Chubb Ltd

Chubb Limited is a global insurance and reinsurance organization, serving a diverse group of clients worldwide. At December 31, 2025, the company had total assets of $272 billion ¹ and total shareholders’ equity of $74 billion ² (excluding noncontrolling interests). Chubb operates in 54 countries and territories ³, providing commercial and consumer property and casualty (P&C) insurance, accident and health (A&H), reinsurance, and life insurance. The company generates earnings from three primary sources: P&C underwriting income, investment income, and life segment income. Chubb emphasizes quality of underwriting rather than volume of business or market share, employing consistent, disciplined pricing and risk selection. The company’s product and geographic diversification differentiates it from the vast majority of its competitors and has been a source of stability during periods of industry volatility.

Chubb’s competitive advantages include its broad market capabilities in personal, commercial, specialty, and A&H lines, its superior claims service, and its strong balance sheet. The company’s strong capital position and global platform afford opportunities for growth not available to smaller, less diversified insurance companies. Chubb competes with numerous insurance companies ranging from large national carriers to small and mid-size insurers, as well as large, global carriers and regional competitors. In the Global Reinsurance segment, Chubb competes worldwide with major U.S. and non-U.S. reinsurers, reinsurance departments of multi-line insurance organizations, and capital markets participants that have developed alternative capital sources. In the Life Insurance segment, competition differs by market but generally includes multinational insurers, large domestic insurers, and state-owned insurers.

Chubb generates revenue primarily through the collection of premiums from insurance and reinsurance policies, which are earned over the policy period. The company also earns significant net investment income from its investment portfolio, which is invested primarily in investment-grade fixed-income securities. Chubb serves a diverse group of clients including multinational corporations, mid-size and small businesses, affluent and high net worth individuals, individuals purchasing life and supplemental health insurance, companies and affinity groups, and insurers managing exposures with reinsurance coverage. For most commercial and personal lines of business, insureds typically use the services of an insurance broker or agent. Chubb obtains business from local and major international insurance brokers and typically pays a commission to brokers for business accepted and bound.

Chubb operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. In 2025, consolidated net premiums earned (NPE) was $53.0 billion ⁴. The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes Commercial Insurance (40 percent ⁵ of this segment's 2025 NPE), Major Accounts (36 percent ⁶ of this segment's 2025 NPE), Westchester (19 percent ⁷ of this segment's 2025 NPE), and Chubb Bermuda (5 percent ⁸ of this segment’s 2025 NPE). The North America Personal P&C Insurance segment provides affluent and high-net-worth individuals and families with homeowners, high value automobile and collector cars, valuable articles, personal and excess liability/umbrella, travel insurance, cyber, and recreational marine insurance. Homeowners business, including valuable articles, represented 69 percent ⁹ of North America Personal P&C Insurance’s net premiums earned in 2025. The North America Agricultural Insurance segment provides crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail insurance, as well as farm and ranch and specialty P&C commercial insurance products. The Overseas General Insurance segment comprises Chubb International, which includes Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), and Chubb Global Markets (CGM), a London-based international specialty and excess and surplus lines wholesale business that includes Lloyd's Syndicate 2488. Syndicate 2488 has an underwriting capacity of £630 million ¹⁰ for the Lloyd’s 2026 account year. At December 31, 2025, Chubb’s ownership interest in Huatai P&C was approximately 87.2 percent ¹¹. The Global Reinsurance segment represents Chubb's reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. The Life Insurance segment comprises international life operations (Chubb Life), which includes Huatai Life Insurance Co., Ltd. (Huatai Life), Chubb Tempest Life Re (Chubb Life Re), and the supplemental accident, health, disability, and life business of Chubb Benefits. At December 31, 2025, Chubb’s direct and indirect ownership interest in Huatai Life was 89.5 percent ¹², Huatai Asset Management Co. Ltd. was 79.2 percent ¹³, and Huatai Baoxing Fund Management was 74.1 percent ¹⁴. Huatai Asset Management has over $155 billion ¹⁵ in assets under management (AUM) in China.

Chubb Life's main operations are in Asia, which accounts for 95 percent ¹⁶ of its net written premiums, deposits, and earnings. Chubb Life offers a broad portfolio of protection and savings products including individual and group term life, dental, critical illness, dementia, hospital cash, personal accident, disability income, credit life and group employee benefits, whole life, universal life, unit linked contracts, endowment plans, and annuities. In China, Huatai Life has a network of 265 branches/sales offices across 20 provinces ¹⁷. Chubb Life Re's core business is a Bermuda-based operation which provides reinsurance to primary life insurers, focusing on guarantees included in certain variable annuity products and also on more traditional mortality reinsurance protection. Chubb Benefits is a provider of supplemental accident, health, disability, and life insurance products across the U.S. and Canada. Corporate results primarily include results of all run-off asbestos and environmental (A&E) exposures, the results of the run-off Brandywine business, the results of Westchester specialty operations for 1996 and prior years, certain other run-off exposures including molestation exposures, and income and expenses not attributable to reportable segments.

