UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant To Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - April 23, 2024
Chubb Limited
(Exact name of registrant as specified in its charter)
Switzerland | 1-11778 | 98-0091805 | ||
(State or other jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
Baerengasse 32
CH-8001 Zurich, Switzerland
(Address of principal executive offices)
Registrant’s telephone number, including area code: +41 (0)43 456 76 00
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Shares, par value CHF 0.50 per share | CB | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 0.30% Senior Notes due 2024 | CB/24A | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2027 | CB/27 | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 1.55% Senior Notes due 2028 | CB/28 | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 0.875% Senior Notes due 2029 | CB/29A | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 1.40% Senior Notes due 2031 | CB/31 | New York Stock Exchange | ||
Guarantee of Chubb INA Holdings Inc. 2.50% Senior Notes due 2038 | CB/38A | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. | Results of Operations and Financial Condition |
On April 23, 2024, Chubb Limited issued a Press Release reporting its first quarter 2024 results and the availability of its first quarter 2024 Financial Supplement. The Press Release and the Financial Supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
Exhibit |
Description |
|
99.1 | Press Release, Dated April 23, 2024, Reporting First Quarter 2024 Results | |
99.2 | First Quarter 2024 Financial Supplement | |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Chubb Limited | ||
By: | /s/ Peter Enns |
|
Peter Enns | ||
Executive Vice President and Chief Financial Officer |
DATE: April 23, 2024
Exhibit 99.1
Chubb Limited Bärengasse 32 CH-8001 Zurich Switzerland |
www.chubb.com @Chubb |
|
News Release
Chubb Reports First Quarter Per Share Net Income and Core
Operating Income of $5.23 and $5.41, Up 15.5% and 22.7%,
Respectively; Consolidated Net Premiums Written of $12.2 Billion,
Up 14.1%, with P&C Up 12.4% and Life Insurance Up 26.3%;
P&C Combined Ratio of 86.0%
● | Net income was $2.14 billion, up 13.3%, and core operating income was $2.22 billion, up 20.3%. |
● | Net income and core operating income were impacted modestly by two one-time items: an incremental deferred tax benefit of $55 million, or $0.14 per share, related to the Bermuda tax law enacted in December 2023, partially offset by a contribution to the Chubb Charitable Foundation of $30 million ($24 million after-tax), or $0.06 per share. |
● | Global P&C net premiums written, which excludes Agriculture, were up 13.3%, with commercial insurance up 11.1% and consumer insurance up 19.3%. North America was up 10.1%, including growth of 12.3% in personal insurance and 9.4% in commercial insurance. Overseas General was up 17.5%, with growth of 27.1% in consumer insurance and 12.2% in commercial insurance; Asia, Latin America, and Europe were up 34.7%, 17.5%, and 8.6%, respectively. |
● | P&C underwriting income was $1.40 billion, up 15.4%, with a combined ratio of 86.0%. P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 10.3%, with a combined ratio of 83.7%. |
● | Life Insurance net premiums written were $1.63 billion, up 26.3%, and segment income was $268 million, up 9.8%. Life Insurance net premiums written and deposits collected were $2.23 billion, up 39.4%. |
● | Pre-tax net investment income was $1.39 billion, up 25.7%, and adjusted net investment income was $1.48 billion, up 23.5%. |
● | Annualized return on equity (ROE) was 14.3%. Annualized core operating return on tangible equity (ROTE) was 21.9% and annualized core operating ROE was 13.7%. |
ZURICH – April 23, 2024 – Chubb Limited (NYSE: CB) today reported net income for the quarter ended March 31, 2024 of $2.14 billion, or $5.23 per share, and core operating income of $2.22 billion, or $5.41 per share. Book value per share and tangible book value per share increased 1.5% and 1.8%, respectively, from December 31, 2023 and now stand at $149.09 and $89.55, respectively. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $622 million in the company’s investment portfolio, principally due to the mark-to-market impact in the fixed-income portfolio. Book value per share and tangible book value per share excluding AOCI increased 2.2% and 2.9%, respectively, from December 31, 2023.
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 1 |
Chubb Limited News Release
Chubb Limited
First Quarter Summary
(in millions of U.S. dollars, except per share amounts and ratios)
(Unaudited)
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(Per Share) | ||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||
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Net income | $2,143 | $1,892 | 13.3% | $5.23 | $4.53 | 15.5% | ||||||||||||||||||
Adjusted net realized (gains) losses and other, net of tax | 94 | (165) | NM | 0.23 | (0.40) | NM | ||||||||||||||||||
Market risk benefits (gains) losses, net of tax | (21) | 115 | NM | (0.05) | 0.28 | NM | ||||||||||||||||||
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Core operating income, net of tax | $2,216 | $1,842 | 20.3% | $5.41 | $4.41 | 22.7% | ||||||||||||||||||
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Annualized return on equity (ROE) | 14.3% | 14.6% | ||||||||||||||||||||||
Core operating return on tangible equity (ROTE) | 21.9% | 19.4% | ||||||||||||||||||||||
Core operating ROE | 13.7% | 12.6% |
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: “We began the year with a simply excellent quarter. Core operating income was up double-digit, driven by P&C underwriting income up over 15% with a published combined ratio of 86%, investment income up more than 23%, and life insurance income up almost 10%. We produced double-digit premium revenue growth from across the globe with strong results in our commercial and consumer P&C and Asia life businesses.
“Core operating income and EPS were up over 20%, to $2.2 billion, and up nearly 23%, to $5.41, respectively. Earnings modestly benefited from two one-time items that partially offset each other. Adjusting for these, core operating income grew over 18.5%, with operating EPS up nearly 21% to $5.33. Our sources of earnings were well balanced and of an enduring quality: P&C underwriting income of $1.4 billion, driven by strong earned premium growth and great underwriting margins; adjusted net investment income of nearly $1.5 billion; and life segment income of $268 million.
“Total company net premiums written increased over 14% in the quarter, with total P&C up 12.5% and Life Insurance up over 26%. Global P&C premiums, which exclude Agriculture, increased 13.3%, with commercial lines up over 11% and consumer lines up 19.3%. Premiums in North America were up over 10%, while in our international retail P&C business, premiums in Asia, Latin America, and the Continent of Europe were up 34.7%, 17.5%, and 12.3%, respectively. Life Insurance premiums and deposits were up over 39%, driven, again, by our business in Asia.
“North America’s growth consisted of 12.3% in personal insurance, an outstanding result for our Chubb Personal Risk Services business, and about 9.5% growth in commercial, with P&C lines up 13% and financial lines down about 7.5%. Record new business of over $1.2 billion and strong policy count renewal retention of 84.7% add to the excellent results of our North America division and speak to the favorable market tone and our operating capability.
