Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024

14. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 51

Cramer noted that Chubb Limited (NYSE:CB) stock has rallied in 2024 and said:

“It’s joined by Chubb Limited, the property casualty insurance kingpin, which was up 26%… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”

Chubb Limited (NYSE:CB) offers a wide range of insurance and reinsurance products, including coverage for commercial, personal, agricultural, and life insurance, as well as specialty reinsurance services.

Recently, AM Best affirmed Chubb Limited’s A++ (Superior) Financial Strength Rating and “aa+” Long-Term Issuer Credit Ratings, reflecting the company’s strong balance sheet, excellent operating performance, and global market leadership. Chubb’s solid capitalization, underwriting results, and diverse international presence contribute to its top-tier ratings, though some capital growth has been constrained by financial leverage and share repurchases.

AM Best noted that the company’s exceptional operating performance is driven by the group’s consistently profitable underwriting results, as evidenced by a combined ratio in the mid-to-high 80s, which significantly outperforms the industry averages for top-rated insurers. Ratings for other Chubb subsidiaries reflect similar strengths and support from the parent company.

For the first nine months, Chubb Limited’s (NYSE:CB) net income and core operating income reached record highs of $6.70 billion and $6.75 billion, reflecting increases of 16.9% and 13.8%, respectively. On a per-share basis, year-to-date net income and core operating income of $16.38 and $16.50 also set records, up 18.8% and 15.6%. During this period, P&C underwriting income totaled $4.28 billion, an 8.4% increase.

The company’s management has expressed confidence in the company’s ability to sustain strong growth in operating earnings and EPS, driven by P&C revenue growth, underwriting margins, investment income, and life income.