News about Chubb

Travelers (TRV) reported an underlying combined ratio of 84.1% in the third quarter of 2026, while Chubb (CB) posted 81.3% in its U.S. business, meaning each keeps about $0.16 or more of every premium dollar as underwriting profit. The article explains that insurers also earn investment income from premiums not yet paid out in claims, with Travelers' portfolio worth $100 billion and Chubb's $172 billion, mostly in bonds. In the second quarter of 2026, Travelers earned nearly $1.1 billion in investment income and Chubb over $1.7 billion, which by a rough estimate made up more than half of each company's net income. Both stocks trade above their five-year average price-to-book ratios and offer dividend yields just over 1%, so the article considers them best suited to growth-oriented investors.

Travelers and Chubb each kept about $0.16 or more of every premium dollar as underwriting profit in the third quarter of 2026, with Travelers' underlying combined ratio at 84.1% and Chubb's U.S. business at 81.3%. Their investment portfolios are large, at $100 billion for Travelers and $172 billion for Chubb, and are heavily weighted toward bonds, so rising yields pose a near-term risk to prices. Investment income in the second quarter was nearly $1.1 billion for Travelers and over $1.7 billion for Chubb, which by a rough estimate accounted for more than half of each company's net income. Both stocks trade at price-to-book ratios above their five-year averages and offer dividend yields just over 1%, so the article sees them as better suited to growth-oriented investors.

Chubb reported third-quarter 2026 core operating earnings of $2.98 billion, or a record $7.66 per share, even as commercial P&C pricing softens. Management is walking away from property and financial lines where pricing fails to cover rising loss costs, while expanding into mid-sized commercial markets. Fixed income makes up 88% of the portfolio, and management says rising interest rates will lift investment income as higher-yielding cash flows are reinvested, supported by moderate duration and a conservative credit approach. Digital transformation and AI-driven underwriting are lowering the operating expense ratio, and management says it is watching pricing discipline in commercial casualty lines.