Quick Investment Take

When I look at Chubb (NYSE:CB), I see a multitude of reasons on why it could be a great investment. In pursuit of flashy growth it’s easy for investors to forget the point of investing and the primary goal of any business. The primary goal of any business is to increase the value for shareholders and for some time now, I see this reflected more in Chubb than a lot of other stocks. What factors allow Chubb to achieve this?

• Diversified Business
• Strong Financial Performance
• Strong position (Market and Profitability)

In my write-up I will expand on each of these factors and also offer insight into how it can provide less correlated returns against the index which is important if you have a concentrated market exposure.

Diversified Business Model

Chubb is a global insurance company (world’s largest publicly traded P&C insurance) that provides a wide range of insurance products and services to individuals, families, and businesses around the world. For individuals and families, their wide array of products cover Home, Auto, Valuables, Boats & Yachts, Cyber, Liability, Travel, Natural Disasters and bespoke services. Under Business Insurance, they cover a broad range of services with categories extending from Accident and Health Insurance to Workplace benefits.

This diversification is all the more evident when one looks at how premiums are distributed across segments. With multiple distinct segments having at least $1B…