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 2 |
Chubb Limited News Release
“The P&C underwriting environment in North America overall is quite favorable, financial lines aside, with pricing exceeding loss costs, which remained steady. From our large middle market business to small commercial to personal lines, and driven by both property and casualty, we saw the best rates and pricing overall that we have seen in the last four to five quarters. It was also one of the best quarters for large-account casualty rates and pricing.
“In our Overseas General division, both our consumer and commercial businesses performed well in the quarter. Asia was a standout, with consumer premiums up 46% and commercial premiums up 23%, supported by the consolidation impact of Huatai in China. Retail commercial P&C lines pricing across our international business was favorable and our portfolio is well priced.
“In sum, we had a very strong start to the year. Looking forward, we are confident in our ability to continue growing operating earnings at a rapid pace through P&C revenue growth and underwriting margins, investment income, and life income.”
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 3 |
Chubb Limited News Release
Operating highlights for the quarter ended March 31, 2024 were as follows:
Chubb Limited | Q1 | Q1 | ||||||||||
(in millions of U.S. dollars except for percentages) | 2024 | 2023 | Change | |||||||||
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Consolidated | ||||||||||||
Net premiums written (increase of 14.2% in constant dollars) | $ | 12,221 | $ | 10,710 | 14.1% | |||||||
P&C | ||||||||||||
Net premiums written (increase of 12.2% in constant dollars) | $ | 10,588 | $ | 9,417 | 12.4% | |||||||
Underwriting income | $ | 1,400 | $ | 1,213 | 15.4% | |||||||
Combined ratio | 86.0% | 86.3% | ||||||||||
Current accident year underwriting income excluding catastrophe losses | $ | 1,628 | $ | 1,475 | 10.3% | |||||||
Current accident year combined ratio excluding catastrophe losses (1) | 83.7% | 83.4% | ||||||||||
Global P&C (excludes Agriculture) | ||||||||||||
Net premiums written (increase of 13.0% in constant dollars) | $ | 10,339 | $ | 9,124 | 13.3% | |||||||
Underwriting income | $ | 1,344 | $ | 1,212 | 10.9% | |||||||
Combined ratio | 86.3% | 86.1% | ||||||||||
Current accident year underwriting income excluding catastrophe losses | $ | 1,597 | $ | 1,450 | 10.2% | |||||||
Current accident year combined ratio excluding catastrophe losses (1) | 83.8% | 83.4% | ||||||||||
Life Insurance | ||||||||||||
Net premiums written (increase of 29.7% in constant dollars) | $ | 1,633 | $ | 1,293 | 26.3% | |||||||
Segment income (increase of 12.7% in constant dollars) | $ | 268 | $ | 244 | 9.8% |
(1) | A large structured transaction written in North America Major Accounts in the current quarter adversely impacted both the P&C and Global P&C ratios by 0.3 percentage points. |
● | Consolidated net premiums earned increased 14.2%, or 14.5% in constant dollars. P&C net premiums earned increased 12.3%, or 12.2% in constant dollars. |
● | Operating cash flow was $3.22 billion and adjusted operating cash flow was $3.62 billion. |
● | Total pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, were $435 million (4.4 percentage points of the combined ratio) and $347 million, respectively, compared with $458 million (5.1 percentage points of the combined ratio) and $382 million, respectively, last year. |
● | Total pre-tax and after-tax favorable prior period development were $207 million and $168 million, respectively, compared with $196 million and $149 million, respectively, last year. |
● | Total capital returned to shareholders was $666 million, including share repurchases of $316 million at an average purchase price of $258.75 per share, and dividends of $350 million. |
● | During the quarter, the company increased its ownership in Huatai Group with the closing of incremental interests totaling approximately 9%, bringing the company’s aggregate interest in Huatai Group to approximately 85.5% at March 31, 2024. |
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 4 |
Chubb Limited News Release
Details of financial results by business segment are available in the Chubb Limited Financial Supplement.
Key segment items for the quarter ended March 31, 2024 are presented below:
Chubb Limited | Q1 | Q1 | ||||||||||
(in millions of U.S. dollars except for percentages) | 2024 | 2023 | Change | |||||||||
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Total North America P&C Insurance | ||||||||||||
(Comprising NA Commercial P&C Insurance, NA Personal P&C Insurance and NA Agricultural Insurance) Net premiums written |
$ | 6,394 | $ | 5,877 | 8.8% | |||||||
Combined ratio | 85.6% | 86.1% | ||||||||||
Current accident year combined ratio excluding catastrophe losses | 81.4% | 81.1% | ||||||||||
North America Commercial P&C Insurance |
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Net premiums written |
$ | 4,689 | $ | 4,288 | 9.4% | |||||||
Major accounts retail and excess and surplus (E&S) wholesale |
$ | 2,779 | $ | 2,483 | 11.9% | |||||||
Middle market and small commercial |
$ | 1,910 | $ | 1,805 | 5.9% | |||||||
Combined ratio |
85.9% | 83.2% | ||||||||||
Current accident year combined ratio excluding catastrophe losses |
82.0% | 81.2% | ||||||||||
North America Personal P&C Insurance |
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Net premiums written |
$ | 1,456 | $ | 1,296 | 12.3% | |||||||
Combined ratio |
87.4% | 93.9% | ||||||||||
Current accident year combined ratio excluding catastrophe losses |
79.3% | 80.6% | ||||||||||
North America Agricultural Insurance |
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Net premiums written |
$ | 249 | $ | 293 | (15.0)% | |||||||
Combined ratio |
56.6% | 99.2% | ||||||||||
Current accident year combined ratio excluding catastrophe losses |
81.6% | 83.9% | ||||||||||
Overseas General Insurance | ||||||||||||
Net premiums written (increase of 16.7% in constant dollars) | $ | 3,835 | $ | 3,263 | 17.5% | |||||||
Commercial P&C (increase of 11.4% in constant dollars) |
$ | 2,348 | $ | 2,093 | 12.2% | |||||||
Consumer P&C (increase of 26.2% in constant dollars) |
$ | 1,487 | $ | 1,170 | 27.1% | |||||||
Combined ratio | 83.8% | 84.0% | ||||||||||
Current accident year combined ratio excluding catastrophe losses | 85.8% | 85.1% | ||||||||||
Global Reinsurance | ||||||||||||
Net premiums written (increase of 29.7% in constant dollars) | $ | 359 | $ | 277 | 29.7% | |||||||
Combined ratio | 76.9% | 75.1% | ||||||||||
Current accident year combined ratio excluding catastrophe losses | 76.5% | 78.4% | ||||||||||
Life Insurance | ||||||||||||
Net premiums written (increase of 29.7% in constant dollars) | $ | 1,633 | $ | 1,293 | 26.3% | |||||||
Segment income (increase of 12.7% in constant dollars) | $ | 268 | $ | 244 | 9.8% |
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 5 |
Chubb Limited News Release
● | North America Commercial P&C Insurance: Net premiums written increased 9.4% with P&C lines up 13.0% and financial lines down 7.6%. There were 1.4 percentage points of positive net impact to the P&C lines growth as a result of a larger-than-average structured transaction and previously disclosed planned underwriting actions in primary and excess casualty in our Major Accounts division. The combined ratio increased 2.7 percentage points, primarily reflecting higher catastrophe losses and lower favorable prior period development. The current accident year combined ratio excluding catastrophe losses increased 0.8 percentage point, of which 0.7 percentage point was related to the structured transaction mentioned above. |
