Chubb Ltd
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.16%.
Did CB Beat Earnings? Q1 2025 Results
Chubb navigated a bruising quarter dominated by California wildfire losses to still edge past Wall Street expectations, reporting Q1 2025 EPS of $3.29 against a consensus estimate of $3.23, a 1.91% beat, while revenue of $12.00 billion topped the $11.22 billion estimate by 6.97%, even as total revenue fell 7.0% year-over-year. The headline numbers were shaped almost entirely by $1.47 billion in pre-tax wildfire catastrophe losses, which drove net income down 37.9% to $1.33 billion and pushed the North America Personal P&C combined ratio to a punishing 159.5%. Beneath the catastrophe noise, the underlying business held firm, with the current accident year P&C combined ratio improving nearly 1.5 points to 82.3% and adjusted net investment income climbing 12.7% to $1.67 billion. CEO Evan Greenberg acknowledged rising recession risks and near-certain inflation pressure from U.S. trade policy, a concern echoing across the broader insurance industry, but expressed confidence that Chubb can sustain double-digit operating income and EPS growth excluding catastrophe losses and foreign exchange impacts.
- California wildfire catastrophe losses of $1.47 billion pre-tax driving 15.9 percentage points on combined ratio
- Double-digit growth in adjusted net investment income up 12.7% to $1.67 billion
- P&C current accident year underwriting income excluding catastrophe losses up 12.2%
- Life Insurance segment income up 8.6%, or 15.7% in constant dollars
- Favorable prior period development of $255 million pre-tax
- North America personal insurance growth of 10.1% excluding reinstatement premiums
- Overseas General constant dollar premium growth of 6.5%
“We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires. We produced $1.5 billion in core operating income, supported principally by excellent underlying underwriting results, double-digit growth in investment income and growing life insurance income. Total company premiums grew 5.7% in constant dollars.”
Chubb CEO, on the earnings call
Forward Guidance & Outlook
CEO Evan Greenberg stated that about 80% of Chubb's global P&C business (commercial and consumer) and its life business have very good growth prospects. He expects the company will continue to grow operating income and EPS at a double-digit rate, excluding catastrophe losses and foreign exchange impacts. However, he cautioned about significant macroeconomic uncertainty from U.S. trade policy, noting recession odds have risen substantially and higher inflation appears almost certain. The strong dollar that impacted Q1 results has since weakened considerably, which could benefit future periods.
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Figures from SEC filings and company reports. Not investment advice.