rise. Chubb projects quarterly adjusted net investment income in the range of $1.135 billion to $1.155 billion.
Chubb’s solid underlying performance produced strong operating cash flow of $11.24 billion in 2022. Chubb continues to build on balance sheet strength with total capital of $63 billion and cash and short-term investments of $6.7 billion at quarter end.
Chubb’s strong capital position with sufficient cash generation capabilities supports effective capital deployment. This, in turn, has helped the insurer increase dividends for the last 29 years. The dividend yield is 1.6%, better than the industry average of 0.3%. At present, CB is left with $3.01 billion under its authorization.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 11.1%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating year-over-year increase of 64.9% and 14.7%, respectively. In the past year, RE has gained 28.7%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
The Zacks Consensus Estimate for Selective Insurance’s 2023 and 2024 earnings per share is pegged at $6.57 and $7.55, indicating year-over-year increase of 30.6% and 14.9%, respectively. In the past year, SIGI has gained 30.5%.
The Zacks Consensus Estimate for SIGI’s 2023 and 2024 earnings has moved 8.9% and 9.7% north in the past 30 days.
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Should You Retain Chubb Limited (CB) Stock in Your Portfolio?
Chubb Limited (CB - Free Report) has been in investors’ good books owing to new business, strong renewal retention, well performing commercial businesses and sufficient liquidity.
Growth Projections
The consensus estimate for 2023 and 2024 earnings is pegged at $17.42 and $19.17, indicating 14.3% and 10% increase from the year-ago reported figure, driven by 8.2% and 5.9% higher revenues of $48.1 billion and $50.9 billion, respectively.
Northbound Estimate Revision
The Zacks Consensus Estimate for Chubb’s 2023 earnings has moved 1.3% north in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
Chubb has a decent earnings surprise history, beating estimates in three of the last four quarters and missed in one, the average being 6.61%.
Zacks Rank & Price Performance
Chubb currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 3.6%, outperforming the industry’s increase of 0.5%.
Image Source: Zacks Investment Research
Style Score
Chubb has a favorable VGM Score of A. 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.
A solid commercial business, continued commercial P&C rate increases, improving underwriting margins, new business and strong renewal retention should continue to support premium growth.
Chubb has always considered acquisition as an effective strategy for inorganic growth and global expansion. It closed 17 acquisitions over the past 15 years. Chubb has acquired the life and non-life insurance companies of Cigna Corporation in seven Asia-Pacific markets. The addition will boost Chubb’s A&H business as well as expand its Asia-based life insurance presence. With this addition, Asia-Pacific's share of Chubb's global portfolio will grow to nearly $7 billion in premium, representing about 18% of the total company premiums.
Riding on increasing interest rates and widening spreads, investment income should continue to rise. Chubb projects quarterly adjusted net investment income in the range of $1.135 billion to $1.155 billion.
Chubb’s solid underlying performance produced strong operating cash flow of $11.24 billion in 2022. Chubb continues to build on balance sheet strength with total capital of $63 billion and cash and short-term investments of $6.7 billion at quarter end.
Chubb’s strong capital position with sufficient cash generation capabilities supports effective capital deployment. This, in turn, has helped the insurer increase dividends for the last 29 years. The dividend yield is 1.6%, better than the industry average of 0.3%. At present, CB is left with $3.01 billion under its authorization.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Axis Capital Holdings Limited (AXS - Free Report) , Everest Re Group, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axis Capital beat estimates in three of the last four quarters and missed in one, the average being 5.70%. The Zacks Consensus Estimate for both 2023 and 2024 has moved 0.1% north in the past seven days.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $7.53 and $8.42, indicating year-over-year increase of 29.6% and 11.7%, respectively. In the past year, AXS has gained 11.1%.
The Zacks Consensus Estimate for Everest Re’s 2023 and 2024 earnings per share is pegged at $44.68 and $51.29, indicating year-over-year increase of 64.9% and 14.7%, respectively. In the past year, RE has gained 28.7%.
RE beat estimates in each of the last four quarters, the average being 18.41%.
The Zacks Consensus Estimate for Selective Insurance’s 2023 and 2024 earnings per share is pegged at $6.57 and $7.55, indicating year-over-year increase of 30.6% and 14.9%, respectively. In the past year, SIGI has gained 30.5%.
The Zacks Consensus Estimate for SIGI’s 2023 and 2024 earnings has moved 8.9% and 9.7% north in the past 30 days.