Chubb Q1 overshadowed by $1.47bn in wildfire losses
Chubb Ltd reported a fall in profits for the first quarter of 2025 as heavy catastrophe losses, particularly from the California wildfires, weighed on results, despite strong growth in core insurance and investment income.
The global insurer posted net income of $1.33 billion, or $3.29 per share, down 37.1 per cent from the same period last year. Core operating income was $1.49 billion, or $3.68 per share, down 30.2 per cent.
"We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires," said Evan Greenberg, chairman and chief executive of Chubb.
Pre-tax catastrophe losses reached $1.64 billion, including $1.47 billion tied to the California fires, compared to $435 million in the same quarter last year. The catastrophe impact added 15.9 points to Chubb’s combined ratio, which rose to 95.7 per cent from 86 per cent a year ago.
Still, the company's underlying business remained strong. Excluding catastrophe losses, Chubb’s property and casualty combined ratio improved to 82.3 per cent, and current accident year underwriting income rose 12.2 per cent to $1.83 million.
Total net premiums written grew 3.5 per cent, or 5.7 per cent on a constant dollar basis, to $12.65 billion. Property and casualty premiums climbed 5.0 per cent in constant dollars, with North America commercial and personal insurance businesses showing particular strength after adjusting for one-off items.
"In North America, adjusting for reinstatement premiums and prior structured deals, premiums were up 6.4 per cent," Mr Greenberg said. "Personal insurance grew 10.1 per cent and commercial insurance rose 5.3 per cent."
Overseas, premiums grew 6.5 per cent in constant dollars, led by strong gains in Asia and Latin America, both up 6.1 per cent.
Life insurance also saw a solid quarter, with net premiums written up 10.3 per cent in constant dollars to $1.72 billion and segment income increasing 15.7 per cent.
Despite the catastrophe hit, Chubb generated $1.57 billion in operating cashflow and returned $751 million to shareholders through dividends and share buybacks.
• For more on 2025 Q1 Chubb earnings, see Related Media
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