Chubb Corp (CB): Today's Featured Insurance Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Chubb ( CB) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Chubb fell $1.43 (-1.8%) to $77.96 on heavy volume. Throughout the day, 2.8 million shares of Chubb exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $77.74-$79.74 after having opened the day at $79.25 as compared to the previous trading day's close of $79.39. Other companies within the Insurance industry that declined today were: Stewart Information Services ( STC), down 5.1%, MBIA ( MBI), down 4.2%, First American Financial ( FAF), down 3.9%, and Radian Group ( RDN), down 3.7%.
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The Chubb Corporation, through its subsidiaries, provides property and casualty insurance to businesses and individuals. It offers personal insurance products, such as automobile, homeowners, and other personal coverage products, as well as supplemental accident and health insurance products. Chubb has a market cap of $21.22 billion and is part of the financial sector. The company has a P/E ratio of 13.4, equal to the average insurance industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 14.7% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Chubb a buy, two analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Chubb as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Life Partners Holdings ( LPHI), up 12%, eHealth ( EHTH), up 8.8%, Crawford & Company ( CRD.A), up 6.9%, and Unico American Corporation ( UNAM), up 2.3%, were all gainers within the insurance industry with Aon plc ( AON) being today's featured insurance industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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