Chubb Limited

Methodology

Chubb's property and casualty insurance operations serving affluent individuals and large commercial clients create more stable earnings than mass-market insurers. The company's underwriting discipline and high-net-worth focus provide pricing power and loss control advantages. This calculation works reasonably for Chubb given quality positioning, though catastrophe events and reserve development can still create meaningful year-to-year variability requiring normalization.

Methodology

Chubb's PEG ratio typically ranges from 1.5-2.5, reflecting premium valuations for a high-quality P&C insurer with superior underwriting results and wealthy client demographics. The company's consistent combined ratios below peers justify higher multiples than commodity insurers. Compare to other property and casualty insurers to assess whether Chubb's underwriting excellence and market positioning command appropriate premiums.

Methodology

Chubb's dividend yield (typically 1.5-2.5%) combined with steady increases makes PEGY relevant for insurance investors seeking quality with income. The company's disciplined underwriting and strong capital generation support both dividend growth and opportunistic share buybacks. PEGY better captures the total return proposition for Chubb as a premium insurer where consistent capital returns complement solid underwriting profits.