Chubb Ltd. (CB) | Company valuation, comparison, AI analysis | Thematic | AI powered fundamental research and development platform

Key takeaways

Chubb's strong financial performance and growth prospects are balanced against its premium valuation multiples and significant risk factors. While profitability metrics suggest potential undervaluation, the higher-than-industry-average valuation multiples indicate that much of the company's growth potential is already priced in. The company's ability to navigate climate-related risks and manage long-tail liabilities will be crucial in justifying its current valuation.

Chubb Ltd. (CB) is a financially stable company with a strong track record of growth, driven by disciplined pricing, conservative reserving practices, and effective expense control.
The company's future outlook is positive, driven by strong revenue growth, improving profitability, and a conservative capital structure.
Chubb faces significant risks and challenges, including long-tail liabilities, climate change, and increased competition.
The company's investment profile is characterized by its strong financial performance, diversified business model, and growth potential. However, the company's exposure to risks and challenges should be carefully considered.
Chubb's recent earnings call highlighted record financial results, strong premium growth, and exceptional underwriting performance. However, analysts expressed concerns about the clarity of certain financial metrics and the reconciliation of reported growth with underlying market dynamics.
Chubb's stock price has been relatively volatile over the past year, with a 1-year annualized return of 1.5%. The company's stock has underperformed the Financial Select Sector SPDR Fund (XLF) over most of the periods analyzed, with the exception of the 3-year period.
Chubb's stock has also underperformed its peers, Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV), over the past three years.
Recent price movements have been influenced by news events, such as the California wildfires, which caused a decline in the stock price.
Chubb's management is optimistic about the company's future prospects, anticipating double-digit growth in operating earnings and EPS in 2025.
Key areas requiring further monitoring include the company's ability to manage long-tail liabilities, its exposure to climate change risks, and its competitive positioning in key markets.

