Chubb Ltd
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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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.
Jun 30, 2026 · Filed Jul 28, 2026
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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:
| Six Months Ended | ||
|---|---|---|
| June 30 | ||
| (in millions of U.S. dollars) | 2026 | 2025 |
| Gross unpaid losses and loss expenses – beginning of period | $88,018 | $84,004 |
| Reinsurance recoverable on unpaid losses and loss expenses – beginning of period (1) | (18,346) | (17,734) |
| Net unpaid losses and loss expenses – beginning of period | 69,672 | 66,270 |
| Net losses and loss expenses incurred in respect of losses occurring in: | ||
| Current year | 13,406 | 13,959 |
| Prior years (2) | (584) | (491) |
| Total | 12,822 | 13,468 |
| Net losses and loss expenses paid in respect of losses occurring in: | ||
| Current year | 3,169 | 2,960 |
| Prior years | 8,184 | 8,982 |
| Total | 11,353 | 11,942 |
| Foreign currency revaluation and other | 75 | 889 |
| Net unpaid losses and loss expenses – end of period | 71,216 | 68,685 |
| Reinsurance recoverable on unpaid losses and loss expenses (1) | 18,453 | 17,691 |
| Gross unpaid losses and loss expenses – end of period | $89,669 | $86,376 |
(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 $15 million and $(13) million for the six months ended June 30, 2026 and 2025, respectively.
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 June 30 | Six Months Ended June 30 | |||||
|---|---|---|---|---|---|---|
| (in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total |
| North America Commercial P&C Insurance | $(69) | $(42) | $(111) | $(48) | $(152) | $(200) |
| North America Personal P&C Insurance | — | (173) | (173) | — | (174) | (174) |
| North America Agricultural Insurance | — | — | — | — | (80) | (80) |
| Overseas General Insurance | 11 | (157) | (146) | 11 | (288) | (277) |
| Global Reinsurance | 10 | (21) | (11) | 10 | (21) | (11) |
| Corporate | 158 | — | 158 | 173 | — | 173 |
| Total | $110 | $(393) | $(283) | $146 | $(715) | $(569) |
| North America Commercial P&C Insurance | $(75) | $(31) | $(106) | $(27) | $(193) | $(220) |
| North America Personal P&C Insurance | — | (121) | (121) | — | (121) | (121) |
| North America Agricultural Insurance | — | — | — | — | (33) | (33) |
| Overseas General Insurance | 35 | (112) | (77) | 36 | (234) | (198) |
| Global Reinsurance | — | (15) | (15) | (5) | (10) | (15) |
| Corporate | 70 | — | 70 | 83 | — | 83 |
| Total | $30 | $(279) | $(249) | $87 | $(591) | $(504) |
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 June 30, 2026, included $69 million from long-tail lines, primarily from workers' compensation, due to lower-than-expected reported loss activity and our annual assessment of multi-claimant events, including industrial accidents, partially offset by net adverse development in commercial general liability, mainly due to higher-than-expected loss development. Net favorable development for the six months ended June 30, 2026, included $152 million from short-tail lines, primarily from surety, due to lower-than-expected loss development.
Net favorable development for the three months ended June 30, 2025, included $75 million from long-tail lines, primarily from the Risk Management business where PPD was favorable $163 million. This business underwrites workers' compensation, general liability and auto liability, and the favorable development was the net of lower-than-expected reported loss activity primarily on workers' compensation, partially offset by adverse development in general liability. This favorable development was partially offset by adverse development from other commercial auto liability portfolios which experienced higher-than-expected reported loss activity. Net favorable development for the six months ended June 30, 2025, included $193 million of favorable development from short-tail lines, primarily from surety, due to lower-than-expected loss development. Net favorable development for long-tail lines was the result of favorable development in workers' compensation and financial lines partially offset by adverse development in general casualty lines.
North America Personal P&C Insurance. Net favorable development for the three and six months ended June 30, 2026, included favorable development primarily in the auto physical damage line, due to lower-than-expected loss development.
Net favorable development for the three and six months ended June 30, 2025, included favorable development in the auto physical damage and recreational marine lines due to favorable loss emergence.
Overseas General Insurance. Net favorable development for the three and six months ended June 30, 2026, included $157 million and $288 million, respectively, from short-tail lines, primarily from favorable claim development in property.
Net favorable development for the three and six months ended June 30, 2025, included $112 million and $234 million, respectively, from short-tail lines, primarily from favorable claim development in property and marine lines.
Corporate. Net adverse development for the three and six months ended June 30, 2026 and 2025, was driven primarily by adverse development for molestation-related claims.
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