How Is Chubb's Stock Performance Compared to Other Property & Casualty Insurance Stocks?

Zurich, Switzerland-based Chubb Limited (CB) provides insurance and reinsurance products. With a market cap of $116 billion, the company provides commercial and personal property, casualty, and personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the insurance - property & casualty industry. Chubb's financial stability and diverse portfolio have solidified its competitive advantage in the insurance market. The company's strong brand reputation, commitment to intellectual property protection, and global workforce of 40,000 employees across 54 countries further enhance its market position. 

Despite its notable strength, CB slipped 6.3% from its 52-week high of $302.05, achieved on Oct. 17, 2024. Over the past three months, CB stock declined marginally, outperforming the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) 4.3% losses during the same time frame.

In the longer term, shares of CB rose 2.8% on a YTD basis, outperforming KBWP’s YTD gains of 2.5%. However, the stock climbed 14.5% over the past 52 weeks, lagging behind KBWP’s 17.3% returns over the last year.

To confirm the bullish trend, CB has been trading above its 50-day and 200-day moving averages since late February, with slight fluctuations. 

Chubb's struggles in recent months can be linked to significant losses from natural disasters, including the California wildfires. The insurance industry saw a decrease in pricing after several years of rate increases in the third quarter of 2024, but saw a recovery in Q4. Additionally, there were three interest rate cuts last year, which could impact insurers who benefit from a stronger rate environment.

On Jan. 28, CB shares closed down more than 1% after reporting its Q4 results. Its core operating income came in at $6.02 per share, down 27.5% year over year. The company’s net premiums written stood at $12.1 billion, up 4% from the year-ago quarter. 

In the competitive arena of insurance - property & casualty, The Progressive Corporation (PGR) has taken the lead over CB, showing resilience with a 18.2% gain on a YTD basis and a 49.7% uptick over the past 52 weeks. 

Wall Street analysts are moderately bullish on CB’s prospects. The stock has a consensus “Moderate Buy” rating from the 23 analysts covering it, and the mean price target of $302.77 suggests a potential upside of 6.6% from current price levels.