Chubb Stock Trades Above 200-Day SMA: What Should Investors Do?

Chubb Limited CB has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Oct. 8, 2025, was $287.10, down 6.4% from its 52-week high of $306.91.

The 200-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend. 
 

With a market capitalization of $114.46 billion, the average volume of shares traded in the last three months was 1.8 million.

CB’s Attractive Valuation

Shares of Chubb are trading at a discount compared with the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.54X is lower than the industry average of 1.58X, the Finance sector’s 4.32X, and the Zacks S&P 500 Composite’s 8.8X. The insurer has a Value Score of B.

Shares of The Travelers Companies, Inc. TRV, W.R. Berkley Corporation WRB, and Kinsale Capital Group, Inc. KNSL are trading at a multiple higher than the industry average.

Price Performance

Shares of Chubb Limited have risen 1.5% in the past year compared with the industry’s growth of 9%.

CB’s Growth Projection Encourages

The Zacks Consensus Estimate for CB’s 2025 revenues is pegged at $59.38 billion, implying a year-over-year improvement of 5.6%. 
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 17.6% and 6.3%, respectively, from the corresponding 2025 estimates. 

The Zacks Consensus Estimate for 2025 earnings has moved up 0.2% in the past 60 days, and for 2026, the same has moved north 0.07% in the same time frame.

Target Price Reflects Potential Upside

Based on short-term price targets offered by 23 analysts, the Zacks average price target is $304.61 per share. The average indicates a potential 5.31% upside from the last closing price.

Impressive Earnings Surprise History of CB

Chubb Limited’s bottom line surpassed earnings estimates in each of the last four quarters, the average being 10.85%.

CB’s Favorable Return on Capital

Return on equity in the trailing 12 months was 12.3%, better than the industry average of 7.6%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.

Also, return on invested capital (ROIC) has been increasing over the last few quarters amid capital investments made over the same time frame. This reflects CB’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 8%, better than the industry average of 5.8%.

Factors Benefiting CB Stock

Chubb Limited remains focused on capitalizing on the potential of middle-market businesses (both domestic and international) as well as enhancing traditional core packages and specialty products for long-term growth. In its efforts to accelerate growth, Chubb Limited is also making strategic investments in various initiatives. 

CB pursues strategic mergers and acquisitions to diversify its portfolio, add capabilities and synergies, and expand its geographic footprint. Recently, Chubb Limited agreed to acquire the insurance businesses of Liberty Mutual in Thailand and Vietnam. Acquisitions have also improved premium revenues. Premiums should also benefit from commercial P&C rate increases, new business, and strong renewal retention. An impressive inorganic growth story helps to achieve a higher long-term return on equity. 

Though the Fed has started lowering the interest rate, investment income should benefit from improved operating cash flow. Chubb Limited expects the quarterly adjusted net investment income to have a run rate between $1.72 billion and $1.74 billion in the third quarter of 2025.
Chubb Limited has a strong capital position and sufficient cash-generation capabilities, which support wealth distribution to shareholders and growth initiatives. 

Being a P&C insurer, CB is exposed to catastrophe events, which induce volatility in underwriting profitability and affect the combined ratio. Given the uncertainty surrounding the magnitude of cat loss, higher losses could drain earnings. 

Also, Chubb’s leverage and times interest earned compare unfavorably with the industry.

End Notes

Chubb Limited’s market-leading position, compelling portfolio, strong renewal retention, positive rate increases, solid capital position, and better return on capital pave the way for long-term growth. 

The strong capital and liquidity position enable Chubb to distribute wealth to its shareholders via share buybacks and dividend payouts. The company’s current dividend yield of 1.4% is better than the industry average of 0.3%. The recent 6.6% increase in dividends marks the 32nd straight year of dividend increase. Chubb has a solid track record of dividend hikes, with the metric witnessing a 10-year CAGR of 3.8%. This makes the stock an attractive pick for investors looking for a safe and steady flow of cash. 

However, given its premium valuation and unfavorable leverage and times interest earned, we prefer to stay cautious on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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