Evaluation summary

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Company Overview:
- Chubb Ltd. (CB) is a global insurance and reinsurance company headquartered in Zurich, Switzerland. It operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.
- Chubb provides a broad range of commercial and consumer property and casualty (P&C) insurance, accident & health, reinsurance, and life insurance products and services.
- The company serves multinational corporations, mid-size and small businesses, affluent and high net worth individuals, and insurers managing exposures with reinsurance coverage.
- Chubb competes against major U.S., Bermuda, European, and other international insurers and reinsurers, as well as capital market participants offering alternative products.
- For comparative analysis, Chubb is benchmarked against the Financial Select Sector SPDR Fund (XLF) and compared to its industry peers: Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV).
Financial Performance:
- Chubb has consistently delivered strong revenue growth, with sales reaching $14,176 million in Q4 2024, representing a 10.0% increase year-over-year.
- The company's net income has also grown steadily, reaching $2,575 million in Q4 2024, a 9.9% increase year-over-year.
- Chubb's profitability is strong, with a net profit margin of 18.16% in Q4 2024, significantly higher than the industry average of 7.82%.
- The company's return on average assets (ROA) is 4.27% in Q4 2024, exceeding the industry average of 3.10%.
- Chubb's return on average equity (ROE) is 15.01% in Q4 2024, also exceeding the industry average of 4.73%.
- The company's return on average invested capital (ROIC) is 13.47% in Q4 2024, indicating efficient capital utilization.
- Recent news highlights the company's strong financial performance, with analysts praising its record results and robust growth. However, concerns remain about the potential impact of inflation, increased competition, and catastrophic events on future performance.
Operational Efficiency:
- Chubb's balance sheet analysis reveals a strong asset base, with total assets reaching $226,771 million in Q4 2024.
- The company's working capital management is efficient, with a current ratio of 0.26 in Q4 2024, although this is below the industry average of 1.45.
- Chubb generates strong cash flow from operations, with net operating cash flow reaching $4,824 million in Q4 2024.
- The company's free cash flow margin is 0.32 in Q4 2024, indicating a healthy ability to generate cash flow after capital expenditures.
- Chubb's capital expenditure is minimal, with no significant investments in fixed assets reported in Q4 2024.
- The company returns value to shareholders through dividends and share repurchases, with dividends per share reaching $0.91 in Q4 2024.
- Chubb's liquidity ratios are generally strong, with a quick ratio of 4.93 in Q4 2024, indicating ample liquid assets to meet short-term obligations.
- The company's debt-to-equity ratio is 30.88 in Q4 2024, below the industry average of 42.29, suggesting a conservative capital structure.
Growth Opportunities:
- Chubb is actively pursuing market expansion through organic growth and strategic acquisitions.
- The company is focused on expanding its presence in the small and middle market segments, particularly in the U.S. and Asia.
- Chubb is also investing in technology and data analytics to improve operational efficiency and enhance customer service.
- The company's recent acquisitions, such as Huatai Group and Cigna's Asian business, are contributing to revenue growth and expanding its geographic reach.
- Chubb's capital allocation strategy is aligned with its growth objectives, with investments in new products, services, and technologies.
- Recent news highlights the company's commitment to organic growth, with management emphasizing its focus on expanding its presence in key markets.
Recent Developments and Market Sentiment:
- Recent news indicates that Chubb is facing challenges from inflation, increased competition, and the increasing frequency and severity of catastrophic events.
- The California wildfires in Q1 2025 are expected to result in a $1.5 billion net pre-tax loss for the company.
- Despite these challenges, Chubb's strong financial performance and diversified business model have helped to mitigate these risks.
- Market sentiment towards Chubb is generally positive, with analysts recognizing the company's strong financial performance and growth potential. However, concerns remain about the potential impact of inflation, competition, and catastrophic events on future performance.
Risks and Threats:
- Chubb faces persistent exposure to long-tail liabilities like asbestos, environmental, and molestation claims, which could lead to reserve development and impact profitability.
- The potential impacts of climate change, both in terms of increased natural catastrophe losses and evolving regulatory requirements, represent a key risk factor that Chubb will need to continue monitoring and addressing.
- The company's current ratio is below the industry average, indicating a potential concern about its ability to meet short-term obligations.
- The decreasing trend in return on average assets and return on average total equity could indicate a potential slowdown in profitability or a need for further efficiency improvements.
- Increased competition in certain segments, particularly financial lines, presents a challenge for Chubb.
- The company's reliance on reinsurance and the risk of reinsurer non-payment are also potential risks.
Valuation Analysis:
- Chubb's EV/EBITDA ratio is 12.33, which is higher than the industry average, suggesting that the company is trading at a premium valuation.
- The company's EV/Sales ratio is 2.59, also higher than the industry average of 1.91, indicating a premium valuation relative to its revenue generation.
- These valuation metrics suggest that investors are willing to pay a premium for Chubb's strong financial performance, diversified business model, and growth potential.
Price Performance:
- Chubb's stock price has been relatively volatile over the past year, with a 1-year annualized return of 1.5%.
- The company's stock has underperformed the Financial Select Sector SPDR Fund (XLF) over most of the periods analyzed, with the exception of the 3-year period.
- Chubb's stock has also underperformed its peers, Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV), over the past three years.
- Recent price movements have been influenced by news events, such as the California wildfires, which caused a decline in the stock price.
Future Outlook:
- Chubb's management is optimistic about the company's future prospects, anticipating double-digit growth in operating earnings and EPS in 2025.
- The company's strong financial performance, diversified business model, and growth opportunities are expected to continue to drive profitability and growth.
- However, the company faces significant risks and challenges, including long-tail liabilities, climate change, and increased competition.
- Recent news highlights the company's commitment to organic growth, with management emphasizing its focus on expanding its presence in key markets.
Summary:
- Chubb Ltd. (CB) is a financially stable company with a strong track record of growth. The company's strong financial performance is driven by disciplined pricing, conservative reserving practices, and effective expense control.
- Chubb's future outlook is positive, driven by strong revenue growth, improving profitability, and a conservative capital structure. The company's focus on diversification, technology investments, and integration of acquired businesses is expected to continue to drive profitability and growth.
- However, the company faces significant risks and challenges, including long-tail liabilities, climate change, and increased competition.
- Investors should carefully consider these factors when making investment decisions.
- Key areas requiring further monitoring include the company's ability to manage long-tail liabilities, its exposure to climate change risks, and its competitive positioning in key markets.
- Chubb's investment profile is characterized by its strong financial performance, diversified business model, and growth potential. However, the company's exposure to risks and challenges should be carefully considered.

