Barclays Downgraded Chubb (CB) Stock to Equal Weight

Chubb Limited (NYSE:CB) is one of the Best Large Cap Value Stocks to Invest In. Barclays analyst Alex Scott downgraded the company’s stock to “Equal Weight” from “Overweight” with a price objective of $298, down from the prior target of $321, as reported by The Fly. Heading into earnings, the firm remains more cautious on the property and casualty carriers, mentioning that the underwriting margins continue to face pressure due to softening rates as well as unfavorable mix shift.

However, Barclays remains more constructive on reinsurers, thanks to the idiosyncratic tailwinds and capital return potential in the second half. Overall, the firm’s updated margin modeling and reassessment of the broader commercial P&C landscape to reflect a cautious stance resulted in the downgrade of Chubb Limited (NYSE:CB)’s stock. In Q1 2025, Chubb Limited (NYSE:CB) saw $1.5 billion in core operating income, which was aided mainly by strong underlying underwriting results, double-digit growth in investment income, and growth in life insurance income. Notably, the total company premiums increased 5.7% in constant dollars.

Chubb Limited (NYSE:CB)’s track record of healthy underwriting performance reflects that it is well-equipped to navigate changing market conditions. Its focus on risk selection, pricing discipline, and effective claims management continues to be a critical driver of its profitability. Chubb Limited (NYSE:CB)’s diverse product portfolio, along with its global presence, enables it to balance risks throughout different lines of business and geographies, offering stability in underwriting results.

While we acknowledge the potential of CB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.