10 Best Insurance Stocks to Buy According to Hedge Funds

8. Chubb Limited (NYSE:CB)

No. of Hedge Fund Holders: 53

Chubb Limited (NYSE:CB) is a Swiss multinational insurance company that serves a range of insurance segments. It offers services in property and casualty (P&C), life insurance, and reinsurance. The company has a diverse clientele, including individuals, SMEs, and multinational corporations. Chubb is serving in more than 54 countries. The company has demonstrated exceptional underwriting expertise for more than 20 years and continues to do so.

Chubb Limited (NYSE:CB) holds an investment portfolio valued at around $150 billion. The company continues to capitalize on improved yields in fixed-income assets. In 2024, the company achieved $5.9 billion in net investment income. This marks a solid 20% growth from a year ago.

Vikram Gandhi from HSBC raised CB’s rating from Hold to Buy on March 5, increasing the price target from $298 to $323. Gandhi is optimistic about the company’s strategic expansion in reinsurance along with its efforts to improve certain sectors of its North American commercial insurance portfolio.

The London Company Large Cap Strategy stated the following regarding Chubb Limited (NYSE:CB) in its Q3 2024 investor letter:

“Chubb Limited (NYSE:CB) – CB engages in the provision of commercial and personal property and casualty insurance, personal accident and health (A&H), reinsurance, and life insurance. While the company is headquartered outside the U.S., roughly 2/3 of its profits are generated in the U.S. with Asian markets representing another 20% of earnings. CB has a portfolio of top-performing, multibillion-dollar businesses that have substantial scale and yet potential for growth. CB has a culture of superior underwriting discipline, and management has a strong track record of expense control. CB also has a well-balanced mix of business by customer and product, with extensive distribution channels. We are attracted to CB’s globally diversified business model, superior underwriting and expense management, consistent and best-in-class profitability, upside potential from growth in Asia, and the potential to benefit from higher interest rates in its investment portfolio.”