Chubb (CB) Stock Forecast & Price Target

Chubb reported a solid growth in net written premiums (NWP) across various segments, with Overseas General NWP increasing by 6.8% to $3.44 billion, driven by higher consumer and commercial premiums. North American Commercial NWP rose by 5.1% to $4.90 billion, buoyed by notable price increases in property (+6.9%) and casualty (+12.7%) lines, underscoring a strong pricing environment. Moreover, North America Personal Lines NWP saw a robust growth of 10.0% to $1.62 billion, reflecting ongoing demand in the insurance sector despite some metrics trailing previous estimates.

Chubb has experienced a significant decline in North America Agriculture net written premiums (NWP), with a 47.8% drop to $317 million, which was substantially worse than prior forecasts. The decline in premiums, combined with margin deterioration, is likely to negatively impact the company's return on equity (ROE) and future price-to-book multiples. Furthermore, anticipated losses of $1.5 billion from California wildfires have led to a downward revision of the company's earnings per share (EPS) estimate for 2025, highlighting ongoing challenges in pricing and new business growth.