Attractive P/E Ratio
Reasonable Price-to-Sales Ratio
Strong Net Profit Margin
High Return on Equity
Low Debt Levels
Strong Interest Coverage
Strong Underwriting Performance
Robust Investment Income
Diverse Global Presence
Optimism for 2025 Growth
Expanding Market Opportunities
High EV/EBITDA Ratio
Moderate Operating Profit Margin
Poor Liquidity Ratios
Challenges in California Market
Competition in Financial Lines
Market Competition and Pricing Pressure
Economic Uncertainties
Overall, Chubb Limited demonstrates a strong business model with robust underwriting and investment performance, although challenges in specific markets and competitive pressures could temper future growth. The company is well-positioned for continued success with a focus on organic growth and strategic opportunities.
Analysis Date: January 29, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$883.18
Current Market Price: $278.06
IV/P Ratio: 3.18x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
69.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CB
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (12.24)
P/B ratio ≤ 1.5 (1.77)
Current ratio ≥ 2.0
Long-term debt < Net current assets
Margin of safety (69.0%)
CB does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
CB's net profit margin of 16.59% indicates effective cost management and pricing strategies, reflecting strong profitability.
A return on equity of 14.76% demonstrates that the company is proficient in generating profits from its equity base.
The operating profit margin of 14.99% is decent but shows room for improvement compared to direct competitors.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
14.76%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.04%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
99.97%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
16.59%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
CB's debt-to-equity ratio of 0.24 and debt-to-assets ratio of 0.06 indicate a strong balance sheet with low leverage, reducing financial risk.
With an interest coverage ratio of 11.31, the company can comfortably meet its interest obligations, indicating strong cash flow generation.
The current ratio, quick ratio, and cash ratio are all at 0.0, indicating potential liquidity issues that may affect short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.22x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
CB: No data available
Chubb reported a world-class combined ratio of 85.7, indicating effective management of underwriting risks. The P&C underwriting income reached a record $5.9 billion, showcasing the company's operational efficiency.
Chubb achieved record investment income with adjusted net investment income growing by 19.3% to $6.4 billion. This reflects their strong asset management capabilities.
Chubb's operations in North America, Asia, Europe, and Latin America show diversified revenue streams, which contribute to stability and growth. The consistent performance across regions enhances their market position.
The company has faced difficulties in the California insurance market due to regulatory pressures and inadequate pricing strategies, leading to a reduction in exposure in high-risk areas.
Chubb has been cautious in the financial lines sector due to ongoing premium declines and increased competition, impacting growth in this area.
Chubb is optimistic about maintaining double-digit earnings growth driven by P&C underwriting, investment income, and life insurance. Strong premium growth in both P&C and life sectors indicates potential for robust future revenues.
There is good growth potential in over 80% of Chubb's global P&C business and life segments, particularly in emerging markets like Asia and Latin America, which are expected to grow faster than developed markets.
Although there are growth prospects, the insurance market is experiencing increased competition, particularly in shared and large account lines, which may pressure margins.
Potential risks from macroeconomic factors, such as inflation and foreign exchange fluctuations, could impact profitability and growth projections.