Here's Why Chubb Limited (CB) Stock Is An Attractive Bet
Zacks Investment Research | Jan 05, 2020 08:32PM ET
Chubb Limited (NYSE:CB) is well poised for growth, given its strong portfolio of products and services, strategic acquisitions, presence in global market and efficient capital deployment.
Chubb boasts a strong portfolio of products and services that in turn leads to improvement in premium growth. Further, strategic acquisitions have paved the way for international and domestic expansions, apart from supporting competitive edge in terms of scale, efficiencies and balance sheet size.
As part of the strategic initiatives, Chubb invests in cyber insurance and capitalizes on opportunities in domestic and international middle market business with its core package as well as specialty products. Its accident and health (A&H) and the personal lines businesses are also well poised for growth. The U.S. small commercial business has also gained traction. Also, Chubb’s other distribution agreements aid in enhancing its market presence and expanding its network.
This property and casualty insurer effectively deploys capital via share buyback and dividend payouts to enhance shareholders value. In May 2019, the company hiked its dividend by 2.5%, which marks the 26th straight dividend hike. Chubb’s dividend yield of 1.9% betters the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Chubb carries a Zacks Rank #2 (Buy) and has a Zacks Investment Research
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