Chubb is planning to “reduce [its] global employee population significantly” as part of a wider shift toward AI-driven operations, according to chairman and CEO Evan Greenberg.

The move, outlined in the insurer’s latest shareholder letter, reflects a broader transformation strategy focused on embedding technology, data and artificial intelligence across underwriting, claims, marketing and operations. While reductions are expected to come largely through natural staff turnover, the company said it will also continue hiring in areas such as engineering and analytics.

Greenberg described the transition as a fundamental reshaping of the operating model, with fewer roles required in some areas and increased demand in others. He added that employees who adapt to the changes will continue to have opportunities within the business, even as overall headcount declines.

Technology shift driving structural change

Chubb is investing heavily in AI, including both algorithmic tools and large language models, with the aim of improving pricing accuracy, speeding up decision-making and enhancing customer experience.

The insurer is also expanding its digital distribution capabilities. Its “Chubb Studio” platform now connects with more than 250 partners globally, including fintechs, banks and e-commerce platforms, enabling embedded insurance offerings. Meanwhile, its Chubb Digital business grew 27% in 2025 to US$1.4 billion in premium and generated an underwriting profit.

Greenberg said the transformation is intended to create a more efficient and competitive organisation, with higher productivity over time.

Strong financial performance underpins strategy

The workforce changes come against a backdrop of strong financial results. Chubb reported US$54.8 billion in net premiums written in 2025, up 6.6% year on year, with consumer lines growing 11.2% and commercial lines 4%.

Property and casualty operations remain the core of the business, generating US$6.5 billion in underwriting income, up more than 11.5% on the year. The combined ratio improved to 85.7%, a record low for the group, implying a 14.3-point underwriting margin.

These results were achieved despite US$2.9 billion in pre-tax catastrophe losses, driven in part by California wildfires, and against a backdrop of approximately US$129 billion in industry-wide insured catastrophe losses.

Tangible book value per share - a key metric for the company - rose 25.7% in 2025 and has increased 74% over three years.

Diversified global platform

Commercial P&C accounts for around 60% of Chubb’s premiums, or US$34.3 billion, spanning small and mid-market businesses, large corporates, excess and surplus lines, and agriculture.

The insurer’s major accounts business generated US$11.4 billion in premium, while its E&S operations and crop insurance business remain significant standalone contributors.

Consumer insurance produced US$22.7 billion in premiums and deposits, with growth of more than 8%, covering high-net-worth personal lines in the US as well as life, health and personal insurance products globally.

North America remains the largest region, generating more than US$31 billion in premium, followed by international markets across Asia, Europe and Latin America.

Caution on MGAs and market conditions

Greenberg also raised concerns about the growth of managing general agents (MGAs) and fronting arrangements, suggesting that multiple layers of intermediaries can dilute underwriting discipline and leave risk carriers under-compensated.

He emphasised that underwriting remains a core in-house capability at Chubb, with only selective partnerships with MGAs that align compensation with underwriting performance.

Looking ahead, the insurer expects pricing conditions in commercial P&C to soften in some segments, particularly large property and certain E&S lines, while remaining firmer in areas such as US casualty.

Macro and legal pressures remain

The letter also highlighted rising litigation costs in the US, particularly in liability lines, as well as broader macroeconomic 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, even as the company continues to invest in growth and transformation.

He positioned Chubb as a long-term compounder of shareholder value, combining underwriting discipline, global diversification and increasing use of technology - while acknowledging that the operating environment remains complex and evolving.