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    CB
    Earnings call· Jun 2026(Q2 FY26)

    Chubb Ltd CB

    Jul 22, 2026 Source

    Executive summary

    Chubb Limited Q2 FY26 — Strong Underwriting and Investment Income Drive Double-Digit EPS Growth

    Chubb delivered a very strong quarter, driven by robust P&C underwriting, record investment income, and growth in its life business. The company's diversified global portfolio and disciplined underwriting approach enabled it to outperform despite softening market conditions in certain commercial P&C lines. Management expressed confidence in continued strong earnings growth, leveraging its broad capabilities and strategic capital management.

    Highlights

    5

    • Core operating earnings of $2.8 billion, up 14.6% over prior year.

    • Core operating EPS of $7.26, up 18.2% over prior year.

    • P&C underwriting income over $1.9 billion, up almost 19%, with a combined ratio of 83.8%.

    • Adjusted net investment income was a record $1.88 billion, up more than 11%.

    • Annualized core operating return on tangible equity was 21.2% for the quarter.

    Concerns

    4

    • Soft market conditions spreading beyond property to more casualty lines, particularly E&S, with pricing failing to keep pace with loss costs.

    • Financial lines continue to be soft, with some newer players underwriting at inadequate prices and terms.

    • Premiums in major accounts and specialty or E&S declined 9% in the quarter due to property.

    • Market pricing for property business given up or passed on was down around 40%.

    Guidance & targets

    2
    CategoryTargetConfidence
    Core operating effective tax rate
    19.5% to 20%
    medium materiality
    High
    EPS Growth
    Very strong and potentially double-digit growth
    high materiality
    High

    Segment performance

    14
    SegmentRevenueYoYQoQMargin
    Global P&C
    Overall global P&C premiums grew 3%, with a stronger growth rate when excluding specific property lines.
    Growth excluding large account and E&S property: 6.3%
    		—3%——
    Overseas General
    Overseas General division showed strong growth, particularly in constant dollar terms.
    Growth in constant dollar: 4.8%
    		—10.2%——
    North America
    Overall North America premiums were up slightly, with varied performance across sub-segments.
    		—0.5%——
    North America Commercial
    North America Commercial experienced a decline primarily due to property lines, but showed growth when excluding those specific areas.
    Growth excluding major in specialty property: 4.1%
    		—-2.3%——
    North America Commercial - Middle Market & Small Commercial
    This segment demonstrated strong growth, particularly in P&C lines, leveraging its extensive footprint and product capabilities.
    P&C lines growth: 12%Financial lines growth: -3%Gross premiums annually: >$9.5 billion
    		—9%——
    North America Commercial - Major Accounts & Specialty (E&S)
    Premiums declined in this segment, primarily attributed to property lines.
    		—-9%——
    North America Personal Lines
    The high net worth personal lines business had a strong quarter with solid premium growth and high retention.
    Renewal retention (account basis): 90%Gross premiums annually: >$8 billion
    		—6%——
    International Retail
    This segment, representing 90% of Overseas General, showed strong double-digit growth, with both consumer and commercial lines contributing.
    Gross premiums annually: >$17 billionConstant dollar growth: 6%Consumer-related businesses (A&H and Personal Lines) growth: >12%Commercial lines growth: >11%
    		—11.9%——
    International Retail - Latin America
    Latin America was a strong growth driver within International Retail.
    		—15.6%——
    International Retail - Asia
    Asia contributed significantly to International Retail's growth.
    		—12%——
    International Retail - Europe
    Europe showed solid growth within International Retail.
    		—7.5%——
    London Wholesale
    Premiums in London wholesale declined slightly due to a highly competitive market, particularly in property and U.S. casualty.
    As % of international P&C: ~10%
    		—-1%——
    International Life
    The life insurance business, predominantly in Asia, saw strong growth in premiums and deposits, contributing significantly to pretax income.
    Annual premiums: >$8 billionGrowth primarily in North Asia (China, Hong Kong, Korea, Taiwan)
    		—14.5%—$332 million pretax income
    North America Chubb Worksite Benefits
    This business segment demonstrated strong premium growth, leveraging its distribution and technology.
    		—14%——

    Operational metrics

    26
    Core operating earnings
    $2.8 billionup 14.6% YoY
    Q2 FY26

    Strong results driven by P&C underwriting, investment, and life income.

