Chubb Q1 2025 Earnings: Catastrophe Losses Impact Income Amid Premium Growth

Chubb reported a net income of $1.33 billion in the first quarter of 2025, marking a 37.9% year-over-year decline. The insurer's after-tax core operating income also fell 31.1% to $1.49 billion, largely influenced by significant catastrophe losses.

 Pre-tax catastrophe losses amounted to $1.64 billion, driven primarily by $1.47 billion from California wildfires, compared to $435 million in the previous year. After-tax catastrophe losses stood at $1.30 billion, or $3.21 per share.

Despite these losses, Chubb's gross premiums written increased by 4.7% to $15.1 billion, indicating ongoing business growth. Net premiums written rose 3.5% to $12.6 billion, and net premiums earned increased by 3.6% to $12 billion. Property and casualty (P&C) underwriting income was $441 million, resulting in a combined ratio of 95.7%.

Excluding catastrophe losses, P&C underwriting income experienced a 12.2% rise to $1.83 billion, with a combined ratio of 82.3%. In North America, premiums grew 3.4%, tempered by one-time items related to California wildfire reinstatement premiums and prior-year structured transactions. Adjusted for these factors, growth reached 6.4%, including a 10.1% increase in personal insurance and a 5.3% rise in commercial insurance.

Overseas General insurance premiums rose 1.8% overall, or 6.5% on a constant dollar basis, with consumer insurance increasing 5% and commercial insurance 7.3%. P&C lines outside the U.S. grew 9.3%, while financial lines declined slightly.

Regionally, premiums expanded 6.1% in Latin America and Asia and 5.5% in Europe. Life Insurance net premiums written increased 5.3% to $1.72 billion, with segment income rising 8.6% to $291 million. The results highlight the ongoing challenges of catastrophe-related losses in the insurance market alongside steady premium growth and underwriting profitability outside catastrophe impacts.