Number of Hedge Fund Investors: 46
Forward P/E Ratio as of September 26: 11.92
Chubb (NYSE:CB) is a Swiss-based global insurance company that offers comprehensive coverage solutions for commercial and personal property, casualty, and accident insurance. The company operates in 54 countries and territories.
The property & casualty insurance industry is expected to have good momentum going forward, especially in personal lines. BeInsure expects property & casualty personal lines to grow 8% in 2024 and 5% in 2025. The industry’s net combined ratio is expected to decline well into 98.5% in 2024 and 2025 compared to 102% ratio in 2023. As a result, the industry’s return on equity is expected to rise from 3.4% in 2023 to 9.5% in 2024 and further to 10.0% in 2025.
In Q2, Chubb’s (NYSE:CB) reported a solid growth in written premiums, with a 10.3% increase in net property & casualty premiums written and a 24.5% growth in life insurance net written premiums. The company’s combined ratio remained stable, and its core operating income per share increased 9.3% year-on-year. Investment income also increased, and Chubb’s (NYSE:CB) EPS of $5.46 grew 26.4% year-on-year, beating expectations by $0.30.
Chubb’s (NYSE:CB) stock remains attractively priced. The company’s good momentum in written premiums and solid earnings, combined with the industry’s low overall risk level, make the stock a good investment opportunity. Chubb (NYSE:CB) is trading at a forward P/E ratio of 13.44 which is a 12.78% discount compared to the industry average of 11.92. Analysts expect the company to increase its earnings by 8.51% this year. As of the second quarter, the stock is held by 49 hedge funds with stakes worth $8.06 billion. Berkshire Hathaway is the largest stakeholder in the company and has a position worth $6.89 billion as of June 30.
Overall CB ranks 4th on our list of the undervalued European stocks to invest in now. While we acknowledge the potential of CB to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure. None. This article was originally published on Insider Monkey.
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Publish date : 2024-09-28 00:39:00
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