● | North America Personal P&C Insurance: The combined ratio decreased 6.5 percentage points, primarily reflecting a 6.2 percentage point decrease in the loss ratio principally due to higher favorable prior period development, partially offset by higher catastrophe losses. The current accident year combined ratio excluding catastrophe losses decreased 1.3 percentage points. |
● | North America Agricultural Insurance: Net premiums written declined 15.0%, primarily due to the return of premium under the government risk-sharing formula related to the 2023 crop year, and lower commodity prices in the current year. The combined ratio decreased 42.6 percentage points, primarily reflecting favorable prior period development related to an improved margin on the 2023 crop year. |
● | Overseas General Insurance: Net premiums written increased 17.5%, benefiting from the consolidation of Huatai. Excluding Huatai, net premiums written increased 9.3%. The combined ratio decreased 0.2 percentage point, primarily reflecting lower catastrophe losses. The current accident year combined ratio excluding catastrophe losses increased 0.7 percentage point, with 0.4 percentage point related to the consolidation of Huatai. |
● | Global Reinsurance: Net premiums written increased 29.7% to $359 million, primarily reflecting continued growth in property catastrophe exposed business. |
● | Life Insurance: Net premiums written were $1.63 billion, up 26.3% and segment income was $268 million, up 9.8%. Net premiums written in international life insurance grew 31.5% and Combined Insurance North America grew 5.5%. International Life segment income was $225 million. |
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 6 |
Chubb Limited News Release
All comparisons are with the same period last year unless otherwise specifically stated.
Please refer to the Chubb Limited Financial Supplement, dated March 31, 2024, which is posted on the company’s investor relations website, investors.chubb.com, in the Financials section for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio, and debt and capital.
Chubb Limited will hold its first quarter earnings conference call on Wednesday, April 24, 2024 beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at investors.chubb.com or by dialing 877-400-4403 (within the United States) or 332-251-2601 (international), passcode 1641662. Please refer to the Chubb website under Events and Presentations for details. A replay will be available after the call at the same location. To listen to the replay, please click here to register and receive dial-in numbers.
Effective July 1, 2023, the company acquired a majority controlling interest in Huatai Group (Huatai), and applied consolidation accounting beginning in the third quarter of 2023. In this release, business activity for, and the financial position of, Huatai is reported at 100%, as required, except for core operating income, net income, book value, tangible book value, ROE, per share data, and certain other key metrics, which include only the company’s ownership interest and exclude the non-controlling interest.
About Chubb
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 40,000 people worldwide. Additional information can be found at: www.chubb.com.
Investor Contact
Karen Beyer: (212) 827-4445; karen.beyer@chubb.com
Media Contact
Jeffrey Zack: (212) 827-4444; jeffrey.zack@chubb.com
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 7 |
Chubb Limited News Release
Regulation G – Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from certain acquisitions of $5 million and $2 million in Q1 2024 and Q1 2023, respectively, and including investment income of $86 million and $91 million in Q1 2024 and Q1 2023, respectively, from partially owned investment companies (private equity partnerships) where our ownership interest is in excess of 3% that are accounted for under the equity method. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.
Adjusted net realized gains (losses) and other, net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to adjusted losses and loss expenses. Other includes Cigna integration expenses, the amortization of fair value adjustment of acquired invested assets and long-term debt related to certain acquisitions. See Core operating income, net of tax for further description of these items.
P&C underwriting income (loss) excludes the Life Insurance segment and is calculated by subtracting adjusted losses and loss expenses, adjusted policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, Cigna integration expense, amortization of fair value of acquired invested assets and debt, income tax expense, adjusted net realized gains (losses), and market risk benefits gains (losses).
P&C current accident year underwriting income excluding catastrophe losses is P&C underwriting income adjusted to exclude P&C catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Core operating income, net of tax, relates only to Chubb income, which excludes noncontrolling interests. It excludes from Chubb net income the after-tax impact of adjusted net realized gains (losses) and other and market risk benefits gains (losses). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and other because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We also exclude the amortization of fair value adjustments on purchased invested assets and long-term debt related to certain acquisitions due to the size and complexity of these acquisitions. We also exclude Cigna integration expenses, which are incurred by the overall company and are included in Corporate. These expenses include
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 8 |
Chubb Limited News Release
legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition. The costs are not related to the ongoing activities of the individual segments and are therefore also excluded from our definition of segment income. We believe these integration expenses are not indicative of our underlying profitability, and excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.
Metrics adjusted for the impact of the Bermuda Tax Law are adjusted to exclude the incremental deferred tax benefit for Q1 2024 of $55 million, giving recognition for transition provisions of the Bermuda Tax Law. We believe that excluding the impact of the incremental deferred tax benefit provides a better evaluation of our operating performance and enhances the understanding of the trends in the underlying business that may be obscured by this one-time item. For Q1 2024 we also exclude expense related to the Chubb Charitable Foundation given that it’s a discrete item that is not part of operating results. Excluding these one-time items facilitates the comparison of our financial results to our historical operating results.
Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average Chubb shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, current discount rate on future policy benefits (FPB), and instrument-specific credit risk on market risk benefits (MRB), all net of tax and attributable to Chubb. For the ROTE calculation, the denominator is also adjusted to exclude Chubb goodwill and other intangible assets, net of tax. These measures enhance the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of these items as these are heavily influenced by changes in market conditions. We believe ROTE is meaningful because it measures the performance of our operations without the impact of goodwill and other intangible assets.
P&C combined ratio is the sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives, as noted above.
