Morningstar Rating

Stock Research and Analysis

by Brett Horn

Bulls Say

Chubb's returns are especially impressive given its relatively conservative balance sheet and investment portfolio.
Few companies have the scale necessary to cater to high-net-worth individuals for their home and auto insurance. This allows Chubb to post superior profitability in this line.
Management has shown a disciplined approach to underwriting. By refusing to write policies it believes are priced inadequately, the company improves the overall quality of its insurance book. Read more 

Bears Say

Chubb has large exposure to municipal bonds through its investment portfolio. Write-downs or defaults of these securities would impair the company's results and equity position.
Climate change introduces a new point of uncertainty for insurers with catastrophe exposure, and future returns could be impaired if the price response is not adequate.
Chubb underwrites a number of long-tail lines of business; losses in these segments may not show up for a number of years. Read more 

Management

Chairman and CEO John Finnegan has been at the helm of Chubb since 2002 and, along with the rest of his management team, has done an exemplary job in his stewardship of shareholders' capital. In an attempt to diversify the company's underwriting book,  Read more 

Profile

With roots dating back to 1882, Chubb began in marine insurance, but over the years expanded to become a global, multiline insurer focused in property and casualty. Today,  Read more 

3 Banking Takeaways From the Quarter 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.