Markets & Finance

Salomon Lowers Chubb to 'Underperform'

Salomon Smith Barney downgraded Chubb (CB) to underperform from outperform.

Analyst Ronald Frank says CFO Weston Hicks is leaving the company to assume the senior post at Alleghany.

Frank says, even assuming that Hicks's move is simply a career change, his departure leaves Chubb without a permanent CFO while a successor to the company's retiring CEO has yet to be identified. He believes this raises the near-term uncertainty at Chubb to a point where its stock is likely to underperform its peers.

Therefore, Frank downgraded and cut his $90 target to $55. He notes he continues to rate the property/casualty insurance sector as overweight.

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