Chubb Limited: A Steady Player in the Insurance Market Faces Recent Challenges
Chubb Limited (CB), a Switzerland-based company, provides various insurance products including commercial and personal property insurance, personal accident and supplemental health insurance, reinsurance, and life insurance services. With a market capitalization of $116.9 billion, Chubb serves a diverse clientele from multinational corporations to individuals and insurers in need of reinsurance.
Defined as “large-cap,” Chubb fits this category, showcasing its substantial size, stability, and influence within the industry. The company operates in 54 countries and employs over 40,000 individuals globally.
As of now, Chubb shares are trading 3.6% below their 52-week high of $302.05, achieved on October 21. Over the past three months, shares have seen a modest increase of 2%, falling short of the Financial Select Sector SPDR Fund’s (XLF) 11.1% rise during the same period.
Looking at a longer timeline, Chubb’s stock is up 28.3% year-to-date (YTD), which is lower than XLF’s impressive 35.2% return. Over the past 52 weeks, the stock gained 26.8%, still trailing behind XLF’s 40.5% growth.
Despite this, Chubb has consistently traded above its 200-day moving average for the past year and primarily maintained levels above its 50-day moving average since late November.
Following a mixed third-quarter earnings report on October 29, Chubb shares dipped 1.2%. The company reported an adjusted earnings increase of 15.6% year-over-year, reaching $5.72 per share, surpassing Wall Street’s expectations of $4.93. However, its revenue of $15.01 billion, reflecting a growth of only 6.5%, fell short of the consensus estimate of $15.25 billion due to higher catastrophe losses during the quarter, which partially offset strong performance in its North America property and casualty, Overseas General, and Life Insurance divisions.
In contrast, Chubb has outperformed rival American International Group, Inc. (AIG), which saw YTD gains of 12.2% and 15.2% over the past year.
Despite Chubb’s recent struggles compared to the broader sector, analysts remain cautiously optimistic. The stock currently holds a “Moderate Buy” rating from 24 analysts, with a mean price target of $301.22, indicating a modest 3.9% potential upside from its current price.
On the date of publication,
Neharika Jain
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
