CB · Earnings call · 2026Q3T · Full report

Catastrophe Losses and Reserves

Chubb Ltd · 2026-10-20 · Importance 64 · Surprise 56

Pre-tax catastrophe losses were $705 million in the third quarter, principally from global weather events and an earthquake in Latin America. Catastrophe losses totaled $1.7 billion through nine months, compared with $2.6 billion in the same period of 2025. Chubb recorded $562 million of favorable prior-period development in active companies, comprising $575 million favorable in short-tail lines and $13 million unfavorable in long-tail lines; the corporate runoff portfolio had $51 million of adverse development, predominantly environmental. Loss reserves exceeded $71 billion, and management characterized them as conservatively constructed and extremely strong.

Key facts

• Chubb’s catastrophe losses were $1.7 billion through the first nine months of 2026, versus $2.6 billion in the same period of 2025.
• Chubb’s loss reserves exceeded $71 billion; management described them as conservatively constructed and extremely strong.
• Chubb’s pretax catastrophe losses were $705 million in Q3 2026, principally from global weather events and an earthquake in Latin America.
• Q3 2026 favorable prior-period development in Chubb’s active companies was $562 million, comprising $575 million favorable short-tail development and $13 million unfavorable long-tail development.
• Chubb’s corporate runoff portfolio recorded $51 million of adverse development, predominantly environmental-related, in Q3 2026.
• Chubb’s paid-to-incurred ratio was 80% for Q3 2026 and 86% year to date.
• Chubb management said favorable development in more recent casualty accident years was too immature to act on, while observed development was in older accident years, mainly 2019–2022, and was reasonably modest.