Chubb shareholders approve capital band renewal

Chubb Limited (NYSE:CB), a $117 billion market cap insurance giant with a GREAT financial health score according to InvestingPro, announced that during its Annual General Meeting (AGM) on May 15, 2025, shareholders approved the renewal of the company’s capital band. This authorization allows the Board of Directors to increase or decrease Chubb’s share capital by up to 20% until May 15, 2026. The provision also includes the ability to limit or withdraw shareholders’ pre-emptive rights under certain conditions.

The capital band renewal was one of several agenda items at the AGM, all of which were passed in line with the Board’s recommendations, except for a shareholder proposal concerning Scope 3 greenhouse gas emissions reporting, which was rejected. The company’s strong financial position is reflected in its solid 13% return on equity and 8.7% revenue growth over the last twelve months.

The AGM also saw the election of Evan G. Greenberg as Chairman of the Board of Directors and the election of multiple directors, including Michael P. Connors, Michael G. Atieh, Nancy K. Buese, Sheila P. Burke, Nelson J. Chai, Robert J. Hugin, Robert W. Scully, Theodore E. Shasta, David H. Sidwell, Olivier Steimer, Frances (BCBA:BBARm) F. Townsend, and others for the upcoming year.

Furthermore, shareholders ratified the appointment of PricewaterhouseCoopers AG as the company’s statutory auditor for the financial year ending December 31, 2025, and PricewaterhouseCoopers LLP as independent registered public accounting firm for U.S. securities law reporting for the same period. For deeper insights into Chubb’s financial metrics and exclusive analysis, check out the comprehensive Pro Research Report available on InvestingPro.

The AGM results also included advisory votes to approve executive compensation under U.S. securities law requirements and the Swiss compensation report, both of which received majority support.

The meeting concluded with the approval of Homburger AG as independent proxy until the next AGM and the adoption of the Sustainability Report for the year ended December 31, 2024. Based on InvestingPro’s Fair Value analysis, Chubb currently appears fairly valued, while maintaining an attractive 1.25% dividend yield and demonstrating strong momentum with an 11.7% total return over the past year.

This report is based on a press release statement.

In other recent news, Chubb Limited reported a 31% decline in core operating income for the first quarter of 2025, amounting to $1 billion. Despite this drop, the company saw a 5.7% increase in total premiums, indicating growth in their insurance offerings. Chubb has also announced a 6.6% increase in its annual dividend to $3.88 per share, marking the 32nd consecutive year of dividend hikes. Additionally, the Board of Directors approved a new $5 billion share repurchase program set to commence in July 2025.

Analyst activity has been notable, with Raymond (NSE:RYMD) James raising Chubb’s price target to $340 while maintaining a Strong Buy rating, citing expectations of double-digit core operating earnings growth by 2026. Conversely, Keefe, Bruyette & Woods adjusted Chubb’s price target slightly down to $314 but maintained an Outperform rating, citing slower growth in investment income and increased expense ratios. The company continues to invest heavily in technology, allocating $1.1-1.2 billion annually to enhance modernization and processing capabilities.

Chubb’s strategic expansion includes the acquisition of Liberty Mutual’s business in Thailand and Vietnam, contributing $275 million in premiums. The company’s book value per share reached a record high of $164, and it returned $751 million to shareholders through buybacks and dividends in the first quarter. These developments reflect Chubb’s ongoing efforts to maintain growth and shareholder value amidst a challenging economic environment.

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