Gold prices steady ahead of Fed decision; weekly weakness noted
On Friday, Keefe, Bruyette & Woods analysts expressed continued confidence in Chubb Corporation (NYSE:CB), maintaining an Outperform rating and a $329.00 price target. The firm’s analysis of the company’s year-end 2024 GAAP loss reserve triangles suggests that Chubb’s reserves were overstated by $2.9 billion at the end of 2024, a decrease from the estimated $3.3 billion overstatement at the end of 2023.
The analysts project that the overstatement in reserves will lead to significant net reserve releases in 2025 and 2026. They noted that the reserve releases for the calendar year 2024 primarily came from shorter-tailed lines and workers compensation reserves. This was somewhat balanced by casualty reserve charges in several segments, particularly within North America, and there were no releases from recent accident years’ casualty reserves.
Keefe, Bruyette & Woods uphold their earnings per share (EPS) estimates for Chubb at $21.45 for 2025 and $26.30 for 2026. These estimates factor in net reserve releases of $887 million for 2025 and $965 million for 2026. The firm’s analysts anticipate that Chubb’s strong, profitable premium growth will continue and will be a driving force for the company’s share performance over the next 12 months.
The analysts’ outlook for Chubb is based on a detailed review of the insurer’s financial reserves and their expectations for the company’s operational performance. Their maintained Outperform rating and price target reflect their belief in the company’s capacity to outperform the market, backed by solid fundamentals and financial prudence. Based on InvestingPro’s Fair Value analysis, Chubb’s current stock price appears to be fairly valued, trading near its calculated Fair Value.
In other recent news, Chubb Limited has announced the completion of a share capital reduction following the cancellation of over 7.5 million treasury shares, decreasing the company’s share capital from CHF 209,812,993 to CHF 206,053,710.50. This move is part of Chubb’s ongoing capital management strategy and reflects its ability to adjust its capital in response to business needs. Additionally, HSBC has upgraded Chubb’s stock rating from Hold to Buy, raising the price target to $323, citing the company’s strong combined ratio performance and strategic growth in the reinsurance sector. Meanwhile, Evercore ISI maintained an Outperform rating on Chubb, highlighting the robustness of its reserves amidst a slight adverse development in North American Commercial long-tail lines.
In terms of expansion, Chubb has announced plans to acquire Liberty Mutual’s property and casualty insurance operations in Thailand and Vietnam, which have generated approximately $275 million in net premiums written in 2024. This acquisition is expected to complete by late 2025 to early 2026, pending regulatory approvals. Furthermore, Chubb has made significant changes in its leadership team, appointing Ana Robic as the new Regional President for Europe, Middle East, and Africa, and Melissa Scheffler as Division President of Personal Risk Services in North America. These leadership changes are part of Chubb’s commitment to talent mobility and leadership development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.