Chubb’s CEO, Evan Greenberg, revealed during the company’s second-quarter earnings call that the insurer is ramping up its reinsurance purchases amid a competitive market. With ceded premiums on the rise, Chubb is strategically leveraging favorable conditions, particularly as loss costs in U.S. casualty lines surge—6% to 7% for primary casualty and up to 12% for excess coverage annually. Greenberg reported a concerning 12% drop in property pricing for the business Chubb chose to underwrite, juxtaposed with a drastic 40% decline in the business it opted not to take. He warned that capital influx might be suppressing casualty rates, complicating the industry’s ability to cover rising costs. Chubb is keen to adapt and thrive in these evolving market conditions.
