NEW YORK (TheStreet) -- If you invest on fundamentals, the insurance company Chubb (CB) is the type of stock you want in your portfolio.
Trading around $92.65 per share on Thursday, down 4% for the year to date, Chubb has a current price-to-earnings ratio of 11.1 and a price-to-book value ratio of 1.4.
The company was founded in 1882 as a marine underwriting business in the seaport district of New York City but has grown from there to approximately 10,000 employees operating in 27 countries in North America, Europe, South America and the Pacific Rim. It utilizes 8,500 independent agents and brokers to sell its products.
Chubb offers a diverse product line to businesses and individual customers. To businesses it offers professional and management liability insurance, property and casualty insurance, accident and health insurance and surety bonds. It is also known to offer tailored solutions to fit specific industry needs. For individuals it offers coverage for auto, home, watercraft, valuables and excess liabilty. Chubb has an excellent reputation for customer service and it has wide brand recognition.
With a market capitalization of $22.5 billion, Chubb has a disciplined management team. It is profitable, has a strong balance sheet, a low level of debt and return on equity of 13%.
The company has slowly been returning cash to shareholders. In 2013, Chubb repurchased 5% of its stock. It also offers a consistent dividend of 50 cents per share, a 2.2% yield. The company increased its dividend by 13.6% in the first quarter. It has had an annual dividend increase in each of the past 32 years.