Chubb Strengthens Presence In China By Opening New Office

In its concerted effort to fortify its presence in China, Chubb Limited (NYSE:CB) recently opened Guangdong Branch in Southern China. Through this new office Chubb will offer commercial property and casualty as well as personal lines products and services for property, casualty, marine, construction and energy, financial lines. It will also provide group as well as personal accident and health insurance.

In addition to the newest Guangdong Branch, Chubb has offices in Shanghai (China headquarters of Chubb) and Jiangsu. Setting up office in Guangzhou thus emphasizes Chubb’s effort to expand its presence in the Southern China market.

According to the Chairman of Chubb Insurance Company Limited in China, Zhang Bei, Southern China is not only the trading and manufacturing center of the country but is also the fastest-growing insurance markets in China. The nation, therefore, remains a strategic market for growth for the property and casualty (P&C) insurer. Chubb expects to leverage its expertise to address diverse insurance needs and thus capitalize on the opportunities the Chinese market offers. To that end, the insurer recently introduced its marine service capabilities in the country, which will offer a wide range of specialized insurance solutions to meet the needs of importers, exporters and transport operators.

Chubb has been pursuing strategic initiative to ramp up its growth profile. Notably, the Zacks Rank #3 (Hold) P&C insurer has expanded the voluntary workplace benefits business of its unit, Combined Insurance, through a dedicated broker-focused channel. Also, a unit of Chubb– Westchester – has broadened its service offerings. The company will now offer wholesale property, casualty and specialty small business insurance coverage to restaurants, retail businesses, lessor's risk only, concessionaires and caterers, fitness centers and personal improvement/enrichment schools. Collectively, these should position Chubb well for long-term growth. The expected long-term earnings growth of the insurer is currently pegged at 10%.

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Stocks to Consider

Some better-ranked P&C insurers are Allied World Assurance Company Holdings, AG (NYSE:AWH) , National Interstate Corporation (NASDAQ:NATL) and NMI Holdings, Inc. (NASDAQ:NMIH) . All these sport Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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