NYSE:CB

Stock Analysis Report

Executive Summary

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Chubb's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

CB

-1.5%

US Insurance

-1.0%

US Market


1 Year Return

21.7%

CB

16.3%

US Insurance

18.0%

US Market

Return vs Industry: CB exceeded the US Insurance industry which returned 16.3% over the past year.

Return vs Market: CB exceeded the US Market which returned 18% over the past year.


Shareholder returns

CBIndustryMarket
7 Day-0.5%-1.5%-1.0%
30 Day7.7%2.7%0.6%
90 Day8.4%5.4%7.9%
1 Year24.2%21.7%19.1%16.3%20.4%18.0%
3 Year25.9%18.3%34.2%23.9%48.0%38.5%
5 Year60.1%43.6%71.8%51.0%72.2%53.3%

Price Volatility Vs. Market

How volatile is Chubb's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chubb undervalued compared to its fair value and its price relative to the market?

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CB ($163.75) is trading below our estimate of fair value ($219.26)

Significantly Below Fair Value: CB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CB is poor value based on its PE Ratio (16.8x) compared to the Insurance industry average (13.4x).

PE vs Market: CB is good value based on its PE Ratio (16.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CB is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CB is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is Chubb forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CB's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CB's earnings (6.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: CB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CB's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: CB's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CB's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Chubb performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CB has high quality earnings.

Growing Profit Margin: CB's current net profit margins (13%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: CB's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: CB's earnings growth over the past year (12.4%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: CB earnings growth over the past year (12.4%) underperformed the Insurance industry 32.1%.


Return on Equity

High ROE: CB's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chubb's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CB's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: CB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CB has a sufficient allowance for bad loans.

Low Risk Liabilities: CB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CB has an appropriate level of bad loans.


Next Steps

Dividend

What is Chubb's current dividend yield, its reliability and sustainability?

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: CB's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CB's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: CB's dividends per share have been stable in the past 10 years.

Growing Dividend: CB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), CB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CB's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Evan Greenberg (64yo)

15.8yrs

Tenure

US$20,357,484

Compensation

Mr. Evan G. Greenberg serves as the Chief Executive Officer of Chubb Tempest Reinsurance Limited and served as its President. Mr. Greenberg has been the Chief Executive Officer at Chubb Limited since May 2 ...


CEO Compensation Analysis

Compensation vs Market: Evan's total compensation ($USD20.36M) is above average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Evan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Evan Greenberg
Chairman & CEO15.8yrsUS$20.36m0.28% $207.8m
Philip Bancroft
EVP & CFO18.1yrsUS$5.04m0.054% $40.3m
John Keogh
Executive Vice Chairman & COO8.6yrsUS$7.86m0.060% $44.2m
John Lupica
Vice Chairman and President of North America Major Accounts & Specialty Insurance 0yrsUS$6.21m0.045% $33.4m
Paul Krump
EVP of Chubb Group and President of N.A. Commercial & Personal Insurance4.1yrsUS$6.20m0.024% $17.6m
Paul Medini
Chief Accounting Officer0yrsUS$1.63m0.019% $14.3m
Karen Beyer
Senior Vice President of Investor Relations0yrsno datano data
Joseph Wayland
Executive VP6.6yrsno data0.017% $12.5m
Timothy Boroughs
Executive VP & Chief Investment Officer of Chebb Group0yrsno data0.035% $26.2m
Kenneth Koreyva
Senior Vice President of Chubb Group Finance0.9yrsno datano data

7.6yrs

Average Tenure

61yo

Average Age

Experienced Management: CB's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Evan Greenberg
Chairman & CEO15.8yrsUS$20.36m0.28% $207.8m
Michael Coleman
VP of Chubb Group1.7yrsno datano data
Tai-Kuan Ly
President & Director for General Insurance - Indonesia0yrsno datano data
Robert Hernandez
Independent Lead Director15.8yrsUS$431.87k0.014% $10.6m
Michael Connors
Independent Director8.8yrsUS$316.00k0.0029% $2.2m
Mary Cirillo-Goldberg
Independent Director13.8yrsUS$370.87k0.0054% $4.0m
Gary Schmalzriedt
Chairman of ACE INA Holdings16.2yrsUS$5.11mno data
Olivier Steimer
Independent Director11.6yrsUS$339.90k0.0039% $2.9m
Brian Seach
Non-Executive Chairman of ACE South Africa Operations14.1yrsno datano data
Robert Scully
Independent Director5.8yrsUS$331.88k0.0069% $5.1m

12.8yrs

Average Tenure

70yo

Average Age

Experienced Board: CB's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Chubb Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chubb Limited
  • Ticker: CB
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$74.010b
  • Shares outstanding: 451.97m
  • Website: https://www.chubb.com/us-en

Number of Employees


Location

  • Chubb Limited
  • Baerengasse 32
  • Zurich
  • Zurich
  • 8001
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDMar 1993
AEXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1993
0VQDLSE (London Stock Exchange)YesOrdinary SharesGBUSDMar 1993
CB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 1993

Biography

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. The company’s North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers’ compensation, package policies, and risk management; professional lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services in the United States and Canada. The company’s North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company’s Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand name to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was founded in 1985 and is headquartered in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:23
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.