    Core operating EPS
    $7.26up 18.2% YoY
    Q2 FY26

    Reflects strong overall performance.

    Debt issued
    $2.2 billion
    Q2 FY26

    Issued across a few currencies for general corporate purposes, including debt repayment and refinancing.

    Capital returned to shareholders
    $1.4 billion
    Q2 FY26

    Includes share repurchases and dividends.

    Book value
    $75 billion
    Q2 FY26

    Ended the quarter at an all-time high.

    Book value per share
    $195.45
    Q2 FY26

    Ended the quarter at an all-time high.

    Book value per share excluding AOCI growth
    2.8%QoQ
    Q2 FY26

    Growth for the quarter.

    Book value per share excluding AOCI growth
    11.4%YoY
    Q2 FY26

    Growth from last year.

    Tangible book value per share excluding AOCI growth
    3.8%QoQ
    Q2 FY26

    Growth for the quarter.

    Tangible book value per share excluding AOCI growth
    15.8%YoY
    Q2 FY26

    Growth from last year.

    Net loss reserves
    $69 billionup 4% YoY
    Q2 FY26

    Increased from the second quarter last year.

    Invested assets
    $175 billionup from $161 billion YoY
    Q2 FY26

    Increased significantly year-over-year.

    A-rated portfolio
    $173 billionup $2.5 billion QoQ, up 14.3% YoY
    Q2 FY26

    Increased in the quarter and over the last 12 months.

    Public fixed income portfolio income
    $1.63 billionup 12% YoY
    Q2 FY26

    Generated consistent income.

    Private investments income
    $250 millionup 9.5% YoY
    Q2 FY26

    Income from this book is more variable but expected to trend higher over time.

    Fixed income portfolio book yield
    5.1%
    Q2 FY26

    The portfolio's book yield.

    Fixed income reinvestment rate (new money rate)
    5.5%
    Q2 FY26

    Structurally attractive level, sitting above the portfolio's book yield.

    North America Commercial pricing (commercial property and casualty excluding fin lines and comp)
    1.3%
    Q2 FY26

    Overall pricing for this segment.

    North America Commercial property pricing
    -6%
    Q2 FY26

    Pricing for property in North America Commercial.

    North America Commercial property pricing (shared and layered, major in specialty)
    -12%
    Q2 FY26

    Pricing for the business Chubb wrote in this specific property segment.

    North America Commercial property pricing (middle market and small commercial)
    2.3%
    Q2 FY26

    Pricing for property in this segment.

    North America Commercial casualty pricing
    7.1%
    Q2 FY26

    Overall casualty pricing in North America Commercial.

    North America Commercial fin lines pricing
    0.3%
    Q2 FY26

    Pricing for financial lines in North America Commercial.

    US casualty loss cost increase (primary)
    6% to 7%
    per year

    Loss costs are rising steadily for primary casualty.

    US casualty loss cost increase (excess)
    9.5% to 12%
    per year

    Loss costs are rising steadily for excess casualty.

    Short tail loss cost trend
    4.5%steady
    Q2 FY26

    No change observed in short tail loss cost trends.

    Industry KPIs

    9
    MetricValueDetails
    Combined ratio83.8%%
    Capital returns$1.4 billionUSD
    ROE operating ROE21.2%%
    Catastrophe losses$475 millionUSD
    Book value per share$195.45USD/share
    Net investment income$1.88 billionUSD
    Retention persistency90%%
    Life specific when present$332 millionUSD
    Prior year reserve development$441 million favorableUSD

    Risks & headwinds

    4
    Soft market conditions in commercial P&CCurrent quarter and ongoing

    Pricing in certain casualty areas failing to keep pace with loss costs; financial lines soft; property pricing down 6% overall in North America Commercial, and down 12% in shared and layered major/specialty property.

    Mitigation: Chubb's global diversification, disciplined underwriting, and focus on segments like middle market, small commercial, personal lines, and international consumer businesses provide resilience and handles to pull.

    Rising US casualty loss costsOngoing

    6% to 7% per year for primary casualty; 9.5% to 12% per year for excess casualty.

    Mitigation: Maintaining disciplined underwriting and sophisticated rating algorithms to ensure pricing adequacy, despite market competitiveness.

