Chubb (CB) Stock Forecast & Price Target

Chubb reported solid financial performance, with Overseas General net written premiums increasing by 6.8% to $3.44 billion, supported by growth in both consumer and commercial segments. North American Commercial net written premiums also showed growth, rising 5.1% to $4.90 billion, with notable increases in property and casualty pricing of 6.9% and 12.7%, respectively. Additionally, North America Personal Lines net written premiums experienced a robust 10.0% increase, contributing to an overall P&C net written premium growth of 3.5% to $10.50 billion, reflecting a positive trend in premium pricing across various segments.

The financial outlook for Chubb appears negative due to a significant 47.8% decline in North America Agriculture net written premiums, which substantially underperformed projected forecasts and indicates potential long-term challenges in this sector. Additionally, a sequential drop in book value per share by 2.1% to $159.77, coupled with projected reductions in return on equity and new business growth, signals a weakening financial position. Moreover, the anticipated $1.5 billion losses from California wildfires further contribute to downward adjustments in earnings per share estimates, highlighting instability in Chubb’s high net worth segment exposure.