Chubb: Solid Choice for Dividend Investors

Insurance companies are difficult to understand, especially for value investors who want consistent growth. Growth from one year to the next is impossible to predict with accuracy. They have investment income which varies substantially and catastrophe expenses fluctuate wildly from one year to the next. Even written premiums do not grow consistently. Therefore it is necessary to value these companies based on long term records. Chubb (CB), a Dividend Aristocrat, was founded in 1882 in New York for marine underwriting business. Now it sells insurance around the world with 24% of premiums coming from outside the US. Last week CB was granted approval to open its 2nd China office in Nanjing (the first was opened 10 years ago). Chubb is one of the largest property and casualty insurance in the world with a conservative investment philosophy. Its debt credit ratings are A+ and its insurer financial strength is AA. Growth for book value and markets value per share is presented below:... Read more

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