Wedgewood Partners recently distributed its investor letter for the first quarter of 2026, as reported by Detik Finance. The investment management firm detailed a challenging period where the Wedgewood Composite recorded a -6.3% net return.
This performance trailed the S&P 500, which saw a -4.3% return during the same timeframe. In contrast, the Russell 1000 Growth Index dropped by -9.8%, while the Russell 1000 Value Index managed a 2.1% gain.
Financial and commodity markets reacted swiftly to ongoing geopolitical conflicts and military strikes during this quarter. Market analysts noted that historical oil shocks have consistently exerted a heavy influence on global financial stability.
Despite the broader market volatility, Wedgewood Partners identified Chubb Limited (NYSE:CB) as a significant contributor to its portfolio performance. Chubb is a prominent global insurer and reinsurer with diverse operations across North America and international markets.
The company maintains a strong presence in commercial property and casualty insurance, as well as personal lines and agricultural segments. As of April 28, 2026, Chubb Limited shares concluded the trading day at $330.34.
The insurer’s stock has demonstrated resilience, showing a one-month return of 0.97%. More significantly, the shares have surged by 15.47% over the last 52 weeks, bringing the company’s total market capitalization to $128.34 billion.
Operational Growth and Underwriting Success
Wedgewood Partners highlighted specific financial milestones for the insurer in their Q1 2026 report. The firm noted that Chubb expanded its core operating income by 25% during the quarter.
This growth was supported by an 8% increase in net premiums on a currency-neutral basis. Furthermore, the company achieved a record-low combined ratio, indicating highly efficient underwriting processes.
“Chubb Limited (NYSE:CB) contributed to performance during the quarter, growing core operating income by +25% on +8% growth in net premiums (FX-neutral) and achieving a record-low combined ratio.”
The report also detailed that new business within the core small and middle-market segments grew by 17%. Additionally, international global retail premiums rose by 13%, aided by digital expansion and local financial partnerships.
“Despite a soft industry backdrop, particularly in property, Chubb grew new business by +17% in its core small and middle-market segment, and international global retail premiums were up by +13%, driven by distribution through large local financial intermediaries and a direct-to-consumer digital buildout.”
Management at Wedgewood Partners observed that Chubb has benefited from a period with few major catastrophic events. However, the insurer has historically maintained strong performance even during years with higher catastrophe activity.
“Underwriting has beneited from a quiet year on the “mega-cat” front, but the Company has also performed well during previous periods of higher mega-cat activity and is focused on driving margins by controlling overhead through several productivity initiatives.”
The investment firm maintains a positive outlook for the insurer’s future performance. They anticipate that Chubb will continue to deliver double-digit growth in both earnings per share and tangible book value throughout the remainder of the year.
“We expect Chubb to grow earnings per share and tangible book value per share at double-digit rates this year.”