Price history

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Fundamentals

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Insights

Chubb Limited is a highly profitable and financially stable company with a strong track record of growth.
The company's diversified business model, disciplined pricing, and conservative reserving practices are key drivers of its profitability.
The company is effectively managing its capital allocation, investing in growth opportunities and returning value to shareholders through dividends and share repurchases.
The company's strong cash flow generation provides a solid foundation for short-term liquidity and long-term solvency.
The company faces persistent exposure to long-tail liabilities and the potential impacts of climate change, which are key risk factors to monitor.
The company's future outlook is positive, driven by strong revenue growth, improving profitability, and a conservative capital structure.

Analysis

Revenue - Revenue growth is strong and sustainable, driven by rate increases, exposure growth, and new business. - The company's diversified business model, spanning various geographic regions and product lines, provides resilience and multiple avenues for growth. - The company's recent acquisitions, such as Huatai Group and Cigna's Asian business, are contributing to revenue growth.
- Profitability
  - The company is highly profitable, with strong net profit margins and returns on assets and equity.
  - Profitability is driven by disciplined pricing, conservative reserving practices, and effective expense control.
  - The company's focus on diversification, technology investments, and integration of acquired businesses is contributing to strong profitability.
- Liquidity
  - The company's current ratio is below the industry average, indicating a potential concern about the company's ability to meet short-term obligations.
  - However, the company's strong cash flow generation and robust investment portfolio provide some cushion.
- Solvency
  - The company's debt-to-equity ratio is below the industry average, suggesting a conservative capital structure and strong financial stability.
  - The company's strong free cash flow generation and conservative debt levels indicate a strong long-term solvency position.
- Operational Efficiency
  - The company's return on average assets is above the industry average, indicating efficient asset utilization.
  - The company is effectively controlling operating expenses in relation to revenue growth.
- Cash Flow Analysis
  - The company generates strong cash flow from operations, driven by strong profitability and effective working capital management.
  - The company is actively investing in its business, with a significant increase in purchase/sale of investments.
  - The company is returning value to shareholders through dividends and share repurchases, but is also actively managing its debt levels.
- Risk Factors
  - The company faces persistent exposure to long-tail liabilities like asbestos, environmental, and molestation claims, which could lead to reserve development and impact profitability.
  - The potential impacts of climate change, both in terms of increased natural catastrophe losses and evolving regulatory requirements, represent a key risk factor that Chubb will need to continue monitoring and addressing.
  - The company's current ratio is below the industry average, indicating a potential concern about the company's ability to meet short-term obligations.
  - The decreasing trend in return on average assets and return on average total equity could indicate a potential slowdown in profitability or a need for further efficiency improvements.
- Future Outlook
  - The company's future outlook is positive, driven by strong revenue growth, improving profitability, and a conservative capital structure.
  - The company's focus on diversification, technology investments, and integration of acquired businesses is expected to continue to drive profitability and growth.
  - The company's strong cash flow generation is expected to continue to support dividend growth, share repurchases, and investments in growth opportunities.

Financial statements

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Public filings

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Chubb has successfully executed on its strategy of geographic and product diversification, evidenced by strong premium growth across its core business segments.
The company's underwriting performance has improved, with lower catastrophe losses and favorable prior period development, contributing to solid profitability.
Chubb's investment in technology and data analytics is helping drive operational efficiencies and competitive advantages, though it also exposes the company to evolving cybersecurity risks.
Ongoing integration of recent acquisitions, such as Huatai Group and Cigna's Asian business, presents both opportunities and integration risks that Chubb will need to manage effectively.
The company faces persistent exposure to long-tail liabilities like asbestos, environmental, and molestation claims, which could lead to reserve development and impact profitability.
Chubb's strong capital position and disciplined approach to capital management, including share repurchases, support its ability to navigate industry cycles and pursue strategic growth initiatives.
The potential impacts of climate change, both in terms of increased natural catastrophe losses and evolving regulatory requirements, represent a key risk factor that Chubb will need to continue monitoring and addressing.

Core Business and Operations:

Chubb Limited is a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide
Operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance
Provides a broad range of commercial and consumer P&C insurance, accident & health, reinsurance, and life insurance products and services
Serves multinational corporations, mid-size and small businesses, affluent and high net worth individuals, and insurers managing exposures with reinsurance coverage
Competes against major U.S., Bermuda, European, and other international insurers and reinsurers, as well as capital market participants offering alternative products

Industry and Market Trends:

Insurance and reinsurance markets are highly competitive, cyclical, and subject to fluctuating capacity and pricing
Increasing use of technology and data analytics in the industry, creating both opportunities and competitive risks
Evolving regulatory environment, including new climate change disclosure requirements, data privacy laws, and capital adequacy standards
Potential impacts of climate change on frequency and severity of natural catastrophe losses

