Chubb plans significant workforce cuts as AI strategy accelerates
Chubb will "reduce [its] global employee population significantly" as the insurer shifts toward AI-driven operations, chairman and CEO Evan Greenberg said in the company's latest shareholder letter. The reductions will come largely through natural staff turnover, though the company will continue hiring in engineering and analytics.
Greenberg framed the move as a fundamental reshaping of the operating model. Some roles will disappear entirely. Others will expand. Employees who adapt to the changes will find continued opportunities, even as overall headcount declines.
Technology investments driving structural change
Chubb is embedding AI across underwriting, claims, marketing and operations. The company is investing in both algorithmic tools and large language models to improve pricing accuracy, speed decision-making and enhance customer experience.
The insurer's digital distribution platform, Chubb Studio, now connects with more than 250 partners globally-including fintechs, banks and e-commerce platforms. This enables embedded insurance offerings. Chubb Digital grew 27% in 2025 to $1.4 billion in premium and generated an underwriting profit.
Greenberg said the transformation is designed to create a more efficient and competitive organisation with higher productivity over time.
Strong results support the strategy
The workforce changes come as Chubb reported $54.8 billion in net premiums written in 2025, up 6.6% year on year. Consumer lines grew 11.2% and commercial lines grew 4%.
Property and casualty operations generated $6.5 billion in underwriting income, up more than 11.5%. The combined ratio improved to 85.7%, a record low for the group. Tangible book value per share rose 25.7% in 2025 and has increased 74% over three years.
These results came despite $2.9 billion in pre-tax catastrophe losses, driven partly by California wildfires.
Business mix and market outlook
Commercial P&C accounts for around 60% of Chubb's premiums, or $34.3 billion. Consumer insurance produced $22.7 billion in premiums and deposits, with growth exceeding 8%.
North America remains the largest region, generating more than $31 billion in premium. International markets across Asia, Europe and Latin America follow.
Looking ahead, Greenberg expects pricing conditions in commercial P&C to soften in some segments, particularly large property and certain excess and surplus lines. Pricing should remain firmer in US casualty.
Caution on market structure and risk
Greenberg raised concerns about the growth of managing general agents and fronting arrangements. Multiple layers of intermediaries can dilute underwriting discipline and leave risk carriers under-compensated, he said.
Chubb maintains underwriting as a core in-house capability and partners selectively with MGAs only when compensation aligns with underwriting performance.
The company also highlighted rising litigation costs in US liability lines, along with broader pressures including inflation, fiscal deficits and geopolitical uncertainty. Greenberg said these factors reinforce the importance of maintaining a strong balance sheet and disciplined capital management.
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