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Zurich, Switzerland-based Chubb Limited (CB) is the world's largest publicly traded property and casualty insurance company. With a market cap of $115.4 billion, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to diverse clients.
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, influence, and dominance in the property & casualty insurance industry.
However, the insurance giant is down marginally from its 52-week high of $286.97, achieved on Sept. 3. CB stock gained 7.5% over the past three months, slightly outpacing the Dow Jones Industrials Average’s ($DOWI) nearly 7% gains during the same time frame.
Over the longer term, CB stock looks more appealing. CB rallied 40.2% over the past 52 weeks and 26.1% in 2024, outperforming DOWI’s 18.4% surge over the past 52 weeks and 9.5% gains on a YTD basis.
To confirm the bullish trend, CB has been trading above its 200-day moving average since last year and mostly above its 50-day moving average during the period with few fluctuations.
Despite reporting a robust 10.8% year-over-year growth in gross premiums written, totaling $16.5 billion, and an adjusted EPS of $5.38 that exceeded the consensus estimates by 6.8%, Chubb's stock dipped 1.2% following the release of its Q2 earnings on Jul. 23. This was due to broader market volatility and investor concerns about potential economic slowdowns affecting future insurance premiums and investment returns.
The Allstate Corporation (ALL), Chubb’s rival, has substantially outperformed CB. ALL gained 71.2% over the past 52 weeks and 35.2% in 2024.
Despite the stock’s impressive price action over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering the stock, and as of writing, CB is trading above its mean price target of $278.95.
On the date of publication, Aditya Sarawgi 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.
