Chubb Caps Off Record 2025 with Stellar Q4, Eyes Continued Growth Amid Competitive Market
Chubb Posts Record Annual Earnings on Strong Underwriting, Investment Gains
ZURICH – Chubb Limited (NYSE: CB) capped a landmark year with powerhouse fourth-quarter results, delivering what Chairman and CEO Evan Greenberg hailed as "outstanding" performance that propelled the insurer to new annual highs. The dual engines of disciplined underwriting and a surging investment portfolio drove core operating income to nearly $3 billion for the quarter, marking increases of approximately 22% and 25% on a total and per-share basis, respectively.
The results underscore Chubb's resilience in a global property and casualty (P&C) market still digesting years of elevated catastrophe losses. For the full year, the company benefited from what Greenberg termed "unusually light" major hurricane and typhoon seasons, though industry-wide catastrophe losses still neared an estimated $129 billion. Within this context, Chubb's record-low combined ratio of 81.2% for the quarter—a key measure of underwriting profitability where lower is better—stood out as a significant achievement.
"We delivered very strong double-digit increases in underwriting and Life income, alongside record investment income," Greenberg told analysts on the earnings call. He attributed the stellar underwriting result to "very strong current accident year performance" across its portfolio, supplemented by favorable development on prior-year reserves.
Financial Fortress and Shareholder Returns
Chief Financial Officer Peter Enns detailed a balance sheet at "all-time highs," with cash and invested assets surpassing $171 billion and book value nearing $74 billion. This financial strength enabled aggressive capital return; the company funneled $4.9 billion back to shareholders in 2025, roughly half its core operating income, through a mix of dividends and share buybacks.
Investment income, a critical pillar for insurers in a higher-interest-rate environment, reached a record $1.8 billion for Q4, up 7.3%. The company's fixed income portfolio yielded 5.1%, with new investments averaging slightly above that rate.
Growth Across the Board, But Clouds on the Horizon?
Net premiums grew nearly 9% company-wide in the quarter, with notable strength in Life insurance (up ~17%) and its North American Agriculture division (up over 45%). However, Greenberg signaled a shifting market dynamic, describing the commercial underwriting environment as "in transition" and becoming "incrementally more competitive quarter by quarter," particularly in large account property and upper middle market segments.
Despite the competitive pressure, the company expressed optimism for 2026, forecasting "strong growth in operating earnings and double-digit growth in EPS and tangible book value," barring major catastrophe losses or currency swings. Executives also highlighted a multi-year digital transformation initiative aimed at improving efficiency and claims handling through targeted investments in data, AI, and analytics.
Analyst and Industry Reactions
Michael Thorne, Senior Insurance Analyst at Veritas Financial: "Chubb's execution remains peerless. The record combined ratio, even with favorable CAT experience, demonstrates underwriting discipline that should serve them well as pricing softens in certain commercial lines. Their guidance for steady investment income growth provides a solid earnings floor."
Sarah Chen, Portfolio Manager at Horizon Capital: "These numbers are impressive, but the market is rightly focused on the future. Greenberg's comments on rising competition are a yellow flag. The question is whether their premium growth can be sustained without compromising underwriting quality. The digital investment story is promising but long-term."
David R. Miller, Editor of 'The Hard Hat Investor' Newsletter: "Another quarter of management patting themselves on the back while quietly noting the market is getting tougher. The 'record' results were buoyed by light catastrophes—a luck factor, not skill. Share buybacks at over $280 per share look expensive if the underwriting cycle is truly turning. Investors should be cautious, not celebratory."
Eleanor Vance, Risk Manager at Sterling Manufacturing: "As a client, Chubb's stability is reassuring, especially in a risky world. Their focus on risk engineering services is a differentiator that adds real value beyond just writing a check after a loss. Their financial strength directly impacts our sense of security."
Chubb, one of the world's largest publicly traded P&C insurers, offers a comprehensive suite of commercial and personal insurance products, along with risk engineering and consulting services, to clients globally.
This analysis is based on the company's Q4 2025 earnings call and financial release.