CB: AI Expansion And Buybacks Will Shape Steady Long Term Outlook

Analysts have modestly raised their price target on Chubb by approximately 1 percent to about $311 per share, citing slightly improved revenue expectations, a stronger projected profit margin, and a lower anticipated future price to earnings multiple.

What's in the News

• Unveiled a new AI powered optimization engine in Chubb Studio at the Singapore Fintech Festival, enabling embedded insurance partners to deliver personalized, point of sale coverage recommendations to boost engagement and loyalty (Key Developments)
• The Chubb Studio optimization engine introduces click to engage tools that connect customers to advisors via phone, video or text for complex products, plus flexible integration models and real time data driven campaign refinement (Key Developments)
• Launched Travel Pro, a digital first, parametric travel insurance suite showcased at the World Aviation Festival in Lisbon, designed to handle flight delays, baggage issues, weather disruptions and medical emergencies with streamlined claims (Key Developments)
• Travel Pro can be embedded directly into airline and online travel agency booking journeys, offering customizable delay thresholds, automatic claims, quick payouts and multiple reimbursement options including miles, lounge access and virtual cards (Key Developments)
• Completed a buyback tranche totaling 5,436,315 shares, or about 1.36 percent of shares outstanding, for approximately $1.51 billion under the repurchase program announced May 15, 2025 (Key Developments)

Valuation Changes

• The Fair Value Estimate has risen slightly, moving from about $308 per share to roughly $311 per share, reflecting a modest upward revision in intrinsic valuation.
• The Discount Rate is unchanged at approximately 6.63 percent, indicating a consistent view of Chubb's risk profile and required return.
• Revenue growth has improved marginally, with the long term forecast shifting from about negative 4.69 percent to approximately negative 4.65 percent.
• The net profit margin has increased meaningfully, with projected margins rising from roughly 18.20 percent to about 21.50 percent.
• The future P/E has fallen significantly, with the forward multiple reduced from around 15.0x to about 12.8x, implying a less demanding valuation on expected earnings.