Chubb Limited Reports Record Performance Amidst AI Pricing Challenges

Chubb Limited (NYSE: CB) recently saw its price target raised by Morgan Stanley analyst Bob Huang from $310 to $330, maintaining an Equal Weight rating. This follows an in-depth analysis of the property and casualty insurance sector’s fourth-quarter results. Huang noted that insurers excelling in underwriting differentiation are set to thrive despite the current challenges of AI-driven pricing pressures.

In Chubb's fourth-quarter 2025 earnings call, Chairman and CEO Evan G. Greenberg announced impressive performance, marking a record year for the company. The company achieved a core operating income of nearly $3 billion for the quarter, or $7.52 per share, representing increases of approximately 22% and 25%, respectively. A noteworthy achievement was the record-low combined ratio of 81.2%, underscoring Chubb’s strong underwriting capabilities.

Greenberg highlighted that the quarter's growth exceeded Chubb's average annual rate, driven by substantial momentum in its agriculture division, the largest crop insurer in the U.S. Their invested assets also grew to $169 billion, up from $151 billion the previous year, reflecting robust expansion in their investment portfolio. For the full year, Chubb reported record operating income of nearly $10 billion, or $24.79 per share, showing increases of approximately 9% and 11% from the previous year. Chubb Limited, headquartered in Switzerland, offers global insurance and reinsurance services through its subsidiaries.