We recently published a list of 5 Stocks Negatively Impacted By The LA Wildfires. In this article, we are going to take a look at where Chubb Limited (NYSE:CB) stands against other stocks negatively impacted by the LA wildfires.
According to a recent estimate by Goldman Sachs, losses to insurance companies resulting from the Los Angeles wildfires could be as high as $30 billion. Consequently, many insurance stocks, particularly property and casualty insurance companies, have been trading down or sideways since the fires started. Utility companies in the area are also struggling to figure out the extent of the damages as well as their future prospects in the region.
Even today, a large portion of the fire remains uncontrolled, left at the mercy of the strong LA winds to determine the direction in which it will spread. Insurance companies will not only have to settle claims quickly but are also uncertain how much more the fires will spread. We looked at the companies that are negatively impacted by these events and whose stock is feeling the heat from the fires.
To come up with the 5 stocks that are negatively impacted by the LA wildfires, we only considered companies with a market cap of at least $10 billion.
A close-up of an insurance agent’s hand pointing to a marine insurance policy, highlighting the company’s expertise in marine coverage.
Chubb Limited (NYSE:CB)
Chubb Limited (NYSE:CB) provides insurance and reinsurance products globally. It’s a top publicly traded commercial property insurer with a strong performance in the past year. Due to the ongoing crisis of wildfires in Los Angeles, the stock went through a decline. Share prices have improved in the last 4 days and are recovering losses.
The company’s expected EPS growth for 2025 & 2026 is 7.37% and 6.77% respectively. Keeping in mind the current crisis and its effects on the company, estimates might vary. Wells Fargo projected that the Los Angeles wildfire could cause damage worth $30 billion to the insurance sector.
According to a team directed by analyst Elyse Greenspan, 12,000 structures each valued at around $3 million have been demolished. Being an insurance and reinsurance provider, Chubb Limited (NYSE:CB) will bear losses resulting from the ongoing crisis. Despite all the negativity, the stock has performed well in the last two days, soothing investor nerves.
Overall, CB ranks 4th on our list of stocks negatively impacted by the LA wildfires. While we acknowledge the potential of CB as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
