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• Core Operating Income: $1.5 billion, down 31%.

• Total Company Premiums Growth: 5.7% in constant dollars.

• Combined Ratio: 95.7% with underwriting income of $441 million.

• Adjusted Net Investment Income: $1.7 billion, up 12.7%.

• Annualized Core Operating Return on Tangible Equity: 13%.

• Book Value: $65.7 billion, $164 per share.

• Adjusted Operating Cash Flow: $2 billion.

• Capital Returned to Shareholders: $751 million, including $385 million in share repurchases and $366 million in dividends.

• Pre-tax Catastrophe Losses: $1.64 billion.

• Prior Period Development: Favorable $268 million pre-tax.

• Core Operating ROE: 8.6%.

• Effective Tax Rate: 19.1%.

• Warning! GuruFocus has detected 6 Warning Sign with CB.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chubb Ltd (NYSE:CB) reported $1.5 billion in core operating income, supported by excellent underlying underwriting results and double-digit growth in investment income.

• Total company premiums grew 5.7% in constant dollars, with strong contributions from all regions globally.

• The company announced an acquisition of Liberty Mutual's business in Thailand and Vietnam, expanding its presence in Asia.

• Chubb Ltd (NYSE:CB) achieved a combined ratio of 95.7%, with underwriting income of $441 million despite significant catastrophe losses.

• The company's fixed income portfolio yield is 5%, with new money rates averaging 5.5%, benefiting from higher yields as a predominantly buy-and-hold investor.

Negative Points

• Core operating income was down 31% due to significant catastrophe losses from the California wildfires.

• The strong dollar negatively impacted revenue growth, affecting the headline number.

• There is increased competition in the large account property and casualty insurance market, leading to price softening.

• Chubb Ltd (NYSE:CB) faces uncertainty and potential negative impacts from tariffs and the federal budget deficit on interest rates and asset values.

• Financial lines pricing was down 3.2%, indicating softness in this area.

Q & A Highlights

Q: How is Chubb Ltd approaching growth strategy amid potential recession, inflation, and increased competition in property casualty insurance? A: Evan Greenberg, Chairman and CEO, stated that Chubb's strategy remains unchanged and is enduring. The company sees growth opportunities globally, particularly in middle market and small business segments. Chubb is disciplined in its approach and focuses on areas like E&S in the US, personal lines, and consumer business overseas. The company leverages technology and data to access more customers and improve efficiency.