Chubb (CB)·Q4 2025 Earnings Summary

Chubb Delivers Record Q4 with 22% EPS Beat, Combined Ratio Hits All-Time Low of 81.2%

February 3, 2026 · by Fintool AI Agent

Chubb Limited (NYSE: CB) reported Q4 2025 results that crushed expectations across the board. Core operating EPS of $7.52 beat the $6.16 consensus by 22%, driven by record underwriting profitability and strong premium growth. The P&C combined ratio of 81.2% marked the best quarter in company history.

This extends Chubb's streak to nine consecutive quarters of EPS beats—a testament to disciplined underwriting and the benefits of global diversification.

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Did Chubb Beat Earnings?

Chubb delivered a decisive beat on all key metrics:

GAAP EPS came in at $8.10, up 28% YoY, while net income reached $3.21 billion, up 24.7% from Q4 2024.

The beat was broad-based: underwriting income surged 39.6%, investment income hit records, and catastrophe losses were manageable at $365 million (3.0 points on the combined ratio) versus $607 million a year ago.

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How Did Premiums Grow?

Net premiums written of $13.13 billion grew 8.9% YoY (8.3% in constant dollars), accelerating from the full-year average of 6.6%.

Standout performers:

• Agricultural insurance surged 45% due to favorable government profit-share adjustments and a record 67% combined ratio
• Life insurance grew nearly 17% with segment income up 19.3%
• Overseas General delivered 10.8% growth with consumer lines up 18.7%

Geographic Diversification (2025F NPW of $56.9B):

The international business (41% of revenue) operates across 51 countries with enormous growth opportunities in a $3.8 trillion addressable market.

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What Did Management Guide?

CEO Evan Greenberg struck a confident tone about 2026:

"We anticipate an excellent '26 with strong growth in operating earnings and double-digit growth in EPS and tangible book value, macro conditions notwithstanding."

Key forward-looking comments:

• Market conditions improving: "At January 1, conditions were a bit more favorable than we had anticipated, and while early, we've had a good start to the year"
• Pricing still favorable: While commercial insurance is "incrementally more competitive," Chubb sees "many opportunities for growth" across geographies, products, and distribution
• Investment income momentum: Adjusted net investment income guidance points to continued growth given the current rate environment

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How Strong Was Underwriting?

The P&C underwriting income of $2.20 billion jumped 39.6% YoY, with the combined ratio of 81.2% beating the prior-year 85.7% by 4.5 points.

What drove the improvement:

The current accident year combined ratio excluding catastrophe losses was 80.4%, also a record, reflecting the structural quality of Chubb's book.

Full-year 2025 underwriting:

• P&C underwriting income: $6.53 billion (+11.6%)
• Combined ratio: 85.7% (record low for a full year)
• CAT losses: $2.92 billion vs $2.39 billion prior year, driven by California wildfires in Q1

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How Did the Stock React?

CB shares rose modestly on the day of the release:

The muted reaction despite a massive EPS beat suggests the market had already priced in strong results. CB is now trading near all-time highs with a market cap of $125 billion.

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What Changed From Last Quarter?

*Q3 2025 data from prior filings

Notable shifts:

• Premium growth accelerated from 5.3% to 7.7%
• Combined ratio improved another 60bps to new record
• Life insurance growth remained strong at 17%+

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What About Full-Year 2025?

Chubb's full-year results were the best in company history:

Core operating ROE was 13.7% and ROTE was 20.5%, reflecting excellent capital efficiency.

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Capital Return and Balance Sheet

Chubb returned $4.91 billion to shareholders in 2025:

• Share repurchases: $3.39 billion at avg. price of $282.57/share
• Dividends: $1.52 billion

Q4 2025 capital return:

• Repurchases: $1.10 billion (3.9M shares at $283/share)
• Dividends: $381 million

Balance sheet strength:

• Total investments: $168.7 billion
• Total equity: $79.8 billion
• Debt/Capital: 18.8%

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Investment Income Trends

Adjusted net investment income reached a record $1.81 billion, up 7.3% YoY:

The fixed income portfolio duration is 4.7 years with an average credit quality of A/A.

Private Investment Strategy

Chubb is expanding its private investments from ~12% to ~15% of its $166 billion portfolio, partnering with blue-chip private asset managers. Key highlights:

• Strategic Holdings Partnership with KKR: $7.5 billion NAV, ~15% IRR target, $330 million annual yield growing to ~$1 billion medium-term
• Private equity IRRs: ~16% to date
• Private credit yields: ~10% IRR with ~7% cash yields on average
• Income growth target: Operating income from private investments expected to grow from ~$0.9 billion to ~$2 billion annually

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What's the Long-Term Strategy?

Chubb outlined an ambitious digital transformation roadmap at its December 2025 investor presentation:

3-4 Year Digital Transformation Vision:

Technology Investments:

• 3,500+ engineers globally with hubs in Mexico, Greece, India, and Colombia
• Significant investments in data centers, AI algorithms, and LLMs
• In-house Insurtech: $1.3 billion business, profitable and growing quickly

AI Applications Across the Business:

• Commercial underwriting: Ingest, enrich, prioritize, risk assess, rate and recommend
• Consumer sales: Customer engagement and personalization
• Claims: Severity prediction and next-best actions
• Portfolio management: Real-time scenario analysis and dynamic pricing

Long-Term Return Targets (medium-term):

• Core ROE: 14%+
• Core ROTE: 20%+
• Double-digit EPS and tangible book value growth

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5-Year Track Record: Standout Performance

Chubb's Q4 results cap a remarkable five-year transformation:

What drove the outperformance:

• Combined ratio advantage vs. peers: 7% points better over 3, 5, 10, and 20 years
• Admin ratio leadership: 8.2% vs. 14.2% for peers over last 5 years
• Global Life revenue growth: +136% (from $4.1B to $9.6B)

Capital allocation (2021 to Q3 2025): Of $36 billion in operating income, 59% was returned to shareholders through buybacks and dividends, 41% retained for growth

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Key Risks and Concerns

While results were stellar, watch for:

1. Competitive pressure in commercial lines: Greenberg noted the market is "incrementally more competitive"
2. CAT exposure: Full-year CAT losses were $2.92B, up from $2.39B, largely from California wildfires
3. Life insurance volatility: Q1 2025 saw a significant dip to $3.68 EPS due to CAT losses and market impacts

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The Bottom Line

Chubb delivered a blowout Q4 with a 22% EPS beat, record combined ratios, and accelerating premium growth. Management's confident guidance for double-digit EPS and book value growth in 2026 suggests the momentum continues.

Bull case:

• Disciplined underwriting with 7-point combined ratio advantage vs. peers over 20 years
• Digital transformation targeting ~1.5% combined ratio improvement and 20% headcount reduction
• Private investment income growing from $0.9B to $2B annually
• Global diversification with 41% international revenue and $3.8T addressable market

Bear case:

• Competitive pricing pressure in commercial lines
• Elevated CAT activity (California wildfire exposure)
• Execution risk on ambitious automation targets

The earnings call was held February 4, 2026 at 8:30 AM ET.

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Data sourced from Chubb Limited Q4 2025 8-K filed February 3, 2026, December 2025 Investor Presentation, and S&P Global.