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Investing.com - JMP Securities has reiterated its Market Outperform rating and $325.00 price target on Chubb Corporation (NYSE:CB), currently trading at $278.73 with a market capitalization of $111.6 billion, following the insurer’s second-quarter results. According to InvestingPro, the company maintains a GREAT financial health score of 3.05 out of 4.
Chubb reported operating earnings per share of $6.14, broadly in line with JMP’s estimate of $6.17 and above the consensus expectation of $5.95. The company posted a stronger-than-expected underlying P&C combined ratio of 82% versus the estimated 84%, while experiencing higher catastrophe losses of $630 million compared to the projected $445 million.
The insurer’s book value per share reached $174 as of June 30, representing a 6% increase from March 31. Chubb repurchased $676 million of shares during the quarter, exceeding JMP’s expectation of $500 million.
P&C net written premium growth was slightly better than anticipated at 6% on a constant foreign exchange basis, compared to JMP’s estimate of 5%. The company also reported higher-than-projected favorable prior-period reserve development of $249 million versus the estimated $136 million.
CEO Evan Greenberg noted that while the commercial P&C underwriting environment for large account retail and property-related business has grown more competitive with dropping rates, the middle market and small commercial P&C segment maintains disciplined market conditions, and casualty continues to firm across all areas requiring rate adjustments.
In other recent news, Chubb Limited has announced several key developments. The company plans to open a new engineering center in Bogotá, Colombia, by October 2025, expanding its global tech footprint. This will be Chubb’s fourth engineering center, focusing on software development and data analytics. Deutsche Bank (ETR:DBKGn) has downgraded Chubb’s stock rating from Buy to Hold, adjusting the price target to $303, citing concerns over the company’s future performance compared to the broader market. The insurance firm has also made significant changes to its executive team, appointing Tim Boroughs as Vice Chairman and Chris Hogan as the new Chief Investment Officer.
Additionally, Chubb shareholders have approved the renewal of the company’s capital band, allowing the board to adjust share capital by up to 20% until May 2026. In a move to benefit shareholders, Chubb has announced a 6.6% increase in its annual dividend, raising it to $3.88 per share. This marks the 32nd consecutive year of dividend increases for the company. These developments reflect a period of strategic growth and financial adjustments for Chubb.
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