Insurer Chubb's first quarter profit falls due to California wildfires losses

April 22 (Reuters) - Insurance company Chubb CB.N reported a 38% fall in first-quarter profit on Tuesday, as catastrophe losses from the California wildfires weighed on its underwriting performance and investment returns.

A series of wildfires in California earlier this year claimed several lives and caused estimated economic damage as high as $250 billion.

The Zurich-based insurer's pre-tax catastrophe loss almost quadrupled to $1.64 billion, with around $1.47 billion stemming from the California wildfires.

The company had forecast a pre-tax net cost of $1.5 billion from the wildfires, which are considered the costliest in U.S. history, according to several estimates.

"We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires," Chubb CEO Evan Greenberg said.

The results mirror those of peer W R Berkley WRB.N, whose first-quarter profit also fell on Monday as industry-wide catastrophe losses offset operational gains.

In recent years, insurers have been significantly impacted by natural disasters, particularly as extreme weather-related events have become more frequent

Chubb's Global P&C net premiums written, which excludes Agriculture, were up 3% to $10.65 billion for the three months ended March 31.

In March, the company announced an agreement to acquire Liberty Mutual's insurance businesses in Thailand and Vietnam, representing around $275 million in combined net premiums written in 2024.

The insurer's net investment income surged 12.2% to $1.56 billion for the quarter ended March 31. The company also reported $302 million in foreign currency gains.

Chubb reported a combined ratio of 95.7%, compared to 86% a year earlier. A ratio below 100% shows that an insurer earned more in premiums than it paid out in claims.