Piper Sandler analyst Paul Newsome downgraded the rating on Chubb to a Hold today, setting a price target of $283.00.
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Paul Newsome has given his Hold rating due to a combination of factors impacting Chubb’s performance and outlook. The decision to downgrade Chubb from Overweight to Neutral follows the company’s second-quarter 2025 earnings results, which, while solid, highlighted challenges in the current insurance market cycle. As the insurance cycle begins to soften, Chubb is expected to face increased competition, particularly in large account and specialty commercial segments, which could pressure its margins.
Chubb’s North American commercial business, a significant portion of its operations, experienced pricing increases that were outpaced by loss costs, indicating potential margin compression. Additionally, the commercial lines segment income fell short of expectations, suggesting that pricing deceleration is impacting results. Consequently, Newsome has slightly lowered his earnings per share estimates for 2025 and 2026, reflecting the increased competitive pressures and the company’s performance in the recent quarter.
According to TipRanks, Newsome is a 5-star analyst with an average return of 13.2% and a 70.48% success rate. Newsome covers the Financial sector, focusing on stocks such as Arthur J Gallagher & Co, Aon, and Travelers Companies.
In another report released on July 14, J.P. Morgan also maintained a Hold rating on the stock with a $321.00 price target.