We just covered the The 10 best stocks to buy now according to Warren Buffett. Chubb Limited (NYSE:CB) is ranked No. 8 (see The 5 best stocks to buy now here).
How does Chubb Ltd (NYSE:CB) stand out among other insurance companies? The company focuses on commercial and high-net-worth clients, unlike its competitors who rely on high-volume, low-margin businesses. Because of this high net worth, the company has pricing power. When inflation spikes, it can easily raise premiums even faster than those costs rise. It ranks eighth on our list of the best stocks to buy according to Warren Buffett.
Chubb Ltd (NYSE:CB) has a combined ratio (a key metric in the insurance industry) of between 81% and 86%. What does that mean? It means Chubb Ltd (NYSE:CB) keeps between 15 and 19 cents of every dollar in pure profit before even touching its investment income. This significantly exceeds the industry average of 96%.
The London Company Large Cap Strategy explained in its Q4 investor letter why CB performed well and why it remains strong despite industry volatility. Read the letter here.
While we recognize CB’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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