It's been a lackluster year so far for shares of Chubb (CB) -- the $19 billion insurer has only seen its stock rise by 64 basis points in 2012, hardly the rally that the rest of the broad market has been experiencing. But considering the strides that the company has made internally, management has made some meaningful accomplishments nonetheless. Chubb is one of the largest multi-line insurers in the world, with a massive property-casualty business and scale that enables the firm to handle policies that only a handful of rivals can take on.
That size advantage means that Chubb can offer more bespoke policies and earn larger margins for their troubles. That's critical diversification in an insurance market that's become commoditized in the last decade. Shile more traditional insurers are forced to match prices and underwrite in volume, Chubb is able to walk away from business based on price.>>5 Buy-Rated Insurance Stocks for Long-Term Investors While most insurers have been chasing growth by broadening their insurance lines, Chubb has actually been reducing its businesses in the wake of the financial crisis. By focusing on its core property-casualty insurance business and finding growth by looking overseas, the company should be able to grow with less risk than rivals. With analyst sentiment on the upswing for this stock, we're betting on shares.
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