Global insurer Chubb has announced its financial results for the first quarter of 2025, reporting a net income of $1.33 billion, impacted by total pre-tax net catastrophe losses of $1.64 billion, which includes $1.47 billion from the California wildfires.
The company’s Q1 2025 net income represents a 37% decrease compared to the $2.14 billion reported in the same period of 2024. Core operating income for the first quarter of 2025 also declined to $1.33 billion, down from $2.16 billion in Q1 2024.
This year’s total pre-tax net cat losses, which were 15.9 percentage points of the combined ratio, were significantly higher compared to the $435 million, or 4.4 percentage points of the combined ratio, reported in the same period last year, driven by the costly California wildfire outbreak in January.
Total after-tax net cat losses in Q1 2025 were $1.30 billion, or $3.21 per share.
Chubb also reported favorable prior period development of $255 million pre-tax and $204 million after-tax, compared to $207 million and $168 million, respectively, in the first quarter of 2024.
The company’s Property and Casualty (P&C) underwriting income reached $441 million, with a combined ratio of 95.7%. Excluding catastrophe losses, P&C current accident year underwriting income rose by 12.2% year-over-year to $1.83 billion, resulting in a combined ratio of 82.3%. P&C net premiums written increased by 3.2%, or 5.0% on a constant dollar basis, to $10.93 billion.
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: “We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires. We produced $1.5 billion in core operating income, supported principally by excellent underlying underwriting results, double-digit growth in investment income and growing life insurance income. Total company premiums grew 5.7% in constant dollars.
“Our published combined ratio was 95.7% with underwriting income of $441 million, a notable result given $1.6 billion of catastrophe losses. Excluding CATs, the current accident year combined ratio was 82.3%, a nearly 1.5-point improvement from prior year, with underwriting income up over 12%, adjusted investment income of $1.7 billion was up 12.7% and life income was $291 million, up 8.6%.”
In North America P&C insurance was up 3.4%, to $6.6 million, with growth impacted by two one-time items: reinstatement premiums related to the California wildfires in personal insurance, and unusually large structured transactions written in the prior year in commercial insurance.
“Our income and premium revenue this quarter were impacted by foreign exchange due to a strong dollar, which has since weakened considerably. Premiums were also impacted by two one-time items in our North America business: reinstatement premiums related to the wildfires in personal insurance, and larger-than-usual, one-off structured transactions written last year in our Major Accounts division,” said Greenberg.
Adding: “In terms of the commercial P&C underwriting environment, large account admitted and E&S property continued to grow more competitive while casualty is firm and responding to the loss-cost environment. In middle market and small commercial, both admitted and E&S, underwriting conditions remain favorable across both property and casualty lines of business.”
Excluding these one-time items, North America P&C insurance grew by 6.4%, including a 10.1% increase in personal insurance and a 5.3% rise in commercial insurance, with overall P&C lines up 6.4% and financial lines down 1.3%.
Overseas General net premiums written increased by 1.8%, or 6.5% in constant dollars, to $3.9 million, with consumer insurance growing by 5.0% and commercial insurance by 7.3%. P&C lines were up 9.3%, while financial lines decreased by 1.6%. Latin America, Asia, and Europe reported growth of 6.1%, 6.1%, and 5.5%, respectively.
Life Insurance net premiums written were $1.72 billion, up 5.3%, or 10.3% in constant dollars, and segment income was $291 million, up 8.6%, or 15.7% in constant dollars.
Overall, Chubb’s net premiums were $12.6 million, a 3.5% increase when compared to the $12.2 million reported in Q1 2024.
Pre-tax net investment income was $1.56 billion, up 12.2%, and adjusted net investment income was $1.67 billion, up 12.7%.
Annualized return on equity (ROE) was 8.2%. Annualized core operating return on tangible equity (ROTE) stood at 13.0% and annualized core operating ROE was 8.6%.
Greenberg further commented: “As I observed at the beginning of the year, about 80% of our global P&C business, commercial and consumer, and our life business have very good growth prospects. There is a lot of opportunity, though we are mindful of the external environment. There is currently a great deal of uncertainty and confusion surrounding our government’s approach to trade, and it’s impacting business and consumer confidence as well as our image abroad.
“The odds of recession have risen substantially, and higher inflation appears all but certain; to what degree is an open question. We have competing priorities between our stated trade, economic and fiscal objectives, and coherence of policy has yet to emerge. I hope we can reach agreements on trade, reduce or eliminate tariffs and reconcile our priorities quickly. Certainty and predictability are jacks to open for confidence, growth and the image of our country as a leader, a reliable partner and a place to do business.”
He concluded: “In sum, I have confidence in what we can control, and I expect we will continue to grow operating income and EPS at a double-digit rate, CATs and FX notwithstanding.”
