Chubb's Strong Performance and Strategy in Commercial Insurance

The commercial property and casualty insurance sector is navigating a transitional phase amid escalating global competition. Chubb CEO Evan G. Greenberg addressed this during the company's recent earnings call, noting increased competitive pressure in the large-account property and upper middle market segments.

Casualty Sector Pricing and Performance

In the casualty sector, Greenberg observed that pricing for large accounts, excess and surplus, and the middle market remains robust in areas requiring rate adjustments. However, price increases are diminishing where they aren't needed. Financial lines continue to show weaker performance, demanding strategic attention from insurers.

Key Financial Achievements

Chubb reported a significant rise in fourth-quarter net income, hitting $3.21 billion—a 24.7% improvement. This achievement is attributed to a record-low combined ratio of 82.1% for the quarter, contributing to an annual combined ratio low of 85.7%, better than the previous year's 86.6%. Reduced catastrophe losses and higher investment income were pivotal factors.

Premium Growth and Underwriting Success

Chubb's net premiums written in Q4 climbed 8.9% to $13.13 billion. Property and casualty net premiums saw a 7.7% uptick to $11.31 billion, while underwriting income surged by 39.6% to $2.2 billion. Pre-tax catastrophe losses fell significantly to $365 million from $607 million, and net investment income grew by 8.0% to $1.69 billion.

North American Highlights

Chubb's North American agricultural insurance division excelled, with premium growth exceeding 45%. North American property and casualty premiums rose by over 6.5%, driven by more than a 6% increase in the middle market and small commercial sectors. Financial lines saw a 1.5% increase, while new business in the middle market and small commercial space advanced by over 17% from the previous year.

Annual Overview

For the full year of 2025, Chubb's net premiums written increased by 6.6%, totaling $54.84 billion. Property and casualty net premiums grew by 5.4% to $47.56 billion, and underwriting income in this sector rose by 11.6% to $6.53 billion. The combined ratio for property and casualty improved to 86.0% from 86.6%. However, pre-tax catastrophe losses increased to $2.92 billion from $2.39 billion, while annual net investment income rose 9.0% to $6.47 billion.

This financial summary highlights Chubb's strategic adaptation to current market dynamics and underscores areas of robust growth, particularly in North America and its agricultural segment. Such resilience in risk management and underwriting is critical as carriers navigate evolving regulatory compliance requirements and maintain their competitive edge.