Chubb's cat costs more than doubled; investment income hit $1.79bn

Chubb's third-quarter net income rose 1.5% to $2.84 billion even as catastrophe costs more than doubled to $705 million, with pre-tax investment income up 8.6% to a record $1.79 billion. Investment income was more than twice the catastrophe bill.

Travelers said average renewal rate increases in domestic business insurance, excluding National Accounts, slowed to 0.9% from 4.3% a year earlier, while core income rose 4% to $1.95 billion.

For managers selling private credit, real estate debt or structured credit into general accounts, Chubb's $1.79 billion of pre-tax investment income covered a catastrophe bill that more than doubled. Ategrity shows the other side of that trade: the E&S insurer posted an 84.7% combined ratio and still had net income cut by a $17.2 million investment loss on a $219 million utility and infrastructure portfolio it says drives volatility separate from underwriting.

Munich Re lifted its 2026 profit target to €6.6 billion after preliminary third-quarter profit of about €1.7 billion beat a €1.479 billion consensus. It wrote 9.1% less at the July renewals. W.R. Berkley's casualty reinsurance line wrote $144.2 million of net premiums in the third quarter against $192.7 million a year earlier, a 25% fall, and management guided to roughly 10% to 20% more shrinkage.

RLI's casualty segment reported $1 million of underwriting income alongside an $8.2 million reserve release; the carrier said its casualty combined ratio rose to 99.6 and the current accident year was below zero before reserve releases. Kinsale booked a $37.6 million pre-tax loss repositioning its portfolio, said the move left book value intact, and still reported operating earnings up 5.9% and net investment income up 17.5%. At RLI, the reserve release did more work than the accident year.

Evan Greenberg, Chubb's chief executive, said on the company's third-quarter call that "naive capacity" is entering casualty lines, citing sidecars, broker facilities and investor-backed managing general agents as property pricing pressure spreads.

Gallagher Re counts nine-month insured catastrophe losses at about $92 billion, 29% below the 2016-2025 average, and six quarters without a $10 billion-plus insured catastrophe. Dedicated reinsurance capital reached a record $688 billion into the January renewals, the broker says. Bermuda insurance-linked registrations rose 18.6%, with Class E long-term registrations climbing to nine from three and restricted special purpose insurers falling to 13 from 16, BMA figures show.

Volume is being cut into a market with the most dedicated capital on record and the lightest nine-month cat toll in years. The Jan. 1 renewals will show whether the casualty pullback holds with that much capacity standing behind it.