P&C current accident year combined ratio excluding catastrophe losses excludes the impact of P&C catastrophe losses and PPD from the P&C combined ratio. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these items.
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of the company’s P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Tangible book value per common share is Chubb shareholders’ equity less Chubb goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.
Book value per share and tangible book value per share excluding accumulated other comprehensive income (loss) (AOCI), excludes AOCI from the numerator because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates and foreign currency movement, to highlight underlying growth in book and tangible book value.
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 9 |
Chubb Limited News Release
Adjusted operating cash flow is Operating cash flow excluding the operating cash flow related to the net investing activities of Huatai’s asset management companies as it relates to the Consolidated Investment Products as required under consolidation accounting. Because these entities are investment companies, we are required to retain the investment company presentation in our consolidated results, which means, we include the net investing activities of these entities in our operating cash flows. Due to the significant impact that this required investment company classification has on the presentation of the company’s operating cash flow, the company has elected to remove the impact of these net investing activities of these investment companies. The investment company presentation is not consistent with our consolidated cash flow presentation. These net investing activities are more appropriately classified outside of operating cash flows, consistent with our consolidated investing activities, and may impact a reader’s analysis of our underlying operating cash flow related to the core insurance company operations. Accordingly, we believe that it is appropriate to adjust operating cash flow for the impact of these consolidated investment products.
Life Insurance and International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because life deposits are an important component of production and key to our efforts to grow our business.
See the reconciliation of Non-GAAP Financial Measures on pages 25-29 in the Financial Supplement. These measures should not be viewed as a substitute for measures determined in accordance with GAAP, including premium, net income, book value, return on equity, and net investment income.
NM – not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to company performance, pricing, growth opportunities, economic and market conditions, and our expectations and intentions and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, loss of key employees or disruptions to our operations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, infection rates and severity of pandemics, and their effects on our business operations and claims activity, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management’s response to these factors, and other factors identified in our filings with the Securities and Exchange Commission (SEC). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 10 |
Chubb Limited News Release
Chubb Limited |
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|||||||
Summary Consolidated Balance Sheets |
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(in millions of U.S. dollars, except per share data) |
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(Unaudited) |
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March 31 2024 |
December 31 2023 |
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Assets |
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Investments |
$ | 140,370 | $ | 136,735 | ||||
Cash and restricted cash |
2,651 | 2,621 | ||||||
Insurance and reinsurance balances receivable |
13,991 | 13,379 | ||||||
Reinsurance recoverable on losses and loss expenses |
19,109 | 19,952 | ||||||
Goodwill and other intangible assets ($25,660 represents Chubb portion as of 03/31/2024) |
26,405 | 26,461 | ||||||
Other assets |
32,341 | 31,534 | ||||||
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Total assets |
$ | 234,867 | $ | 230,682 | ||||
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Liabilities |
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Unpaid losses and loss expenses |
$ | 80,341 | $ | 80,122 | ||||
Unearned premiums |
22,728 | 22,051 | ||||||
Other liabilities |
67,367 | 64,818 | ||||||
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Total liabilities |
170,436 | 166,991 | ||||||
Shareholders’ equity |
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Chubb shareholders’ equity, excl. AOCI |
67,921 | 66,316 | ||||||
Accumulated other comprehensive income (loss) (AOCI) |
(7,386) | (6,809) | ||||||
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Chubb shareholders’ equity |
60,535 | 59,507 | ||||||
Noncontrolling interests |
3,896 | 4,184 | ||||||
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Total shareholders’ equity |
64,431 | 63,691 | ||||||
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Total liabilities and shareholders’ equity |
$ | 234,867 | $ | 230,682 | ||||
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Book value per common share |
$ | 149.09 | $ | 146.83 | ||||
Tangible book value per common share |
$ | 89.55 | $ | 87.98 | ||||
Book value per common share, excl. AOCI |
$ | 167.28 | $ | 163.64 | ||||
Tangible book value per common share, excl. AOCI |
$ | 105.75 | $ | 102.78 |
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 11 |
Chubb Limited News Release
Chubb Limited |
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Summary Consolidated Financial Data |
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(in millions of U.S. dollars, except share, per share data, and ratios) |
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(Unaudited) |
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Three Months Ended | ||||||||
March 31 | ||||||||
2024 | 2023 | |||||||
Gross premiums written |
$ | 14,425 | $ | 13,004 | ||||
Net premiums written |
12,221 | 10,710 | ||||||
Net premiums earned |
11,583 | 10,142 | ||||||
Losses and loss expenses |
5,727 | 5,148 | ||||||
Policy benefits |
1,180 | 797 | ||||||
Policy acquisition costs |
2,207 | 1,948 | ||||||
Administrative expenses |
1,070 | 930 | ||||||
Net investment income |
1,391 | 1,107 | ||||||
Net realized gains (losses) |
(101) | (77) | ||||||
Market risk benefits gains (losses) |
21 | (115) | ||||||
Interest expense |
178 | 160 | ||||||
Other income (expense): |
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Gains (losses) from separate account assets |
10 | (25) | ||||||
Other |
181 | 321 | ||||||
Amortization of purchased intangibles |
80 | 72 | ||||||
Cigna integration expenses |
7 | 22 | ||||||
Income tax expense |
342 | 384 | ||||||
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Net income |
$ | 2,294 | $ | 1,892 | ||||
Less: NCI income |
151 | - | ||||||
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Chubb net income |
$ | 2,143 | $ | 1,892 | ||||
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Diluted earnings per share: |
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Chubb net income |
$ | 5.23 | $ | 4.53 | ||||
Core operating income |
$ | 5.41 | $ | 4.41 | ||||
Weighted average shares outstanding |
409.7 | 417.9 | ||||||
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P&C combined ratio |
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Loss and loss expense ratio |
58.1% | 58.9% | ||||||
Policy acquisition cost ratio |
19.2% | 18.8% | ||||||
Administrative expense ratio |
8.7% | 8.6% | ||||||
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P&C combined ratio |
86.0% | 86.3% | ||||||
P&C underwriting income |
$ | 1,400 | $ | 1,213 |
Chubb®, Chubb logo® and Chubb. Insured.SM are trademarks of Chubb. | 12 |
Exhibit 99.2
Chubb Limited
Financial Supplement
for the Quarter Ended March 31, 2024
Investor Contact
Karen Beyer: (212) 827-4445
email: investorrelations@chubb.com
This report is for informational purposes only. It should be read in conjunction with documents filed by Chubb Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this financial supplement reflect Chubb Limited’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from such statements. For example, forward-looking statements related to financial performance, including exposures, reserves and recoverables, could be affected by the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.
