Earnings
Chubb's quarterly catastrophe losses more than double to $705 million as premium growth slows to 1.9%
The insurer's per-share core earnings edged up 0.8% on higher investment income and buybacks, while its combined ratio worsened to 84.1% and CEO Evan Greenberg flagged softer commercial pricing.
HedgeWeekly News Desk ·
Chubb reported third-quarter net income of $2.84 billion, or $7.30 a share, in results released after the US market close on Tuesday. Net income rose 1.5% from a year earlier and 4.4% on a per-share basis. Core operating income was $7.66 a share, up 0.8%, though in dollar terms it fell 2.2% to $2.98 billion.
Underwriting margins narrowed. The property and casualty combined ratio rose to 84.1% from 81.8% a year earlier, as pre-tax catastrophe losses climbed to $705 million from $285 million. Consolidated net premiums written grew 1.9% to $15.1 billion. Property and casualty premiums also rose 1.9%, to $13.18 billion, after growing 5.3% in the third quarter of 2025, and North America commercial premiums fell 2.7%.
Investment income did more of the work. Pre-tax net investment income rose 8.6% to $1.79 billion, which Chief Executive Evan Greenberg attributed in part to higher interest rates. Book value per share rose 5.1% from a year earlier to $191.43, and the company returned $1.57 billion to shareholders, including $1.18 billion of buybacks at an average price of $344.32 a share.
Why it matters: Greenberg said commercial property and casualty pricing is becoming more competitive, especially in the US and London, and that Chubb is deliberately holding or shrinking some lines. For investors in insurers, that points to a softening pricing cycle in which earnings growth leans more on investment income and capital returns than on premium growth. Chubb also expects a $460 million realized gain from the pending sale of its stake in USI Insurance Services to Aon.