BMO Capital Increases Chubb (CB) Target, Cites Earnings Growth Potential

Chubb Limited (NYSE:CB) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.

On February 10, BMO Capital analyst Michael Zaremski raised his price objective on Chubb Limited (NYSE:CB) to $326 from $286. The analyst reiterated a Market Perform rating on the stock. He reviewed its fourth-quarter results and noted that while many analysts expect margin improvement to level off, there could still be additional upside to earnings. The analyst pointed to reserve releases and continued strength in investment income as factors that may support future EPS growth.

One of Chubb’s key strengths is its ability to generate steady cash flow across market cycles. Over the past 12 months, the company has produced about $14.7 billion in free cash flow. This gives Chubb the flexibility to return money to shareholders through dividends and stock buybacks, while also reinvesting in its business. That consistency has supported the company’s long record of dividend growth, with Chubb increasing its payout for 32 consecutive years.

Insurance companies also benefit from income generated through their investment portfolios. Chubb invests heavily in high-quality fixed-income securities, including US Treasuries, which provide a stable source of interest income. This helps diversify its earnings beyond underwriting. When interest rates remain elevated, that investment income becomes even more valuable. As of the fourth quarter of 2025, Chubb had generated $6.5 billion in net investment income.

Chubb Limited (NYSE:CB) is headquartered in Switzerland and operates as a global insurance holding company. Through its subsidiaries, it offers a wide range of insurance and reinsurance products to customers across international markets.

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