Chubb (CB) Makes $10M Equity Investment In Africa's ATI

Chubb Limited (NYSE:CB) recently made an equity investment of $10 million in Africa-based Trade Insurance Agency (ATI). With this investment, Chubb became the first global property and casualty (P&C) insurer to become a shareholder in Africa's leading multilateral political risk and credit insurer.

ATI, established by a treaty in 2001 and headquartered in Nairobi, supports trade and investment in African member states by offering comprehensive risk solutions such as political risk and credit insurance products. The insurer offers a flexible range of products designed to meet clients’ objectives. Currently, ATI’s shareholders include 16 African nations and 10 institutional members. Its partners include African and international lenders and corporates, contractors, exporters and importers, government agencies, insurers, reinsurers and investors.

ATI is rated one of the strongest institutions in Africa with an investment grade rating from S&P Global (NYSE:SPGI) Ratings. Based on strong capitalization and a robust business strategy, it aids investors to obtain a healthy return on their investment. An investment in ATI can be leveraged up to 30 times to cover projects valued between $600 million to $1 billion.

The $10 million equity investment from Chubb reflects its commitment to the political risk and credit insurance markets. The objective of the investment is to promote ATI’s development and to encourage investment, trade and economic growth throughout Africa. Chubb’s financial strength will enable ATI to build institutional resilience and expand its global networks.

Chubb Limited, a global insurance and reinsurance company, remains focused on insurance business. Investments made by the company in various strategic initiatives have paved the way for long-term growth. It is the world’s largest listed industrial insurance company with solid financial strength and a broad range of international insurance products for individuals and companies alike. Chubb’s core operating insurance companies have financial strength ratings of AA from Standard & Poor’s and A++ from A.M. Best.

Shares of this Zacks Rank #3 (Hold) property and casualty insurer have outperformed the industry year to date. The stock has gained 18.5% compared with the industry’s growth of 10.2%.

Stocks to Consider

Some better-ranked stocks from the same space are Donegal Group Incorporation (NASDAQ:DGICA) , RLI Corporation (NYSE:RLI) and Cincinnati Financial Corporation (NASDAQ:CINF) . While Donegal Group and RLI sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Donegal Group provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. The company beat estimates in the trailing four quarters by 248.34% on average.

RLI underwrites property and casualty insurance in the United States and internationally. The company beat estimates in the trailing four quarters by 154.89%, on average.

Cincinnati Financial provides property casualty insurance products in the United States and offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. The company beat estimates in the trailing four quarters by 20.79%, on average.

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