NYSE:CB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

CB

4.1%

US Insurance

1.2%

US Market


1 Year Return

-13.5%

CB

-10.8%

US Insurance

16.8%

US Market

Return vs Industry: CB underperformed the US Insurance industry which returned -11.7% over the past year.

Return vs Market: CB underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

CBIndustryMarket
7 Day5.0%4.1%1.2%
30 Day2.9%8.6%4.9%
90 Day33.5%22.3%20.0%
1 Year-11.5%-13.5%-8.5%-10.8%19.3%16.8%
3 Year-4.8%-10.8%6.0%-1.9%43.7%34.4%
5 Year34.2%20.3%36.4%19.3%75.5%56.6%

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?

27.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CB ($130.96) is trading above our estimate of fair value ($128.86)

Significantly Below Fair Value: CB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CB is poor value based on its PE Ratio (27.1x) compared to the US Insurance industry average (14.9x).

PE vs Market: CB is poor value based on its PE Ratio (27.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CB is overvalued based on its PB Ratio (1.1x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Chubb forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CB's forecast earnings growth (41.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CB's earnings (41.7% per year) are forecast to grow faster than the US market (23.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CB's revenue (3.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: CB's revenue (3.1% per year) is forecast to grow slower than 20% 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 (8.7%).


Next Steps

Past Performance

How has Chubb performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CB has high quality earnings.

Growing Profit Margin: CB's current net profit margins (6.3%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: CB's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: CB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CB had negative earnings growth (-42.1%) over the past year, making it difficult to compare to the Insurance industry average (-4.8%).


Return on Equity

High ROE: CB's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Chubb's financial position?


Financial Position Analysis

Short Term Liabilities: CB's short term assets ($35.6B) do not cover its short term liabilities ($100.3B).

Long Term Liabilities: CB's short term assets ($35.6B) exceed its long term liabilities ($26.4B).


Debt to Equity History and Analysis

Debt Level: CB's debt to equity ratio (33.5%) is considered satisfactory.

Reducing Debt: CB's debt to equity ratio has increased from 25.9% to 33.5% over the past 5 years.

Debt Coverage: CB's debt is well covered by operating cash flow (40%).

Interest Coverage: CB's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CB's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: CB's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (4.35%).


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 reasonable payout ratio (62.8%), CB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CB's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Evan Greenberg (65 yo)

16.25yrs

Tenure

US$20,475,070

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 ($USD20.48M) is above average for companies of similar size in the US market ($USD11.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Evan Greenberg
Chairman16.25yrsUS$20.48m0.23%
$ 136.0m
John Lupica
Vice Chairman and President of North America Major Accounts & Specialty Insuranceno dataUS$6.69m0.045%
$ 26.9m
Philip Bancroft
Executive VP & CFO18.58yrsUS$5.08m0.055%
$ 32.5m
John Keogh
Executive Vice Chairman & COO9.08yrsUS$8.11m0.058%
$ 34.8m
Paul Krump
EVP of Chubb Group and President of N.A. Commercial & Personal Insurance4.58yrsUS$7.64m0.025%
$ 15.1m
Annmarie Hagan
Global Controller0.25yrno data0.0018%
$ 1.1m
Karen Beyer
Senior Vice President of Investor Relationsno datano datano data
Joseph Wayland
Executive VP of Chubb Group7.08yrsno data0.017%
$ 10.0m
Timothy Boroughs
Executive VP & Chief Investment Officer of Chubb Groupno datano data0.036%
$ 21.2m
Kenneth Koreyva
Senior Vice President of Chubb Group Finance1.42yrsno datano data
Paul Medini
Executive Officer0.25yrUS$1.63m0.019%
$ 11.6m
Frank Lattal
Senior Vice President of Claims - Chubb Group17yrsno datano data

7.1yrs

Average Tenure

61yo

Average Age

Experienced Management: CB's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Evan Greenberg
Chairman16.25yrsUS$20.48m0.23%
$ 136.0m
John Lupica
Vice Chairman and President of North America Major Accounts & Specialty Insuranceno dataUS$6.69m0.045%
$ 26.9m
Michael Coleman
VP of Chubb Group2.17yrsno datano data
Michael Connors
Independent Director9.25yrsUS$326.00k0.0033%
$ 1.9m
Mary Cirillo-Goldberg
Independent Director14.25yrsUS$382.31k0.0092%
$ 5.5m
Gary Schmalzriedt
Chairman of ACE INA Holdings16.67yrsUS$5.11mno data
Michael Atieh
Independent Director28.92yrsUS$423.10k0.0011%
$ 631.6k
Eugene Shanks
Independent Director9.25yrsUS$320.00k0.0026%
$ 1.6m
Olivier Steimer
Independent Director12.08yrsUS$350.40k0.0043%
$ 2.6m
Brian Seach
Non-Executive Chairman of ACE South Africa Operations14.58yrsno datano data
Robert Scully
Independent Director6.25yrsUS$354.38k0.0097%
$ 5.8m
Theodore Shasta
Independent Director10.25yrsUS$320.00k0.0039%
$ 2.3m

12.1yrs

Average Tenure

69yo

Average Age

Experienced Board: CB's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$59.585b
  • Shares outstanding: 451.37m
  • 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
C1BL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 SHS UNSPONBRBRLJan 2020

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, casualty, wo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:17
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.