Chubb Authorizes $7.5 Billion Buyback, Raises Dividend for 33rd Straight Year
Updated
Updated · The Motley Fool · Jul 18
Chubb Authorizes $7.5 Billion Buyback, Raises Dividend for 33rd Straight Year
2 articles · Updated · The Motley Fool · Jul 18
Summary
$7.5 billion in newly authorized repurchases equals about 5.5% of Chubb's market value, alongside the insurer's 33rd consecutive annual dividend increase.
Those capital-return moves signal confidence that Chubb's core insurance and investment businesses will keep generating excess cash despite a softer corporate property market.
Analysts expect revenue and EPS to grow at 5% and 7% annual rates from 2025 to 2028, helped by expansion in middle-market and small commercial accounts, Asian life insurance, and higher-yielding reinvestments.
At about $352 a share, Chubb trades near 12 times trailing earnings, well below the S&P 500's roughly 32 multiple, reinforcing its appeal as a defensive blue-chip insurer.