Chubb Posts Record Q3 Property/Casualty Profits Amid Market Transition

Chubb reported record quarterly profits driven by strong property/casualty performance, with net income reaching $2.80 billion, a 20.5% increase from the previous year.

 Net premiums written rose 7.5% to $14.9 billion, supported by a 5.3% increase in property/casualty premiums to $12.93 billion, including 3.5% growth in North American commercial insurance. The insurer achieved a record property/casualty underwriting income of $2.26 billion, up 55%, and a combined ratio of 81.8%, the lowest on record and significantly improved from 87.7% last year.

Catastrophe losses decreased notably in Q3 to $285 million from $765 million the previous year, though year-to-date losses rose to $2.56 billion from $1.78 billion. Net investment income also increased by 9.3% to $1.65 billion. North American commercial premiums totaled $5.66 billion, comprising 38% of overall premiums and growing 2.9% year-over-year.

Chubb's CEO, Evan G. Greenberg, described the global insurance market as transitioning with increasing competition, particularly in large-account, admitted, and excess & surplus business. Pricing pressures are evident as capital inflows soften property prices, although terms and conditions remain stable. Middle-market and small commercial property segments are more disciplined but are experiencing growing competition, especially in upper-middle markets where property rate increases are slowing.

Casualty insurance pricing is decelerating generally but maintains firmness where rate adjustments are necessary; financial lines pricing remains soft. Geographically, strong contributions came from North America, Asia, Latin America, and the U.K.-Europe regions. Business segments showing robust growth include middle-market and small commercial lines, excess & surplus, and crop insurance.

This performance reflects a complex market environment featuring competitive dynamics and evolving pricing conditions that impact underwriting and profitability for major insurers like Chubb. The results highlight the importance of disciplined underwriting and strategic market positioning amid capital influx and shifting demand across insurance sectors.