Recent Events:

Acquired a controlling majority interest in Huatai Group, a Chinese financial services holding company, in July 2023
Completed the acquisition of Cigna's accident & health and life insurance business in several Asian markets in July 2022
Ongoing expansion and diversification through organic growth and strategic acquisitions

Risk Factors:

Exposure to natural and man-made catastrophes, including the potential impact of climate change
Uncertainty around loss reserves and potential for reserve development
Reliance on reinsurance and risk of reinsurer non-payment
Volatility in investment portfolio performance and interest rates
Regulatory and political risks in global operations
Cybersecurity threats and operational system failures
Integration risks with acquired businesses

Legal Matters:

Ongoing exposure to asbestos, environmental, and molestation claims, primarily from legacy liabilities
Subject to claims litigation and business litigation in the normal course of operations

Management's Discussion and Analysis:

Strong premium growth across most product lines, driven by rate increases, exposure growth, and new business
Improved underwriting performance, with lower catastrophe losses and favorable prior period development
Record net investment income, benefiting from higher reinvestment rates and the Huatai consolidation
Robust operating cash flows and disciplined capital management, including share repurchases
Continued focus on diversification, technology investments, and integration of acquired businesses

Earnings calls

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Earnings Report 2024Q4 (2025-01-29)

Key takeaways

Record Performance and Strong Outlook: Chubb delivered record financial results in 2024, driven by strong underwriting performance, robust investment income, and growth in life insurance. Management's confident outlook for 2025 suggests continued strong performance, despite potential headwinds.
Diversified Growth Drivers: Chubb's diversified business model, spanning various geographic regions and product lines, provides resilience and multiple avenues for growth. Organic growth remains a key focus, complemented by opportunistic inorganic opportunities.
Pricing Discipline and Market Dynamics: Chubb's disciplined pricing strategy and conservative reserving practices have contributed to strong underwriting profitability. However, increased competition in certain segments, particularly financial lines, presents a challenge.
California Wildfires and Risk Management: The significant losses from the California wildfires highlight the challenges of insuring against catastrophic events and the importance of effective risk management and pricing adequacy. Chubb's proactive approach to managing its exposure in high-risk areas is noteworthy.
Investment Strategy and Capital Allocation: Chubb's investment strategy is evolving, with a gradual shift towards alternative investments. The management of excess capital and its impact on ROE is a key consideration.
Transparency and Communication: While management provided a positive outlook, some analysts expressed concerns about the clarity of certain financial metrics and the reconciliation of reported growth with underlying market dynamics. Improved communication in these areas could enhance investor confidence.
Industry Challenges and Opportunities: The insurance industry faces challenges from inflation, increased competition, and the increasing frequency and severity of catastrophic events. Chubb's ability to navigate these challenges and capitalize on emerging opportunities will be crucial for its future success.

Focus of management’s prepared remarks

Record Financial Results: Chubb reported record results for both Q4 2024 and the full year 2024, exceeding previous performance across P&C underwriting, investment income, and life insurance. Specific metrics like combined ratios, operating income, and ROE were highlighted.
Strong Premium Growth: Significant premium growth was reported across various segments and geographic regions, driven by both commercial and consumer lines. New business growth and high retention rates were emphasized as key contributors.
Exceptional Underwriting Performance: Management highlighted the outstanding underwriting performance, with record low combined ratios, attributing it to disciplined pricing and conservative reserving practices.
Robust Investment Income: Record investment income was reported, driven by a high-yielding fixed income portfolio and strong performance in other investments. Future investment income projections were provided.
Growth Opportunities: Management identified numerous growth opportunities across various segments and geographic regions, emphasizing the company's diversified business model and its ability to capitalize on favorable market conditions.
California Wildfires: Management addressed the significant impact of the California wildfires, providing an initial estimate of the financial loss and expressing commitment to supporting policyholders.
Life Insurance Growth: Strong growth in the life insurance division was highlighted, particularly in Asia, driven by both product mix and market expansion.

