- Record Core Operating Income: 2025 full-year core operating income reached $10B ($24.79/share), up 9% and 11% respectively.
- P&C Underwriting Growth: Q4 P&C underwriting income surged 40% to $2.2B, with a record-low 81.2% combined ratio.
- Capital Returns: Chubb returned $1.5B to shareholders in 2025, including $3.4B in share repurchases and $1.5B in dividends.
- International P&C Premiums: Q4 international premiums rose 10.8%, driven by 14.7% growth in Latin America and 13% in Asia.
- Investment Income Growth: Full-year adjusted net investment income hit $7B, up 9% year-over-year.
Business Segment Performance
The company achieved record earnings, with total company net premiums growing almost 9% in the quarter and over 6.5% for the year. International P&C premiums were up 10.8% in the quarter, with Latin America growing 14.7% and Asia growing 13%. North America P&C premiums were up over 6.5%, with agriculture premiums up over 45%. The growth in these segments was driven by a combination of factors, including selective expansion in markets with adequate pricing, as noted by John Keogh, who attributed financial lines growth to "selective expansion in markets with adequate pricing."
Valuation and Dividend Yield
With a Price-to-Book Ratio of 1.77, Chubb's valuation appears reasonable, especially considering its strong underwriting profitability, as indicated by a combined ratio of 81.2%. The company's Dividend Yield of 1.16% is also attractive, given its history of returning capital to shareholders. In 2025, Chubb returned $1.5 billion of capital to shareholders, including $3.4 billion in share repurchases and $1.5 billion in dividends.
Outlook and Guidance
The company expects adjusted net investment income in the first quarter of 2026 to be between $1.81 billion to $1.84 billion and a core operating effective tax rate for 2026 to be in the range of 19.5% to 20%. Analysts estimate next year's revenue growth at 5.7%, which is slightly lower than the company's historical growth rate. However, Chubb's strong performance in 2025 and its guidance for 2026 suggest that it is well-positioned for continued growth.
Digital Transformation and Alternative Capital
Chubb is focused on digital transformation, with a goal of achieving a 150-basis-point combined ratio improvement over 3-4 years, mainly driven by expense reductions in OpEx and cost of claims. The company is also mindful of its alternative capital allocation, with a target of raising private investments from 12% to 15%. Evan G. Greenberg emphasized the company's approach to alternative capital, stating that they are "mindful of statutory and S&P implications on capital usage."