CB Chubb Corp. 10-Q 2026-09-30 section summaries

Chubb Limited (CB) — Q3 and nine months ended September 30, 2026

Results and earnings drivers

Q3 2026: Net premiums written increased 1.9% to $15.143B from $14.866B; net premiums earned rose 3.9% to $14.924B from $14.359B. Net investment income grew 8.7% to $1.791B from $1.648B. Despite these gains, total revenue was nearly flat at $16.195B from $16.148B, reflecting $455M of net realized investment losses, versus $283M of gains a year earlier. Total expenses rose to $12.793B from $12.254B, including loss and loss expenses of $7.526B from $6.951B, policy benefits of $1.477B from $1.372B, and acquisition costs of $2.739B from $2.563B. Pretax income was $3.402B from $3.894B. Net income attributable to Chubb increased to $2.844B from $2.801B, and diluted EPS to $7.30 from $6.99; the difference from consolidated net income reflects noncontrolling interests, which represented a $108M loss versus $306M of income.

9M 2026: Net premiums written were $43.853B from $41.708B, and net premiums earned increased 7.1% to $42.270B from $39.484B. Net investment income rose 10.1% to $5.260B from $4.777B. Total revenue increased 5.5% to $46.784B from $44.337B, while total expenses rose to $36.765B from $35.063B. Loss and loss expenses were $20.348B from $20.419B; policy benefits increased to $4.877B from $4.005B, and acquisition costs to $7.967B from $7.291B. Pretax income reached $10.019B from $9.274B. Net income attributable to Chubb rose 12.9% to $8.018B from $7.100B, with diluted EPS of $20.46 from $17.61. Net realized investment results shifted to $700M of losses from $327M of gains, while market-risk-benefit losses improved to $46M from $251M.

Segment performance

Q3 2026 net premiums earned and segment income were: North America Commercial P&C $5.222B / $1.685B (prior-year segment income $1.909B); North America Personal P&C $1.846B / $872M ($729M); North America Agricultural $1.559B / $187M ($200M); Overseas General $4.053B / $840M ($901M); Global Reinsurance $287M / $169M ($171M); and Life Insurance $1.957B / $369M ($332M). Total segment income was $4.122B versus $4.242B.

For 9M, earned premiums and segment income, respectively, were: Commercial P&C $15.584B from $15.245B / $5.192B from $5.511B; Personal P&C $5.409B from $4.996B / $2.016B from $475M; Agricultural $2.389B from $2.258B / $416M from $361M; Overseas General $11.817B from $10.554B / $2.742B from $2.297B; Global Reinsurance $912M from $1.021B / $537M from $440M; and Life $6.159B from $5.410B / $1.028B from $941M. Total segment income was $11.931B from $10.025B. Underwriting income increased to $6.341B from $4.800B; Personal P&C’s improvement was especially pronounced, while Commercial P&C underwriting income declined.

Q3 segment income reconciled to pretax income of $3.402B after realized investment losses ($455M), market-risk-benefit losses ($65M), interest expense ($204M), corporate underwriting and investment losses, and other corporate items. Acquired-intangible amortization was moved from segment results to Corporate, with prior periods recast.

Reserves and insurance exposures

Gross unpaid losses and loss expenses were $91.829B, up from $88.439B a year earlier; net reserves were $72.910B from $70.018B. 9M net incurred losses were $20.348B from $20.419B, including current-year incurred losses of $21.470B from $21.342B and favorable prior-year development of $1.122B from $923M. Net losses paid were $17.405B from $17.686B. Prior-period development was favorable by $511M in Q3 (versus $361M) and $1.080B in 9M (versus $865M). 9M benefits were concentrated in Personal P&C ($553M favorable), Overseas General ($439M), and Commercial P&C ($214M), partly offset by $224M adverse Corporate development. Commercial P&C favorable short-tail development was partly offset by adverse long-tail development, notably excess/umbrella and general liability.

Future policy benefits rose to $21.133B from $18.288B a year earlier. Life premiums and assessments totaled $5.702B from $5.037B in 9M; the life liability roll-forward included a $1.180B reduction from discount-rate assumption changes. Separate-account assets and liabilities were $7.340B, with investment risk generally borne by customers subject to certain guarantees. A Q3 policyholder-behavior review increased market-risk-benefit fair value by approximately $114M, recognized as a loss.

