7 Undervalued European Stocks To Invest In Now

4. Chubb (NYSE:CB) 

Number of Hedge Fund Investors: 46

Forward P/E Ratio as of September 26: 11.92

Chubb (NYSE:CB) is a Swiss-based global insurance company that offers comprehensive coverage solutions for commercial and personal property, casualty, and accident insurance. The company operates in 54 countries and territories.

The property & casualty insurance industry is expected to have good momentum going forward, especially in personal lines. BeInsure expects property & casualty personal lines to grow 8% in 2024 and 5% in 2025. The industry’s net combined ratio is expected to decline well into 98.5% in 2024 and 2025 compared to 102% ratio in 2023. As a result, the industry’s return on equity is expected to rise from 3.4% in 2023 to 9.5% in 2024 and further to 10.0% in 2025.

In Q2, Chubb’s (NYSE:CB) reported a solid growth in written premiums, with a 10.3% increase in net property & casualty premiums written and a 24.5% growth in life insurance net written premiums. The company’s combined ratio remained stable, and its core operating income per share increased 9.3% year-on-year. Investment income also increased, and Chubb’s (NYSE:CB) EPS of $5.46 grew 26.4% year-on-year, beating expectations by $0.30.

Chubb’s (NYSE:CB) stock remains attractively priced. The company’s good momentum in written premiums and solid earnings, combined with the industry’s low overall risk level, make the stock a good investment opportunity. Chubb (NYSE:CB) is trading at a forward P/E ratio of 13.44 which is a 12.78% discount compared to the industry average of 11.92. Analysts expect the company to increase its earnings by 8.51% this year. As of the second quarter, the stock is held by 49 hedge funds with stakes worth $8.06 billion. Berkshire Hathaway is the largest stakeholder in the company and has a position worth $6.89 billion as of June 30.