Our forward-looking statements could also be affected by, among other things, competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war, and such other factors identified in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chubb Limited
Financial Supplement Table of Contents
Page |
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I. | Financial Highlights | |||||
- Consolidated Financial Highlights | 1 | |||||
II. | Consolidated Results | |||||
- Consolidated Statement of Operations | 2 | |||||
- P&C Results - Consecutive Quarters | 3 | |||||
- Global P&C Results - Consecutive Quarters | 4 | |||||
- Summary Consolidated Balance Sheets | 5 | |||||
- Product Line | 6 | |||||
- Consolidated Results by Segment | 7 | |||||
III. | Segment Results | |||||
- North America Commercial P&C Insurance | 8 | |||||
- North America Personal P&C Insurance | 9 | |||||
- North America Agricultural Insurance | 10 | |||||
- Overseas General Insurance | 11 | |||||
- Global Reinsurance | 12 | |||||
- Life Insurance | 13 | |||||
- Corporate | 14 | |||||
IV. | Balance Sheet Details | |||||
- Loss Reserve Rollforward | 15 | |||||
- Reinsurance Recoverable Analysis | 16 | |||||
- Investment Portfolio | 17 - 20 | |||||
- Net Realized and Unrealized Gains (Losses) | 21 | |||||
- Debt and Capital | 22 | |||||
- Computation of Basic and Diluted Earnings Per Share | 23 | |||||
- Book Value and Book Value per Common Share | 24 | |||||
V. | Other Disclosures | |||||
- Non-GAAP Financial Measures | 25 - 29 | |||||
- Glossary | 30 |
Consolidation of Huatai Group Effective July 1, 2023
Effective July 1, 2023, the company increased its aggregate ownership interest in Huatai Group (Huatai), resulting in a majority controlling interest, and applied consolidation accounting beginning third quarter 2023.
In this financial supplement, business activity for, and the financial position of, Huatai is reported at 100%, as required, except for core operating income, net income, book value, tangible book value, ROE, per share data, and certain other key metrics, which include only the company’s ownership interest and exclude the non-controlling interest.
Chubb Limited
Consolidated Financial Highlights
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited)
Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.
Three months ended March 31 | Constant $ | Constant $ | ||||||||||||||||||
2024 | 2023 | % Change | 2023 | % Change | ||||||||||||||||
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Gross premiums written |
$ | 14,425 | $ | 13,004 | 10.9% | $ | 12,993 | 11.0% | ||||||||||||
Net premiums written |
$ | 12,221 | $ | 10,710 | 14.1% | $ | 10,697 | 14.2% | ||||||||||||
P&C net premiums written |
$ | 10,588 | $ | 9,417 | 12.4% | $ | 9,439 | 12.2% | ||||||||||||
Global P&C net premiums written |
$ | 10,339 | $ | 9,124 | 13.3% | $ | 9,146 | 13.0% | ||||||||||||
Life Insurance net premiums written |
$ | 1,633 | $ | 1,293 | 26.3% | $ | 1,258 | 29.7% | ||||||||||||
Net premiums earned |
$ | 11,583 | $ | 10,142 | 14.2% | $ | 10,115 | 14.5% | ||||||||||||
P&C underwriting income |
$ | 1,400 | $ | 1,213 | 15.4% | $ | 1,216 | 15.1% | ||||||||||||
P&C CAY underwriting income ex Cats |
$ | 1,628 | $ | 1,475 | 10.3% | $ | 1,479 | 10.1% | ||||||||||||
Adjusted net investment income |
$ | 1,482 | $ | 1,200 | 23.5% | $ | 1,199 | 23.6% | ||||||||||||
Core operating income |
$ | 2,216 | $ | 1,842 | 20.3% | $ | 1,839 | 20.5% | ||||||||||||
Adjusted operating cash flow |
$ | 3,624 | $ | 2,251 | ||||||||||||||||
Net investment income |
$ | 1,391 | $ | 1,107 | 25.7% | $ | 1,106 | 25.8% | ||||||||||||
Chubb net income |
$ | 2,143 | $ | 1,892 | 13.3% | |||||||||||||||
Operating cash flow |
$ | 3,220 | $ | 2,251 | ||||||||||||||||
P&C combined ratio |
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Loss and loss expense ratio |
58.1% | 58.9% | ||||||||||||||||||
Policy acquisition cost and administrative expense ratio |
27.9% | 27.4% | ||||||||||||||||||
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Combined ratio |
86.0% | 86.3% | ||||||||||||||||||
P&C Current Accident Year (CAY) combined ratio ex Catastrophe losses (Cats) | ||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
56.1% | 55.9% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
27.6% | 27.5% | ||||||||||||||||||
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CAY combined ratio ex Cats |
83.7% | 83.4% | ||||||||||||||||||
ROE |
14.3% | 14.6% | ||||||||||||||||||
Core operating return on tangible equity (ROTE) |
21.9% | 19.4% | ||||||||||||||||||
Core operating return on equity (ROE) |
13.7% | 12.6% | ||||||||||||||||||
Effective tax rate |
13.7% | 16.9% | ||||||||||||||||||
Core operating effective tax rate (1) |
15.2% | 18.1% | ||||||||||||||||||
Diluted earnings per share |
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Chubb net income |
$ | 5.23 | $ | 4.53 | 15.5% | |||||||||||||||
Core operating income |
$ | 5.41 | $ | 4.41 | 22.7% | |||||||||||||||
Weighted average basic common shares outstanding |
405.7 | 414.3 | ||||||||||||||||||
Weighted average diluted common shares outstanding |
409.7 | 417.9 | ||||||||||||||||||
% Change | ||||||||||||||||||||
March 31 2024 |
December 31 2023 |
1Q-24 vs. 4Q-23 |
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Book value per common share |
$ | 149.09 | $ | 146.83 | 1.5% | |||||||||||||||
Tangible book value per common share |
$ | 89.55 | $ | 87.98 | 1.8% | |||||||||||||||
Book value per common share, excl. AOCI |
$ | 167.28 | $ | 163.64 | 2.2% | |||||||||||||||
Tangible book value per common share, excl. AOCI |
$ | 105.75 | $ | 102.78 | 2.9% |
(1) Q1 2024 includes an incremental deferred tax benefit of $55 million related to the Bermuda tax law (tax benefit) enacted in December 2023. Excluding this tax benefit, core operating effective tax rate for the quarter is 17.3%.
