Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Over the last five years, Chubb grew its revenue at an impressive 10.6% compounded annual growth rate. Its growth beat the average insurance company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Chubb’s annualized revenue growth of 8% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, Chubb reported year-on-year revenue growth of 11.9%, and its $15.3 billion of revenue exceeded Wall Street’s estimates by 4.7%.
Net premiums earned made up 89.4% of the company’s total revenue during the last five years, meaning Chubb barely relies on non-insurance activities to drive its overall growth.
Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.