The major threat to the stock market is interest rates rising. If rates go up, insurance companies, as a result of their huge cash reserves are going to reap considerably higher returns. Lower rates are a major reason for the smaller ratios that we see now.
If rates don’t go up, Chubb and other insurance companies will continue to benefit from the current favorable rate environment.
This is a no lose situation for insurance companies..
By the way, if you are worried about catastrophe losses.. they hurt earnings for a quarter but then only accelerate the rate increases that ultimately push the stocks higher.
Can’t lose with Chubb, who is the best in the class.