Focus of the analyst Q&A

California Wildfire Loss Estimate: Analysts sought clarification on the $1.5 billion loss estimate, inquiring about its components (ground-up losses, assessments, subrogation) and how to interpret the figure.
2025 Growth Outlook and Inorganic Growth: Analysts inquired about the potential for organic growth in commercial lines in 2025 and the company's appetite for inorganic growth opportunities.
Favorable Long-Tail Reserve Development: Analysts questioned the significant favorable development in long-tail casualty reserves, seeking an explanation for the change compared to previous quarters and the accident years involved.
Impact of Structured Transactions on Loss Ratio: Analysts sought clarification on the impact of structured transactions on the North America commercial lines loss ratio and the sustainability of the achieved loss ratio.
Life Insurance Growth in 2025: Analysts requested a detailed breakdown of the expected growth in life insurance income for 2025 and a comparison to 2024's performance, focusing on geographic regions and product lines.
PC Market Cycle and Competitive Positioning: Analysts sought management's perspective on the current P&C market cycle, the increasing competition across various lines of business, and Chubb's competitive positioning. Specific questions focused on the financial lines segment.
Reinsurance Purchasing Changes: Analysts inquired about changes to the company's reinsurance purchasing strategy at the January 1 renewal.
North America Commercial Administrative Expenses: Analysts asked about a slight increase in administrative expenses in North America commercial lines.
Secular Change in U.S. Middle Market and Inorganic Growth Aspirations: Analysts explored the implications of management's comments on secular changes in the U.S. middle market for Chubb's inorganic growth strategy in that segment.
Investment Portfolio Allocation: Analysts inquired about changes in the company's investment portfolio allocation, particularly the increase in equities.
Casualty Rate Increases and Reinsurance Market Conditions: Analysts sought to reconcile the strong casualty rate increases in North America with perceived softness in the reinsurance casualty market, asking about the disconnect and specific areas of weakness.
Financial Lines Premium Decline: Analysts questioned the persistent decline in financial lines premiums, particularly in public D&O, and the factors driving continued competition in this segment.
California Wildfires and Broader Property Pricing: Analysts explored the potential impact of the California wildfires and the resulting fallout on property pricing more broadly, both at the primary and reinsurance levels.
Excess Capital Drag on ROE: Analysts asked for the current excess capital drag on the company's return on equity.
Tax Guidance and DTA Reversals: Analysts sought clarification on the tax guidance, specifically regarding the impact of a transition cash tax benefit from Bermuda and the potential for future reversals of deferred tax assets.
Competition in Financial Lines and Outlook: Analysts inquired about the factors that could improve conditions in the competitive financial lines market and management's expectations for near-term changes.
North America Commercial Premium Growth Reconciliation: Analysts sought to reconcile the reported North America commercial premium growth with the pricing environment and management's stated opportunities.

Summary

Financial Performance: Chubb Limited reported record full-year results across its three primary earnings sources: P&C underwriting, investment income, and life insurance. The fourth quarter of 2024 showed record P&C underwriting income with a combined ratio of 85.7%, and record investment income, leading to core operating income of $2.5 billion. Full-year operating income reached $9.1 billion, an increase of 11.5% (adjusted for a one-time tax benefit) and 13% on a per-share basis. Core operating ROE was approximately 14%, and return on tangible equity was 21.6%. Book and tangible book value per share grew significantly. While book value was negatively impacted by unrealized mark-to-market losses on the fixed income portfolio and foreign exchange losses, these are expected to amortize over time.
Revenue Drivers: Global P&C premium revenue (excluding agriculture) grew 6.7% in Q4 2024, with contributions from North America and overseas general insurance businesses. Commercial lines grew 6.4%, and consumer lines grew 7.5%. Life insurance premiums grew 8.5% in constant dollars. Strong new business growth (over 22% in North America) and high renewal retention (90.4% in North America) contributed to premium growth. Growth was seen across various segments, including middle market and small commercial businesses, U.S. E&S, U.S. high net worth, global A&H, international personal lines, and specialty businesses. The international life business showed significant growth (over 26% in constant dollars).
Profit Margins and Cost Management: The P&C underwriting income was $1.6 billion in Q4 2024, with a current accident year combined ratio (excluding catastrophes) of 82.2%. Favorable prior-year reserve development contributed positively. The full-year P&C combined ratio was 86.6%. North America commercial lines achieved an 83.9% combined ratio for the year, and the high net worth personal lines business achieved an 83.6% combined ratio. Adjusted net investment income was a record $1.7 billion in Q4 2024, up 13.7%. The fixed income portfolio yield increased to 5%. Management expects quarterly adjusted net investment income to be between $1.67 billion and $1.75 billion over the next six months. A slight uptick in North America commercial administrative expenses was deemed insignificant by management.
Guidance and Outlook: Management expressed optimism for 2025, anticipating double-digit growth in operating earnings and EPS, despite potential impacts from catastrophe losses and foreign exchange fluctuations. Growth is expected from P&C underwriting, investment income, and life income. Management did not provide specific numerical guidance. The California wildfires are expected to result in a $1.5 billion net pre-tax loss in Q1 2025.
Strategic Initiatives: The company's focus remains on organic growth in the small and middle market segments. Inorganic growth is considered opportunistic. Management highlighted the gradual increase in asset allocation towards alternative investments. The company is actively managing its exposure in high-risk areas like California, reducing its exposure where risk-adjusted returns are not achievable.
Management Commentary: Management expressed confidence in the company's ability to deliver strong financial results. They highlighted the diversified nature of the business and its resilience across various geographic regions and product lines. They acknowledged increased competition in certain areas, particularly financial lines, but emphasized their ability to navigate these challenges. The overall tone was positive and confident.
Industry and Market Conditions: Management noted a prolonged inflationary period in the insurance industry, requiring rate adjustments to maintain margins. Increased competition was observed in certain segments, particularly large account property and financial lines. The reinsurance market was described as more disciplined. Management highlighted the challenges in the California insurance market due to regulatory pressures and the difficulty in achieving adequate pricing for wildfire risk.

