Chubb Limited (CB-N)

Combined ratios for P&C are in the 83% range, amongst the lowest of the group. (For every $1 of policy issued, they pay out only 83 cents in claims.) That 17 cent difference is free cashflow to them, which they invest in a short-medium bond portfolio. Very conservative, pricing has been good.

Because of it size, exposed to more of the catastrophic risk out there. Offsets that by about 90% by buying reinsurance for the policies they write.

Performance YTD is 8%, 10 years is 13%, 15 years is 15% (that should be the target over time). Likes insurance companies a lot more than banks right now, based on what may be coming with interest rates and loan refinancing in Canada and US.

Out of Switzerland, operating globally. 

Very defensive. Insurance pricing has not slowed because of all the catastrophes happening. Their combined ratio is 84%. He likes that they invest in bonds, not stocks, so they will survive a correction and grow their dividend. Most bonds are 1-5 years, so will benefit from rate cuts.

Catastrophes tend to give pricing power to P&C insurers. Very fine combined ratio (or, in other words, its margins). Makes about a 15% margin on its underwriting. Invests ~$127B of premiums to great advantage in the bond market. Steady. Yield is 1.3%.

He'd buy today. Off highs. Benefits from positive bond market. Strong risk management. Fourth largest in world, largest P&C. Great combined ratio.

CB is a large property and casualty insurance company, which has shown disciplined underwriting and risk management over the years, leading to its large scale and strong profitability. It pays a yield of 1.4%, it has grown its sales and earnings at a 10.6% and 22.4% five-year CAGR, respectively. Forward growth is expected to be strong, and it has increased by 18% over the past year. It trades at a 12X forward earnings, and overall we would be quite comfortable with CB as a defensive play.
Unlock Premium - Try 5i Free

The 4th-largest P&C insurer in the world. They do well underwriting and in investing as well. Their combined ratio is 86%, impressive. They also make money on their bond holdings. Berkshire Hathaway owns a large position. Also, CB is low-volatility and defensive.

62% of premiums are in the US and the rest international, so they have global exposure. They are growing life insurance in Asia. They have a good track record in assessing risk, then generate investment income through a large bond portfolio and private equity investments. Berkshire announced a stake in CB earlier this year. Trades at a reasonable 12x forward PE.

Looks good right now, taking a pause. Chart looks great, now in a consolidation phase (very normal). Very tight trading range around $285-290. Touching $280, which is short-term support, a good sign for taking a position. Your exit strategy should kick in if drops below $275. Dividend is a bonus, so you can afford to hold before it goes up again.

Once it hits $300-310, you know it's going higher and can build on your position.

Based in US, but being a more international P&C insurer gives it lots of opportunities for growth. Excellent combined ratio. 

Clear channel of higher highs and higher lows from mid-2022. Upward trend in the 200-day MA is starting to accelerate. Sees 7-8% earnings growth. Not as exciting as NVDA, but a good financial name  to own. IFC is the comparable in Canada.

Likes this segment in P&C. Represents value. Will do well in falling interest rate environment, though some interest rate yields moving higher, which has affected this type of name. 

A number of P&C insurers in the US pulled back post-hurricane. Great run over last 18 months. Technically, not broken. Sector probably does pretty well going forward. Cream of the crop in the sector.

It is trending the right way and has moved hard on the upside. He doesn't know the momentum indicators but it is off the trend line and then may pull back to the trend line for a buy so wait.

Trades at 14x PE. Is the biggest P&C insurer in the world and 4th insurer overall. Their combined ratio is around 80, so they have a high margin in their underwriting business. Investments are excellent, with 80% in  bonds enjoying strong returns. A predictable, safe business. They have pricing power. Catastrophes like hurricanes in the long run give insurers a chance to enhance revenues.

A good insurer that will benefit from them raising premiums.