8 Undervalued Insurance Stocks To Invest In

3. Chubb Limited (NYSE:CB)

Forward P/E: 11.85

Earnings Growth: 8.10%

Number of Hedge Fund Holders: 46

Chubb Limited (NYSE:CB) is a leading global insurance company that ranks among the top 3 on our list of the 8 undervalued insurance stocks to invest in. With operations in 54 countries, the company provides a wide range of insurance products, including commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to individuals, families, and businesses of all sizes.

During the second quarter of 2024, the company closed two acquisitions of Healthy Paws, a US-based pet insurance company, and Catalyst Aviation Insurance, a Melbourne-based managing general agent specializing in general aviation insurance. This highlights Chubb Limited’s (NYSE:CB) strategic focus on expanding its market presence and diversifying its product offerings.

In Q2 2024, Chubb Limited (NYSE:CB) reported impressive financial results, with net income reaching $2.23 billion, a 24.3% increase from the previous year. Core operating income also rose to $2.20 billion, up 7.5%. For the first half of 2024, net income was $4.37 billion, reflecting an 18.7% increase, while core operating income hit a record $4.41 billion, up 13.5%. This growth is reflective of the company’s effective business strategies and strong market demand.

Total net premiums increased by 11.8% in Q2 2024 year-over-year, driven by a 24.5% rise in life insurance premiums and an 11.2% increase in global property and casualty (P&C) insurance. In North America, high-net-worth personal insurance grew by 12.3%, while commercial lines saw a 6.7% increase. Internationally, premiums were up over 15.5%, with notable growth in Asia-Pacific.

Chubb Limited’s (NYSE:CB) solid underwriting and investment results continue to generate significant capital and positive cash flow. The company reported an adjusted operating cash flow of $3.6 billion for the quarter and a record $7.2 billion for the first half of the year. Additionally, Chubb Limited (NYSE:CB) returned $939 million to shareholders through share repurchases and dividends in Q2 2024.

Over the past 5 years, Chubb Limited (NYSE:CB) has increased its revenue at a rate of 10% each year. At the same time, its net income has grown even faster, with a 20% annual growth rate.

With its robust financial performance, diverse product offerings, and strategic acquisitions, Chubb Limited (NYSE:CB) presents a compelling investment opportunity for those looking to invest in the insurance sector.

Chubb Limited (NYSE:CB) is one of the best insurance stocks to buy. As of the second quarter of 2024, the stock is held by 46 hedge funds.