Chubb Limited (NYSE:CB) is included among The 13 Best Long-Term Low-Risk Stocks to Buy Now.
On February 4, Roth Capital Partners raised their price target on Chubb Limited (NYSE:CB) to $360 from $330. The firm also reiterated a Buy rating after the company’s fourth-quarter earnings beat. In a note to investors, the analyst said technical performance remained strong, highlighting a reported combined ratio of 81.2% and an underlying combined ratio of 80.6%.
The day before, on February 3, Chubb reported higher fourth-quarter earnings, supported by higher investment income and a significant decline in catastrophe losses. Insurance spending has remained resilient even as businesses and consumers cut back in other areas, reflecting continued efforts to protect against weather-related events and newer risks such as cyber threats.
Net investment income before taxes rose 8% to a record $1.69 billion in the quarter. Insurers typically invest in a mix of asset classes, including fixed income and stocks, and returns tend to follow broader market trends. Catastrophe losses totaled $365 million before taxes, down sharply from $607 million a year earlier. These losses continue to be a major source of earnings volatility for U.S. insurers, driven largely by hurricanes, wildfires and other severe weather events.
Core operating income, net of taxes, rose to $2.98 billion, or $7.52 per share, for the three months ended Dec. 31. That compares with $2.45 billion, or $6.02 per share, in the same period last year.
Chubb Limited (NYSE:CB) is a Swiss-based holding company that, through its subsidiaries, provides insurance and reinsurance products and services to clients around the world.
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.
READ NEXT: 15 Best Wide Spread Dividend Stocks to Invest in and the 12 best HVAC stocks to buy now
Disclosure: None.