Chubb Limited (CB)

Hurricanes result in claims, and then an increase in premiums. Trading at 1.5x book value, so this is a value pick. Only half a position. Yield is 2.3%. (Analysts’ price target is $156.93)

(A Top Pick Dec 15/16. Up 13%.) One of the best underwriting firms out there. $4.8 billion of catastrophe losses, but only about 10% will hit their bottom line, because they bought insurance from the reinsurers to offset it. They might get a $400 million hit, but in the insurance business, they like catastrophes, because it gives them the opportunity to raise prices. For every $1 of policy they are writing, they get to keep $0.12.

(A Top Pick Dec 15/16. Up 11.58%.) One of the better property/casualty insurers globally. Their combined ratio is at 80%, which is second to none. BV grows at 10% a year. They are about to take a $1.8 billion write down because of the hurricanes and earthquakes, but it is nothing to them.

One of the larger property and casualty insurers. It has the lowest combined ratios, and make $0.12 on every $1 premium written, which goes right into their investment portfolio. With BV growth of roughly 10% a year, you are getting a 10% dividend in growth rate over time. Safe and stable. Dividend yield of 2.09%. (Analysts’ price target is $139.)