01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Chubb Limited (NYSE: CB) closed 2025 with a record year: net income attributable to Chubb rose 11.2% to $10.31 billiona (diluted EPS $25.68, up from $22.70), driven by double-digit growth in P&C underwriting income and Life segment income plus higher net investment income.
Consolidated net premiums written grew 6.6% to $54.84 billionb (7.0% in constant dollars), with P&C premiums up 5.4% and Life Insurance premiums up 15.1%. The P&C combined ratio improved slightly to 85.7% from 86.6%, though the reported figure absorbed $2.9 billion of net catastrophe losses, including $1.47 billion from California wildfires in the first quarter. Favorable prior period development of $1.13 billion partly offset this, and the CAY combined ratio excluding catastrophes improved to 81.9% from 83.1%.
Balance sheet and capital return are central to the investment case. Total assets reached $272.3 billion and Chubb shareholders' equity rose to $73.8 billionc, up from $64.0 billion. Net investment income hit a record $6.5 billion on higher invested assets, and operating cash flow was $12.8 billion.
Chubb repurchased $3.4 billiond of shares in 2025 and had $2.11 billion of authorization remaining as of February 26, 2026. Dividends were $3.82 per share in 2025, and shareholders approved an annual dividend of up to $3.88 per share for 2026. Financial debt rose to $17.2 billion, lifting the financial debt-to-adjusted-capitalization ratio to 18.4% from 18.0%.
Key risks include exposure to catastrophes (1-in-100 U.S. hurricane PML of $3.9 billion, or 5.3% of equity), long-tail casualty reserve uncertainty (net unpaid losses of $69.7 billion, with A&E at about 1.4% of gross reserves), a 17% below-investment-grade share of fixed income, and Swiss and Bermuda tax changes including the new 15% Bermuda corporate income tax effective 2025. The effective tax rate rose to 18.6% from 15.8%. Management also noted an unfavorable $306 million adverse development in the corporate run-off portfolio, mainly environmental and molestation claims.
02—Key points
Key Highlights
- Record 2025 net income attributable to Chubb of $10.31 billion, up 11.2%; diluted EPS of $25.68 versus $22.70 in 2024.
- Net premiums written rose 6.6% to $54.84 billion, with Life Insurance premiums up 15.1% and P&C premiums up 5.4%.
- P&C combined ratio improved to 85.7% from 86.6%, despite $2.92 billion of net catastrophe losses, including $1.47 billion from California wildfires; the CAY combined ratio excluding catastrophes improved to 81.9%.
- Record pre-tax net investment income of $6.5 billion (up 9.0%), with operating cash flow of $12.8 billion.
- Shareholder returns: $3.4 billion of 2025 buybacks, $2.11 billion of authorization remaining at February 26, 2026, and an annual dividend of up to $3.88 per share approved for 2026.
- Leverage rose modestly: financial debt of $17.2 billion increased the debt-to-adjusted-capitalization ratio to 18.4% from 18.0%, following 2025 issuances including a $1.25 billion 4.9% senior note and CNH-denominated bonds and loans.
- Effective tax rate increased to 18.6% from 15.8%, driven mainly by Bermuda's new 15% corporate income tax; the OECD minimum tax framework adds further uncertainty.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $59.40B$55.75B | +6.5% |
| Interest Expense | $764.00M$741.00M | +3.1% |
| Net Income | $10.31B$9.27B | +11.2% |
| EPS (Basic) | $25.93$22.94 | +13.0% |
| EPS (Diluted) | $25.68$22.70 | +13.1% |
| Shares Outstanding (Basic) | 397.61M404.19M | −1.6% |
| Shares Outstanding (Diluted) | 401.51M408.49M | −1.7% |
05—Questions
Frequently Asked Questions
How did Chubb's underwriting performance trend in 2025?
Underwriting improved on a headline basis. The P&C combined ratio fell to 85.7% from 86.6%, helped by $1.13 billion of favorable prior period development. Underlying performance was stronger still, with the CAY combined ratio excluding catastrophes improving to 81.9% from 83.1%. Catastrophe losses rose to $2.92 billion from $2.39 billion, mainly from California wildfires, and North America Personal lines saw its combined ratio rise to 91.5% on those losses.
Is Chubb's reserve position adequate, and where is the risk concentrated?
Management states its reserves are adequate, with net unpaid losses of $69.7 billion. About 76% of loss reserves relate to casualty business, which carries long-tail uncertainty. Sensitivities are material: a one-point change in the workers' compensation tail factor moves reserves about $1.1 billion, and a five-point change in the U.S. excess/umbrella tail factor moves them about $0.9 billion. The corporate run-off portfolio also developed adversely by $306 million in 2025, driven by environmental and molestation claims.
How strong is Chubb's capital and liquidity position?
Capital is strong. Chubb shareholders' equity reached $73.8 billion, and consolidated net worth is $78.7 billion against a $46.0 billion covenant minimum. Statutory capital and surplus for property and casualty subsidiaries rose to $55.6 billion. Financial debt-to-adjusted-capitalization was 18.4%. Liquidity is supported by a $3.0 billion syndicated credit facility, a $2.0 billion commercial paper program, and $12.8 billion of operating cash flow.
What are the main risks flagged in the filing that could affect future earnings?
Key risks include severe catastrophes (a 1-in-100 U.S. hurricane event implies about $3.9 billion of pre-tax net losses), reserve development on long-tail casualty lines, and investment risk, since about 17% of the fixed income portfolio is below investment grade and a 100 bp rate rise would reduce fixed income value by about $6.8 billion. Other risks include cyber and AI-related exposures, regulatory and tax changes (including Bermuda's 15% corporate tax and the OECD global minimum tax), and Swiss-law constraints on share repurchases and withholding tax on dividends.
What drove growth in the Life Insurance and Overseas General segments?
Life Insurance premiums rose 15.1% (17.3% in constant dollars), with international life up 17.4% in constant dollars, mainly in North Asia, and Chubb Benefits up 17.3%. Life segment income grew 13.1% to $1.24 billion. Overseas General premiums grew 7.5% (8.0% in constant dollars), with Asia up 10.7% and Latin America up 6.3%. Segment income rose 10.8% to $3.17 billion. The 2025 acquisition of LMG Insurance in Thailand contributed, and Liberty Insurance in Vietnam closed in February 2026.
06—Continue