Chubb reorganizes North American insurance leaders Author: Investing.com

ZURICH – Chubb Limited (NYSE: CB), a global leader in insurance, announced a series of executive appointments within its North American general insurance business. John Lupica has been named executive chairman of the division, and Juan Luis Ortega has been named president of North America Insurance, a position previously held by Lupica. Scott Meyer has been promoted to chief operating officer of North America Insurance, a newly created position.

Lupica, as Executive Chairman, will oversee the strategy and management of Chubb’s North American general insurance operations. Ortega, with more than 25 years of industry experience, will handle the division’s day-to-day executive operations, reporting to Lupica. Meyer, with nearly 35 years of industry experience, will serve as Ortega’s deputy, bringing his extensive P&C insurance experience to the team.

Christopher Maleno is named vice president of North America Insurance, retaining his current responsibilities. Maleno, who has more than 35 years of industry experience, will continue to serve as division president of North America Field Operations, reporting to Ortega.

These appointments are effective immediately and reflect the scale, complexity and growth ambition of Chubb’s North America business, which includes the largest commercial and high-net-worth individual insurer in the United States.

Evan G. Greenberg, Chubb chairman and CEO, praised the executive officers appointed for their proven leadership and contributions to the company’s success. John Keogh, president and chief operating officer, echoed that sentiment, emphasizing the depth and breadth of experience represented by the new North America management team.

The announcement comes as Chubb continues to strengthen its market position and leverage its diverse offerings, including property and casualty insurance, casualty and supplemental health insurance, reinsurance and life insurance. Chubb operates in 54 countries and territories, employing approximately 40,000 people worldwide. This news is based on a press release from Chubb Limited.

In other recent news, Chubb Corporation (NYSE:) was in the spotlight with a few notable developments. BofA Securities upgraded Chubb from Underperform to Neutral and raised its price target from $244 to $266, citing projected higher investment income and a lower tax rate assumption. The change is expected to drive projected earnings per share (EPS) growth of 4-5% in the coming years.

Chubb shareholders approved a 5.8% increase in the company’s annual dividend, marking the 31st consecutive year of dividend growth. The new dividend rate was set at $3.64 per share per year. The decision was made at Chubb’s annual general meeting in Zurich and will be spread over four quarterly installments.

Analysts at Keefe, Bruyette & Woods and RBC Capital have adjusted their price targets for Chubb shares. While Keefe, Bruyette & Woods lowered its target from $297.00 to $294.00, RBC Capital lowered its target from $295.00 to $285.00. Both firms, however, maintained their Outperform ratings for Chubb shares.

Chubb had a strong start to the year with significant growth in core operating income and premium revenue. The company’s property and casualty insurance income increased by more than 15% and investment income increased by more than 23%.

InvestingPro Insights

As Chubb Limited (NYSE: CB) transforms its leadership in North American general insurance, the company’s financial health remains solid, which underpins its strategic moves. With a solid market capitalization of $106.23 billion, Chubb’s size and financial strength are evident. The company’s price-to-earnings (P/E) ratio is 11.19, with a slight increase to 11.53 on a trailing twelve-month basis through Q1 2024, indicating a stable valuation relative to its earnings.

Investors looking at growth metrics will note Chubb’s impressive revenue growth of 17.25% over the trailing twelve months through Q1 2024, with quarterly growth of 19.23% in Q1 2024. This growth trajectory is in line with the company’s expansion goals and may reflect potential synergies expected from recent management appointments.

The company’s profitability is further highlighted by its gross profit margin of 28.16% during the same period, which demonstrates its efficiency in managing costs relative to revenues. Such financial foundations can provide the necessary support for the newly appointed leaders to propel Chubb’s North American operations forward.

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