Chubb (CB 1.82%), a major global insurance provider offering commercial and consumer property & casualty (P&C), accident and health, and life insurance, released its second quarter earnings on July 22, 2025. non-GAAP EPS was $6.14, above the $5.98 analyst estimate The period also saw notable improvement in underwriting profitability with a lower combined ratio, boosted by strong life insurance growth and robust investment income. Overall, the quarter stood out for broad-based premium increases, higher income, and continued margin strength, even with competition increasing in several core markets.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Chubb’s Business Model and Strategic Focus

Chubb (CB 1.82%) is one of the world’s largest publicly traded property & casualty insurers. Its core business provides all types of insurance — from commercial P&C and personal lines (such as home and auto) to life insurance and global reinsurance. The company has operations spanning 54 countries and maintains a diverse revenue mix through its broad range of products and geographic reach.

In recent years, Chubb has focused on expanding beyond North American markets, especially into Asia, Latin America, and Europe. Its strategy emphasizes disciplined underwriting—meaning it carefully decides which risks to insure and at what price—and looks to mitigate risk across various lines and geographies. The company's scale, underwriting expertise, and balance between commercial, personal, agriculture, and life products are key factors in its ongoing performance. A focus on human capital, with 43,000 employees globally, supports its execution at both local and global levels.

Quarter in Detail: Growth and Underwriting Performance

In Q2 2025, Chubb increased total net premiums written by 6.3% compared to prior-year levels (GAAP). This growth was reflected across most major segments. North America commercial insurance rose 4.1%, while personal insurance in the region jumped 9.1%. The life insurance business also reported an impressive 14.1% increase in net premiums written. In global terms, overseas general insurance premiums were up 8.5%, with Latin America, Asia, and Europe all showing double-digit or high-single-digit increases in constant currency terms.

The property & casualty unit remains central to Chubb’s profit engine. P&C underwriting income rose by 15.0%, reaching $1.63 billion. The combined ratio—a key measure of insurance profitability that adds together the cost of claims, expenses, and other costs as a percentage of premiums earned—improved by 1.2 percentage points from the prior year to 85.6%. A ratio below 100% indicates profitability from underwriting alone—all else before investment income. This improvement was achieved even as catastrophe (CAT) losses grew slightly both in dollar amount and as a proportion of premiums. North America saw a small drop in agriculture premium (down 3.3%), but this was more than offset by stronger growth elsewhere.

Investment income, another core source of profitability for insurers, rose 6.8% on a pre-tax basis. Adjusted net investment income, which eliminates some non-core items, climbed 7.9%. Life insurance segment income contributed $305 million, up 10.4% year-over-year. Book value per share, a measure of shareholder equity per share, increased to $174.07 (up 6.1% sequentially).

Chubb’s international operations provided further balance to results this period. Latin America expanded premiums by 17.3%, and Europe was up 8.2%.

A key point noted this quarter was the increase in price competition in certain P&C segments, especially large account property insurance in North America. Rates were dropping in this area, even as overall terms and conditions remained stable. Middle market and small commercial insurance segments stayed more stable, with positive pricing trends and higher growth. Chubb reported a middle market and small commercial premium increase of 8.5%. In contrast, North America agriculture saw a 3.3% decline in premiums due to weaker commodity prices, though this was offset by underwriting improvement—its combined ratio improved from 94.4% to 89.1%.

The company recorded $1.06 billion in capital returned to shareholders—$676 million in buybacks and $388 million in dividends.

Looking Forward: Guidance and Investor Watchpoints

Chubb’s management did not issue formal numeric financial guidance for the next quarter or for fiscal 2025, which is in line with its standard practice. Leadership expressed confidence that “about 80%” of the company’s businesses around the world have strong growth prospects, as reiterated by management in recent communications. Executives also signaled ongoing investments in technology, with annual technology spending expected to remain in the $1.1–$1.2 billion range, as discussed by management in the most recent earnings call. These investments are directed toward both maintaining core operations and developing new capabilities in analytics and customer-facing systems.

Investors should watch several evolving trends in future quarters. First, the competitive landscape in large property and certain commercial insurance markets is generating downward pressure on rates, which could affect future margins if pricing continues to drop faster than costs. North America agriculture remains at risk due to commodity price fluctuations, and global catastrophe trends will remain important to monitor given rising CAT losses industry-wide. Expansion in international and life insurance lines remains a positive offset to some North American softness. Dividend payments and capital returns remain key indicators of discipline and capital strength.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.