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Background on Chubb

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Jul. 17 2015, Published 9:12 a.m. ET

Chubb is a major property and casualty insurer

Chubb’s (CB) Property and Casualty Group consists of several domestic and international subsidiaries. In the property and casualty group, it offers personal insurance, standard commercial insurance, and specialty commercial insurance.

Federal Insurance Company (Federal) is the largest insurance subsidiary in the P&C Group and is the parent company of most of the other insurance subsidiaries. These subsidiaries include:

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  • Federal Insurance Company
  • Pacific Indemnity Company
  • Executive Risk Indemnity Inc.
  • Great Northern Insurance Company
  • Vigilant Insurance Company
  • Chubb Indemnity Insurance Company
  • Chubb Custom Insurance Company
  • Chubb National Insurance Company
  • Executive Risk Specialty Insurance Company
  • Chubb Lloyds Insurance Company of Texas
  • Chubb Insurance Company of New Jersey
  • Texas Pacific Indemnity Company

P&C Group

Property and casualty insurance policies are separately issued by individual companies included within the P&C Group. The P&C Group operates through three business units: Chubb Personal Insurance, Chubb Commercial Insurance, and Chubb Specialty Insurance.

Chubb Personal Insurance: Chubb Personal Insurance offers personal insurance products for homes and valuable articles such as art and jewelry, primarily for high net worth individuals. This is the area with the biggest overlap between Chubb and ACE Limited (ACE), which is buying Chubb. Chubb Personal Insurance also offers personal insurance products for high-end automobiles and yachts, as well as personal liability insurance.

Chubb Commercial Insurance: Chubb Commercial Insurance offers a broad range of commercial insurance products, including multiple peril, primary liability, excess and umbrella liability, automobile, workers compensation, and property and marine.

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Chubb Specialty Insurance: Chubb Specialty Insurance offers a wide variety of specialized professional liability products, including directors and officers liability insurance, errors and omissions liability insurance, employment practices liability insurance, fiduciary liability insurance, and commercial and financial fidelity insurance.

Merger arbitrage resources

Other important merger spreads include the deal between Baker Hughes (BHI) and Halliburton (HAL) or the merger between Freescale Semiconductor (FSL) and NXP Semiconductor (NXPI). For a primer on risk arbitrage investing, read Merger arbitrage must-knows: A key guide for investors.

Investors who are interested in trading in the financial sector should look at the S&P SPDR Financial ETF (XLF).

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