Chubb (NYSE:CB) closed out 2025 with what management repeatedly described as an “outstanding” fourth quarter and “record” full-year results, driven by strong underwriting, higher investment income, and continued growth across multiple geographies and product lines.
Quarter and full-year performance highlights
Chairman and CEO Evan Greenberg said the company delivered record earnings for both the quarter and the year, citing “very strong double-digit increases in underwriting and Life income,” alongside record investment income. For the fourth quarter, Chubb reported core operating income of nearly $3 billion, or $7.52 per share, up about 22% and 25%, respectively.
Underwriting results were a focal point of the call. Greenberg said P&C underwriting income was $2.2 billion, up 40%, and the company posted a record low combined ratio of 81.2%. He noted that results benefited from low catastrophe losses and favorable prior period reserve development, but emphasized “very strong current accident year performance” across the portfolio.
For the quarter, Chubb’s underlying current accident year combined ratio was 80.4%, helped by strong results in its Agriculture division. Excluding agriculture, Greenberg said the global P&C current accident year combined ratio was 80.9%, nearly a point better than the prior year and also a record.
Investment income and balance sheet growth
On the investment side, Greenberg said the company generated record adjusted net investment income of $1.8 billion, up 7.3%. The fixed income portfolio yield was 5.1%, and the company’s “new money” rate averaged slightly above that, according to management. Invested assets rose to $169 billion, from $151 billion a year earlier.
CFO Peter Enns added that Chubb ended the year with “all-time highs” on its balance sheet, including cash and invested assets exceeding $171 billion and book value of nearly $74 billion. Adjusted operating cash flows were $4.2 billion in the quarter and $13.9 billion for the year.
Enns also said the company returned $1.5 billion to shareholders in the quarter and $4.9 billion for the year—about half of core operating income—including $3.4 billion of share repurchases at an average price of $282.57 per share and $1.5 billion in dividends.
Catastrophes, reserve development, and profitability metrics
Enns said pre-tax catastrophe losses were $365 million in the fourth quarter, primarily from weather-related events split 55% U.S. and 45% international. For the full year, pre-tax catastrophe losses were $2.9 billion, up from $2.4 billion in the prior year, which Greenberg said was driven substantially by California wildfires in the first quarter. Greenberg also cited estimated industry catastrophe losses approaching $129 billion for the year, even with “unusually light” hurricane and typhoon seasons.
Prior period reserve development was favorable in the quarter for active companies, totaling $430 million pre-tax (64% short-tail and 36% long-tail lines), Enns said. However, the corporate runoff portfolio had adverse development of $162 million, “primarily related to our asbestos review,” which is completed each fourth quarter.
Chubb reported a paid-to-incurred ratio of 105% for the quarter and 91% for the year, with ratios improving when excluding catastrophe losses, prior period development, and agriculture, Enns said.
Business mix, pricing trends, and international growth
Greenberg described a commercial underwriting environment that is “in transition” and becoming “incrementally more competitive quarter by quarter,” particularly in large account property (both admitted and E&S) and upper middle market. He said casualty pricing “continues to firm” where rate is needed, while financial lines remain soft with some early signs of firming in certain classes.
By division, Greenberg highlighted:
- International P&C (Overseas General): Premiums up 10.8% (over 8% in constant dollars). Global Retail (about 90% of the division) rose 12.5%, with consumer premiums up 18.7% and commercial lines up nearly 7.5%.
- Latin America: Premiums up 14.7%, with consumer up nearly 18% and commercial up 10.5%.
- Asia: Premiums up 13%, with consumer up 25% and commercial flat.
- Europe: Premiums up over 7%.
- London wholesale: Premiums down about 1% amid more competitive open market conditions across multiple lines.
In North America, total P&C premiums were up more than 6.5%. Agriculture premiums increased over 45%, which Greenberg attributed predominantly to a government profit-sharing formula. Excluding agriculture, North America premiums rose 4.7%, including more than 6% growth in personal lines and 4.3% in commercial.
Greenberg said commercial pricing in North America (excluding financial lines and workers’ comp) increased 4.3%, driven by 2.5% rate and 1.8% exposure growth. Property pricing declined 1.5% overall, as a 4.6% rate decrease was partially offset by 3.3% exposure. He added that property pricing was down over 13.5% in large account and E&S, but up 3.7% in middle market and small commercial. Casualty pricing in North America rose 8.5%, with 7.6% rate and 0.8% exposure growth.
Management commentary on outlook, FX, and transformation
Greenberg said the company was “off to a good start” in 2026 and expressed confidence in “strong growth in operating earnings and double-digit growth in EPS and tangible book value,” while caveating that results would be “CATS and FX aside.” In response to questions on foreign exchange, he said Chubb generally does not hedge revenue or income, except for large remittances, and matches assets and liabilities in the same currency.
Executives also discussed technology investments and a multi-year “digital transformation” effort. Greenberg said most expected combined ratio improvement from that effort is anticipated on the expense side, including operating expenses and claims costs, with a smaller portion projected in loss ratio. He said the company is focused on “9 or 10 very discrete projects” across geographies, working with business leaders and technical teams around technology, data, AI, analytics, and operations.
On investment income, Enns said adjusted net investment income for the fourth quarter was $1.81 billion, at the top end of the company’s guided range, reflecting growth in invested assets. He said Chubb expects first-quarter 2026 adjusted net investment income of $1.81 billion to $1.84 billion. Enns also said the core operating effective tax rate was 18.7% for the quarter and 19.4% for the year, and projected 2026’s annual core operating effective tax rate at 19.5% to 20%.
About Chubb (NYSE:CB)
Chubb is a global property and casualty insurance company that underwrites a broad range of commercial and personal insurance products and related services. Its offerings include commercial property and casualty coverage, specialty liability, professional and management liability, cyber and technology insurance, marine and energy, surety, accident and health solutions, and high-net-worth personal lines such as homeowners, auto and valuables protection. Chubb serves businesses, individuals and institutions with tailored underwriting and risk-transfer solutions across multiple industry sectors.
In addition to core underwriting, Chubb provides risk engineering, loss control, claims management and risk consulting services intended to reduce loss severity and help clients manage exposures.