In 2025, Chubb expanded its operations through the acquisition of LMG Insurance in Thailand ¹⁸, offering a range of consumer and commercial P&C products. In 2024, Westchester expanded its operations through the acquisition of Healthy Paws Pet Insurance LLC ¹⁹, a managing general agent specializing in pet insurance, from Aon plc. Chubb has been the exclusive underwriter of Healthy Paws Pet Insurance LLC since 2013. Chubb further advanced its goal of greater product, customer, and geographical diversification with incremental purchases that led to a controlling majority interest in Huatai Insurance Group Co. Ltd (Huatai Group) on July 1, 2023 ²⁰. At December 31, 2025, Chubb’s ownership interest in Huatai Group was approximately 87.2 percent ²¹. In 2025, the North America Small & Lower Midmarket Division was established to leverage a modern, automated, and data-centric digital operating model. During the year ended December 31, 2025, Chubb repurchased shares under its share repurchase program. For the three months ended December 31, 2025, Chubb repurchased 3,864,750 ²² shares as part of the publicly announced plan for an aggregate value of $1.1 billion ²³. As of February 26, 2026, $2.11 billion ²⁴ in share repurchase authorization remained.

Net income attributable to Chubb for the year ended December 31, 2025 was a record $10.31 billion ²⁵ compared with $9.27 billion ²⁶ in 2024, an increase of 11.2 percent ²⁷. Net income in 2025 was driven by double-digit growth in both P&C underwriting income and Life segment income, and higher net investment income. Consolidated net premiums written were $54.84 billion ²⁸, up 6.6 percent ²⁹. P&C net premiums written increased 5.4 percent ³⁰, with commercial insurance up 4.0 percent ³¹ and consumer insurance up 9.2 percent ³². Life Insurance segment net premiums written increased 15.1 percent ³³, or 17.3 percent ³⁴ in constant dollars. Pre-tax net investment income was a record $6.5 billion ³⁵ compared with $5.9 billion ³⁶ in 2024. Operating cash flow was $12.8 billion ³⁷. The P&C combined ratio was 85.7 percent ³⁸ for 2025, compared to 86.6 percent ³⁹ for 2024.

Chubb’s long-term business strategy focuses on sustained growth in book value achieved through a combination of underwriting and investment income. The company’s priority is to help ensure adherence to criteria for risk selection by maintaining high levels of experience and expertise in its underwriting staff. Chubb recognizes that climate changes and weather patterns, as well as inflationary forces, are integral to its underwriting process and it continually adjusts its process to address these changes. The company also purchases protection from third parties, including reinsurance, as a tool to diversify risk and limit the net loss potential of catastrophes and large or unusually hazardous risks.

A key growth vector for Chubb is its international operations, particularly in Asia. Chubb Life's growth is focused on maximizing opportunities in Asia, where it has market leading positions in direct marketing notably in South Korea, Taiwan and Indonesia. The company takes advantage of rapid growth in face-to-face channels to sell insurance through tied and independent agents and selected bancassurance partnerships. Chubb is also transforming its business digitally, leveraging its global data and artificial intelligence assets to capitalize on digital partnership capabilities and its unique positioning as the leading composite insurer in Asia. In China, Huatai Life has a network of 265 branches/sales offices across 20 provinces ⁴⁰, and Huatai Asset Management has over $155 billion ⁴¹ in assets under management. The acquisition of LMG Insurance in Thailand in 2025 ⁴² further expands Chubb’s international retail commercial P&C and consumer A&H and personal lines business.

Another growth vector is the continued expansion of Chubb’s product offerings and distribution capabilities. In 2025, the North America Small & Lower Midmarket Division was established to leverage a modern, automated, and data-centric digital operating model, enhancing service delivery and product offerings to small and lower middle market customers. Products are offered through digital platforms, such as the Chubb Marketplace, where agents and brokers can electronically quote, bind, and issue policies. In 2024, Westchester expanded its operations through the acquisition of Healthy Paws Pet Insurance LLC ⁴³, a managing general agent specializing in pet insurance. Chubb also continues to develop and deploy digital production and processes in its North America Personal P&C Insurance segment to address the specific needs of high-net-worth families and individuals.

