Chubb (CB) Expands Its Voluntary Workplace Benefits Unit

Chubb Limited (NYSE:CB) recently announced that it has expanded the voluntary workplace benefits business of its unit, Combined Insurance, through a dedicated broker-focused channel. The new Chubb Workplace Benefits business unit will bring together the market leadership and experience of Combined Worksite Solutions and Chubb’s meaningful relationships with leading national and regional insurance brokerage firms.

The new business unit is based on Chubb’s well-known attributes like superior underwriting, service and execution. Chubb Workplace Benefits will cater to the needs of large and mid-market clients, through its partnership with benefit brokers, agents, and consultants. The new unit will provide a line of supplemental insurance products, which will include accident, critical illness, hospital indemnity, life and disability income. These products will be a substantial addition to Chubb’s comprehensive product portfolio, which it currently offers to customers.

The voluntary benefits space has become one the fastest areas of growth in the benefit broker channel. The property and casualty (P&C) insurer has been consistently investing in the voluntary benefits space owing to its successful growth over the past three years. With this expansion, Chubb’s unit will gain a wider platform for growth, as it can leverage the P&C insurer’s solid reputation in the brokerage industry and large-scale national branch office infrastructure.

Presently, more employers are offering voluntary benefits to their employees to help offset the rising cost of health insurance and escalating medical expenses. In keeping with this, the company is repositioning its Workplace Benefits business and we believe that the aforesaid expansion will prove to be highly beneficial at this juncture.

The Chubb affiliate has been able to achieve business growth, through strategic investments and remains committed to invest and expand in the large and mid-market space, product portfolio, and sales force and enrollment support and service capabilities. Such investments will help to meet the growing demand for supplemental benefits delivered through the workplace.

Chubb Workplace Benefits remains focused on extending its presence in the market through an expanded broker channel. The expansion is in line with Chubb’s pledge to offer a superior combination of experience, expertise, and support in the voluntary benefits space.

Zacks Rank and Stocks to Consider

Currently Chubb carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space include Allied World Assurance Company Holdings, AG (NYSE:AWH) , National Interstate Corporation (NASDAQ:NATL) and NMI Holdings, Inc. (NASDAQ:NMIH) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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