Chubb has reported a sharp drop in its first-quarter earnings, with net income falling by 37.9% compared to the same period last year. The company’s earnings for Q1 2025 totaled $1.33 billion, a significant decline from last year’s figures.
Key Figures from Chubb’s First Quarter Results
Chubb’s diluted earnings per share (EPS) stood at $3.29 for the first quarter of 2025. The company’s property and casualty (P&C) business recorded an underwriting income of $441 million. Its combined ratio, a key measure of profitability in the P&C insurance industry, came in at 95.7%.
Strong Underwriting Performance Excluding Catastrophes
Excluding the impact of catastrophic losses, Chubb’s current accident year underwriting income increased by 12.2% year-on-year, reaching $1.83 billion. The combined ratio for this segment improved to 82.3%, highlighting the company’s strong performance in its underwriting activities.
Growth in Premiums Across Multiple Regions
Chubb saw its net premiums written in the P&C lines increase by 3.2%, reaching a total of $10.93 billion. On a constant currency basis, this growth was 5.0%. In overseas markets, Chubb’s General premiums rose by 1.8%, or 6.5% in constant dollars. The growth was driven by a 5.0% increase in consumer insurance premiums and a 7.3% rise in commercial insurance premiums.
Regional Growth and Declining Financial Lines
In terms of regional performance, Asia experienced a premium growth rate of 6.1% in the first quarter. Meanwhile, Chubb’s financial lines saw a slight decline of 1.6%, which offset some of the growth in other segments. Despite these mixed results, Chubb continues to show strength in its property and casualty lines.
Life Insurance Premiums Grow Strongly
Chubb’s life insurance segment also performed well, with net premiums written increasing by 5.3%, reaching $1.72 billion. When adjusted for constant currency, life insurance premiums grew by 10.3%, further strengthening Chubb’s overall portfolio.
Conclusion
While Chubb’s performance in the first quarter of 2025 showed solid growth in premiums and strong underwriting results, the decline in profits reflects ongoing challenges in the insurance market. The company’s efforts to maintain growth, especially in the P&C and life insurance sectors, remain crucial as it navigates a competitive market.
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