We are reiterating our Outperform recommendation on
The Chubb Corp.
), reflecting our continued optimism about the company's growth
prospects. Chubb carries a Zacks Rank #2 (Buy)
Chubb boasts of a diversified product profile and has a niche
market presence in the property and casualty industry.
Chubb's Commercial insurance segment has been consistently
reporting favorable earnings results. The segment has been
witnessing low-single-digits increase in average renewal rates
over the past several quarters. Retention ratio stands at a
Chubb's Personal Insurance segment is also witnessing a
gradual market improvement. The segment has been witnessing an
increase in net premium written from the past several quarters,
led by strong premium increases from international business
Chubb's international business is also performing strongly to
very adequately support its future growth.
Strong capital management witnessed by regular share
repurchases and a continuous dividend increase for the past
several years makes the stock a favorite among
However, exposure to cat losses and low interest rate
environment are some of the headwinds.
Chubb has been also witnessing rising earnings estimates. Over
the last 30 days, the Zacks Consensus Estimate for 2013 moved up
by 2.3% to $7.56 as 6 of the 12 estimates moved north. The same
for 2014 rose 0.3% to $7.26 as 1of 16 estimates were raised over
the same time frame. The expected long term earnings growth is
Other Stocks to Consider
Everest Re Group Inc.
State Auto Financial Corp.
) carrying Zacks Rank #1 (Strong Buy), look impressive
CHUBB CORP (CB): Free Stock Analysis Report
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