Wells Fargo analyst Elyse Greenspan has increased the price target for Chubb (CB, Financial), moving it from $268 to $278. Despite strong performance in the recent quarter, the firm's stocks faced a decline, prompting this adjustment. The decision to revise the target comes in light of existing uncertainties surrounding tariffs and queries regarding the company's decision to reduce its commercial loss trend assumptions amid ongoing market fluctuations.
Wells Fargo maintains an Equal Weight rating for Chubb's shares. The analyst attributes the share's downturn to mixed market signals, despite the company's solid quarterly performance. The firm evaluated these developments as part of its latest review, which influenced the upward revision of the stock's price target.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Chubb Ltd (CB, Financial) is $303.29 with a high estimate of $335.00 and a low estimate of $245.22. The average target implies an upside of 6.61% from the current price of $284.49. More detailed estimate data can be found on the Chubb Ltd (CB) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Chubb Ltd's (CB, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Chubb Ltd (CB, Financial) in one year is $247.71, suggesting a downside of 12.93% from the current price of $284.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Chubb Ltd (CB) Summary page.
CB Key Business Developments
Release Date: April 23, 2025
- Core Operating Income: $1.5 billion, down 31%.
- Total Company Premiums Growth: 5.7% in constant dollars.
- Combined Ratio: 95.7% with underwriting income of $441 million.
- Adjusted Net Investment Income: $1.7 billion, up 12.7%.
- Annualized Core Operating Return on Tangible Equity: 13%.
- Book Value: $65.7 billion, $164 per share.
- Adjusted Operating Cash Flow: $2 billion.
- Capital Returned to Shareholders: $751 million, including $385 million in share repurchases and $366 million in dividends.
- Pre-tax Catastrophe Losses: $1.64 billion.
- Prior Period Development: Favorable $268 million pre-tax.
- Core Operating ROE: 8.6%.
- Effective Tax Rate: 19.1%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Chubb Ltd (CB, Financial) reported $1.5 billion in core operating income, supported by excellent underlying underwriting results and double-digit growth in investment income.
- Total company premiums grew 5.7% in constant dollars, with strong contributions from all regions globally.
- The company announced an acquisition of Liberty Mutual's business in Thailand and Vietnam, expanding its presence in Asia.
- Chubb Ltd (CB) achieved a combined ratio of 95.7%, with underwriting income of $441 million despite significant catastrophe losses.
- The company's fixed income portfolio yield is 5%, with new money rates averaging 5.5%, benefiting from higher yields as a predominantly buy-and-hold investor.
Negative Points
- Core operating income was down 31% due to significant catastrophe losses from the California wildfires.
- The strong dollar negatively impacted revenue growth, affecting the headline number.
- There is increased competition in the large account property and casualty insurance market, leading to price softening.
- Chubb Ltd (CB) faces uncertainty and potential negative impacts from tariffs and the federal budget deficit on interest rates and asset values.
- Financial lines pricing was down 3.2%, indicating softness in this area.
