📊 CB Key Takeaways
Is Chubb Ltd (CB) a Good Investment?
Chubb demonstrates strong financial stability with conservative leverage (0.22x D/E), healthy operating margins (20.3%), and robust free cash flow generation. However, abnormal 7875% revenue growth paired with declining net income (-2.9% YoY) signals acquisition-related dilution and poor capital deployment, evidenced by severely depressed ROE of 3.1% well below insurance industry standards.
Chubb shows high-quality fundamentals with strong underwriting and earnings power, reflected in a 22.0% operating margin, 17.4% net margin, and robust cash generation. The balance sheet remains conservative with low leverage and strong interest coverage, although the slight decline in net income suggests investors should watch whether recent margin strength is fully sustainable through the insurance cycle.
Why Buy Chubb Ltd Stock? CB Key Strengths
- Conservative balance sheet with low debt-to-equity ratio (0.22x) and strong interest coverage (15.1x)
- Solid profitability margins with 20.3% operating margin and 15.7% net margin for sustained earnings power
- Exceptional free cash flow generation at 3.9B with 26.7% FCF margin indicating cash conversion strength
- Strong profitability with 22.0% operating margin and 17.4% net margin
- Conservative financial health with 0.21x debt-to-equity and 17.1x interest coverage
- Healthy cash generation with $12.82B operating cash flow and 21.6% FCF margin
CB Stock Risks: Chubb Ltd Investment Risks
- Return on equity of 3.1% and ROA of 0.8% are alarmingly low for insurance industry, suggesting severe capital inefficiency
- Net income declined 2.9% YoY despite 7875% revenue growth, indicating acquisition is dilutive and integration challenges may exist
- Disproportionate liability-to-equity structure (195.5B liabilities vs 73.8B equity) concentrates underwriting and operational risk despite manageable leverage ratios
- Net income declined 2.9% YoY despite revenue growth, which may signal pressure on underwriting or claims costs
- Insurance earnings can be volatile due to catastrophe losses and reserve development
- Low cash balance relative to total assets means liquidity should be monitored alongside claims and investment obligations
Key Metrics to Watch
- Return on equity trend - critical to validate capital efficiency recovery post-acquisition
- Underwriting profitability and loss ratios - assess core insurance business performance quality
- Integration progress and combined operating margin - track whether acquisition creates shareholder value
- Net income and underwriting margin trend
- Operating cash flow consistency and reserve adequacy
Chubb Ltd (CB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CB Profit Margin, ROE & Profitability Analysis
CB vs Finance Sector: How Chubb Ltd Compares
How Chubb Ltd compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Chubb Ltd Stock Overvalued? CB Valuation Analysis 2026
Based on fundamental analysis, Chubb Ltd has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Chubb Ltd Balance Sheet: CB Debt, Cash & Liquidity
CB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Chubb Ltd's revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $21.80 reflects profitable operations.
CB Revenue Growth, EPS Growth & YoY Performance
CB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.4B | $1.3B | $3.29 |
| Q3 2025 | $14.8B | $2.3B | $5.70 |
| Q2 2025 | $13.8B | $2.2B | $5.46 |
| Q1 2025 | $12.9B | $1.3B | $3.29 |
| Q3 2024 | $13.9B | $2.0B | $4.95 |
| Q2 2024 | $11.8B | $1.8B | $4.32 |
| Q1 2024 | $11.1B | $1.9B | $4.53 |
| Q3 2023 | $12.1B | $792.0M | $1.89 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Chubb Ltd Dividends, Buybacks & Capital Allocation
CB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Chubb Ltd (CIK: 0000896159)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CB
What is the AI rating for CB?
Chubb Ltd (CB) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CB's key strengths?
Claude: Conservative balance sheet with low debt-to-equity ratio (0.22x) and strong interest coverage (15.1x). Solid profitability margins with 20.3% operating margin and 15.7% net margin for sustained earnings power. ChatGPT: Strong profitability with 22.0% operating margin and 17.4% net margin. Conservative financial health with 0.21x debt-to-equity and 17.1x interest coverage.
What are the risks of investing in CB?
Claude: Return on equity of 3.1% and ROA of 0.8% are alarmingly low for insurance industry, suggesting severe capital inefficiency. Net income declined 2.9% YoY despite 7875% revenue growth, indicating acquisition is dilutive and integration challenges may exist. ChatGPT: Net income declined 2.9% YoY despite revenue growth, which may signal pressure on underwriting or claims costs. Insurance earnings can be volatile due to catastrophe losses and reserve development.
What is CB's revenue and growth?
Chubb Ltd reported revenue of $14.8B.
Does CB pay dividends?
Chubb Ltd pays dividends, with $380.0M distributed to shareholders in the trailing twelve months.
Where can I find CB SEC filings?
Official SEC filings for Chubb Ltd (CIK: 0000896159) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CB's EPS?
Chubb Ltd has a diluted EPS of $5.88.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CB a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Chubb Ltd has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CB stock overvalued or undervalued?
Valuation metrics for CB: ROE of 3.1% (sector avg: 12%), net margin of 15.7% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy CB stock in 2026?
Our dual AI analysis gives Chubb Ltd a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CB's free cash flow?
Chubb Ltd's operating cash flow is $3.9B, with capital expenditures of N/A. FCF margin is 26.7%.
How does CB compare to other Finance stocks?
Vs Finance sector averages: Net margin 15.7% (avg: 25%), ROE 3.1% (avg: 12%), current ratio N/A (avg: 1.2).