- Insurance rates continue to increase at a double-digit clip, as companies try to repair their reserves after poor prior underwriting decisions, offset rising claims costs, and offset weak rates.
- Chubb's reserve surpluses were getting a little thin, but this hard market and conservative loss picks should lead to positive reserve developments down the line.
- Chubb has more capital than it needs, and I believe could deploy around $6B toward M&A if the right opportunity emerges - small commercial and/or Asian life/protection could be targets.
- This is one of the best insurance companies in the business, and I believe the shares are priced for a respectable 7% to 8% long-term annualized return.
For further details see:
Chubb Leveraging Hard Markets And Likely Ready For Another Deal