Chubb Limited (CB) Stock Analysis

Chubb’s principal competitive advantage is its global scale and breadth, which few property and casualty (P&C) insurers can match. With operations in 54 countries and over 200 commercial insurance products, Chubb serves multinational clients that require consistent coverage and claims handling across jurisdictions—a barrier to entry for smaller or regionally focused rivals. For example, Chubb’s international premiums account for roughly 40% of its total, compared to Travelers’ 7% and The Hartford’s negligible international presence.

Chubb’s underwriting discipline is another differentiator. Its P&C combined ratio—a key measure of profitability—was 85.6% in Q2 2025, consistently outperforming peers such as AIG (92.1%) and Zurich (89.5%). This reflects both prudent risk selection and effective claims management, supporting superior long-term returns on equity (ROE: 14% TTM vs. industry average ~10%).

The company’s diversified product mix, including a growing life insurance segment and strong presence in specialty lines (e.g., cyber, environmental, and excess casualty), reduces earnings volatility and positions Chubb to capture growth in emerging risks. Its distribution network—spanning brokers, agents, bancassurance, and digital channels—enables broad market access and customer retention.

Potential weaknesses include exposure to large corporate clients with bargaining power and to catastrophe risk, as seen in recent California wildfire losses. However, Chubb’s scale, capital strength, and risk management culture mitigate these threats relative to most competitors.