Citizens reiterates Market Outperform rating on Chubb stock after strong Q3

Investing.com - Citizens has reiterated its Market Outperform rating and $325.00 price target on Chubb Corporation (NYSE:CB), a $107 billion market cap insurer, following third-quarter results that exceeded both analyst estimates and consensus expectations. According to InvestingPro analysis, Chubb currently appears undervalued, with 12 key metrics supporting this assessment.

Chubb reported operating earnings per share of $7.49, significantly beating Citizens’ estimate of $6.64 and the consensus estimate of $6.15. The company’s performance was driven by a stronger underlying P&C combined ratio of 82% versus the expected 85%.

The insurer reported catastrophe losses of $285 million, lower than the anticipated $405 million, while favorable prior-period reserve development reached $361 million, substantially higher than the estimated $139 million, primarily driven by North America Personal P&C.

Chubb’s net written premium growth for P&C was 5% on a constant foreign exchange basis, aligning with Citizens’ projections. The company’s book value per share stood at $182 as of September 30, representing a 5% increase from June 30, though slightly below the estimated $184.

The insurer repurchased $1.23 billion of shares during the quarter, significantly exceeding the expected $500 million, and indicated that share repurchases would continue as management views the stock as trading below its intrinsic value.

In other recent news, Chubb Limited has made several notable announcements and developments. The company has appointed Brian Church as Division President for its international Property and Casualty division. This role will see Church overseeing various product lines, including property, casualty, and marine insurance. Additionally, Chubb has partnered with Endeavor to support high-impact entrepreneurs in emerging markets, aiming to connect entrepreneurs with Chubb’s insurance expertise.

In terms of analyst ratings, Citizens has reiterated its Market Outperform rating for Chubb, citing strong earnings per share growth. JMP Securities also maintained its Market Outperform rating, with a price target of $325, highlighting favorable mark-to-market impacts on Chubb’s book value. These recent developments reflect Chubb’s strategic moves and ongoing analyst confidence in its financial performance.

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