Chubb Limited

This is our first report on insurance major, Chubb. The company had an excellent quarter given the enormous underwriting outcomes and it delivered an all-around beat. This includes excellent combined ratios, double-digit constant dollar P&C premium development, and record net investment income, well-balanced between consumer and commercial. Surging Life division growth in revenue along with Cigna’s Asia business was viewed. Commercial P&C pricing was quite strong.  Chubb also received regulatory approval for increasing the company’s Huatai Stake to 83.2%. During the quarter, Chubb continued to accelerate the turnover of its portfolio in a targeted manner. In the quarter, P&C’s premium growth in earnings was again broad-based and balanced with contributions from all its commercial businesses globally. The international A&H division of the company had an exceptionally robust quarter. Overall, across the globe, all of Chubb’s business contributed to earnings and growth in the quarter. Chubb is operating in quite a challenging economic environment, provided inflation, the specter of financial market volatility, and recession. Despite that, the company is positioned quite well given its exceptional underwriting margins and growth in its consumer and commercial P&C business, the robust trajectory for investment income, and contributions from Cigna acquisitions to its growing Asia Life business. We initiate coverage on the stock of Chubb with a ‘Hold’ rating.