Chubb Limited (CB): A Bull Case Theory

We came across a bullish thesis on Chubb Limited on MaxDividends’s Substack by MaxDividends. In this article, we will summarize the bulls’ thesis on CB. Chubb Limited's share was trading at $313.38 as of February 3rd. CB’s trailing and forward P/E were 12.20 and 11.51 respectively according to Yahoo Finance.

Chubb Corporation (CB) is a leading global property and casualty insurer with operations in 54 countries, serving a diverse range of clients through commercial, personal, and life insurance, as well as reinsurance. The company is built on disciplined underwriting, strong risk management, and a broad distribution network that allows it to adapt to regional market conditions efficiently. Chubb has a long-standing reputation for stability, reflected in its 31-year consecutive dividend growth record, with a current yield of 1.28% and a conservative payout ratio of 16.19%, demonstrating a balance between shareholder returns and reinvestment for growth.

Its disciplined capital allocation has led to 24% dividend growth over the past five years, ensuring sustainable payouts even during economic uncertainty. Financially, Chubb reported robust Q4 2025 results, with revenue of $11.2 billion, net income of $2.58 billion, operating income of $2.45 billion, and EPS of $6.33, representing revenue growth of 16.8% and EPS growth of 18.4% year-over-year. The company’s growth is underpinned by an expanding client base, now up over 9% in the past year, with recurring revenue accounting for roughly 73% of total revenue, providing stable cash flows.

Strategic acquisitions, particularly in Asia, have broadened market presence and added new premium streams, while investments in digital transformation and automation are enhancing efficiency and customer experience. With a Financial Score of 93, Chubb offers investors a combination of strong reliability, consistent dividend growth, and profitable expansion, making it an attractive option for those seeking stability, steady income, and exposure to a globally diversified insurance business. Its legacy of more than 140 years further reinforces its track record of innovation, adaptability, and shareholder value creation.

Previously, we covered a bullish thesis on Chubb Limited (CB) by Serhio MaxDividends in May 2025, which highlighted the company’s resilience amid a costly wildfire, strong underlying operating income, and disciplined capital allocation through dividends and buybacks. CB’s stock price has appreciated by approximately 7.33% since our coverage. MaxDividends shares a similar perspective but emphasizes CB’s long-term global expansion, recurring revenue growth, and digital transformation as key drivers of sustainable earnings and stability.

Chubb Limited is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held CB at the end of the third quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of CB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.