(Reuters) -Insurance company Chubb reported a rise in third-quarter profit on Tuesday, helped by lower catastrophe losses, higher investment returns and strong underwriting fees.

Resilient consumer spending, despite higher borrowing costs, has helped sustain insurance demand as businesses and households continue to prioritize protection against financial risks, accidents, property damage, and natural disasters.

Stronger underwriting reflects an insurer's ability to price risk effectively, bolstering profits despite higher claims.

Chubb posted record underwriting income of $2.26 billion on a pretax basis, compared with $1.46 billion a year earlier.

Insurers generate income by investing the premiums they collect from policyholders.

Higher interest rates allow them to earn more on new investments, increasing their total investment income.

The insurer's pre-tax net investment income surged 9.3% to $1.65 billion during the reported quarter.

Chubb's global P&C (property and casualty) net premiums written, excluding agriculture, increased 5.3% to $11.48 billion for the three months ended September 30.

Catastrophe losses came in at $285 million on a pretax basis, compared with $765 million a year earlier.

The 2025 Atlantic hurricane season's first decade-long landfall drought through September, according to AccuWeather, offers insurers a tailwind as such catastrophes typically sharply affect quarterly earnings despite reinsurance efforts.  

Last week, industry bellwether Travelers missed Wall Street profit estimates, citing slower commercial property growth.

Chubb reported a record property and casualty combined ratio of 81.8%, compared with 87.7% a year earlier. A ratio below 100% indicates the insurer earned more in premiums than it paid out in claims.

The company's core operating income, net of tax, rose to $3 billion, or $7.49 per share, in the quarter, compared with $2.33 billion, or $5.72 per share, a year earlier.