Chubb price target raised to $240 from $220 at BMO Capital

BMO Capital analyst Michael Zaremski raised the firm’s price target on Chubb to $240 from $220 and keeps a Market Perform rating on the shares. The company’s new S&P Capital Model implies a billion dollar-plus capital benefit for Chubb, including a greater product-line diversification credit and lower capital charges for BB and B-rated fixed investment, the analyst tells investors in a research note. BMO adds that given the healthy reserving over the past three firm-to-hard market pricing years and remaining incremental benefits from stable pricing levels in 2023, it disagrees with consensus on expectations of a “complete halt” to Chubb’s meaningful margin improvement.