Comparative analysis

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Benchmarks (as of 2025-02-05)

Financial Select Sector SPDR Fund (XLF)

Performance Comparison: Chubb Ltd. (CB) has underperformed the Financial Select Sector SPDR Fund (XLF) over most of the periods analyzed, with the exception of the 3-year period. This suggests that Chubb Ltd. (CB) has struggled to keep pace with the broader financial sector.
Risk and Return Analysis: Chubb Ltd. (CB) has generally provided lower annualized returns than the Financial Select Sector SPDR Fund (XLF) over the past three years. However, Chubb Ltd. (CB) has also been slightly less volatile than the Financial Select Sector SPDR Fund (XLF) over the same period. The maximum drawdown for Chubb Ltd. (CB) was 19.16% on 03/23/2023, while the maximum drawdown for the Financial Select Sector SPDR Fund (XLF) was 25.81% on 10/12/2022. This suggests that Chubb Ltd. (CB) has a slightly lower risk profile than the Financial Select Sector SPDR Fund (XLF).
Risk-Adjusted Performance: The Sharpe Ratio of Chubb Ltd. (CB) has generally been lower than the Sharpe Ratio of the Financial Select Sector SPDR Fund (XLF) over the past two years. This suggests that Chubb Ltd. (CB) has not been as efficient in generating risk-adjusted returns as the Financial Select Sector SPDR Fund (XLF). The beta values for both Chubb Ltd. (CB) and the Financial Select Sector SPDR Fund (XLF) have generally been below 1 over the past two years. This suggests that both instruments have been less volatile than the overall market.
Overall Assessment: Chubb Ltd. (CB) has underperformed the Financial Select Sector SPDR Fund (XLF) over most of the periods analyzed, with the exception of the 3-year period. While Chubb Ltd. (CB) has a slightly lower risk profile than the Financial Select Sector SPDR Fund (XLF), it has not been as efficient in generating risk-adjusted returns. The beta values for both Chubb Ltd. (CB) and the Financial Select Sector SPDR Fund (XLF) have generally been below 1 over the past two years, suggesting that both instruments have been less volatile than the overall market. Investors should consider these factors when making investment decisions.

Peers Price History(as of 2025-02-05)

Progressive Corp. (PGR)The Travelers Cos., Inc. (TRV)

