Chubb Limited — Financial Results

Record Net Income of $10.3 Billion, Up 11% from 2024

Chubb posted record profits in 2025, driven by growth across both its core insurance underwriting and its investment portfolio. Premiums grew in nearly every business line, and the investment portfolio — now worth $168.8 billion — generated more income as the pool of assets expanded through strong cash generation. The one soft spot was operating cash flow, which fell $3.4 billion mainly due to higher claims payments, taxes, and a shift in how certain investment products were handled.

Underlying Insurance Quality Improved Despite California Wildfire Hit

The combined ratio measures what an insurer pays out in claims and expenses for every dollar of premium collected — below 100% means profit. Chubb's headline ratio improved slightly despite a sharp jump in catastrophe losses, mostly from the California wildfires ($1.47 billion alone). Crucially, the underlying business — stripping out catastrophes and reserve adjustments — improved to 81.9%, the best in three years, suggesting Chubb is pricing and selecting risks well.

North America Personal Lines Hit Hard by California Wildfires

Chubb's high-net-worth personal lines segment — covering expensive homes, autos, and valuables — took a significant blow. Catastrophe losses nearly tripled year-over-year, almost entirely due to wildfires. Underwriting income was nearly halved as a result. The silver lining: once you strip out catastrophes, the underlying business actually improved sharply (CAY combined ratio fell from 78.5% to 72.3%), suggesting the rate increases and expense management are working.

Life Insurance Becoming a Meaningful Growth Engine

Chubb's Life Insurance segment — covering international life policies, supplemental health, and life reinsurance — grew premiums at 15.1% (17.3% excluding currency effects). Growth was concentrated in North Asia, particularly Hong Kong, Taiwan, and through its Chinese subsidiary Huatai. This segment now accounts for about 13% of total premiums written and is growing nearly three times faster than the P&C business, making it an increasingly important part of the story.

Investment Income at Record $6.5 Billion and Still Growing

The investment portfolio is growing steadily as strong operating cash flows are continuously reinvested. Yield held steady at 4.5%, meaning the income growth is coming from a bigger asset base rather than a riskier strategy — a quality distinction. Private equity mark-to-market gains of $809 million added further to reported income in 2025.

Legacy Asbestos and Molestation Liabilities Continue to Drag

Chubb's Corporate segment — which houses old run-off liabilities including asbestos, environmental, and molestation claims — produced an adverse reserve development of $306 million in 2025 (versus $296 million in 2024). These are legacy liabilities from policies written decades ago, largely acquired through past acquisitions. While manageable relative to Chubb's overall scale, these liabilities have been consistently worsening each year, and their survival ratios (a rough measure of how long reserves would last at current payment rates) are relatively short at 2.9–3.1 years for asbestos.

Chubb Accelerated Share Buybacks to $3.4 Billion in 2025

The company repurchased $3.4 billion of its own shares in 2025, up sharply from $2.0 billion in 2024, at an average price of $282.57 per share. A fresh $5 billion buyback authorization was approved in May 2025. As of late February 2026, $2.1 billion of that authorization remained. Combined with a quarterly dividend of $0.97 per share, Chubb is returning substantial capital to shareholders — a signal management views the stock and balance sheet as healthy.