/Chubb%20Limited%20office%20sign-by%20Poetra_%20RH%20via%20Shutterstock.jpg)
With a market cap of $108.5 billion, Chubb Limited (CB) is the world's largest publicly traded property and casualty insurance company based in Zurich. Offering a diverse range of insurance and reinsurance products globally, it serves commercial, personal, accident, health, and life insurance needs across various sectors.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Chubb fits this criterion perfectly. Chubb is renowned for its disciplined underwriting, exceptional claims service, and strong financial stability, making it the top commercial lines insurer in the U.S. and a top provider for high-net-worth families and specialized risks worldwide.
However, the property and casualty insurer has slipped nearly 2.8% from its 52-week high of $275.41, which it achieved last month. Despite this recent pullback, shares of Chubb are up 7.6% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 6.9% gain over the same time frame.
Longer term, CB is up 18.5% on a YTD basis, outpacing the NASX's 14.5% gains. Moreover, shares of Chubb have gained 40% over the past 52 weeks, compared to NASX's 29.7% gains over the same time frame.
To confirm the bullish price trend, CB has been trading above its 200-day moving average since September last year and has mostly remained above its 50-day moving average during this period despite some fluctuations.
Chubb's outperformance stems from its robust premium growth, strong underwriting margins, record investment income, and diversified global insurance portfolio, all bolstered by its strategic international exposure and efficient risk management despite volatile interest rates and frequent natural disasters. Moreover, the stock surged 4.7% on May 16 after Warren Buffett's Berkshire Hathaway (BRK.B) disclosed a significant $6.7 billion stake in the company, sparking a rush among investors to follow his lead.
To emphasize the stock’s outperformance, rival American International Group, Inc. (AIG) is still underperforming Chubb. American International stock has gained 33.7% over the past 52 weeks and is up 12.2% on a YTD basis.
Despite the stock's impressive gains over multiple timeframes, analysts remain cautiously optimistic about its prospects. Among the 20 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading slightly above the mean price target of $267.50.
On the date of publication, Sohini Mondal 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 here.
