Chubb's Bogotá Tech Hub: A Strategic Edge in InsurTech

Chubb's new engineering center in Bogotá, Colombia—opening October 2025—positions the insurer as a leader in InsurTech. Focused on AI, cloud computing, and data analytics, the center leverages Colombia's tech talent and ecosystem to innovate, particularly in cybersecurity—a top disruptor for businesses. This strategic R&D hub targets Latin and North American markets, addressing gaps in coverage for cyber breaches, which 86% of firms now prioritize.

The $5B buyback and 32nd consecutive dividend hike ($3.88/share) highlight Chubb's financial discipline, while Bogotá's cost-effective talent pool reduces R&D expenses, amplifying returns. Analysts' concerns over insurance pricing cycles are tempered by long-term operational efficiencies and product innovation, such as tailored cyber solutions. With a 21.6% return on equity in 2024, Chubb's tech investments underscore its commitment to growth in a mature sector.

Backtest the performance of Chubb (CB) when 'buy condition' is triggered by dividend hikes announcement, and 'hold for 90 days' after each announcement, from 2020 to 2025.

Historical performance shows that this strategy yielded a total return of 60.9% from 2020 to 2025, though it underperformed the benchmark by 49.05%, reflecting significant volatility with a maximum drawdown of -22.82%. Despite these risks, Chubb's consistent dividend growth underscores its financial discipline, aligning with the long-term stability investors seek.

Investors seeking exposure to tech-driven insurers should buy CB. The Bogotá expansion and shareholder-friendly policies position Chubb to dominate InsurTech, offering both growth and stability.

Recommendation: Bullish on CB for its strategic R&D and financial resilience.