From Financial Modeling Prep: 2025-05-20 15:16:00

Deutsche Bank downgraded Chubb Corporation (NYSE:CB) from Buy to Hold, citing concerns about the sustainability of the insurer’s strong outperformance. The firm highlighted signs of weakness in commercial insurance pricing, particularly in large accounts, which could impact Chubb’s margins and top-line growth.

Chubb’s current valuation is trading above historical averages, offering limited downside protection in a softer underwriting environment. The divergence in pricing trends, with large accounts weakening while small and mid-sized remain resilient, has challenged earlier assumptions. Analysts see a tougher outlook for Chubb due to its heavy exposure to large commercial risk.

Deutsche Bank trimmed Chubb’s price target to $303 from $319, reflecting a less attractive risk-reward profile at current levels. The firm believes that market attention is shifting back to fundamentals, which could impact Chubb’s performance in the near to medium-term. Margins in the insurer’s North American Commercial business are seen as having peaked.



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