Chubb Chairman and Chief Executive Officer Evan G. Greenberg described the current commercial property and casualty pricing environment as “textured and nuanced” in a recent letter to shareholders following the company’s record 2025 results.
According to Greenberg, the broader market is moving toward a softer phase. However, he emphasized that pricing trends vary by segment rather than shifting uniformly across the industry.
Pricing Conditions Vary by Line and Market
Greenberg noted that pricing remains firm in certain areas, particularly in U.S. casualty lines. At the same time, conditions have weakened in other segments, including large-account and upper middle-market property across both admitted and excess and surplus lines.
He stated that while the overall market is transitioning, the changes are not consistent across all business lines. Instead, different classes and markets continue to experience varying levels of pricing strength.
Growth Outlook Reflects Market Transition
Greenberg said Chubb is positioned to grow despite the changing environment, supported by its diversified business model. However, he acknowledged that growth is expected to occur at a slower pace compared with the hard market period.
He added that a significant portion of the company’s businesses are less exposed or not exposed to pricing cycles, which continues to present growth opportunities. These opportunities vary in speed depending on the segment.
Underwriting Discipline Remains Central Strategy
Greenberg identified underwriting discipline as a key factor in Chubb’s ability to navigate both hard and soft market cycles over time.
He explained that the company adjusts its exposure based on expected returns. This includes reducing participation in certain areas to preserve underwriting profitability and increasing exposure when conditions support adequate returns.
Greenberg also noted that while many insurers emphasize discipline, market conditions can influence behavior. He said some companies pursue growth even when pricing may not support sufficient returns.
Record Financial Performance in 2025
Chubb reported record property and casualty underwriting income of $6.53 billion for full-year 2025, representing an 11.6% increase compared with 2024.
The company also posted a combined ratio of 85.7%, its lowest on record. Greenberg cited strong contributions across operations as a driver of the results.
Maritime Reinsurance Partnership Announced
Separately, the U.S. International Development Finance Corporation announced that Chubb will serve as the lead partner for its $20 billion Maritime Reinsurance Plan.
The initiative is designed to support the restoration of commercial shipping activity in the Gulf and to help restart energy and trade flows through the Strait of Hormuz.
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