Chubb has announced a significant decline in profits for the first quarter of 2025, with net income falling by 38%. The company also saw a drop in earnings per share, while its premiums from property and casualty (P&C) insurance lines continued to grow.
Chubb’s First-Quarter Profit Declines 38%
Chubb reported a steep decline in its first-quarter earnings, with net income falling 37.9% year-on-year (YoY) to $1.33 billion. The company’s diluted earnings per share stood at $3.29. This represents a significant drop compared to the same period last year, reflecting challenges in the insurance market.
P&C Underwriting Income Remains Stable
Chubb’s property and casualty (P&C) underwriting income for the quarter was $441 million. The company’s combined ratio, which measures profitability, was 95.7%. This indicates that Chubb’s expenses were close to the premiums collected, but the results were still strong overall. When excluding catastrophe losses, the current accident year underwriting income rose by 12.2% YoY, totaling $1.83 billion, with a combined ratio of 82.3%.
Growth in P&C Premiums and Regional Performance
Chubb’s P&C net premiums written rose by 3.2%, amounting to $10.93 billion, or a 5.0% increase in constant currency. Premium growth was driven by strong performances in the company’s Overseas General business, where premiums rose 1.8% or 6.5% in constant dollars. This was fueled by a 5.0% increase in consumer insurance and a 7.3% rise in commercial insurance premiums.
Regional Insights: Asia Sees 6.1% Growth
On a regional basis, Asia saw a solid premium growth of 6.1%. This increase helped offset some declines in other areas, contributing positively to Chubb’s overall performance. However, financial lines premiums saw a slight dip, falling by 1.6% for the quarter.
Life Insurance Premiums See Strong Growth
In the life insurance segment, Chubb’s net premiums written grew by 5.3% to $1.72 billion, or 10.3% in constant dollars. This indicates robust demand in the life insurance market, which helped offset some of the challenges in the P&C sector.
Outlook for the Rest of 2025
While Chubb faced challenges in the first quarter, the company’s overall premium growth in P&C and life insurance segments suggests a steady path forward. The insurer will likely continue focusing on underwriting profitability and premium growth to navigate market pressures in the coming months.
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