Shares of Chubb (NYSE:CB) have been a solid performer over the past year, gaining 26%, thanks to benefits from higher rates and its track record of sturdy underwriting. However, shares have pulled back about 7% from its high, given catastrophe losses during hurricane season. I last
Chubb Delivers Strong Underwriting Even With More Hurricane Activity
Summary
- Chubb's shares have gained 26% over the past year due to higher rates and strong underwriting, but recently pulled back 7% due to hurricane losses.
- Q3 earnings were strong with $5.72 EPS, beating estimates by $0.73, and net premiums up 6.6%, despite challenges in agriculture and catastrophe losses.
- Chubb's diversified global portfolio and robust underwriting have led to improved combined ratios as well as strong investment income, supporting continued growth and profitability.
- With a projected EPS of $22.25-$22.75 this year and $24 next year, Chubb remains a "buy" with a potential 12% total return.
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