Wildfire Losses Drops Chubb Q1 Net Income 38%, While Tariffs Create ‘Confusion’

First quarter 2025 net income at Chubb fell nearly 38% to about $1.3 billion as losses from the California wildfires overcame underlying results.

Chief Executive Officer Evan G. Greenberg in a statement said the insurer “had a good first quarter that was overshadowed” by the wildfires losses it booked. Q1 catastrophe losses were $1.6 billion—$1.47 billion from the California wildfires. Chubb recorded $435 million in catastrophe losses in Q1 2024.

Chubb’s Q1 consolidated combined ratio worsened nearly 10 points compared to the same period a year ago, to 95.7. The combined ratio in Chubb’s North America personal insurance segment was an oppressive 159.5 compared to 87.4 in Q1 2024.

Underwriting income dropped 68.5% to $441 million during the first three months of 2025.

Underlying results were favorable. Q1 underwriting income excluding catastrophes was up more than 12% in P/C to about $1.8 billion and the combined ratio was 82.3 compared to 83.7 a year ago. Total North American net premiums written were up 3.4% to about $6.6 billion, with a NPW increase of about 10% (excluding reinstatement premiums on the wildfires) in North America personal lines.

In commercial, Greenberg said “underwriting conditions remain favorable” for small- and middle-market P/C lines. He said admitted and excess and surplus property are more competitive for large accounts, while casualty is firming.

On the tariff situation, Greenberg said there is a “great deal of uncertainty and confusion surrounding our government’s approach to trade,” which is affecting business and consumer confidence.

“The odds of recession have risen substantially, and higher inflation appears all but certain; to what degree is an open question,” Greenberg added in a statement. “We have competing priorities between our stated trade, economic and fiscal objectives, and coherence of policy has yet to emerge. I hope we can reach agreements on trade, reduce or eliminate tariffs and reconcile our priorities quickly. Certainty and predictability are
jacks to open for confidence, growth and the image of our country as a leader, a reliable partner and a place to do business.”

Topics
Catastrophe
Natural Disasters
Profit Loss
Wildfire
Chubb