The Chubb Corp

  • High Dividend Yields Come at a Price

    By Jordan Wathen - August 1, 2013 | Tickers: AINV, ARCC, CB | Editor's Choice

    We shouldn’t be surprised that high-yield stocks are popular in a low interest rate environment. When the best CDs offer little more than 1% for five-year maturities, 3% yielding blue chips look exemplary.

    Stocks yielding 10% or more look like the opportunity of a lifetime.

    But what are you giving up by chasing high-yield stocks? Are high-yield investors accepting too much risk just to get a taste of high more »

  • Still Room for This Turnaround to Run

    By Marshall Hargrave - July 15, 2013 | Tickers: AIG, ALL, CB

    American International General (NYSE: AIG) has been in "turnaround" mode since the U.S. Treasury orchestrated a $700 billion bailout of the insurer back in 2008. But in December 2012, the U.S. Treasury sold its remaining stake in AIG, so what's the future catalyst to drive the stock higher? It appears the company has refocused on insurance and is now, once again, one of the top players in more »

  • A Hidden Danger for Insurance Stocks

    By Zachary Scheidt - July 2, 2013 | Tickers: CINF, CB, XL

    Investors in property & casualty insurance companies (often referred to as P&C insurers) face a major hidden risk. An environment of rising interest rates threatens to undermine the financial stability of this industry. Investors who own P&C insurance stocks need to understand the potential danger and make an informed decision about whether to continue to hold these stocks or not.
    How interest rates affect insurance companies 
    Insurance companies are more »
  • Three Reasons to Buy AIG

    By Andrés Cardenal - June 24, 2013 | Tickers: AIG, ALL, CB, TRV

    AIG (NYSE: AIG) was the poster child of the financial crisis, but the company has come a long way since them. The insurance giant is now a much healthier and more transparent company, and business is showing clear signs of improvement.  This may be a good time grab some shares of this insurance powerhouse while the stock is still cheap.

    Back on track

    The company really messed up during the more »

  • Insurance Stocks Rally: 2 To Buy, 2 To Avoid

    By Sammy Pollack - June 12, 2013 | Tickers: HIG, MET, CB, TRV

    Over the past few months, as shown by the chart below, the insurance sector has been hot. The primary reason for the move higher is the increase in interest rates. It must be noted that insurance companies benefit from increasing rates as it increases the amount of interest that can be earned on risk-free assets, such as Treasury bonds, that insurance companies hold. While I do not think the sector-wide more »

  • Buffett Puts His Money Where His Mouth Is

    By Jordan Wathen - June 3, 2013 | Tickers: BRK-B, BRK-A, CB, XLU

    In a recent interview with CNBC, Warren Buffett declared that the next 10-20 years would be much better to equity investors than bond investors. His belief was laid out under the simple thesis that interest rates are at record lows, yet high-quality dividend-paying stocks are hardly trading at a very lofty premium to historical levels. A combination of earnings growth and better capital allocation should drive stocks.

    Buffett put his more »

  • 1 Property & Casualty Insurance Company To Buy

    By Wes Patoka - May 21, 2013 | Tickers: ALL, CB, TRV

    Property and casualty insurance companies are some of the most profitable and necessary companies around. Unlike their peers in healthcare, there are not mandates that restrict the profit margins of these companies; it is all a balance of raising premiums and keeping customers happy. Today, we will look at three companies in this segment: Travelers (NYSE: TRV), Allstate (NYSE: ALL) and Chubb (NYSE: CB). All three of these companies have more »

  • 3 Financial Firms Gobbling up Shares

    By Jordan Wathen - May 21, 2013 | Tickers: AIG, DFS, CB

    This year, companies are gobbling up their own shares by the tens of billions of dollars. Repurchases can create tremendous value when they're properly timed. A company that purchases cheap stock reduces its share count and drives earnings per share growth. A combination of fewer shares and greater earnings is a double whammy for investors.

    Financial firms are part of the buyback spree. Here are three financial firms that more »

  • Three Stocks that Offer Protection from Market Tantrums

    By Rupert Hargreaves - May 14, 2013 | Tickers: ABT, CLF, GIS, CB, KR

    The economy is only just starting to chug along again.  The situation in Europe is relatively unchanged, China is slowing down and banks are still de-leveraging. Yet stock markets are hitting all-time highs. With these mixed market messages, many investors and market commentators are confused about whether the market is overstretched or just warming up.

    Wherever we go from here, it is always handy to have stocks in your portfolio more »

  • The Misleading Effects of Beta

    By Rupert Hargreaves - May 13, 2013 | Tickers: BAC, ED, GIS, CB

    Using beta can help an investor quickly construct a portfolio that is highly resistant or highly correlated to the general market, protecting defensive investors from negative movements in the market, or helping aggressive investors buy into stocks that will follow the market upwards.

    Due to the nature of the beta calculation and the volume of data required, many investors will not calculate the figure themselves and instead look it up more »

  • Exciting Investment Ideas in "Stodgy” Industries

    By Jeff Stouffer - May 9, 2013 | Tickers: MET, KBWI, CB, TRV

    When turnaround trends take place in industries that have been considered boring or unappealing for extended periods of time, such events can be rather explosive. A good example of this is the PowerShares KBW Insurance Portfolio (NYSEMKT: KBWI)), an ETF that holds only insurance-company stocks. The inception date is Nov. 1, 2011 and the posted one-year return is approximately 28.9%.

