CB · Q2 2025 Earnings

Neutral

Chubb Limited

Reported July 22, 2025

30-second summary

30-second take: Chubb delivered $13.1B revenue (+6.8% YoY) and core operating EPS of $6.14, with a P&C combined ratio of 85.6% absorbing $625M of catastrophe losses. Underwriting quality remains the story — the CAY ex-cat combined ratio of 82.3% and 21.0% core operating ROTE show pricing discipline is intact — but net premiums written grew just 6.3%, and North America Agricultural (-4.3%) and Global Reinsurance (-0.3%) went backwards. Life (+14.2%) and North America Personal (+11.1%) are carrying the growth.

Headline numbers

EPS

Q2 FY2025

$6.14

Revenue

Q2 FY2025

$13.13B

+6.8% YoY

Key financials

Q2 FY2025

Metric	Q2 FY2025	YoY
Revenue	$13.13B	+6.8%
EPS	$6.14	—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q2 FY2025

Segment	Q2 FY2025	YoY
North America Commercial P&C Insurance	$5.177B	+5.7%
North America Personal P&C Insurance	$1.681B	+11.1%
North America Agricultural Insurance	$0.598B	-4.3%
Overseas General Insurance	$3.542B	+5.8%
Global Reinsurance	$0.338B	-0.3%
Life Insurance	$1.789B	+14.2%

Capital & returns

Q2 FY2025

Segment	Q2 FY2025
ROE	17.6%
Core Operating ROTE	21.0%

Other KPIs

Q2 FY2025

Segment	Q2 FY2025
P&C Combined Ratio	85.6%
P&C CAY Combined Ratio ex Catastrophes	82.3%
Catastrophe Losses (pre-tax)	$625 million
Prior Period Development (favorable)	$249 million
Net Premiums Written Growth	6.3%
Adjusted Operating Cash Flow	$3,231 million

Management tone

Greenberg framed the quarter as "excellent" with record core operating EPS, record core operating income, and record published underwriting income — language that is unambiguously confident. The strategic message is breadth: "all of our businesses in regions of the world contributed," with explicit callouts to middle market, small commercial, personal lines, and ENS in North America; commercial and consumer P&C internationally; and life insurance in Asia and the US.

Two more pointed signals worth flagging: - Selective retreat in large-account property. Greenberg said large-account short-tail business — both admitted and E&S — "has grown quite competitive," with property pricing down more than 12% in large account versus up over 8% in middle market and small commercial. He stated plainly: "we've begun walking away where necessary." This is a deliberate signal that Chubb is ceding share at the top end of the property market rather than chasing inadequate rate. - Macro caution coexisting with confidence. Greenberg flagged budget deficits, trade and immigration policy, and a weaker dollar as potential headwinds to growth and inflation, and said he expects "a steeper yield curve" — framed as a tailwind for investment income. The tone is "complex picture, but our positioning is excellent"; he reiterated that "roughly 80% of our businesses have good growth and continued growth prospects" and expects the pattern of revenue and earnings growth to continue.

Q&A highlights

Gregory Peters · Raymond James

How are litigation challenges affecting casualty and general liability coverages? Is it making coverage uninsurable? How does management see tort reform playing out given the difficulty of federal resolution and the lengthy state-by-state approach?

Evan Greenberg separated public policy concerns (addressed in their WSJ op-ed) from insurance underwriting. He noted litigation cost inflation runs 7-9% annually, roughly 2.5% of GDP, with most costs going to trial bar and litigation funding rather than aggrieved parties. He began to discuss insurance pricing for liability but was cut off by a technical issue before completing the answer.

Litigation cost inflation: 7-9% annuallyTotal litigation cost: approximately 2.5% of GDPOnly a fraction of the ~$550 billion in litigation costs reaches actual aggrieved partiesAnswer incomplete due to technical disconnection

What to watch into next quarter

Net premiums written growth trajectory: 6.3% this quarter. Watch whether Q3 stabilizes above 6% or trends toward 5%, which would signal commercial P&C pricing has crested.

North America Commercial combined ratio: with casualty/GL litigation cost inflation running 7-9% per Greenberg's Q&A commentary, watch whether the segment's loss ratio creeps higher and whether rate adequacy is keeping pace. The CAY ex-cat 82.3% is the number to track.

Agricultural segment recovery: -4.3% YoY net premiums earned. Watch whether Q3 (harvest-aligned) returns to growth or whether commodity weakness pulls the full-year flat-to-down.

Global Reinsurance pricing reads: flat top line ahead of mid-year and Jan 1 renewal cycles. Watch management commentary on reinsurance pricing direction — softening pricing here often precedes broader commercial market softening 6-12 months out.

Life Insurance margin contribution: +14.2% top-line growth is the standout. Watch whether Life's segment income scales proportionally or whether growth is being bought through higher new-business strain.

Large-account property share loss: Greenberg explicitly said Chubb is "walking away" from inadequately priced large-account property. Watch whether NA Commercial top-line growth decelerates further as that retreat plays through, and whether middle market/small commercial growth offsets it.

Sources

Chubb Limited Q2 2025 earnings press release, filed 2025-07-22 (SEC EDGAR exhibit 99.2)
Q2 2025 earnings call transcript (prepared remarks complete; analyst Q&A partial due to a technical disconnection during the first exchange)

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