Chubb (NYSE:CB) has a lot going for it, unfortunately for them at this time, peers like Travelers (NYSE:TRV), ACE (NYSE:ACE) and Arch Capital (Nasdaq:ACGL) are trading at or below 1X book value, making them a preferable investment at this time.
Barclays says, "CB has a solid franchise in our view as evidenced by strong 4Q10 underwriting results and aggressive share repurchase activity. However, CB's valuation is above peers, and we prefer other high-quality P&C insurers that trade at or below 1x book value such as Travelers (NYSE:TRV), ACE Ltd (NYSE:ACE) and Arch Capital (Nasdaq:ACGL).
"We are reducing our 2011 EPS estimate for CB to $5.65 from $5.75 (consensus=$5.80) to reflect higher than anticipated catastrophe losses. No change to our 2012 EPS estimate of $5.60 (consensus=$5.73)."
Barclays maintains an 'Equalweight' rating on Chubb Corporation (CB), which closed Friday at $57.97, down $1.36, or 2.29 percent. Barclays has a price target of $59 on Chubb.
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