Chubb posts record operating income per share of $7.66 as total declines
Key Facts
Insurer Chubb posted record core operating income per share of $7.66 in the third quarter, according to its earnings statement, as per-share performance diverged from total operating income. Core operating income per share rose 0.8% from the same period a year earlier, while total core operating income fell 2.2%. Net income, meanwhile, grew 1.5% year on year, also diverging from the aggregate operating measure. Group net premiums written rose 1.9%, alongside premium growth across several businesses and markets. The results reflected improved underwriting income excluding catastrophes and growth in adjusted investment income, as well as a positive contribution from prior-period reserves.
In underwriting, Chubb reported 3.3% growth in current accident-year underwriting income excluding catastrophes, a measure that separates the performance of these operations from the impact of catastrophes. The current accident-year combined ratio on the same catastrophe-excluded basis was 82.6% during the quarter, according to the company statement. Favorable prior-period reserve development totaled $511 million before tax, supporting current-period results through provisions relating to earlier years. This reserve contribution came alongside the reported growth in current accident-year underwriting income. Underwriting performance during the quarter thus included improvement in current business excluding catastrophes, as well as the positive impact of reassessing prior-period reserves.
Across North American operations, personal insurance premiums rose 5.3%, according to Chubb's third-quarter results. Agricultural insurance premiums in the region grew 5.1%, a slower pace than personal insurance. Outside North America, general insurance premiums in Latin America grew 11.7%, outpacing the increase in the same business in Asia. Asian general insurance premium growth was 7.5%, according to the statement, as business continued to expand in both regions. Growth rates in these two regional businesses exceeded the overall increase in group premiums, as well as growth in North American personal and agricultural insurance.
On the investment side, adjusted net investment income rose 6.3%, adding growth from the company's investments to its reported third-quarter performance. The increase outpaced growth in current accident-year underwriting income excluding catastrophes. Life insurance income grew 11.4%, according to Chubb's statement, exceeding the growth rate in adjusted investment income. Life insurance income growth coincided with premium expansion in the general, personal and agricultural insurance businesses covered by the results. At group level, growth in life and investment income coincided with a decline in total core operating income, despite a record per-share figure.
The operating comparisons follow Chubb's revision of its definitions of operating income and segment income to exclude amortization of certain intangible assets from both calculations. The company recast prior-period results under the revised definition, putting the annual comparison on the same accounting basis. "Prior-period results have been recast," it said in the earnings statement as part of its explanation of the adjustment to the operating measures used. The change covers both the group's operating measure and segment income, placing current comparisons in the context of the new definition. Reported operating growth and decline rates therefore use recast prior-period results, rather than a direct comparison with figures originally published under the old definition.
On capital, Chubb's share repurchases during the quarter totaled $1.18 billion, according to the earnings statement. The company also expects a realized gain of $460 million from the sale of its investment in "USI" to "Aon," in a transaction involving the sale of an investment. This expected gain comes alongside the company's reported operating results, while remaining a company forecast for the sale proceeds. Chubb scheduled its third-quarter earnings conference call for Wednesday, 21 October 2026, according to its conference announcement. The call is scheduled to begin at 8:30 a.m. U.S. Eastern Time to discuss the company's performance during the period.