Chubb (NYSE:CB) reported third-quarter core operating income of $2.98 billion, or a record $7.66 per share, as underwriting, investment and life insurance income remained strong. Chairman and Chief Executive Officer Evan Greenberg said the company’s diversified operations, underwriting discipline and expanding invested asset base supported the results.
Core operating income declined about 2% from the prior-year quarter, while core operating earnings per share rose about 1%, reflecting exceptionally light catastrophe losses in the year-earlier period, Greenberg said. For the first nine months of 2026, core operating income rose 21% to $8.6 billion, while core operating EPS increased 24.5% to $21.94.
Chubb recorded nearly $2.1 billion in property-and-casualty underwriting income during the quarter, producing a combined ratio of 84.1%. Its global P&C combined ratio excluding catastrophe losses was 81.8%, essentially unchanged from a year earlier. Year-to-date underwriting income reached a record $5.8 billion, up nearly 34%.
Investment Income and Capital Management
Adjusted net investment income rose to a record $1.89 billion, aided by improved fixed-income conditions and record cash flows. Greenberg said 88% of Chubb’s invested assets were fixed-income related and 12% were equity related. The company’s third-quarter fixed-income portfolio yield was 5.2%, while its new-money rate averaged 6.2% as of Sept. 30.
Rising interest rates resulted in $4.5 billion of net realized and unrealized losses during the quarter, though Greenberg said the effect should amortize “reasonably quickly” given the company’s duration and reinvestment rates. Chubb’s invested assets totaled more than $175 billion, compared with $168 billion a year earlier.
The company also expects a $460 million realized gain from the sale of USI Insurance Services to Aon. Chubb held the investment through Strategic Holdings, its holding-company partnership with KKR, and had invested $740 million in USI.
Chief Financial Officer Peter Enns said Chubb generated a record $12.8 billion of adjusted operating cash flow over the first nine months. During the quarter, the company returned $1.6 billion to shareholders, including $1.2 billion in share repurchases at an average price of $344.32 and $393 million in dividends. Capital returned during the first nine months totaled about $4.5 billion.
Enns said book value totaled $73 billion. Tangible book value per share, adjusted for accumulated other comprehensive income, increased 15.4% from a year earlier.
Premium Growth Mixed Across Businesses
Total P&C premiums increased 1.9% in the quarter. Growth was stronger internationally and in personal lines, while North America commercial premiums were affected by Chubb’s decisions to reduce exposure in certain property and financial-lines business.
- Overseas General premiums increased 6.7%.
- North America personal lines premiums rose 5.3%.
- Agriculture premiums increased more than 5%.
- North America commercial premiums declined 2.7%.
Greenberg said the adverse effect on North America commercial growth from non-renewals and added reinsurance protection was approximately 4.5 percentage points. He said Chubb purchased additional reinsurance in selected property and financial-lines areas to retain customer relationships while spreading risk.
International P&C consumer-related business, including accident and health and personal lines, grew 7.2%, while commercial business increased 6.3%. Latin America grew 11.7%, Asia grew 7.5% and Europe grew nearly 7%. London wholesale premiums increased 13.5%, helped by Gulf war marine-related activity.
In North America, middle-market and small-commercial premiums rose about 1%, while the major accounts and specialty division declined 5%. Commercial property pricing fell 4.2%, while casualty pricing increased 5.7% and financial-lines pricing rose 2.1%.
Greenberg said pricing conditions have become more competitive globally, especially in U.S. and London commercial markets. He said competition has expanded beyond property into casualty lines, where pricing in some areas is not keeping pace with loss costs.
Personal Lines, Life Insurance and Reserves
Chubb’s North American high-net-worth personal-lines business posted premium growth of almost 5.5% and a 60.3% combined ratio. Greenberg described the business as relationship- and service-driven, rather than primarily price-driven, and said he viewed its performance as sustainable despite periodic competitive pressures.
International life insurance premiums and deposits rose more than 15.5%, while North America Chubb Worksite Benefits premiums increased more than 11.5%. International life produced $277 million of pretax income, up 7% from a year earlier.
Enns said third-quarter pretax catastrophe losses totaled $705 million, largely from weather events worldwide and an earthquake in Latin America. Catastrophe losses for the first nine months were $1.7 billion, compared with $2.6 billion in the prior-year period.
Chubb reported $562 million of favorable prior-period development in its active companies, led by $575 million of favorable development in short-tail lines, partly offset by $13 million of unfavorable development in long-tail lines. Its corporate runoff portfolio recorded $51 million of adverse development, predominantly related to environmental exposures.
Greenberg said Chubb remains cautious in recognizing favorable reserve development, particularly in casualty business. He said more recent accident years remain too early to assess and that favorable development was concentrated in older years, generally from 2019 through 2022.
Technology, AI and Growth Opportunities
Greenberg said Chubb’s operating expense ratio has continued to improve as digital transformation efforts create efficiencies across underwriting, marketing, claims, finance and sales. He pointed to technology, data, algorithms, large language models and agentic tools as contributors to the company’s efficiency efforts.
On AI liability, Greenberg said the insurance industry will need to develop clearer coverage terms, potential exclusions and separate AI-related liability coverage as exposures emerge. He also said model-certification standards and evolving governance practices could help insurers assess and underwrite AI-related risks.
Greenberg highlighted Asia as a significant growth opportunity, citing rising middle-class populations, digitization, small- and medium-sized business growth and supply-chain activity connected to U.S. investment in AI infrastructure. Chubb is also active in insuring data-center construction, including property, marine and surety risks, he said.
Looking ahead, Greenberg said Chubb expects North America commercial growth to improve as the effects of recent underwriting actions diminish and opportunities in middle-market and small-commercial business expand. He said the company remains focused on preserving capital for risk and opportunity while benefiting from a more attractive investment environment.
About Chubb (NYSE:CB)
Chubb Limited is a global insurance company that provides property and casualty, accident and health, life, and reinsurance products and services. Its offerings include commercial and personal property and casualty insurance, liability coverage, workers’ compensation, specialty insurance, travel insurance, and coverage for high-net-worth individuals.
The company serves businesses, individuals, and institutional customers through a network spanning North America, Latin America, Europe, Asia-Pacific, and other international markets.
