Chubb Ltd
For the period ended Sep 30, 2025. Filed Oct 27, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 27, 2025
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Unpaid losses and loss expenses
- Unpaid losses and loss expenses
The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
| Nine Months Ended | ||
|---|---|---|
| September 30 | ||
| (in millions of U.S. dollars) | 2025 | 2024 |
| Gross unpaid losses and loss expenses – beginning of period | $84,004 | $80,122 |
| Reinsurance recoverable on unpaid losses and loss expenses – beginning of period (1) | (17,734) | (17,884) |
| Net unpaid losses and loss expenses – beginning of period | 66,270 | 62,238 |
| Net losses and loss expenses incurred in respect of losses occurring in: | ||
| Current year | 21,342 | 20,302 |
| Prior years (2) | (923) | (761) |
| Total | 20,419 | 19,541 |
| Net losses and loss expenses paid in respect of losses occurring in: | ||
| Current year | 5,551 | 5,005 |
| Prior years | 12,135 | 10,074 |
| Total | 17,686 | 15,079 |
| Foreign currency revaluation and other | 1,015 | (5) |
| Net unpaid losses and loss expenses – end of period | 70,018 | 66,695 |
| Reinsurance recoverable on unpaid losses and loss expenses (1) | 18,421 | 17,631 |
| Gross unpaid losses and loss expenses – end of period | $88,439 | $84,326 |
(2)Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, earned premiums, and A&H long-duration lines totaling $58 million and $118 million for the nine months ended September 30, 2025 and 2024, respectively.
Net unpaid losses and loss expenses increased $3,748 million for the nine months ended September 30, 2025, principally reflecting underlying exposure growth, the unfavorable impact of foreign currency movement, and net catastrophe losses, partially offset by the impact of favorable prior period development. The increase in net unpaid losses also reflected seasonality in our crop insurance business.
Prior Period Development
Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment:
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||
|---|---|---|---|---|---|---|
| (in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total |
| North America Commercial P&C Insurance | $104 | $(130) | $(26) | $77 | $(323) | $(246) |
| North America Personal P&C Insurance | — | (282) | (282) | — | (403) | (403) |
| North America Agricultural Insurance | — | (30) | (30) | — | (63) | (63) |
| Overseas General Insurance | (66) | (18) | (84) | (30) | (252) | (282) |
| Global Reinsurance | — | — | — | (5) | (10) | (15) |
| Corporate | 61 | — | 61 | 144 | — | 144 |
| Total | $99 | $(460) | $(361) | $186 | $(1,051) | $(865) |
| North America Commercial P&C Insurance | $125 | $(164) | $(39) | $79 | $(310) | $(231) |
| North America Personal P&C Insurance | — | (189) | (189) | — | (305) | (305) |
| North America Agricultural Insurance | — | (6) | (6) | — | (34) | (34) |
| Overseas General Insurance | (61) | 1 | (60) | (26) | (184) | (210) |
| Global Reinsurance | (5) | — | (5) | — | (20) | (20) |
| Corporate | 55 | — | 55 | 157 | — | 157 |
| Total | $114 | $(358) | $(244) | $210 | $(853) | $(643) |
Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.
North America Commercial P&C Insurance. Net favorable development for the three months ended September 30, 2025, included$130 million from short-tail lines, primarily from property lines, due to lower-than-expected loss development on catastrophe and non-catastrophe losses. This favorable development was partially offset by net adverse development of$104 million from long-tail lines, primarily from general casualty partially offset by favorable development in workers' compensation. Net favorable development for the nine months ended September 30, 2025, included$323 million of favorable development from short-tail lines, primarily from property and surety, due to lower-than-expected loss development. Net adverse development for long-tail lines of$77 million was the result of adverse development in general casualty lines partially offset by favorable development in workers' compensation.
Net favorable development for thethree and nine months ended September 30, 2024, included $164 million and $310 million, respectively, from short-tail lines, primarily property and marine, driven by lower-than-expected loss development in the most recent accident years. The nine months ended September 30, 2024, also included favorable development from surety lines, due to lower-than-expected loss development. Long-tail lines experienced adverse development of $125 million and$79 million for the three and nine months ended September 30, 2024, respectively, which was the net of adverse development in casualty lines, predominantly commercial excess and umbrella and commercial auto liability, due to higher-than-expected loss development, partially offset by favorable development in workers' compensation due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents.
North America Personal P&C Insurance. Net favorable development for the three and nine months ended September 30, 2025 and 2024, was predominantly in homeowners, mainly due to lower-than-expected loss experience in the most recent accident years.
Overseas General Insurance. Net favorable development for the three months ended September 30, 2025, included$66 million from long-tail lines. Net favorable development for the nine months ended September 30, 2025, included$252 million from short-tail lines primarily due to favorable loss emergence across multiple accident years.
Net favorable development for the three months ended September 30, 2024, included $61 million from long-tail lines, primarily due to favorable loss emergence in accident years 2019 and 2020. Net favorable development for the nine months ended September 30, 2024, included $184 million from short-tail lines.
Corporate. Net adverse development for the three months ended September 30, 2025 and 2024, included adverse development resulting from our annual review of environmental liabilities. Net adverse development for the nine months ended September 30, 2025 and 2024, also included adverse development for molestation-related claims development.
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