Strong Core Operating Earnings
Core operating earnings of $2.7 billion, or $6.82 per share, both up substantially year-over-year; excluding catastrophe losses, core operating income rose 10.7% and EPS rose 13.5%.
April 21st, 2026
Summary
- Earnings Call Date:
- 2026-04-21
- Change Since:
- +0.78%
- Next Earnings Date:
- 2026-07-28
Earnings Call Sentiment
PositiveThe call presented a strong quarter with multiple positive financial and operating metrics: substantial core operating earnings, double-digit premium growth, robust investment income and high returns on tangible equity, coupled with active capital returns and favorable reserve development. However, the company also flagged meaningful market challenges—notably accelerating property pricing deterioration in large account/shared/layered segments, heightened competition in London and E&S channels driven by alternative capital and MGAs, a $500 million quarter of catastrophe losses, and $1.6 billion of unrealized investment markdowns. Management emphasized disciplined underwriting and balance-sheet strength as mitigants and signaled deliberate risk management actions (including shrinking poorly priced property exposure and opportunistic reinsurance). On balance, the positive operational and capital results in the quarter outweigh the near-term market and macro headwinds called out by management.
Company Guidance
Management's forward-looking guidance included Q2 adjusted net investment income of $1.825–$1.85 billion (after Q1 adjusted NII of $1.84 billion and invested assets near $173 billion) and a full‑year core operating effective tax rate of 19.5%–20% (Q1 was 19.3%); they also reiterated expectations to continue generating strong growth in operating earnings, double‑digit EPS growth and double‑digit tangible book value growth, citing current annualized core operating return on tangible equity of 20.6% and core operating ROE of 14% as context.
Robust Premium Growth
Total company net premiums grew 10.7% to more than $14 billion. P&C premiums rose 7.2% and Life premiums increased more than 33% (both benefited from foreign exchange).
Broad Geographic and Product Growth
International retail premiums rose >15%; consumer A&H and personal lines +20%+, Europe +17.5%, Asia +12%+, Latin America ~18%. North America premiums +4.1% (or +7.8% excluding large account property).
Underwriting Performance
P&C underwriting income of $1.8 billion with a statutory combined ratio of 84%. On a current accident year basis excluding cats, underwriting income grew 9.8% with a combined ratio of 82.1%.
Strong Investment Income and Asset Base
Adjusted net investment income of $1.84 billion (up >10% year-over-year), fixed income portfolio yield 5.1%, new money rate ~5.5% as of March 31. Invested assets increased to approximately $170–$173 billion.
Healthy Returns and Capital Management
Annualized core operating return on tangible equity 20.6% and core operating ROE 14%. Returned $1.5 billion to shareholders (including $1.1 billion share repurchases at an average price of $325.06 and $380 million in dividends).
Book and Tangible Book Value Growth
Tangible book value per share highlighted as up 21.5% (Evan G. Greenberg). Peter Enns reported book and tangible book value per share, excluding AOCI, grew 12.1% and 16.5% year-over-year — both metrics indicate meaningful capital growth.
Favorable Reserve Development and Cash Flow
Pretax prior period development favorable $301 million (short-tail favorable $322 million; long-tail unfavorable $21 million). Adjusted operating cash flow of $3.8 billion and record cash/invested assets levels reported.
Operator
Thank you for standing by. My name is [ Gail ], and I will be your conference operator today. At this time, I would like to welcome everyone to the Chubb Limited First Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.
Susan Spivak Bernstein
Thank you, and let me add my welcome to our March 31, 2026 first quarter earnings conference call. Our report today will contain forward-looking statements, including statements relating to the company performance, pricing and business mix, growth opportunities and economic and market conditions, which are subject to risks and uncertainties, and actual results may differ materially. See our recent SEC filings, earnings release and financial supplement, which are all available on our website at investors.chubb.com for more information on factors that could affect these matters. We will also refer today to non-GAAP financial measures, reconciliations of which to the most direct comparable GAAP measures and related details are provided in our earnings release and financial supplement. Now I'd like to introduce our speakers. First, we have Evan Greenberg, Chairman and Chief Executive Officer; followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions. Also with us to assist with your questions are several members of our management team.
And now it's my pleasure to turn the call over to Evan.
Evan G. Greenberg
Good morning. We had an excellent quarter and start to the year. Our results speak to the strength and resilience of our company in...
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