BMO Lifts Chubb (CB) Target After Q4, Flags Reserve and Investment Income Tailwinds

Chubb Limited (NYSE:CB) is included among the 13 Cheapest Dividend Aristocrats to Invest in.

On February 10, BMO Capital’s Michael Zaremski revisited his outlook connected Chubb Limited (NYSE:CB) pursuing the company’s Q4 results, raising his terms proposal to $326 from $286. The expert reiterated a Market Perform standing connected the stock. While broader statement expects borderline enlargement to level disconnected from here, Zaremski suggested determination whitethorn inactive beryllium country for incremental EPS upside. In his view, reserve releases and stronger concern income could supply an added boost, adjacent if halfway borderline gains statesman to slow.

During Chubb’s fourth-quarter net call, Chairman and CEO Evan Greenberg described the play arsenic a beardown decorativeness to what helium called a grounds year. He framed the results arsenic impervious of the company’s diversified concern model, noting that show spot was not isolated to 1 oregon 2 units. Most operating segments, helium said, contributed meaningfully.

Core operating income reached astir $3 billion, oregon $7.52 per share. That marked gains of astir 22% and 25% from the anterior year. Greenberg besides pointed to a combined ratio of 81.2%, the lowest successful the company’s history, reflecting disciplined underwriting and coagulated profitability. Growth successful the 4th fourth outpaced the company’s mean gait for the year. The agriculture conception stood retired successful particular. Chubb remains the largest harvest insurer successful the United States, and that concern delivered beardown momentum.

The concern portfolio besides expanded. Invested assets climbed to $169 billion, up from $151 cardinal a twelvemonth earlier, giving the institution further net powerfulness done concern income. For the afloat year, Chubb generated operating income of conscionable nether $10 billion, oregon $24.79 per share. That represented increases of astir 9% and 11%, respectively.

Premium maturation remained healthy. Property and casualty premiums roseate much than 7.5% successful the quarter. Consumer lines grew adjacent to 12%, portion commercialized lines precocious much than 6%. International P&C operations posted astir 11% growth, and the U.S. agriculture concern surged much than 45%, lasting retired arsenic 1 of the strongest contributors.

Chubb Limited (NYSE:CB), headquartered successful Switzerland, operates arsenic a planetary security and reinsurance provider. Through its subsidiaries, it offers commercialized and user security products, on with hazard management, nonaccomplishment control, engineering support, and analyzable claims services to clients worldwide.

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