Balance sheet, investments and funding

At September 30, total assets were $283.509B, versus $272.327B at year-end 2025; total shareholders’ equity was $78.512B from $79.779B, including Chubb shareholders’ equity of $73.227B from $73.757B. Goodwill was $20.546B (including $440M attributable to noncontrolling interests), versus $20.207B; other intangible assets were $6.119B versus $6.241B. Tangible common equity on a Chubb-shareholders’-equity basis was $46.562B. Total investments increased to $172.507B from $168.720B. AFS fixed maturities were $125.804B fair value against $134.146B amortized cost. Gross unrealized depreciation rose to $8.690B from $3.948B; Chubb attributed much of the increase to interest rates and did not consider the affected securities to have expected credit losses. The AFS credit-loss allowance was $53M.

Private equities totaled $17.528B, with $7.082B of maximum future funding commitments; some holdings are illiquid and may take up to 14 years to liquidate. Reinsurance recoverables on unpaid losses, net, were $18.919B, with a $283M uncollectible-reinsurance allowance. A $5.0B unconsolidated reserved alternative investment fund represented maximum risk of loss approximately equal to its carrying value.

Long-term debt carrying value increased to $17.990B from $15.728B; short-term debt declined to $668M from $1.499B. Chubb issued $2.909B and repaid $1.500B of debt during 9M, including a $1.5B note maturity, issuing debt in several currencies and maturities. Interest paid was $539M from $454M. Repurchase-agreement obligations were $3.225B, supported by $3.434B of pledged collateral.

Cash flow, capital and other considerations

Operating cash flow increased to $13.748B from $8.756B in 9M; capital expenditures were not separately reported. Common shares outstanding declined from 391,101,227 at December 31, 2025 to 382,530,069 at September 30, 2026. Chubb repurchased 9.927 million shares for $3.299B in 9M, paid $1.157B of dividends, and raised its approved annual dividend to $4.08 per share. A new $7.5B repurchase authorization took effect in July.

AOCI deteriorated to $(9.483)B from $(4.975)B at year-end, primarily reflecting investment-related depreciation; 9M investment OCI was a $5.746B loss, partly offset by currency translation and other items. Private-equity mark-to-market gains also contributed to earnings variability: $281M in Q3 and $314M in 9M 2026.

Chubb (CB) — MD&A summary, Q3 and nine months ended September 30, 2026

Overall performance and investment results

At September 30, 2026, Chubb had $284B of total assets and $73B of shareholders’ equity (excluding noncontrolling interests). Q3 revenue was $16.195B, up from $16.148B; nine-month revenue was $46.784B, up from $44.337B. Q3 net income was $2.736B, down from $3.107B, while net income attributable to Chubb was $2.844B, up from $2.801B. For nine months, net income was $7.965B, up from $7.449B, and attributable net income was $8.018B, up from $7.100B.

Net premiums earned were $14.924B in Q3, from $14.359B, and $42.270B for nine months, from $39.484B. Net investment income rose to $1.791B from $1.648B in Q3 and $5.260B from $4.777B for nine months, driven mainly by higher average invested assets and interest rates. In contrast, net realized investment results swung to a $455M loss from a $283M gain in Q3, and to a $700M loss from a $327M gain year to date. Pre-tax net realized and unrealized investment losses were $4.329B in Q3 and $5.386B for nine months, versus gains of $1.569B and $4.287B, respectively, a swing driven primarily by interest-rate-related unrealized losses. Fixed-maturity total net impact was $4.981B of losses in Q3 and $6.553B for nine months. Private-equity mark-to-market gains, recorded outside net investment income, were $177M in Q3 versus a $35M loss, and $319M for nine months versus $461M.

Total expenses were $12.793B in Q3, from $12.254B, and $36.765B for nine months, from $35.063B. Q3 losses and loss expenses were $7.526B, from $6.951B; policy benefits were $1.477B, from $1.372B; and acquisition costs were $2.739B, from $2.563B. Nine-month policy benefits increased to $4.877B from $4.005B. Operating cash flow was $6.1B in Q3; for nine months it was $13.748B, up from $8.756B, reflecting higher premium and investment-income collections, lower net losses paid, and net proceeds from consolidated investment products. Capital expenditures were not specified in the summaries.