    The release of the PowerShares KBW Insurance Portfolio appears more »

  • This Insurance Powerhouse Will Continue Outperforming

    By Andrés Cardenal - May 7, 2013 | Tickers: AIG, ALL, CB, TRV

    American International Group (NYSE: AIG) rose by nearly 5% on Friday after the company announced better than expected earnings figures on Thursday after the close. The stock is up by more than 20% in the last year, but make no mistake, there is still plenty of upside room in this recovering insurance giant.

    After the storm

    AIG made the worst possible kind of bet during the credit bubble; the company more »

  • Driverless Vehicles: The Music Industry Will Never Be the Same, But What Are Other Possible Implications? (Part 2)

    By BA McKenna - May 7, 2013 | Tickers: CMG, GOOG, MCD, STAN, CB

    Part I opened with the following: And we’ll have drivers, drivers, drivers ‘til Google (NASDAQ: GOOG) takes the T-Bird (driver’s seat) away…

    Yes, a take on the Beach Boy’s Fun, Fun, Fun. As many know, Google is considered the leader in developing driverless vehicles. In a driverless vehicle world, countless popular songs lose their meanings. So driverless vehicles will affect the music industry, but what are some more »

  • Dividend Aristocrats That Sweep You Off Your Feet

    By AnnaLisa Kraft - May 1, 2013 | Tickers: ADM, BDX, DOV, CB, WAG

    In an effort to educate the 34% of women who know nothing of investing, Yahoo! Finance has a saucy video for the ladies featuring three barechested studs representing stocks, bonds, and mutual funds. Why Mr. Stocks is the skinniest, I'm sure I don't know, because how much more appealing would Mr. Stocks be if they mentioned how he bulks up when you add dividends?

    Maybe they should have more »

  • Is AIG a Good Stock to Buy?

    By Meena Krishnamsetty - April 18, 2013 | Tickers: ACE, AIG, HIG, CB, TRV

    During the fourth quarter of 2012, American International Group (NYSE: AIG) replaced Apple as the most popular stock among hedge funds according to our database of 13F filings. 142 of the filers we track were long the bailed-out insurer going into 2013. Billionaire and Tiger Cub Stephen Mandel’s Lone Pine Capital initiated a position of almost 7 million shares between October and December (see Mandel's stock picks). Third more »

  • Is AIG a Good Stock to Buy?

    By Meena Krishnamsetty - April 16, 2013 | Tickers: ACE, AIG, HIG, CB, TRV

    During the fourth quarter of 2012, American International Group (NYSE: AIG) replaced Apple as the most popular stock among hedge funds according to our database of 13F filings (find more stocks hedge funds loved). 142 of the filers which we track were long the bailed-out insurer going into 2013. Billionaire and Tiger Cub Stephen Mandel’s Lone Pine Capital initiated a position of almost 7 million shares between October and more »

  • 3 Stocks to Exit Soon With Plunging Net Payout Yields

    By Mark Holder - April 1, 2013 | Tickers: CPB, CB, TRV

    With dividends and high yields in vogue these days, investors need to be careful that they don’t overpay for these stocks. Some of the stocks have performed so well over the last couple of quarters that their share prices have surged 30-50% during that time period, which is odd for multi-billion dollar consumer goods and insurance stocks.

    This issue faces the investors in Campbell Soup (NYSE: CPB), Chubb (NYSE: CBmore »)

  • Buy Insurance to Ensure Profits

    By Ken McGaha - March 25, 2013 | Tickers: BRK-A, ALL, CB, TRV

    When looking for safe investment opportunities, it's really hard to find a better way to make money than to put yourself in a position to use other people’s money while they are paying you to hold it for them. Does that sound too good to be true? Would you believe it if it came from one of the richest men in the world?

    Well it did!

    “Meanwhile, we more »

  • Billionaire Ray Dalio’s Latest Portfolio Activity

    By Meena Krishnamsetty - February 26, 2013 | Tickers: BRCM, GLW, FCX, INTC, CB

    In the hedge fund world, 13F filing season is here, and we’re bringing you up-to-date coverage of this situation. While hedgies' 13F filings are reported to the SEC with a 45-day delay, this actually improves investors' ability to beat the market because, on average, fund managers are early into their investments. Our research has shown that hedge funds' top consensus picks can beat the market significantly (see the details more »

  • Two Very Different Buyout Candidates for Berkshire Hathaway

    By Jordan Wathen - February 22, 2013 | Tickers: BRK-B, GIS, HNZ, CB

    Warren Buffett's involvement in a $23 billion deal for Heinz (NYSE: HNZ) signifies the Oracle of Omaha's desire to put the trove of cash at Berkshire Hathaway (NYSE: BRK-B) back to good use.

    After taking out Heinz, analysts suspect Berkshire Hathaway has as much as $15 billion in additional cash it needs to deploy – cash that earns shareholders paltry returns invested in cash equivalents, not companies.

    But what more »

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