Financial Highlights | Page 1 |
Chubb Limited
Statement of Operations - Consecutive Quarters
(in millions of U.S. dollars)
(Unaudited)
Consolidated Statements of Operations | 1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
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Gross premiums written |
$ | 14,425 | $ | 13,646 | $ | 15,996 | $ | 14,880 | $ | 13,004 | $ | 57,526 | ||||||||||||
Net premiums written |
12,221 | 11,596 | 13,104 | 11,951 | 10,710 | 47,361 | ||||||||||||||||||
Net premiums earned |
11,583 | 11,897 | 12,674 | 10,999 | 10,142 | 45,712 | ||||||||||||||||||
Adjusted losses and loss expenses (1) |
5,728 | 6,165 | 7,113 | 5,678 | 5,149 | 24,105 | ||||||||||||||||||
Realized (gains) losses on crop derivatives |
1 | 2 | 7 | (5 | ) | 1 | 5 | |||||||||||||||||
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Losses and loss expenses |
5,727 | 6,163 | 7,106 | 5,683 | 5,148 | 24,100 | ||||||||||||||||||
Adjusted policy benefits (2) |
1,170 | 1,052 | 957 | 842 | 822 | 3,673 | ||||||||||||||||||
Gains (losses) from fair value changes in separate account liabilities |
(10 | ) | (11 | ) | 19 | 12 | 25 | 45 | ||||||||||||||||
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Policy benefits |
1,180 | 1,063 | 938 | 830 | 797 | 3,628 | ||||||||||||||||||
Policy acquisition costs |
2,207 | 2,117 | 2,178 | 2,016 | 1,948 | 8,259 | ||||||||||||||||||
Administrative expenses |
1,070 | 1,048 | 1,060 | 969 | 930 | 4,007 | ||||||||||||||||||
Adjusted net investment income (3) |
1,482 | 1,487 | 1,415 | 1,241 | 1,200 | 5,343 | ||||||||||||||||||
Other (income) expense from private equity partnerships |
(86 | ) | (109 | ) | (92 | ) | (93 | ) | (91 | ) | (385 | ) | ||||||||||||
Amortization expense of fair value adjustment on acquired invested assets |
(5 | ) | (7 | ) | (9 | ) | (3 | ) | (2 | ) | (21 | ) | ||||||||||||
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Net investment income |
1,391 | 1,371 | 1,314 | 1,145 | 1,107 | 4,937 | ||||||||||||||||||
Adjusted realized gains (losses) (4) |
(100 | ) | (121 | ) | (96 | ) | (309 | ) | (76 | ) | (602 | ) | ||||||||||||
Realized gains (losses) on crop derivatives |
(1 | ) | (2 | ) | (7 | ) | 5 | (1 | ) | (5 | ) | |||||||||||||
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Net realized gains (losses) |
(101 | ) | (123 | ) | (103 | ) | (304 | ) | (77 | ) | (607 | ) | ||||||||||||
Market risk benefits gains (losses) |
21 | (153 | ) | (32 | ) | (7 | ) | (115 | ) | (307 | ) | |||||||||||||
Adjusted interest expense (5) |
183 | 179 | 179 | 170 | 165 | 693 | ||||||||||||||||||
Amortization benefit of fair value adjustment on acquired long term debt |
(5 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | (21 | ) | ||||||||||||
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Interest expense |
178 | 173 | 174 | 165 | 160 | 672 | ||||||||||||||||||
Gains (losses) from fair value changes in separate account assets |
10 | 11 | (19 | ) | (12 | ) | (25 | ) | (45 | ) | ||||||||||||||
Net realized gains (losses) related to unconsolidated entities |
101 | 143 | 59 | (9 | ) | 238 | 431 | |||||||||||||||||
Other income (expense) from private equity partnerships |
86 | 109 | 92 | 93 | 91 | 385 | ||||||||||||||||||
Other income (expense) - operating |
(6 | ) | 23 | 22 | 28 | (8 | ) | 65 | ||||||||||||||||
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Other income (expense) |
191 | 286 | 154 | 100 | 296 | 836 | ||||||||||||||||||
Amortization expense of purchased intangibles |
80 | 84 | 84 | 70 | 72 | 310 | ||||||||||||||||||
Cigna integration expenses |
7 | 18 | 14 | 15 | 22 | 69 | ||||||||||||||||||
Income tax expense (benefit) |
342 | (678 | ) | 413 | 392 | 384 | 511 | |||||||||||||||||
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Net income |
$ | 2,294 | $ | 3,290 | $ | 2,040 | $ | 1,793 | $ | 1,892 | $ | 9,015 | ||||||||||||
Less: NCI income (loss) |
151 | (10 | ) | (3 | ) | - | - | (13 | ) | |||||||||||||||
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Chubb net income |
$ | 2,143 | $ | 3,300 | $ | 2,043 | $ | 1,793 | $ | 1,892 | $ | 9,028 | ||||||||||||
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(1) Adjusted losses and loss expenses used throughout this report includes realized gains and losses on crop derivatives.
(2) Adjusted policy benefits used throughout this report excludes gains and losses from fair value changes in separate account liabilities.
(3) Adjusted net investment income used throughout this report excludes Amortization expense of fair value adjustment on acquired invested assets and includes income from private equity partnerships where we hold more than three percent ownership.
(4) Adjusted realized gains (losses) used throughout this report excludes realized gains and losses on crop derivatives.
(5) Adjusted interest expense used throughout this report excludes Amortization benefit of fair value adjustment on acquired long term debt.
