Chubb: A Great Company Wins In Good Times And Bad

Summary

• Chubb has outstanding leadership from CEO Evan Greenberg, easily withstood the challenge of hedge fund P&C companies and flourished despite a low return environment in fixed income securities.
• Following the ACE/Chubb merger in 2016, the revenue growth rate increased 50% and Chubb has begun to take advantage of the higher bond returns available with rate increases.
• Despite a P/E ratio at a deserved premium to its industry, its PEG ratio of 0.9 makes it relatively cheap. It earns high SA Factor Grades for Growth and Profitability.
• Chubb's yield is a modest 1.64% but with 28 years of increases. 2021 share buybacks were 6.5% of share count.
• Chubb has an SA Quant Ranking of STRONG BUY (4.82/5) and this author agrees and continues to own it with the possibility of adding.

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Chubb (NYSE:CB) is one of the best run companies in the Property and Casualty insurance business. They are justly famous for disciplined underwriting. I first heard that from a close friend who worked there in the days

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.