Chubb Limited

What they do

Chubb provides commercial and consumer P&C insurance, accident and health (A&H), reinsurance, and life insurance. It serves multinational corporations, mid-size and small businesses, affluent individuals, and affinity groups. The company generates earnings from P&C underwriting income, investment income, and life segment income.

Revenue drivers

• North America Commercial P&C — Includes middle market, small commercial, major accounts, and specialty lines. Middle market and small commercial grew 8.9% in Q2 2026; major accounts and specialty were down 9.0% due to underwriting actions on property.
• Overseas General Insurance — Covers commercial and consumer insurance outside North America. Premiums written grew 10.2% (4.8% constant dollars) in Q2 2026, with Latin America up 15.6%, Asia up 12.0%, and Europe up 5.1%.
• Life Insurance — Includes personal accident, supplemental health, and life products. Net premiums written were $1.94 billion in Q2 2026, up 7.5%; segment income was $332 million, up 9.0%, with International Life income up 13.0%.
• North America Personal and Agriculture — Personal lines (homeowners, auto, valuables) and agriculture insurance. Both grew 6.0% in Q2 2026.

Recent performance

In Q2 2026, Chubb reported net income of $2.85 billion ($7.30 per share) and core operating income of $2.84 billion ($7.26 per share), up 14.6% and 18.2% year-over-year, respectively. Consolidated net premiums written were $14.7 billion, up 3.6%. P&C net premiums written were $12.77 billion, up 3.0% (6.3% excluding large account and E&S property), with a combined ratio of 83.8%. Pre-tax net catastrophe losses were $475 million, down from $630 million a year ago. Pre-tax net investment income was $1.76 billion, up 12.3%, a record.

Strategy

Chubb focuses on underwriting discipline, emphasizing quality over volume, with consistent pricing and risk selection. The company aims for sustained growth in book value through underwriting and investment income. It has grown through acquisitions, including Cigna's Asian A&H and life business in 2022 and a controlling stake in Huatai Group in China (87.2% owned). Management has taken underwriting actions on property, particularly in major accounts and E&S, to improve risk selection.

Risks

• Natural and man-made catastrophes — Substantial exposure to hurricanes, earthquakes, terrorism, cyber-attacks, and other catastrophic events could cause significant losses.
• Climate change impacts — Climate change may increase frequency and severity of natural catastrophes and affect risk modeling assumptions.
• Regulatory and legislative changes — Changes in tax laws, including OECD international tax framework, and other governmental policies could affect results.
• Market and economic volatility — Fluctuations in interest rates, stock markets, and foreign currency exchange rates could impact investment income and book value.

Outlook

Management highlights continued growth in core operating income and strong investment income, with record adjusted net investment income in Q2 2026. The company is expanding internationally, with strong growth in Latin America and Asia. Catastrophe losses were lower than prior year, and prior period development was favorable at $283 million pre-tax.