Statement of Operations | Page 2 |
Chubb Limited
P&C Underwriting Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
Chubb Limited P&C Underwriting Results | 1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
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P&C underwriting income |
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Gross premiums written |
$ | 12,724 | $ | 12,122 | $ | 14,467 | $ | 13,538 | $ | 11,645 | $ | 51,772 | ||||||||||||
Net premiums written |
10,588 | 10,146 | 11,652 | 10,681 | 9,417 | 41,896 | ||||||||||||||||||
Net premiums earned |
9,972 | 10,461 | 11,232 | 9,743 | 8,878 | 40,314 | ||||||||||||||||||
Adjusted losses and loss expenses |
5,696 | 6,138 | 7,093 | 5,643 | 5,117 | 23,991 | ||||||||||||||||||
Policy benefits |
100 | 119 | 91 | 137 | 110 | 457 | ||||||||||||||||||
Policy acquisition costs |
1,913 | 1,857 | 1,899 | 1,739 | 1,675 | 7,170 | ||||||||||||||||||
Administrative expenses |
863 | 830 | 844 | 799 | 763 | 3,236 | ||||||||||||||||||
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P&C underwriting income |
$ | 1,400 | $ | 1,517 | $ | 1,305 | $ | 1,425 | $ | 1,213 | $ | 5,460 | ||||||||||||
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P&C CAY underwriting income ex Cats |
$ | 1,628 | $ | 1,640 | $ | 1,775 | $ | 1,625 | $ | 1,475 | $ | 6,515 | ||||||||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
12.4% | 12.5% | 8.4% | 9.8% | 9.3% | 9.9% | ||||||||||||||||||
Net premiums earned |
12.3% | 11.8% | 9.2% | 8.1% | 8.3% | 9.4% | ||||||||||||||||||
Net premiums written constant $ |
12.2% | 11.3% | 7.6% | 10.4% | 11.0% | 9.9% | ||||||||||||||||||
Net premiums earned constant $ |
12.2% | 10.6% | 8.1% | 8.7% | 9.8% | 9.3% | ||||||||||||||||||
P&C combined ratio |
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Loss and loss expense ratio |
58.1% | 59.8% | 64.0% | 59.3% | 58.9% | 60.6% | ||||||||||||||||||
Policy acquisition cost ratio |
19.2% | 17.8% | 16.9% | 17.9% | 18.8% | 17.8% | ||||||||||||||||||
Administrative expense ratio |
8.7% | 7.9% | 7.5% | 8.2% | 8.6% | 8.1% | ||||||||||||||||||
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Combined ratio |
86.0% | 85.5% | 88.4% | 85.4% | 86.3% | 86.5% | ||||||||||||||||||
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CAY P&C combined ratio ex Cats |
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CAY loss and loss expense ratio ex Cats |
56.1% | 58.7% | 60.1% | 57.4% | 55.9% | 58.2% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
27.6% | 25.6% | 24.2% | 25.9% | 27.5% | 25.7% | ||||||||||||||||||
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CAY combined ratio ex Cats |
83.7% | 84.3% | 84.3% | 83.3% | 83.4% | 83.9% | ||||||||||||||||||
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Other ratios |
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Net premiums written/gross premiums written |
83% | 84% | 81% | 79% | 81% | 81% | ||||||||||||||||||
Expense ratio |
27.9% | 25.7% | 24.4% | 26.1% | 27.4% | 25.9% | ||||||||||||||||||
Expense ratio excluding A&H |
26.1% | 23.9% | 22.6% | 24.3% | 25.7% | 24.0% | ||||||||||||||||||
Catastrophe losses - pre-tax |
$ | 435 | $ | 300 | $ | 670 | $ | 400 | $ | 458 | $ | 1,828 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (207 | ) | $ | (177 | ) | $ | (200 | ) | $ | (200 | ) | $ | (196 | ) | $ | (773 | ) | ||||||
Impact of catastrophe losses on P&C combined ratio - Unfavorable |
4.4% | 2.9% | 6.0% | 4.1% | 5.1% | 4.5% | ||||||||||||||||||
Impact of PPD on P&C combined ratio - Favorable |
-2.1% | -1.7% | -1.9% | -2.0% | -2.2% | -1.9% | ||||||||||||||||||
Impact of Cats and PPD on P&C combined ratio - Unfavorable |
2.3% | 1.2% | 4.1% | 2.1% | 2.9% | 2.6% |
P&C Results | Page 3 |
Chubb Limited
Global P&C Underwriting Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
Global P&C |
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
||||||||||||||||||
Global P&C underwriting income |
||||||||||||||||||||||||
Gross premiums written |
$ | 12,296 | $ | 11,614 | $ | 12,063 | $ | 12,449 | $ | 11,240 | $ | 47,366 | ||||||||||||
Net premiums written |
10,339 | 9,539 | 10,131 | 9,914 | 9,124 | 38,708 | ||||||||||||||||||
Net premiums earned |
9,844 | 9,626 | 9,692 | 9,108 | 8,719 | 37,145 | ||||||||||||||||||
Adjusted losses and loss expenses |
5,647 | 5,267 | 5,737 | 5,136 | 4,977 | 21,117 | ||||||||||||||||||
Policy benefits |
100 | 119 | 91 | 137 | 110 | 457 | ||||||||||||||||||
Policy acquisition costs |
1,892 | 1,835 | 1,823 | 1,702 | 1,660 | 7,020 | ||||||||||||||||||
Administrative expenses |
861 | 840 | 841 | 796 | 760 | 3,237 | ||||||||||||||||||
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Global P&C underwriting income |
$ | 1,344 | $ | 1,565 | $ | 1,200 | $ | 1,337 | $ | 1,212 | $ | 5,314 | ||||||||||||
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Global P&C CAY underwriting income ex Cats |
$ | 1,597 | $ | 1,692 | $ | 1,661 | $ | 1,545 | $ | 1,450 | $ | 6,348 | ||||||||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
13.3% | 10.5% | 12.3% | 10.2% | 6.7% | 10.0% | ||||||||||||||||||
Net premiums earned |
12.9% | 10.2% | 12.5% | 7.9% | 6.0% | 9.2% | ||||||||||||||||||
Net premiums written constant $ |
13.0% | 9.2% | 11.2% | 10.9% | 8.3% | 10.0% | ||||||||||||||||||
Net premiums earned constant $ |
12.8% | 8.9% | 11.2% | 8.6% | 7.5% | 9.1% | ||||||||||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
58.4% | 56.0% | 60.1% | 57.9% | 58.3% | 58.1% | ||||||||||||||||||
Policy acquisition cost ratio |
19.2% | 19.0% | 18.8% | 18.7% | 19.1% | 18.9% | ||||||||||||||||||
Administrative expense ratio |
8.7% | 8.7% | 8.7% | 8.7% | 8.7% | 8.7% | ||||||||||||||||||
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Combined ratio |
86.3% | 83.7% | 87.6% | 85.3% | 86.1% | 85.7% | ||||||||||||||||||
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CAY combined ratio ex Cats |
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CAY loss and loss expense ratio ex Cats |
55.9% | 54.7% | 55.7% | 55.8% | 55.6% | 55.5% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
27.9% | 27.7% | 27.3% | 27.3% | 27.8% | 27.5% | ||||||||||||||||||
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|||||||
CAY combined ratio ex Cats |
83.8% | 82.4% | 83.0% | 83.1% | 83.4% | 83.0% | ||||||||||||||||||
