8. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 51
Chubb Limited (NYSE:CB) is an American Swiss insurance company that offers a wide range of related products and services to its consumers. The company also manages a portfolio of insurance businesses that offer various services, including property and casualty insurance, personal accident coverage, and supplemental health insurance. In addition, the firm participates in the reinsurance market, offering insurance policies to other insurance companies. Similar to Berkshire Hathaway, Chubb invests its “float”—the excess cash generated from its insurance operations—in securities, earning returns alongside any profits from underwriting. The stock has delivered a return of nearly 22% this year so far.
In the third quarter of 2024, Chubb Limited (NYSE:CB) reported a net income of $2.32 billion, reflecting a 13.8% increase from the previous year. Net premiums exceeded $12.2 billion, growing by 5.4% year-over-year. The company’s property and casualty (P&C) underwriting results were strong, with all divisions making substantial contributions, despite facing significant industry-wide catastrophe losses. The combined ratio was 87.7%, and P&C underwriting income rose by more than 11.5%.
Chubb Limited (NYSE:CB) is a strong dividend payer with ample cash on its balance sheet. In the most recent quarter, the company reported an operating cash flow of $4.55 billion. Its dividend growth streak currently stands at 31 years, which makes it one of the best dividend stocks on our list. The company pays a quarterly dividend of $0.91 per share and has a dividend yield of 1.32%, as of December 11.
The London Company made the following comment about CB in its Q3 2024 investor letter:
Initiated: 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.
Chubb Limited (NYSE:CB) was a part of 51 hedge fund portfolios at the end of Q3 2024, up significantly from 46 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a consolidated value of more than $10 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company.
