CB

Chubb Limited

HARAM

Score: 18/100

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Is CB Halal?

Largest publicly-traded conventional property-and-casualty insurer in the world — conventional insurance involves gharar (uncertainty), maysir (gambling), and riba (interest), all categorically problematic under Islamic law.

What You Should Know

Chubb Limited is the largest publicly-traded conventional property-and-casualty (P&C) insurer in the world by market capitalization, with global commercial-and-personal-lines property-and-casualty-insurance franchises spanning North America Commercial P&C Insurance (the largest segment — commercial-property, casualty, workers-compensation, marine, energy, environmental, financial-lines, and specialty-commercial-insurance products to middle-market and large-corporate clients across the United States and Canada), North America Personal P&C Insurance (the Chubb Masterpiece high-net-worth-personal-insurance franchise — personal-auto, homeowners, valuable-articles, yacht-and-jewelry, and umbrella-liability insurance products to high-net-worth and ultra-high-net-worth clients), North America Agricultural Insurance (the Rain and Hail and other multi-peril-crop-insurance and crop-hail-insurance franchises), Overseas General Insurance (international commercial-and-personal-lines property-and-casualty-insurance and accident-and-health-insurance across Europe, Asia-Pacific, and Latin America), Global Reinsurance (the Chubb Tempest Re reinsurance franchise), and Life Insurance (international life-insurance franchises across Asia, including the 2023 acquisition of a controlling interest in Cigna's Asia personal-accident, supplemental-health-care, and life-insurance business). Chubb generates revenue from insurance-and-reinsurance-premium income and investment-income on the substantial investment portfolio backing policyholder reserves and capital (the investment portfolio is invested primarily in fixed-income securities — US Treasuries, agency mortgage-backed securities, corporate bonds, municipal bonds, and other interest-bearing instruments — which generate interest income that is core to the insurance-economics model). Conventional insurance fails Sharia screening on three foundational grounds: (1) gharar (excessive uncertainty), (2) maysir (gambling-like element), and (3) riba (interest). Chubb is unambiguously a conventional commercial-insurance company and fails Sharia screening on all three foundational grounds. The verdict is unanimous across major Sharia screening agencies.

⚠️ Concerns

•Conventional insurance involves gharar (excessive uncertainty), maysir (gambling-like element), and riba (interest) — all three are categorically problematic under classical Islamic contract law and the AAOIFI Sharia Standards
•The investment portfolio backing policyholder reserves and capital is invested primarily in fixed-income securities (US Treasuries, agency mortgage-backed securities, corporate bonds, municipal bonds) that generate interest income — interest income is core to the insurance-economics model, not incidental to the business
•Interest-income share of total revenue substantially exceeds the 5% Sharia threshold and is not purifiable as a small component
•Chubb is unambiguously a conventional commercial-insurance company and the world's largest publicly-traded P&C insurer — the scale of the business does not change the foundational Sharia screen analysis
•The Life Insurance segment in Asia (including the 2023 Cigna-Asia acquisition) and the Global Reinsurance segment (Chubb Tempest Re) are also conventional-insurance and conventional-reinsurance businesses and fail Sharia screening on the same foundational grounds
•Muslim investors seeking insurance-style protection should look at takaful (cooperative mutual-protection) providers and Sharia-compliant retakaful providers rather than conventional commercial-insurance and reinsurance companies