10 Most Undervalued Insurance Stocks to Buy Now

4. Chubb Limited (NYSE:CB)

Forward P/E: 13.40

No. of Hedge Fund Holders: 53

Chubb Limited (NYSE:CB) is a leading insurance company that offers a diverse range of insurance and reinsurance products to people, corporations, and other entities worldwide. It provides commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management.

On March 5, HSBC analyst Vikram Gandhi upgraded CB’s rating from Hold to Buy, raising the price target from $298 to $323. The upgrade follows Chubb’s strategic expansion in reinsurance in 2024, as well as its efforts to enhance certain sectors of its North American commercial insurance portfolio. The analyst noted that CB’s strong emphasis on the mid-market and SME segments in North America positions it well to grow its business in the region.

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.”