When the CEO of the world’s largest publicly traded property and casualty insurer describes a waterway as a “war-zone environment” and says conditions change “from day to day, hour to hour,” that is not hyperbole. That is a man whose company has skin in the game every time a vessel transits the Strait of Hormuz.
Chubb (CB) Chairman and CEO Evan Greenberg made those remarks Sunday, June 21, on Fox News‘ Sunday Morning Futures, offering one of the most candid assessments of the Hormuz situation I have seen from a corporate executive. His vantage point is uniquely credible.
Chubb is a major insurer of commercial shipping globally, which means the company’s underwriters are pricing this risk every single day.
Mines are the greatest uncertainty.
Greenberg continued. “Only a narrow channel is really being used to transit, and so it limits the number of ships that can actually go in and out.”
CB closed June 18 at $323.40, down 1.39% on the last session of the week ended June 19, according to Yahoo Finance.
What Greenberg said and what it means for global trade
The picture Greenberg painted is not one of a crisis resolved. It is one of the crises being managed under pressure, with the outcome still genuinely uncertain.
The U.S. Navy has been working to open broader transit corridors, guiding vessels through a route hugging Oman’s coastline with transponders turned off for security.Â
On Saturday, Iran announced it had shut the Strait of Hormuz again. Before that, the U.S. Central Command reported 55 merchant ships transiting and more than 17 million barrels of oil moving through simultaneously, Bloomberg reports.
More Strait of Hormuz:
The gap between the official Iranian announcement and the operational reality on the water captures exactly the volatility Greenberg was describing.
According to the BBC, First-round U.S.-Iran peace talks in Lucerne, Switzerland, concluded Monday, June 22, with Qatar and Pakistan calling the progress “encouraging,” establishing a roadmap toward a final deal within 60 days.Â
But continued Hezbollah-Israeli fighting in Lebanon and ongoing Iranian proxy activity are the live variables that make any 60-day timeline fragile. For companies that depend on Hormuz, the channel constraint is a genuine operational problem, not merely a headline risk.
How does this directly affect Chubb’s business?
This is where the story gets concrete for CB shareholders. Chubb and Lloyd’s of London jointly launched a $400 million marine war risk insurance consortium covering passage through the Strait of Hormuz, announced on Friday, 19 June 2026.
Chubb is also participating in a U.S. International Development Finance Corp.-backed $20 billion reinsurance program that launched in April.Â
These are not passive investments but active underwriting commitments that put Chubb’s capital at risk every time a vessel transits a mined channel.
My read of that positioning is this. War risk insurance premiums in a genuine war-zone environment are lucrative — elevated risk commands elevated pricing, and Chubb’s underwriting discipline has historically translated elevated-risk environments into expanded margins.
But it also means the company faces a real risk of catastrophic loss if a major vessel is struck. Greenberg addressed this tension directly in his Q1 2026 earnings commentary.
“War in the Middle East raises the specter globally of higher inflation and slower economic growth, while adding pressure to certain financial, fiscal, and economic conditions already present. Chubb’s diversification, market-leading presence and capabilities, and operating discipline provide us with greater resilience.”
Chubb is a major insurer of commercial shipping globally.Xinhua via Getty Images
Chubb’s Q1 2026 results show a business built to absorb exactly this kind of environment
The Q1 fiscal 2026 financial results, reported on April 21, are the context that makes Greenberg’s confidence credible rather than promotional.
P&C combined ratio came in at 84.0% — an exceptionally strong underwriting result — with P&C underwriting income of $1.79 billion, up 306% year over year, largely because Q1 2025 carried $1.47 billion in California wildfire losses that did not repeat.Â
Net premiums written reached $14.0 billion, up 10.7%. Core operating income was $2.69 billion, up 80.6%. Pre-tax net investment income hit a record $1.84 billion.
The company carries a $7.5 billion share repurchase authorization, according to PR Newswire. For the quarter ending March 31, 2026, Chubb’s net income reached $2.32 billion; EPS was $5.88, a 78.72% increase year-over-year, Macrotrends reports. Analysts project revenue of approximately $13.37 billion and EPS of around $6.90 in Q2 fiscal 2026, according to ChartMill.
At $323 per share, CB trades at roughly 11.4 times forward earnings, according to Yahoo Finance. That’s modest for a business generating 20%-plus return on tangible equity (ROTE)
CB is up 4.24% year-to-date compared to the S&P 500‘s 9.57% gain, according to Yahoo Finance. It has underperformed the index but is showing the kind of defensive stability that tends to look more attractive as geopolitical uncertainty compounds.Â
Greenberg’s Hormuz commentary is a forward-looking signal from a CEO whose company prices global risk for a living. And who clearly does not expect the uncertainty to resolve quickly.
