Chubb (CB) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $1.33B, down 37.9% year-over-year, primarily due to $1.64B in catastrophe losses, mainly from California wildfires.

• Core operating income reached $1.5B, down 31% year-over-year, with strong premium growth and robust investment income.

• Consolidated net premiums written grew 5.7% in constant dollars to $12.65B, with P&C up 5.0% and Life Insurance up 10.3%.

• Announced and closed acquisition of Liberty Mutual's Thailand business; Vietnam closing expected by early 2026.

• Book value per share rose to $164.08, an all-time high, with tangible book value per share up 3.9%.

Financial highlights

• Total revenues increased 3.6% to $13.35B; net premiums earned up 3.6% to $12.0B.

• Pre-tax catastrophe losses were $1.64B, up from $435M year-over-year.

• Adjusted net investment income rose 12.7% to $1.67B.

• Combined ratio was 95.7%; current accident year combined ratio excluding catastrophes improved to 82.3%.

• Returned $751M to shareholders ($385M in buybacks, $366M in dividends).

Outlook and guidance

• Management expects continued double-digit growth in operating income and EPS, despite catastrophe and FX headwinds.

• Q2 adjusted net investment income expected at midpoint of six-month guidance.

• Annual core operating effective tax rate expected in 19-19.5% range.

• Catastrophe risk management and reinsurance programs actively managed; modeled PMLs not expected to be materially impacted by climate change through 2025.