Chubb Sees Underwriting Income Rise Amid Significant Wildfire Losses

2025-04-23 companies

New York, Wednesday, 23 April 2025.
Chubb posted a 12.2% rise in property and casualty underwriting income for Q1 2025, totaling $1.83 billion, despite severe financial impacts from the California wildfires.

Q1 Performance and Underwriting Resilience

Chubb Limited (NYSE: CB) has reported a robust increase in its property and casualty (P&C) underwriting income for the first quarter of 2025, highlighting the company’s resilience in a challenging insurance landscape. The underwriting income rose by 12.2% to total $1.83 billion, excluding the impacts of catastrophe losses, a testament to Chubb’s strong operational efficiencies during a period overshadowed by the significant losses from the California wildfires [5][8].

Impact of Catastrophe Losses

Despite the positive growth in underwriting income, Chubb’s overall net income was heavily impacted by the catastrophic events of the California wildfires. The company reported extensive pre-tax net catastrophe losses totaling $1.64 billion for Q1 2025, with $1.47 billion attributed directly to these wildfires. This resulted in a combined ratio of 95.7%, though when adjusted for these extreme losses, the ratio shows a more favorable 82.3% [5][6].

Growth Trajectory in Premiums and Investment Income

In addition to the underwriting gains, Chubb’s consolidated net premiums written showed a commendable growth of 5.7% in constant dollars, reaching $12.6 billion. This growth was supported by substantial increases in both P&C and Life Insurance premiums. Furthermore, Chubb’s adjusted net investment income surged by 12.7%, underscoring the firm’s capacity to generate consistent revenue streams despite volatility in other sectors [9][10].

Strategic Insights from Management

Evan G. Greenberg, Chairman and CEO of Chubb Limited, remarked on the results by emphasizing the company’s strong underlying performance amidst challenging conditions. He conveyed confidence in Chubb’s ability to continue growing its operating income and earnings per share at double-digit rates, notwithstanding the adversity posed by catastrophe losses and foreign exchange impacts. Greenberg’s optimism is also reflected in Chubb’s strategic initiatives aimed at enhancing shareholder value through stock buybacks and increased dividend payouts [5][9].

Sources

Chubb underwriting income