Chubb Limited: Strong Buy Initiation on Asymmetric Upside and Multi-Engine Earnings Growth

Initiate at Strong Buy, $392 PT. Chubb Limited (CB) is a world-class global insurer & reinsurer,

offering a diversified footprint in commercial & personal P&C, agriculture, life and reinsurance in over 50 countries. Underneath a balanced institutional construct, three converging vectors are differentiators and frame our opportunity today: 1) Higher for Longer Investment Yield feeds new core earnings resilience as it GTMs $118bn fixed-income engine reverts at 5.5% NMY (extra 750m pre- tax by FY26), lifts eps despite softening mixed UW trends; 2) Commercial P&C rate momentum (+6.4% price, +1.8% exposure) remains strong, offsets near term CAT punch, drives abv Street EPS comp to $26.50 by FY26 (+4% ahead Street); and 3) International Life & A&H quietly move to a material earnings driver, layering on $0.80 in per share earnings against a backdrop of sustained double- digit premium growth. Our 14.8x FY26E P/E, below the peer median 15.75x (Chubb's undeserved current discount) reflects not just discipline but a lag in market recognition of multiengine compounding as investment income tailwinds finally come to fruition, and as tariff inflation and CAT volatility cannot be ignored. CB's balanced institutional structure and risk architecture are protective across cycles, and our view of the security's 24% implied annualized IRR and asymmetric reward stands out in a sector where real outperformance has become scarce.

## Compounding Capital (Adv.)
We think Chubb's multi-engine earnings model moves into a phase of synchronized outperformance that

consensus has yet to internalize. The fixed income engine alone remains largely underappreciated, as