Chubb Ltd. Leverages AI and Reports Strong Q1 Results, Fueling Growth and Innovation


  • Chubb Ltd. is expanding its use of artificial intelligence (AI) tools.
  • The insurer has been experimenting with AI for five years across various business areas.
  • AI enhances the capabilities of Chubb’s highest-skilled knowledge workers.
  • Chubb reported a 3.2% decline in net income for Q1 2023 due to higher catastrophe losses.
  • Winter storms and severe weather events in the US accounted for 76% of the losses.
  • Chubb’s property/casualty combined ratio increased to 86.3% in Q1.
  • Consolidated net premiums written increased by 16.6% in Q1 2023.
  • Chubb saw double-digit premium growth in North America and international markets.
  • Pre-tax net investment income reached a record $1.11 billion, up by 34.7%.
  • Commercial property/casualty pricing increased by 11.2% in North America.
  • Rates for professional lines and workers’ compensation declined due to competition.
  • Chubb remains confident in its ability to continue growing revenue and operating earnings.

Main AI News:

Chubb Ltd.’s foray into the realm of artificial intelligence (AI) is gaining traction as the insurance giant gears up to deploy AI tools on a larger scale. Evan G. Greenberg, Chairman and CEO of Chubb, highlighted the company’s progress during an earnings call following the release of their first-quarter results. With a strong focus on innovation, Chubb has spent the past five years exploring the applications of deep learning and math-based AI across various business domains, including underwriting, claims management, analytics, marketing, and customer service.

While emphasizing that AI won’t replace their highly skilled workforce anytime soon, Greenberg emphasized how these technological advancements significantly enhance their capabilities. Chubb is on the cusp of a new era, where the integration of AI tools becomes ubiquitous and instrumental in their operations. Greenberg stated, “We’re in the dawn of a period where we use these tools at scale.”

In terms of financial performance, Chubb reported a first-quarter net income of $1.89 billion, experiencing a 3.2% decline compared to the previous year’s figure of $1.95 billion. Despite robust premium growth, the insurer faced the impact of higher catastrophe losses, resulting in this slight dip. The first quarter saw pre-tax catastrophe losses reaching $458 million, as opposed to $333 million in the corresponding period last year.

It is worth noting that a significant proportion of these losses, about 76%, were attributed to winter storms and severe weather events in the United States. The remaining losses stemmed from storms in New Zealand and Australia, as outlined by Chubb’s top executives during the earnings call. This quarter also witnessed Chubb’s property/casualty combined ratio rise to 86.3%, compared to 84.3% in the same quarter of the previous year.

However, despite these challenges, Chubb achieved an impressive 16.6% increase in consolidated net premiums written, which reached $10.71 billion. Within the property/casualty segment, net premiums written experienced a growth of 9.3%, totaling $9.42 billion. Commercial lines also displayed a notable 11.5% increase. Moreover, North America witnessed an 11.3% rise in net premiums written, specifically in commercial lines, where growth reached 11.7%.

Chubb’s success story extended beyond premiums and losses to encompass investment income, which reached a record-breaking $1.11 billion, marking a substantial 34.7% surge. The growth was robust and widespread, with double-digit increases observed in North America, Europe, and Asia, as revealed by Mr. Greenberg.

Within North America, Chubb noted an acceleration in property/casualty rates and price increases during the first quarter. Notably, commercial property/casualty pricing soared by 11.2%, while property pricing experienced a remarkable surge of 27%. Casualty pricing also saw a healthy uptick of 9.9%.

On the other hand, rates for professional lines and workers’ compensation, including risk management, witnessed a decline due to favorable experiences and intensified competition. Financial lines in North America saw an aggregate rate decrease of about 2% for the quarter, while workers’ compensation pricing rose by 6.4%.

Chubb’s retail international operations recorded an overall pricing increase of approximately 8%. Reflecting on the impressive performance and looking ahead, Mr. Greenberg expressed confidence in the company’s ability to sustain revenue growth and operating earnings, emphasizing a strong start to the year and the momentum heading into the second quarter.


Chubb Ltd.’s expanding use of artificial intelligence (AI) tools and their strong performance in the first quarter of 2023 indicate positive implications for the insurance market. The adoption of AI technology enhances the capabilities of Chubb’s highly skilled workforce, enabling them to provide more efficient and effective services to customers.

Additionally, Chubb’s success in increasing net premiums written and achieving double-digit growth in various markets reflects a healthy and competitive position in the industry. The company’s focus on innovation and leveraging AI demonstrates a commitment to staying at the forefront of technological advancements, which could inspire other players in the market to explore similar strategies to enhance their operations and remain competitive.