CB
Chubb Limited
Financial Services · Insurance - Property & Casualty · Switzerland · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability metrics—22.0% operating margin, 17.4% net margin, and 14.0% return on equity—anchor the composite score at a solid level.
- Consistent quarterly revenue and earnings across the last four reported periods, ranging from $14,773,000,000 to $16,148,000,000 in revenue, contributed meaningfully to the momentum component.
- Conservative leverage (debt-to-equity of 0.21) and a well-covered dividend (14.6% payout ratio) further support the overall Medium risk, Research Candidate classification.
Why Not Higher
- Growth rates, while positive, are mid-range: 6.5% revenue growth and 11.2% net income growth do not reach the highest-scoring tier in the model.
- The absence of any macro theme assignment means Chubb receives no thematic tailwind credit, which is a meaningful gap in the composite score.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $55,753,000,000 to FY2025's $59,402,000,000, a gain of 6.5%. Net income rose 11.2% over the same period, from $9,272,000,000 to $10,310,000,000, while diluted EPS expanded 13.1% from $22.70 in FY2024 to $25.68 in FY2025.
The model rewarded consistent top- and bottom-line expansion, with earnings growing faster than revenue—a sign of improving operating leverage. The mid-range score reflects solid but not exceptional growth rates that fall short of the highest-scoring tier.
In FY2025, Chubb posted a net margin of 17.4%, an operating margin of 22.0%, and a return on equity of 14.0%.
The model rewarded the combination of a high operating margin and a meaningful net margin, indicating efficient conversion of premiums and investment income into profit, alongside a solid return on shareholders' equity that reflects disciplined capital deployment.
In FY2025, Chubb carried a debt-to-equity ratio of 0.21 and an interest coverage ratio of 17.1, against a total asset base of $272,327,000,000.
The model rewarded the very low leverage and strong interest coverage, which together indicate that the company's operating income comfortably services its debt obligations with substantial headroom, while the large asset base reflects the scale typical of a major global insurer.
Over the last four reported quarters, revenue ranged from $14,773,000,000 in 2026Q1 to a peak of $16,148,000,000 in 2025Q3, while operating income held between $2,993,000,000 in 2026Q1 and $3,894,000,000 in 2025Q3. Net income remained in a band of $2,320,000,000 to $3,210,000,000 across the same period.
The model rewarded the sustained, elevated level of revenue and earnings across consecutive quarters, reflecting broad stability with only modest quarter-to-quarter variation rather than a sharp deteriorating trend, which the model interpreted as strong near-term momentum.
In FY2025, Chubb's dividend payout ratio—dividends paid as a share of net income—stood at 14.6%.
The model rewarded a low payout ratio as evidence that the dividend is well-covered by earnings, leaving substantial retained earnings for reinvestment or future dividend growth, which is consistent with a high dividend-quality score even in the absence of a high absolute yield.
Chubb is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not qualify for any thematic tailwind boost under the model's current methodology; this is a neutral classification and does not reflect negatively on the company's underlying business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Chubb Limited delivered solid FY2025 results, with revenue rising 6.5% to $59.4 billion and net income climbing 11.2% to $10.3 billion, reflecting improving operating leverage as earnings grew faster than revenue. The company maintains strong profitability metrics—a 22.0% operating margin and 17.4% net margin—alongside conservative financial health characterized by a debt-to-equity ratio of just 0.21 and interest coverage of 17.1x. Quarterly momentum has been broadly stable across the last four reported periods, and a dividend payout ratio of only 14.6% leaves ample room for reinvestment or future dividend growth. The absence of a thematic tailwind assignment is the primary constraint on the overall composite score.
Plain English
Chubb is a large insurer that grew its profits faster than its revenues last year, keeps very little debt relative to its size, and pays out only a small slice of its earnings as dividends—meaning it holds onto most of its profits for future growth or flexibility.
Bull Case vs. Bear Case
Bull Case
- Earnings are growing faster than revenue: diluted EPS expanded 13.1% in FY2025 while revenue grew 6.5%, signaling improving operating leverage.
- The balance sheet is conservatively managed, with a debt-to-equity ratio of 0.21 and interest coverage of 17.1x, providing substantial financial flexibility across economic cycles.
- A dividend payout ratio of only 14.6% means the dividend is very well covered by earnings, leaving significant retained capital for reinvestment or future dividend increases.
Bear Case
- Revenue growth of 6.5% and net income growth of 11.2%, while solid, fall short of the highest-growth tier and may limit upside relative to faster-growing peers.
- Chubb is not assigned to any of the 24 tracked macro themes, meaning it receives no thematic tailwind boost under the current model methodology.
- Quarterly operating income dipped to $2,993,000,000 in 2026Q1 from a peak of $3,894,000,000 in 2025Q3, indicating some quarter-to-quarter variability that warrants monitoring.
What Could Change the Picture
Bullish Triggers
- Acceleration in revenue or EPS growth beyond the current 6.5%/13.1% rates would suggest the company is moving into a higher-growth tier and could lift the composite score.
- Assignment to one or more of the model's 24 tracked macro themes would provide a thematic tailwind boost currently absent from the score.
Bearish Triggers
- A sustained deterioration in quarterly operating income below the recent 2026Q1 level of $2,993,000,000 would signal weakening near-term momentum.
- A meaningful increase in the debt-to-equity ratio from its current low level of 0.21 could raise concerns about the company's historically conservative financial positioning.
Risk Profile
Medium RiskChubb's financial health appears robust, with a debt-to-equity ratio of 0.21 and interest coverage of 17.1x indicating that operating income comfortably services debt obligations. Quarterly results have been broadly stable, though operating income did moderate to $2,993,000,000 in 2026Q1 from a peak of $3,894,000,000 in 2025Q3, a fluctuation worth monitoring.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.