Chubb (NYSE:CB) Posts Q4 CY2025 Sales In Line With Estimates

Global insurance provider Chubb Limited (NYSE:CB) met Wall Streets revenue expectations in Q4 CY2025, with sales up 6.5% year on year to $15.22 billion. Its non-GAAP profit of $7.52 per share was 11% above analysts’ consensus estimates.

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Company Overview

Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE:CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Thankfully, Chubb’s 10.3% annualized revenue growth over the last five years was solid. Its growth beat the average insurance company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Chubb’s annualized revenue growth of 8.3% over the last two years is below its five-year trend, but we still think the results were respectable.

This quarter, Chubb grew its revenue by 6.5% year on year, and its $15.22 billion of revenue was in line with Wall Street’s estimates.

Net premiums earned made up 89.6% of the company’s total revenue during the last five years, meaning Chubb barely relies on non-insurance activities to drive its overall growth.

While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Chubb’s BVPS grew at a mediocre 7.4% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 13.3% annually over the last two years from $146.83 to $188.59 per share.

Over the next 12 months, Consensus estimates call for Chubb’s BVPS to grow by 14.1% to $200.10, top-notch growth rate.

Key Takeaways from Chubb’s Q4 Results

It was good to see Chubb beat analysts’ EPS expectations this quarter. On the other hand, its book value per share missed and its net premiums earned was in line with Wall Street’s estimates. Overall, this was a mixed quarter. The stock remained flat at $313.50 immediately after reporting.

So should you invest in Chubb right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).