Chubb: This Insurance Stock Has Value

The property and casualty insurance business is good

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Mar 18, 2022
  • The stock has a low price-earnings ratio.
  • The company pays a dividend.
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With a price-earnings ratio of 10.96 and a price-book value of 1.52, this New York Stock Exchange-traded insurer fits the value stock profile.

Chubb Ltd.'s (CB, Financial) low price-earnings ratio comes at a time when the earnings multiple for the S&P 500 is up there at 25.30 and has a high price-book ratio as well of 4.51.

The stock has been on a tear recently, going from $165 at this time last year to today’s $210. During the March and April 2020 pandemic scare lows, Chubb traded as low as $100. Since then, it has more than doubled.


The market capitalization is big at $86.66 billion and the enterprise value is $107.72 billion.

In the property and casualty insurance business in one form or another since 1792, Chubb now operates in 54 countries and territories from its headquarters in Switzerland. The company is having a great year of earnings, up by 147.30%. The past five-year earnings per share rate of growth is decent at 16.80%. The price-to-free cash flow ratio is 9.23 and the price-sales ratio measures at 2.20. The company’s shareholder equity greatly exceeds the amount of long-term debt.

Chubb pays investors a dividend of $3.20 per share, which comes to a yield of 1.52% on an annualized basis.

The GuruFocus summary of its financials finds three good signs and six medium warning signs:


There are a number of successful competitors in the property and casualty field, among them Progressive Corp. (PGR, Financial), The Travelers Companies Inc. (TRV, Financial), Allstate Corp. (ALL, Financial) and Cincinnati Financial Corp. (CINF).

Hedge fund managers who bought Chubb late last year or who added to their existing positions include Steven Cohen (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Jim Simons (Trades, Portfolio)' Renaissance Technologies.


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