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Chubb Ltd CB

Morningstar Rating
$255.44 +3.48 (1.38%)
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Company Report

Chubb Earnings: Underlying Results Hold Strong

Narrow-moat Chubb's reported fourth-quarter earnings were aided by a $1.1 billion one-time tax benefit related to a new income tax law in Bermuda. However, even excluding this impact, results largely held strong, with annualized return on equity coming in at 16%, or 24% on a core tangible basis. For the full year, ROE was 22% on a core tangible basis, excluding the tax impact. Like its peers, Chubb has been benefiting from a hard pricing environment, but we also think that relatively disciplined insurers like Chubb have more leverage to this type of market condition. We will maintain our $226 fair value estimate and see the shares as roughly fairly valued at the moment.

Price vs Fair Value

CB is trading at a 13% premium.
Price
$255.44
Fair Value
$739.00
Uncertainty
Medium
1-Star Price
$439.30
5-Star Price
$873.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Chubb is one of the few companies with global footprint large enough to service multinational corporations. Its network has created a barrier to entry for potential competitors.

Bears

Large corporations often have substantial bargaining power, which may hurt Chubb when negotiating on premium pricing.

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News

Trading Information

Previous Close Price
$251.96
Day Range
$250.71255.71
52-Week Range
$183.40255.71
Bid/Ask
$247.01 / $269.00
Market Cap
$104.22 Bil
Volume/Avg
1.2 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
13.57
Price/Sales
2.07
Dividend Yield (Trailing)
1.34%
Dividend Yield (Forward)
1.35%
Total Yield
3.21%

Company Profile

ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination made the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Core
Total Number of Employees
34,000

Competitors

Valuation

Metric
CB
AIG
TRV
Price/Earnings (Normalized)
13.5710.2025.13
Price/Book Value
1.701.061.98
Price/Sales
2.071.061.22
Price/Cash Flow
10.905.124.85
Price/Earnings
CB
AIG
TRV

Financial Strength

Metric
CB
AIG
TRV
Quick Ratio
Current Ratio
Interest Coverage
14.234.409.97
Quick Ratio
No chart available

Profitability

Metric
CB
AIG
TRV
Return on Assets (Normalized)
3.49%0.93%2.55%
Return on Equity (Normalized)
13.97%11.71%13.79%
Return on Invested Capital (Normalized)
10.52%2.49%11.35%
Return on Assets
CB
AIG
TRV
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Economic Moat
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TKOMF
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ALL
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IFCZF
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PPCCF
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WRB
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MKL
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