Keefe, Bruyette & Woods (KBW) raised its price target on Chubb Corporation (NYSE: CB) to $373.00 from $355.00 and maintained an Outperform rating after the insurer released fourth-quarter 2025 results and hosted its conference call.
KBW pointed to "solid premium growth and persistently strong core underwriting margins" as the key drivers behind its decision, saying those factors should support outperformance over the coming 12 months. Data from InvestingPro noted that Chubb has delivered a 24.13% total price return over the past year.
Alongside the price-target increase, KBW adjusted its earnings-per-share projections for Chubb, raising the 2026 estimate to $27.35 from $26.95 and nudging the 2027 forecast to $29.85 from $29.60. The firm based those revisions on assumptions of lower core and catastrophe loss ratios for the company, which are partially offset in KBW's model by slower premium growth, reduced net investment income expansion, and lower operating income in the Life business.
KBW's new $373 target equates to a multiple of 12.5 times its updated 2027 EPS estimate for Chubb.
Chubb's own fourth-quarter disclosure showed results that outpaced analyst expectations. The company reported core operating income per share of $7.52, above the consensus estimate of $6.72. Its combined ratio reached a record low of 81.2%, a level the insurer attributed to lower catastrophe losses and strong prior period reserve development.
Other headline metrics from the quarter included net income per share rising by 28.0% to $8.10, while property and casualty net premiums written increased 7.7% to $11.31 billion.
Those results prompted other analysts to update their views as well. Raymond James raised its price target for Chubb to $380 and kept a Strong Buy rating, citing the potential for continued net investment income growth. Citizens reaffirmed a Market Outperform rating and set a $350 price target, highlighting the company's global market exposure as a competitive strength. KBW's move to $373 was noted alongside these actions as reflecting expectations for continued improvement in core and catastrophe loss ratios.
Taken together, the analyst revisions and Chubb's reported metrics signal positive sentiment among coverage analysts toward the insurer's near-term financial trajectory. KBW's EPS revisions and higher valuation multiple rest on the mix of lower assumed loss ratios and somewhat tempered revenue and investment income growth in its forecast model.
Investors and market participants will be watching whether Chubb can sustain the underwriting performance and reserve development that produced the record low combined ratio as it executes across property and casualty and Life segments.