Chubb Limited (CB): A Bull Case Theory 

We came across a bullish thesis on Chubb Limited on Value investing subreddit by Chicagoroomie312. In this article, we will summarize the bulls’ thesis on CB. Chubb Limited’s share was trading at $294.50 as of December 2nd. CB’s trailing and forward P/E were 12.28 and 11.03 respectively according to Yahoo Finance.

Chubb Limited provides insurance and reinsurance products worldwide. CB offers a rare opportunity in a market that currently undervalues safety despite paying extreme premiums for consumer brands like Visa, Apple, and Costco. Trading at just 12x earnings with a 15% ROE, Chubb underwrites bespoke risks for multinational corporations and ultra-high-net-worth individuals, covering everything from superyachts and art collections to complex corporate exposures.

This elite client base creates a virtuous cycle: highly creditworthy, low-claim clients allow Chubb to maintain underwriting margins well above industry averages, with a Q3 combined ratio of just 81.8%, and a nine-month underwriting income up 55%. Net premiums written rose 7.5%, reflecting steady growth in its high-quality book.

The company’s massive balance sheet of $168 billion in cash and investments underpins its ability to attract and retain top-tier clients, while providing substantial float that is conservatively invested—generating $1.65 billion in pre-tax net investment income in Q3, up 9.3%.

The structural advantages of capital intensity and regulatory requirements form a moat against competition, ensuring the business is highly resilient and nearly impervious to new entrants. CEO Evan Greenberg’s decades-long experience and focus on disciplined underwriting, paired with aggressive share buybacks, underscore management’s confidence in intrinsic value.

While catastrophes introduce unavoidable volatility, Chubb’s diversified risk pool and conservative reserving provide a buffer few competitors can match. Even without multiple expansion, the company should compound book value at mid-teens ROE, delivering 10–15% annual returns. If the market re-prices safety beyond consumer brands, upside could be substantial, making Chubb a compelling risk-adjusted investment with limited downside and multiple catalysts for appreciation.

Previously we covered a bullish thesis on Chubb Limited (CB) by Serhio MaxDividends in May 2025, which highlighted resilience amid catastrophe losses, strong core operating performance, and disciplined capital allocation via dividends and buybacks. The company’s stock price has appreciated by 0.86% since our coverage. The thesis still stands as CB’s underwriting strength and financial discipline remain robust. Chicagoroomie312 shares a similar thesis but emphasizes market undervaluation, elite clients, and structural moats.

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Disclosure: None.