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 0.4%. By the end of trading, Chubb fell $1.24 (-1.4%) to $87.81 on average volume. Throughout the day, 1,416,961 shares of Chubb exchanged hands as compared to its average daily volume of 1,161,300 shares. The stock ranged in price between $87.75-$89.98 after having opened the day at $89.39 as compared to the previous trading day's close of $89.05. Other companies within the Insurance industry that declined today were: Aon plc ( AON), down 3.7%, American International Group ( AIG), down 3.3%, CNinsure ( CISG), down 3.3% and MBIA ( MBI), down 3.3%.
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The Chubb Corporation, through its subsidiaries, provides property and casualty insurance to businesses and individuals. Chubb has a market cap of $23.2 billion and is part of the financial sector. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 18.2% year to date as of the close of trading on Thursday.

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, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Atlas Financial Holdings ( AFH), down 4.9%, eHealth ( EHTH), down 4.0%, American Independence Corporation ( AMIC), down 3.1% and Prudential ( PUK), down 3.0% , were all gainers within the insurance industry with Aflac ( AFL) 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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