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With a market cap of $106.6 billion, Chubb Limited (CB) is the world’s largest publicly traded property and casualty insurance company, offering a wide range of insurance and reinsurance products to businesses and individuals worldwide. Headquartered in Zurich, Switzerland, Chubb is known for its strong underwriting expertise, financial strength, and broad global presence.
The insurer's shares have underperformed the broader market over the past 52 weeks. CB has risen 6.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.3%. Moreover, shares of Chubb are down 4.3% on a YTD basis, compared to SPX’s nearly 4% gain.
In addition, Chubb has also lagged behind the Financial Select Sector SPDR Fund’s (XLF) 32.5% return over the past 52 weeks and a 7.2% YTD gain.
Shares of Chubb rose over 1.3% following its Q4 2024 earnings release on Jan. 28 due to a strong core operating income of $6.02 per share, which exceeded the consensus estimate. Adjusted net investment income hit a record $1.7 billion, up 13.7% year-over-year, driven by a market rally fueled by Federal Reserve rate cuts and expectations of lower corporate taxes and deregulation. Additionally, Chubb’s Global P&C net premiums written (excluding Agriculture) grew 6.7%, reflecting strong demand for insurance. Despite a $1.5 billion pre-tax cost from California wildfires impacting Q1 2025, the strong Q4 underwriting gains and investment income reinforced investor confidence.
For the current fiscal year, ending in December 2025, analysts expect CB’s EPS to dip 4.4% year-over-year to $21.52. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” one “Moderate Sell,” and one “Strong Sell.”
On Jan. 29, KBW analyst Meyer Shields maintained a Buy rating on “Chubb” and set a price target of $328.
As of writing, CB is trading below the mean price target of $302.77. The Street-high price target of $330 implies a potential upside of 24.8% from the current price levels.