    Inadequate pricing by newer players in financial lines and London wholesaleCurrent quarter and ongoing

    Newer players underwriting in financial lines at inadequate prices and terms; London actively writing U.S. casualty at rates and terms that 'can only end one way'.

    Mitigation: Chubb maintains underwriting discipline and leverages its broad diversification to mitigate impact, focusing on profitable business rather than market share at any cost.

    Variability in European growthCurrent quarter

    Europe grew nearly 7.5%, but management noted variability based on competitive market and mix.

    Mitigation: Management remains bullish on European opportunities, with a large installed base and strategic focus areas to drive growth.

    What to watch in Q3 FY26

    5

    EPS Growth

    Longer period
    Current18.2% YoY (Q2 FY26)
    TargetVery strong and potentially double-digit growth

    Why it matters

    Management's outlook statement on EPS growth was a key point of discussion, and its realization will confirm the company's ability to outperform despite market headwinds🌐.

    I am quite confident💬. In fact, I am confident in our ability to produce very strong and potentially double-digit EPS growth and will produce strong earnings growth as we go forward.

    Q&A highlights

    6

    Did recent regulatory changes in Singapore (A&H deductibles) and Hong Kong (investment products for Mainland China visitors) impact flows or require product redesign?

    No, there was no impact. Chubb does not write the type of A&H affected in Singapore (major medical), and the Hong Kong changes were aimed at 'bad actors' not impacting Chubb's flows.

    “No, I'll keep it simple. No. There was no impact. We don't write that kind of accident and health that you're imagining in Singapore.”

    asked by Matthew Heimermann · answered by Evan G. Greenberg

    2 min read6 chapters

    Detailed Narrative

    01

    Global Diversification and Underwriting Discipline

    Chubb's strong Q2 FY26 results underscore its competitive profile, healthy balance sheet, and diversified global operations. The company's strategy of disciplined underwriting across various geographies and product lines, including commercial and consumer businesses, allows it to navigate challenging market conditions. This diversification provides resilience, enabling consistent wealth compounding and outperformance, even as certain segments face competitive pressures.

    02

    P&C Market Conditions and Loss Costs

    Soft market conditions are expanding beyond property into certain casualty lines, particularly E&S, and some classes of large account and middle market. Pricing in numerous casualty areas is not keeping pace with loss costs, which are rising at a steady 6% to 7% for primary casualty and 9.5% to 12% for excess. Financial lines remain soft, with new entrants offering inadequate pricing and terms, a trend management views as unsustainable.

    03

    North America Commercial Performance

    North America Commercial premiums were up 0.5% overall, with commercial down 2.3%. However, excluding major accounts and specialty property, commercial was up 4.1%. The middle market and small commercial division showed strong growth, with premiums up almost 9%, driven by P&C lines up 12%. Major accounts and specialty (E&S) declined 9% due to property, where pricing was down 12% in shared and layered business, and market pricing for business passed on was down around 40%.

    04

    International Business Growth

    International Retail, representing 90% of Overseas General, grew almost 12% (6% in constant dollar). Consumer-related businesses (A&H and Personal Lines) were up over 12%, and commercial lines over 11%. Latin America grew 15.6%, Asia 12%, and Europe nearly 7.5%. The London wholesale business saw premiums down about 1% due to high competitiveness, including U.S. casualty being written at rates management believes are unsustainable.

    05

    Life and Worksite Benefits Expansion

    Chubb's international life insurance business saw premiums and deposits rise almost 14.5%, primarily driven by North Asia (China, Hong Kong, Korea, Taiwan). The Life division produced $332 million of pretax income, up 9% year-over-year, and now generates over $8 billion in annual premiums, up from $2.5 billion five years ago. The North America Chubb Worksite Benefits business also grew premiums by 14%, with management seeing significant organic growth opportunities.

    06

    Technology and Data as Competitive Advantage

    Management highlighted technology, data, scale, and breadth of capability as a structural and secular competitive advantage, particularly in the small and middle market. The company uses advanced rating algorithms and risk selection, supported by technology, to improve pricing and manage exposure. While acknowledging rising technology costs, management stated that token usage costs are a minor fraction compared to the efficiencies and insights gained, which are measured in hard dollars.

    AI-generated summary of the company’s earnings call. Not investment advice.