2 Insurance Stocks to Buy That Keep About 16 Cents of Every Premium Dollar as Underwriting Profit
Key PointsTravelers and Chubb are both large property and casualty insurers.
Travelers and Chubb are two insurance stocks that currently retain around 16 cents of every premium dollar as underwriting profit. Both companies have an underlying combined ratio below 100%, indicating a profit after accounting for operating costs and claims. For every dollar in premiums collected, Travelers keeps approximately $0.16, while Chubb holds about $0.16 to $0.17 per premium dollar.
In addition to their strong underwriting results, Travelers and Chubb both maintain substantial investment portfolios, valued at $100 billion and $172 billion respectively. These portfolios consist primarily of bonds, which provide consistent income. The companies generate significant investment income as well, with Travelers earning nearly $1.1 billion and Chubb earning over $1.7 billion in the second quarter of 2026.
While their dividend yields are modest, their investment income streams make them attractive options for growth investors. Both companies are trading at price-to-book ratios above their five-year averages, further indicating their potential for long-term growth.
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