Chubb CorporationCB

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

Chubb has distinguished itself through superior customer service and disciplined pricing with the goal of creating a loyal and sticky customer base. Although this works on the margin, Chubb hasn't created a brand strong enough to earn itself an economic Read more

Bulls Say

Chubb's relatively strong performance during 2008 has left it strongly capitalized; it might be able to steal profitable business from distressed competitors.

Chubb may be starting to dig itself an economic moat as evidenced by a consistent uptick in profitability.

Management has shown a disciplined approach to its underwriting. By refusing to write policies it believes are priced inadequately, the company improves the overall quality of its insurance book.

As markets rebound, unrealized losses on Chubb's investments turn to gains. 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.

The turmoil at many financial firms may cause the insurance industry to incur more D&O claims; Chubb is the leading writer of these policies.

Diversification away from its core businesses has largely been unsuccessful. This leaves the company dependent on its core lines. Read more

Strategy

Chubb looks to offer its customers a superior experience through simple, no-hassle claims processing. Underwriters focus their insurance offerings on the lines the company understands best, enabling Read more

Management

Chairman and CEO John Finnegan has been at the helm of Chubb since 2002. Although we would prefer Chubb to separate these two roles, we applaud the company's appointment of a lead independent director to represent common shareholders. Finnegan has done 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

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

How Dodge & Cox Looks at Financials
Watch more