Published by Global Banking & Finance Review®
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Chubb's quarterly profit rose with higher investment returns and lower catastrophe losses, reflecting strong financial performance.
Feb 3 (Reuters) - Insurance company Chubb posted a rise in fourth-quarter profit on Tuesday, driven by growth in investment returns and lower catastrophe losses.
Insurance spending has continued to rise even as businesses and individuals rein in other expenses, reflecting efforts to guard against climate-related disasters and emerging risks such as cyber threats.
The insurer's pre-tax net investment income rose 8% to a record $1.69 billion in the reported quarter.
Insurers typically allocate a portion of their capital across different asset classes, including fixed-income securities and equities, with returns often mirroring broader market trends.
Catastrophe losses were $365 million on a pre-tax basis, compared with $607 million a year earlier.
Catastrophe losses remain a key source of volatility for U.S. insurers, largely tied to hurricanes, wildfires and other severe weather, with both the timing and intensity of such events having a material impact on results.
Last month, property and casualty insurance giant Travelers beat Wall Street estimates for fourth-quarter profit, propelled by stronger underwriting performance and higher investment returns.
The company's core operating income, net of tax, rose to $2.98 billion, or $7.52 per share, in the three months ended December 31. That compares with $2.45 billion, or $6.02 per share, a year earlier.
(Reporting by Ateev Bhandari and Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
Investment return refers to the profit or loss generated on an investment relative to the amount invested, typically expressed as a percentage.
Catastrophe losses are significant financial losses incurred by insurance companies due to large-scale disasters, such as natural disasters, which can lead to a high volume of claims.
Corporate profit is the total revenue of a company minus its expenses, taxes, and costs, representing the financial gain made by the business.
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