In March 2012, a buy side analyst with a midsize (more than $5 billion in managed assets) investment management company was requested by one of its portfolio managers to help him assess the Chubb Corporation (Chubb) as a possible investment candidate to diversify his portfolio to contain a property casualty insurance company.
The stock performance of the company, Chubb, was significant and increased its value since the year2004. However, the first screening suggested weakness in some crucial financial statement metrics: low top line premium increase, increasing prices, low investment yields, and, most significant of all, a flat to falling yield on equity.
Publication Date: 02/04/2015
This is just an excerpt. This case is about Accounting
Related Case Solutions & Analyses:
Deloitte: on Livent Inc.
Long-Term FX Strategies in 2008
Global Property and Casualty Insurance Industry
Catawba Industrial Co.
The Politics and Economics of Accounting for Goodwill at Cisco Systems (A)
AREVA
Ceres Gardening Company: Funding Growth in Organic Products, Spanish Version
Note: Fair Value Accounting for Investments in Debt Securities
Restructuring Distressed Companies-Cross National Comparisons
Dividend Policy at Linear Technology, Spanish Version
