Compass Point analyst Bijan Moazami downgraded Chubb Ltd. over beliefs that competition from "a resurgent" American International Group Inc. will hurt Chubb.
AIG and Chubb are two of the largest insurers in the financial lines segment. "With AIG resurging, Chubb is finally facing a competitor as well run and well managed as itself," Moazami wrote. He downgraded the company to "neutral" from "buy" and called AIG a "better investment" than Chubb.
Moazami also noted that Chubb's reserves are "nowhere as conservative as they used to be" and that the company would now have to rebuild them in the hard market.
He decreased his price target to $156 from $165. His EPS estimate for 2019 is $10.50 and for 2020 is $11.25.