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Investing.com - Goldman Sachs has lowered its price target on Chubb Corporation (NYSE:CB) to $299.00 from $309.00 while maintaining a Neutral rating following the insurer’s second-quarter 2025 results. The insurance giant, currently trading at $270.18 with a market cap of $108 billion, appears undervalued according to InvestingPro analysis.
The firm kept its 2025 and 2026 earnings per share estimates relatively stable but decreased its 2027 EPS estimate by approximately 2%. Goldman Sachs cited greater-than-expected deceleration in North American Commercial pricing, which fell to 4.5% in Q2 from 8.3% in the previous quarter. Despite these challenges, Chubb maintains strong fundamentals with a "GREAT" overall financial health score of 3.11/5 on InvestingPro, supported by revenue growth of 7.7% in the last twelve months.
The research firm increased its projected North American Commercial underlying combined ratio by 30 basis points for 2026 and 70 basis points for 2027, reflecting continued pricing pressure. This deterioration was partially offset by improvements to the North American Personal underlying combined ratio estimates of 110 basis points for 2026 and 50 basis points for 2027.
In the Overseas General segment, Chubb delivered its fourth consecutive quarter of stable or improving year-over-year underlying combined ratio results, despite international pricing averaging about 2% over the last 18 months, which was 3-4 percentage points below the average trend of approximately 5.5%.
Goldman Sachs lowered its estimate for 2026 North American Commercial net premiums written growth by 50 basis points, largely offset by a 60 basis point improvement to its 2026 net premiums written growth estimate for Overseas General.
In other recent news, Chubb Limited reported a record core operating earnings per share (EPS) of $6.14 for the second quarter of 2025, representing a 14% increase compared to the previous year. The company’s core operating income reached $2.5 billion, showing a 13% rise. These results highlight Chubb’s financial growth despite facing competitive pressures and economic uncertainties. Analysts have not provided any specific upgrades or downgrades for Chubb in the current reports. The company’s stable performance is evident from its unchanged stock price, although this was not directly linked to its earnings results. These developments indicate a balanced market sentiment toward Chubb amidst the current economic landscape.
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