Property and casualty underwriting

P&C written premiums were $13.183B in Q3, from $12.934B, and $37.667B for nine months, from $36.254B. The consolidated combined ratio was 84.1% in Q3 versus 81.8%, but improved to 84.0% for nine months from 87.3%. The current-accident-year combined ratio excluding catastrophes and prior-period development was broadly stable: 82.6% versus 82.5% in Q3, and 82.3% versus 82.4% year to date. Thus catastrophe experience drove much of the reported movement. Catastrophe losses were about $706M in Q3 versus $285M and $1.681B for nine months versus $2.514B; favorable prior-period development and related adjustments were $538M versus $432M and $1.137B versus $936M, respectively. 2026 catastrophe losses included U.S. flooding, hail, tornadoes, wind and winter storms, international weather events and earthquakes; the prior-year period included major California wildfire losses.

Q3 consumer P&C premiums grew 6.2%, while commercial P&C premiums declined 0.5% to $7.568B from $7.606B. Commercial growth was restrained by reduced large-account property, E&S and financial-lines exposures, including additional reinsurance. Personal lines grew 6.9% to $2.908B from $2.721B.

Segment results

Q3 segment revenue is shown as net premiums earned; profit is segment income.

Commercial underwriting income fell to $717M from $941M; the combined ratio worsened to 86.3% from 81.5%, reflecting higher catastrophe losses and lower favorable development. Major Accounts & Specialty premiums declined 5.0%, while middle-market and small-account premiums grew 0.8%. Personal underwriting improved: its combined ratio was 60.3% versus 65.1%, with lower underlying homeowners and personal-excess losses contributing. Agricultural underwriting income was $167M versus $180M; premium growth was mainly MPCI-driven. Overseas General’s Q3 underwriting was pressured by higher catastrophe losses and acquisition costs, although constant-dollar written-premium growth was 5.2%. Global Reinsurance premiums contracted amid higher client retention, lower underlying rates and softer property-reinsurance terms. Life segment income growth reflected investment income, fees and other income from higher assets under management, and favorable Chubb Benefits reserve development; life deposits, excluded from GAAP revenue, rose to $837M from $496M.

Balance sheet, capital and risk

Total investments had $172.538B fair value versus $180.798B cost/amortized cost at September 30; at year-end 2025 they were $168.754B and $170.714B, respectively. Fixed-income fair value was $138.592B; average credit quality was A/A. Available-for-sale fixed maturities had $125.804B fair value versus $134.093B amortized cost. Net unpaid loss reserves rose to $72.910B from $69.672B at year-end, comprising $91.829B gross reserves less $18.919B of reinsurance recoverables.

Financial debt was $18.658B, including $17.990B long-term and $668M short-term, versus $17.227B at year-end. Adjusted capitalization was $100.070B and financial-debt-to-adjusted-capitalization was 18.6%. Chubb repurchased $3.3B of common shares during the first nine months. Its $7.5B repurchase authorization began July 1; $6.0B remained at October 27. Nine-month dividends paid per share were $0.97 in January and April and $1.02 in July and October.

Modeled net-of-reinsurance catastrophe PMLs included $5.458B for worldwide annual aggregate losses at a 1-in-100 return period and $3.601B for U.S. hurricane at 1-in-100. These are model-dependent estimates, assume full reinsurance collection and are not forecasts. The April 2026 catastrophe reinsurance program provides U.S. protection extending to $5.7B, subject to loss characteristics and other programs. Management cited catastrophe severity, reserve uncertainty, reinsurance availability and collectability, market and interest-rate volatility, and regulatory, geopolitical and cyber risks. Chubb reported $13.748B of nine-month operating cash flow and $4.3B of credit-facility capacity; no commercial paper was outstanding.

Chubb reported no material changes in its market-risk exposures from those disclosed in Item 7A of its 2025 Form 10-K. This section provides no new market-risk metrics or specific exposure changes.

Controls and Procedures

As of September 30, 2026, Chubb’s CEO and CFO concluded that its disclosure controls and procedures were effective. No changes during the quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting. This section reports no financial metrics or other material business developments.

The company reported no material changes to the risk factors described in Item 1A of Part I of its 2025 Form 10-K. Those previously disclosed risks remain applicable; this section identifies no new or updated risks, financial metrics, or strategic developments.

For the three months ended September 30, 2026, no Chubb director or officer reported adopting or terminating a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. The section discloses no financial, operating, or strategic developments.