The P&C combined ratio decreased in 2025 to 85.7 percent ⁴⁴ from 86.6 percent ⁴⁵ in 2024, reflecting lower losses. The P&C CAY combined ratio excluding catastrophe losses decreased to 81.9 percent ⁴⁶ in 2025 from 83.1 percent ⁴⁷ in 2024, reflecting lower losses, partially offset by an increase in the policy acquisition cost ratio from changes in mix of business. The administrative expense ratio was 8.0 percent ⁴⁸ in 2025, compared to 8.1 percent ⁴⁹ in 2024.

Chubb employs approximately 45,000 people ⁵⁰. In 2025, Chubb filled approximately 9,000 roles worldwide ⁵¹, hiring nearly 6,500 new employees externally ⁵² and supporting approximately 2,500 internal moves ⁵³. More than 22,000 employees ⁵⁴ participated in structured learning programs. Chubb’s early-career programs hired and trained approximately 500 recent college graduates globally ⁵⁵. For 2025, the annual voluntary turnover rate was 10.9 percent ⁵⁶, including retirements.

Chubb’s capital allocation strategy includes share repurchases. For the three months ended December 31, 2025, Chubb repurchased 3,864,750 ⁵⁷ shares as part of the publicly announced plan for an aggregate value of $1.1 billion ⁵⁸. As of February 26, 2026, $2.11 billion ⁵⁹ in share repurchase authorization remained. Chubb has paid dividends each quarter since it became a public company in 1993. In 2025 and 2024, annual dividends were paid by way of a distribution from capital contribution reserves through the transfer of dividends from Additional paid-in capital to Retained earnings as approved by shareholders. Chubb estimates it would be able to pay dividends in such form, and thus exempt from Swiss withholding tax, until 2032–2036 ⁶⁰.

Chubb faces structural headwinds from the cyclical nature of the insurance and reinsurance markets, which are characterized by periods of intense price competition due to excessive underwriting capacity as well as periods when shortages of capacity permitted favorable premium levels. An increase in premium levels is often offset by an increasing supply of insurance and reinsurance capacity, which may cause prices to decrease. Changes in the frequency and severity of losses suffered by insureds and insurers may affect the cycles of the insurance and reinsurance markets significantly, as could periods of economic weakness. The incidence and severity of catastrophes are inherently unpredictable and losses from catastrophes could be substantial. Climate change and resulting changes in global temperatures, weather patterns, and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact risk modeling assumptions.

Chubb also faces execution risks related to the integration of acquired companies, which involve numerous operational, strategic, financial, accounting, legal, tax, and other risks. Difficulties in integrating an acquired company may result in the acquired company performing differently than expected, in operational challenges, or in failure to realize anticipated expense-related efficiencies. Goodwill and intangible assets recorded in connection with insurance company acquisitions may be impaired if premium growth, underwriting profitability, agency retention and policy persistency, among other factors, differ from expectations. At December 31, 2025, goodwill was $20.2 billion ⁶¹ and $19.6 billion ⁶² at December 31, 2024.

Chubb faces material risks from the occurrence of natural and man-made disasters, which could result in substantial volatility in results. Catastrophe losses were $2,921 million ⁶³ in 2025, including $1.47 billion ⁶⁴ from California wildfires. The company’s results are also sensitive to the adequacy of loss reserves, which at December 31, 2025 were $88,018 million ⁶⁵ gross and $69,672 million ⁶⁶ net. A one percentage point change in the tail factor for workers' compensation reserves could cause a change of approximately $1.1 billion ⁶⁷ in projected net loss and loss expense reserves. Chubb is exposed to credit risk from reinsurance recoverables, which were $20.6 billion ⁶⁸ at December 31, 2025, net of reserves for uncollectible recoverables. A ratings downgrade of one notch for all rated reinsurers could increase the valuation allowance for uncollectible reinsurance by approximately $56 million ⁶⁹. The company’s investment portfolio is subject to market risks, with approximately 17 percent ⁷⁰ invested in below investment-grade securities at December 31, 2025. Chubb also faces risks from the cyclical nature of insurance markets, where periods of intense price competition can reduce premium rates and profit margins.

Management’s message emphasizes Chubb’s focus on delivering P&C underwriting profit and life segment income by only writing policies which adequately compensate for the risk accepted. The company’s long-term business strategy focuses on sustained growth in book value achieved through a combination of underwriting and investment income. Management highlights that Chubb is an underwriting company and strives to emphasize quality of underwriting rather than volume of business or market share. The company’s underwriting strategy is to manage risk by employing consistent, disciplined pricing and risk selection. Management also notes that Chubb’s product and geographic diversification differentiate it from the vast majority of its competitors and has been a source of stability during periods of industry volatility. The company’s priority is to help ensure adherence to criteria for risk selection by maintaining high levels of experience and expertise in its underwriting staff. Management recognizes that climate changes and weather patterns, as well as inflationary forces, are integral to the underwriting process and the company continually adjusts its process to address these changes.