Strong Q2 Profits and Share Buybacks Might Change the Case for Investing in Chubb (CB)

• Chubb Limited recently reported its second-quarter 2025 earnings, with net income rising to US$2.97 billion from US$2.23 billion a year earlier and diluted earnings per share increasing to US$7.35 from US$5.46.
• The company also completed an additional share repurchase tranche, signaling ongoing confidence in its financial stability and ability to return capital to shareholders.
• We'll consider how Chubb's strong quarterly earnings growth and sustained share buybacks may influence its long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Chubb Investment Narrative Recap

To own Chubb stock, investors often look for financial resilience through disciplined underwriting, steady earnings, and consistent capital returns. The latest strong quarterly earnings and continued share buybacks reinforce confidence in Chubb’s ability to manage through near-term margin pressures, though risks tied to insurance price softness and competitive pressure in large account property remain the most important factors to monitor in the current environment. These results do not materially shift the short-term risk/reward balance, but they reaffirm Chubb’s defensive traits during a period of uncertainty.

Of the recent developments, the share buyback program stands out, with Chubb having repurchased an additional 2,338,129 shares for US$676 million this quarter. This continued pace of buybacks could support earnings per share and provide flexibility to offset potential headwinds from slower premium growth or rising claims, which are especially relevant given current discussions around insurance market pricing and profitability.

However, investors should also stay alert to the fact that, even with earnings growth, the trend of increasing competition and insurance price softness means...

Read the full narrative on Chubb (it's free!)

Chubb's outlook projects $49.2 billion in revenue and $9.8 billion in earnings by 2028. This scenario assumes a 5.0% annual revenue decline and a $0.6 billion earnings increase from $9.2 billion today.

Uncover how Chubb's forecasts yield a $301.84 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community estimate Chubb's fair value across a wide US$247 to US$592 range. While recent share buybacks may help support profitability, concerns about premium growth and competition continue to shape investor expectations.

Explore 10 other fair value estimates on Chubb - why the stock might be worth over 2x more than the current price!

Build Your Own Chubb Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chubb research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Chubb research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chubb's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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