Analyst Note| Brett Horn, CFA |
Chubb started the year on a fairly strong note. The company appears to be exploiting a harder pricing market, and we believe disciplined insurers like Chubb stand to gain more from current industry dynamics. While the positive impact of pricing in the quarter was blunted by a relatively high level of catastrophe costs, we consider the annualized core tangible ROE of 13% to be a solid result for the narrow-moat franchise. We will maintain our $157 per share fair value estimate.