2024-01-23 13:50:18 ET
Summary
- Chubb is a well-established insurance company with impressive operational safety and above-average margins.
- The company has experienced a trend of trading above 10x, indicating an outsized pace of growth.
- Despite being expensive, Chubb has the potential for continued premium and earnings growth, making it a "BUY" with a price target of $242.
Dear readers/followers,
I've covered Chubb ( CB ) a few times in the past. My last coverage was all the way back in 2022, and the company since that time, and my position, have seen some attractive RoR. However, it has failed to generate enough return to beat the S&P500, and as such it's questionable whether this was a solid investment at the time in the short term. I expected limited further premiumization of this company, and that's why my investments during the months actually were focused on different financial and insurance companies, often with far higher yields than Chubb offers.
Nevertheless, Chubb's appeal has not been its yield, but rather the operational safety offered by an above-average insurer. This is what Chubb is, and what it offers. I've been covering Chubb for almost 2 years at this point, and I'm familiar with the company's ups and downs....
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For further details see:
Chubb: It's Actually Still Attractive Here