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Chubb Limited (CB $271.00)
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Trisura Group Ltd. (TSU $42.72)
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Arch Capital Group Ltd. (ACGL $89.88)
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Kinsale Capital Group Inc. (KNSL $437.20)
Q: I have owned Chubb for a few years and have done well. Lately the price has been declining. What is the reason for this and is this opportunity to add more to my position.
5i Research Answer:
CB is a high-quality property and casualty insurance name with a track record of underwriting discipline and decent profitability over the years. The decline in share price was not related to its fundamentals but largely a sector as a whole, as there is a move away from defensive sectors like insurance, and healthcare towards higher risk sectors.
We think CB is a solid insurance name to hold in the long term. However, we think there are other names that are also well-managed and trading at attractive levels, like ACGL, TSU, KNSL (growth name with an expensive valuation).