Chubb Q2 2025 Net Income Surges 33% with Premium Growth

Chubb reported a strong second quarter for 2025 with net income reaching $2.97 billion, a 33% increase year-over-year. The company’s consolidated net premiums written were $14.2 billion, marking a 6.3% increase or 7.1% on a constant currency basis. Property and casualty (P&C) premiums accounted for $12.39 billion, increasing by 5.2%, while life insurance premiums rose 14.1% to $1.8 billion. North American P&C premiums saw a 5.3% growth, driven by a 9.1% rise in personal lines and a 4.1% increase in commercial lines, supported by gains in middle market, small commercial, major accounts, and specialty business segments.

Internationally, general premiums increased 8.5% overall, or 10.2% in constant dollars, with notable rises in consumer insurance by 15.3% and commercial insurance by 6.8%. Growth was especially strong across Latin America (17.3%), Asia (12.7%) and Europe (8.2%). Conversely, North American agricultural insurance premiums declined 3.3%, mainly attributed to lower commodity prices. Underwriting income in the P&C division rose 15% to $1.63 billion, with a combined ratio of 85.6%, improving further to 82.3% when excluding catastrophe losses.

The company’s investment portfolio contributed positively with pre-tax net investment income at $1.57 billion and adjusted net investment income increasing 7.9% to $1.69 billion. Operating cash flow was robust at $3.55 billion, supported by adjusted cash flow of $3.23 billion. Chubb incurred $630 million in catastrophe losses before tax, slightly higher than $580 million from the previous year, but also benefited from favorable prior period reserve developments of $249 million pre-tax.

Chubb noted a 6.1% increase in book value per share to $174.07, and tangible book value per share increased 8% to $112.64, influenced by gains in investment assets and foreign exchange factors. Annualized return on equity stood at 17.6%, with core operating returns on tangible equity and equity at 21% and 13.9% respectively. Shareholder returns featured $1.06 billion distributed through $676 million in share buybacks and $388 million in dividends.

Despite the strong quarterly results, Chubb’s half-year net income declined slightly by 1.7% to $4.29 billion from $4.37 billion the year prior. The first quarter 2025 net income was $1.33 billion, down 37.9% year-over-year, indicating variability across the year. Chubb’s diversified global portfolio across geographic regions, customer segments, and product lines underpinned its solid performance, and management highlighted confidence in sustained revenue and operating income growth despite challenges from catastrophe bonds and foreign exchange volatility.