As a global, multiline insurer focused on property and casualty, Chubb Corporation (CB) has been a favorite pick among investors in the past, due to its narrow moat rating and experienced trajectory, dating back to 1882. With 75% of overall revenue generated in the U.S, the firm is the 12th largest insurer of its kind in the country, offering commercial, personal and specialty insurance. As such, the company’s results are tied to external conditions, such as climate changes and natural catastrophes, which were favorable throughout 2013.
Thus, while Hurricane Sandy dampened 2012’s earnings, fiscal 2013 showed a different picture, with annual EPS jumping from $5.69 to $9.0, and fourth quarter operating earnings of $2.07 per share, up times year over year. And although management announced that January’s weather conditions will likely weaken 2014’s results, investment gurus like David Dreman (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) seem confident about Chubb’s profitability, having bought its stock last quarter. Continue Reading »