Chubb raises dividend for 32nd consecutive year, sets buyback

ZURICH - Chubb Limited (NYSE: CB), a global insurance leader with a market capitalization of $114.7 billion and an impressive "GREAT" financial health score according to InvestingPro, announced a dividend increase and a new share repurchase program following its Annual General Meeting held today. Shareholders approved a 6.6% hike in the annual dividend to $3.88 per share, up from the previous $3.64, representing a current yield of 1.29%. Trading at $287.44, the stock appears slightly undervalued based on InvestingPro’s Fair Value analysis. The company will pay this dividend in quarterly installments of $0.97 per share, starting with the first payment due to shareholders on record as of June 13, 2025, with disbursement on July 3, 2025.

The dividend increase continues Chubb’s track record of annual dividend growth, marking the 32nd consecutive year of hikes. The dividends will be distributed from the company’s legal reserves and paid in U.S. dollars by Chubb’s transfer agent.

In addition to the dividend announcement, Chubb’s Board of Directors has authorized a new share repurchase program valued at $5 billion, effective from July 1, 2025, with no set expiration date. With a P/E ratio of 13.65 and strong revenue growth of 8.74% over the last twelve months, InvestingPro analysis suggests the company maintains robust fundamentals, with over 30 additional key metrics and insights available to subscribers. This new buyback plan will succeed the current program, which remains active until June 30, 2025. The company will execute repurchases based on market conditions, business considerations, and legal requirements, potentially through open market transactions, private agreements, block trades, or derivative contracts.

Chubb’s position as a world leader in insurance is reflected in its wide array of services and products, including commercial and personal property and casualty insurance, personal accident, supplemental health insurance, reinsurance, and life insurance. The company operates in 54 countries and territories, employs approximately 43,000 people globally, and is a component of the S&P 500 index.

The company’s forward-looking statements, which include expectations regarding dividends and share repurchases, are subject to risks and uncertainties that could cause actual results to differ materially. Factors that might affect dividend payments or share repurchase plans include significant corporate events or capital limitations.

This report is based on statements from a press release issued by Chubb Limited.

In other recent news, Chubb Corporation reported a 31% decline in core operating income for the first quarter of 2025, totaling $1 billion. Despite this drop, the company experienced a 5.7% growth in total premiums in constant dollars. Chubb has been investing $1.1-1.2 billion annually in technology to enhance its operations. The company’s book value per share reached an all-time high of $164, and $751 million was returned to shareholders through buybacks and dividends.

In terms of analyst opinions, Keefe, Bruyette & Woods adjusted Chubb’s price target from $316 to $314 while maintaining an Outperform rating, citing factors like anticipated slower growth in investment income and increased expense ratios. Meanwhile, Raymond James raised Chubb’s price target to $340 from $320, maintaining a Strong Buy rating due to expectations of double-digit core operating earnings growth by 2026. This optimism is supported by Chubb’s solid performance and promising future prospects.

The company’s acquisition of Liberty Mutual’s business in Thailand and Vietnam added $275 million in premiums, highlighting Chubb’s strategic expansion in the Asian market. Chubb remains focused on technological advancements to maintain its competitive edge and aims to achieve double-digit earnings and EPS growth despite economic uncertainties. Analyst Gregory Peters from Raymond James noted that Chubb’s stock valuation presents an attractive investment proposition compared to its historical average and industry peers.

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