Chubb (CB) AI Stock Analysis

• Market Cap: $114.65B
• Dividend Yield: 1.61%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.28
• Revenue Growth: 9.09%
• EPS Growth: -7.55%
• Country: US
• Employees: 43,000
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.68
• Shares Outstanding: 400,725,700
• 10 Day Avg. Volume: 1,489,996
• 30 Day Avg. Volume: 1,570,114
• PEG Ratio: -1.62
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.32
• Enterprise Value/Ebitda: 3.47
• 1Y Price Target: $312.80
• Price Target Upside: 7.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $320.00 ▲(10.45%Upside)

Chubb's overall stock score reflects strong financial health and reasonable valuation, balanced by a neutral technical outlook and mixed earnings call sentiment due to catastrophe losses. The company's strategic positioning in the insurance industry and optimism for growth provide support, but rising debt and competitive pressures pose challenges.

Positive Factors

Earnings

Chubb reported operating EPS of $3.68 for the first quarter, surpassing the consensus of $3.19.

Market Position

Chubb has a larger exposure to global markets, which is expected to result in better long-term growth compared to its peers.

Strategic Actions

Recent strategic actions, like acquiring Cigna’s Asia-Pacific business and launching new products, are expected to drive growth in emerging markets.

Negative Factors

Catastrophe Losses

Management expects $1.5bn catastrophe losses from the Los Angeles wildfires, which is higher than the $1.3bn expectation.

Legal Environment

Underwriting results are beginning to show signs of coming off peak levels due to softening property prices and an increasingly severe legal environment.

Social Inflation

Social inflation continues to be a multi-year headwind for Chubb, leading to more adverse reserve development.

Chubb Business Overview & Revenue Model

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.

How the Company Makes Money

Chubb makes money primarily through the underwriting of insurance policies and investment income. The company collects premiums from policyholders, which serves as a significant revenue stream. These premiums are used not only to cover claims but also to be invested in various financial instruments, generating additional income. Chubb's underwriting operations are divided into segments such as North America Commercial P&C Insurance, North America Personal P&C Insurance, and Overseas General Insurance, each contributing to the company's revenue. Additionally, strategic partnerships and joint ventures in different regions enhance its market reach and customer base, further bolstering earnings. The company's disciplined underwriting practices and diversified portfolio help manage risk and ensure profitability.

Chubb Financial Statement Overview

Summary

Chubb exhibits strong financial health with solid revenue growth, efficient operations, and robust cash flow generation. The balance sheet is stable, although rising debt levels require monitoring. Overall, Chubb is well-positioned in the insurance industry, but attention to debt management and potential investment needs is advisable.

Income Statement

Chubb has demonstrated strong revenue growth over the years, with a substantial increase from $34.23 billion in 2019 to $49.83 billion in 2023. The gross profit margin is consistently at 100% due to the nature of the insurance business where total revenue equals gross profit. The EBIT and EBITDA margins are solid, reflecting strong operational efficiency. Net profit margin is robust, with a notable increase in net income to $9.27 billion in 2024. However, the 2024 data lacks a total revenue figure, making it challenging to evaluate the latest margins accurately.

Balance Sheet

Chubb maintains a strong equity position, with stockholders' equity increasing from $55.33 billion in 2019 to $64.02 billion in 2024. The debt-to-equity ratio is manageable, indicating prudent financial leverage. The equity ratio shows a stable balance between assets and liabilities. However, the total debt has increased slightly, which could pose risks if not managed carefully.

Cash Flow

Chubb's operating cash flow has shown consistent growth, indicating strong cash generation capabilities. The free cash flow has also increased, supporting healthy financial flexibility. The operating cash flow to net income ratio is favorable, suggesting efficient cash earnings conversion. However, the absence of capital expenditures in recent years raises questions about potential underinvestment.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.48B	56.01B	49.83B	43.12B	40.96B	35.99B
	Gross Profit
56.44B	56.01B	49.83B	43.12B	40.96B	35.99B
	EBIT
10.39B	11.20B	9.39B	7.14B	9.82B	4.16B
	EBITDA
8.28B	12.20B	10.20B	7.34B	10.57B	4.97B
	Net Income Common Stockholders
8.46B	9.27B	9.03B	5.25B	8.53B	3.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	39.19B	4.55B	2.01B	1.66B	1.75B
	Total Assets
251.75B	246.55B	230.68B	199.02B	200.05B	190.77B
	Total Debt
14.51B	15.18B	14.49B	14.88B	16.17B	14.95B
	Net Debt
14.51B	12.89B	12.05B	12.87B	14.51B	13.20B
	Total Liabilities
181.00B	178.15B	166.99B	148.50B	140.34B	131.33B
	Stockholders Equity
65.73B	64.02B	59.51B	50.52B	59.71B	59.44B
Cash Flow		Free Cash Flow
14.53B	16.18B	12.63B	11.26B	11.15B	9.79B
	Operating Cash Flow
14.53B	16.18B	12.63B	11.26B	11.15B	9.79B
	Investing Cash Flow
-10.97B	-13.92B	-7.65B	-5.65B	-6.66B	-7.52B
	Financing Cash Flow
-3.87B	-2.18B	-4.49B	-5.14B	-4.41B	-2.08B

Chubb Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 289.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CB, the sentiment is Positive. The current price of 289.73 is above the 20-day moving average (MA) of 288.52, above the 50-day MA of 288.95, and above the 200-day MA of 281.28, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CB.

Chubb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$27.72B	16.95	20.73%	0.44%	11.39%	14.76%
ALL	77 Outperform	$53.82B	13.89	19.88%	1.85%	11.49%	219.86%
PGR	76 Outperform	$162.56B	18.67	34.34%	1.77%	20.74%	51.73%
CB	73 Outperform	$114.65B	13.77	13.40%	1.61%	9.09%	-7.55%
MKL	73 Outperform	$24.20B	14.06	10.94%	―	-6.46%	-26.71%
TRV	71 Outperform	$61.41B	14.76	16.05%	1.55%	9.60%	36.89%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%

Chubb Corporate Events

Chubb Shareholders Approve Capital Band Amendment

At the Chubb Limited Annual General Meeting held on May 15, 2025, shareholders approved an amendment to renew the company’s capital band, allowing the Board of Directors to adjust share capital by up to 20% until May 15, 2026. This decision enables the board to limit or withdraw shareholders’ pre-emptive rights under certain conditions. Additionally, all agenda items proposed by the company were approved except for a shareholder proposal on Scope 3 greenhouse gas emissions reporting, which was rejected.

The most recent analyst rating on (CB) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Chubb stock, see the CB Stock Forecast page.