Chubb reported a strong third quarter, with net income rising more than 20% from a year ago to reach $2.8 billion. The insurer also posted record property and casualty underwriting income of $2.26 billion.
This underwriting profit was 55% higher than in the same quarter last year, helped by a combined ratio—an industry measure of profitability—that hit a record low of 81.8. This means Chubb spent less on claims and expenses compared to the premiums it earned.
One big factor in the results was a drop in catastrophe losses. This quarter, Chubb faced $285 million in catastrophe losses before tax, which is significantly lower than the $765 million they reported for the third quarter of 2024, when Hurricane Helene caused around $250 million in losses. But CEO Evan G. Greenberg pointed out that the real driver was strong underwriting performance and favorable reserve development, which improved by $361 million compared to $244 million last year.
Chubb’s total net premiums written rose by 7.5% to about $14.9 billion. In North America, premiums increased 4.4% to approximately $8.9 billion. Within this, personal lines grew by about 8.1%, and the combined ratio for these lines improved dramatically from 81.3 last year to 65.1, showing better profitability.
Commercial lines in North America also showed gains. Net premiums written climbed 2.9% to around $5.7 billion, with middle market and small commercial segments growing by 3.6%. The combined ratio for commercial lines improved by 5 points to 81.5. When excluding catastrophe losses, the combined ratio for North American property and casualty stood flat at 80.8.
Further breaking down the commercial business, excluding workers’ compensation premium adjustments, middle market and small commercial premiums were up 6.9%. Property and casualty lines grew by 8.7%, while financial lines saw a modest increase of 0.6%.
Overall, Chubb’s third quarter results showcase a solid performance with strong underwriting profits and growth across several parts of its business, helped by fewer natural disaster claims this year. The company’s disciplined approach to underwriting and reserve management continues to pay off.