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Switzerland-based Chubb Limited (CB) provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance products and services. Valued at a market cap of $116.9 billion, the company caters to multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Chubb fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the insurance industry. The company operates in 54 countries and territories and has over 40,000 employees globally.
Chubb is currently trading 3.6% below its 52-week high of $302.05, reached on Oct. 21. Shares of CB increased 2% over the past three months, significantly lagging behind the broader Financial Select Sector SPDR Fund’s (XLF) 11.1% gains during the same time frame.
Moreover, in the longer term, CB has gained 28.3% on a YTD basis, underperforming XLF’s 35.2% returns. Shares of CB are up 26.8% over the past 52 weeks, lagging behind XLF’s 40.5% gains over the same time frame.
Yet, CB has been trading above its 200-day moving average for the past year and has remained mostly above its 50-day moving average since late November.
Shares of CB fell 1.2% after its mixed Q3 earnings release on Oct. 29. The company’s adjusted earnings increased 15.6% year-over-year to $5.72 per share and outpaced the Wall Street estimates of $4.93. However, a 6.5% annual growth in revenues to $15.01 billion could not meet the consensus estimates of $15.25 billion. The company’s revenue was primarily affected by higher catastrophe losses in the quarter, partially offsetting its strong performance in North America P&C, Overseas General and Life Insurance divisions.
However, CB has significantly outpaced its rival, American International Group, Inc. (AIG), which gained 12.2% on a YTD basis and 15.2% over the past 52 weeks.
Despite CB’s recent underperformance relative to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts in coverage, and the mean price target of $301.22 suggests a slight 3.9% premium to its current levels.