Performance Comparison: Chubb Ltd. (CB) has significantly underperformed its peer companies, Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV), over the past three years. This underperformance is particularly evident in the longer-term periods, such as the 2-year and 3-year annualized returns, where CB has lagged behind its peers by a significant margin. While CB has outperformed TRV in the shorter-term periods, such as the 1-week and 1-month periods, this outperformance has been relatively minor and inconsistent.
Risk and Return Analysis: While Chubb Ltd. (CB) has provided lower returns than its peer companies, it has also been less volatile. The annualized volatility of CB has generally been lower than that of PGR and TRV, suggesting that CB may be a less risky investment. However, the lower returns of CB may offset this lower risk, making it less attractive to investors seeking higher returns. The drawdown figures also support this assessment, with CB experiencing a lower maximum drawdown than its peers. This suggests that CB may be more resilient to market downturns, but it also indicates that it may not be able to generate the same level of returns as its peers.
Risk-Adjusted Performance: The Sharpe Ratio of Chubb Ltd. (CB) has generally been lower than that of Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV), indicating that CB may not be offering a better risk-adjusted return. This suggests that while CB may be less risky, it may not be generating enough returns to compensate for this lower risk. The beta value of CB has also been consistently below 1, indicating that it is less sensitive to market movements than its peers. This suggests that CB may be a less risky investment, but it also indicates that it may not be able to generate the same level of returns as its peers.
Overall Assessment: Chubb Ltd. (CB) has underperformed its peer companies, Progressive Corp. (PGR) and The Travelers Cos., Inc. (TRV), over the past three years. While CB has been less volatile than its peers, it has also provided lower returns. The Sharpe Ratio of CB has also been lower than that of its peers, indicating that CB may not be offering a better risk-adjusted return. The beta value of CB has been consistently below 1, suggesting that it is less risky than its peers, but it may also be less capable of generating high returns. Overall, the analysis suggests that CB may be a less risky investment than its peers, but it may not be as attractive to investors seeking higher returns.

Peers Fundamentals(as of 2024-12-31)

Progressive Corp. (PGR)The Travelers Cos., Inc. (TRV)

Market Position and Size:
- CB is a mid-sized player in the industry, with a market capitalization of 109965.0, which is significantly smaller than PGR's 145867.0, but larger than TRV's 55923.9.
- CB's market cap is roughly 2.4 times larger than TRV's, but 0.75 times smaller than PGR's.
- CB's market cap is roughly 0.75 times its revenue of 55983.0, while PGR's market cap is 1.94 times its revenue of 75342.8, and TRV's market cap is 1.2 times its revenue of 46311.0.
Profitability and Efficiency:
- CB has a significantly higher Net Profit Margin than its peers and the industry average, indicating a strong ability to generate profits.
- CB's Return on Average Total Equity is higher than the industry average, indicating that it is efficient at generating returns from its equity.
- CB's Return on Average Assets is lower than PGR's, but higher than TRV's and the industry average, suggesting that CB is more efficient at generating returns from its equity than the industry average, but less efficient at generating returns from its assets than PGR.
Financial Health and Stability:
- CB's liquidity position is weaker than its peers and the industry average, as indicated by its Current Ratio.
- CB's debt position is not available for comparison.
- CB's overall financial health is strong, with a high Net Profit Margin and superior sales growth. However, its liquidity position is weaker than its peers and the industry average, and its net income growth is decelerating.
Valuation and Market Perception:
- CB's Enterprise Value To Sales is higher than its peers and the industry average, suggesting that it is valued more highly relative to its sales.
- CB's Price To Earnings and Price to Book Ratio are lower than PGR's, but higher than TRV's and the industry average, suggesting that it is valued less highly relative to its earnings and book value than PGR, but more highly than TRV and the industry average.
Cash Flow and Capital Management:
- CB's cash flow generation strength is not available for comparison to its peers.
Growth and Future Prospect:
- CB has consistently outperformed its peers in sales growth, suggesting that it is gaining market share and expanding its business.
- CB's net income growth has been decelerating, raising concerns about the sustainability of its profitability.
- CB's growth in sales/revenue has been consistently increasing over the 5-year period, while its growth in net income has been consistently decreasing. This suggests that CB is experiencing revenue growth without corresponding profit growth, which could be a red flag.
Potential for Investment:
- CB is an attractive investment opportunity due to its strong profitability, superior sales growth, and efficient equity utilization.
- However, its weaker liquidity and decelerating net income growth are areas of concern that need to be monitored.
Key Risks and Considerations:
- CB's weaker liquidity position could pose a risk if it faces unexpected financial challenges.
- The deceleration in net income growth raises concerns about the sustainability of its profitability.
- The lack of available cash flow data makes it difficult to assess CB's cash flow generation strength.
Overall Assessment:
- CB is a profitable company with strong growth potential, but its liquidity and profitability sustainability need to be monitored.
- CB's competitive position is strong, with superior sales growth and profitability compared to its peers.
- Investors should consider CB's growth potential, profitability, and financial stability in the context of its peer group and industry.

Comparison metrics

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