CB · Earnings call · 2026Q3T · Full report

Competition and Pricing Pressure

Chubb Ltd · 2026-10-20 · Importance 32 · Surprise 24

Management said commercial P&C markets were becoming more competitive globally, particularly in the U.S. and London, with competitive conditions spreading from property into casualty. In numerous casualty areas, pricing was not keeping pace with loss costs, which management said continued to outpace general inflation. Chubb reduced property and financial lines exposure where pricing or terms were inadequate, including non-renewals and additional reinsurance purchases. North American commercial property pricing was down 4.2%, while casualty pricing was up 5.7% and financial lines pricing was up 2.1%; shared and layered major and specialty property pricing was down 11%.

Key facts

• For business written, North America shared and layered major and specialty property pricing was down 11%, while mid and small property pricing was up a little over 0.5%.
• Chubb said commercial P&C markets were becoming more competitive globally, particularly in the U.S. and London, and that pricing in numerous casualty areas was failing to keep pace with loss costs.
• Chubb said additional reinsurance was placed in certain financial-lines areas and property to spread risk while maintaining customer presence, service and coverage.
• Chubb’s CEO said cash-flow underwriting in casualty would occur only on the margin and that the company was not cash-flow underwriting at a 10% or 12% interest rate.
• Chubb said gross premium pricing for North America commercial property was down 4.2%, casualty was up 5.7%, and financial lines was up 2.1%.
• Chubb said it shed additional property and financial-lines exposure during Q3 2026, affecting growth.