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|||||||
Other ratios |
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Net premiums written/gross premiums written |
84% | 82% | 84% | 80% | 81% | 82% | ||||||||||||||||||
Expense ratio |
27.9% | 27.7% | 27.5% | 27.4% | 27.8% | 27.6% | ||||||||||||||||||
Expense ratio excluding A&H |
26.2% | 26.1% | 25.6% | 25.7% | 26.0% | 25.8% | ||||||||||||||||||
Catastrophe losses - pre-tax |
$ | 432 | $ | 298 | $ | 652 | $ | 405 | $ | 434 | $ | 1,789 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (179) | $ | (171) | $ | (191) | $ | (197) | $ | (196) | $ | (755) | ||||||||||||
Impact of catastrophe losses on combined ratio - Unfavorable |
4.3% | 3.0% | 6.7% | 4.4% | 5.0% | 4.8% | ||||||||||||||||||
Impact of PPD on combined ratio - Favorable |
-1.8% | -1.8% | -2.1% | -2.2% | -2.3% | -2.1% | ||||||||||||||||||
Impact of Cats and PPD on combined ratio - Unfavorable |
2.5% | 1.2% | 4.6% | 2.2% | 2.7% | 2.7% |
Global P&C | Page 4 |
Chubb Limited
Summary Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited)
March 31 2024 |
December 31 2023 |
|||||||
Assets |
||||||||
Short-term investments, at fair value |
$ | 5,107 | $ | 4,551 | ||||
Fixed maturities available for sale, at fair value |
108,289 | 106,571 | ||||||
Private debt held-for-investment, at amortized cost |
2,708 | 2,553 | ||||||
Equity securities, at fair value |
3,769 | 3,455 | ||||||
Private equities |
14,281 | 14,078 | ||||||
Other investments |
6,216 | 5,527 | ||||||
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|
|
||||
Total investments |
140,370 | 136,735 | ||||||
Cash and restricted cash |
2,651 | 2,621 | ||||||
Securities lending collateral |
1,708 | 1,299 | ||||||
Insurance and reinsurance balances receivable |
13,991 | 13,379 | ||||||
Reinsurance recoverable on losses and loss expenses |
19,109 | 19,952 | ||||||
Deferred policy acquisition costs |
7,537 | 7,152 | ||||||
Value of business acquired (VOBA) |
3,617 | 3,674 | ||||||
Prepaid reinsurance premiums |
3,241 | 3,221 | ||||||
Goodwill and other intangible assets ($25,660 represents Chubb portion as of 03/31/2024) |
26,405 | 26,461 | ||||||
Deferred tax assets |
1,761 | 1,741 | ||||||
Separate account assets |
5,864 | 5,573 | ||||||
Other assets |
8,613 | 8,874 | ||||||
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|
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Total assets |
$ | 234,867 | $ | 230,682 | ||||
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|
||||
Liabilities |
||||||||
Unpaid losses and loss expenses |
$ | 80,341 | $ | 80,122 | ||||
Unearned premiums |
22,728 | 22,051 | ||||||
Future policy benefits |
14,375 | 13,888 | ||||||
Market risk benefits |
611 | 771 | ||||||
Policyholder account balances |
7,560 | 7,462 | ||||||
Separate account liabilities |
5,864 | 5,573 | ||||||
Insurance and reinsurance balances payable |
8,505 | 8,302 | ||||||
Securities lending payable |
1,708 | 1,299 | ||||||
Accounts payable, accrued expenses, and other liabilities |
11,379 | 11,165 | ||||||
Deferred tax liabilities |
1,543 | 1,555 | ||||||
Short-term and long-term debt |
15,513 | 14,495 | ||||||
Trust preferred securities |
309 | 308 | ||||||
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|
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Total liabilities |
170,436 | 166,991 | ||||||
Shareholders’ equity |
||||||||
Chubb shareholders’ equity, excl. AOCI |
67,921 | 66,316 | ||||||
Accumulated other comprehensive income (loss) (AOCI) |
(7,386 | ) | (6,809 | ) | ||||
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|
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Chubb shareholders’ equity |
60,535 | 59,507 | ||||||
Noncontrolling interests |
3,896 | 4,184 | ||||||
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|
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Total shareholders’ equity |
64,431 | 63,691 | ||||||
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|
||||
Total liabilities and shareholders’ equity |
$ | 234,867 | $ | 230,682 | ||||
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|
||||
Book value per common share |
$ | 149.09 | $ | 146.83 | ||||
% change over prior quarter |
1.5% | 14.4% | ||||||
Tangible book value per common share (1) |
$ | 89.55 | $ | 87.98 | ||||
% change over prior quarter |
1.8% | 24.1% | ||||||
Book value per common share, excl. AOCI |
$ | 167.28 | $ | 163.64 | ||||
% change over prior quarter |
2.2% | 4.5% | ||||||
Tangible book value per common share, excl. AOCI |
$ | 105.75 | $ | 102.78 | ||||
% change over prior quarter |
2.9% | 6.1% |
(1) Refer to page 24 in this financial supplement for more details.
Consol Bal Sheet | Page 5 |
Chubb Limited
Consolidated Net Premiums Written by Product Line
(in millions of U.S. dollars)
(Unaudited)
Constant $ | ||||||||||||||||
1Q-24 | 1Q-23 | % Change | % Change | |||||||||||||
Net premiums written |
||||||||||||||||
Property and other short-tail lines |
$ | 2,360 | $ | 2,025 | 16.5% | 16.4% | ||||||||||
Commercial casualty |
2,210 | 1,903 | 16.1% | 15.8% | ||||||||||||
Financial lines |
1,108 | 1,156 | -4.1% | -4.4% | ||||||||||||
Workers’ compensation |
629 | 618 | 1.8% | 1.8% | ||||||||||||
Commercial multiple peril (1) |
368 | 340 | 8.0% | 8.0% | ||||||||||||
Surety |
184 | 160 | 15.1% | 13.0% | ||||||||||||
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Total Commercial P&C lines |
6,859 | 6,202 | 10.6% | 10.3% | ||||||||||||
Agriculture |
249 | 293 | -15.0% | -15.0% | ||||||||||||
Personal homeowners |
1,065 | 902 | 18.1% | 18.4% | ||||||||||||
Personal automobile |
642 | 427 | 50.4% | 44.3% | ||||||||||||
Personal other |
565 | 507 | 11.4% | 11.8% | ||||||||||||
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Total Personal lines |
2,272 | 1,836 | 23.8% | 22.8% | ||||||||||||
Global A&H - P&C |
849 | 809 | 4.9% | 5.9% | ||||||||||||
Reinsurance lines |
359 | 277 | 29.7% | 29.7% | ||||||||||||
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Total P&C |
$ | 10,588 | $ | 9,417 | 12.4% | 12.2% | ||||||||||
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Life Insurance |
1,633 | 1,293 | 26.3% | 29.7% | ||||||||||||
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Total Consolidated |
$ | 12,221 | $ | 10,710 | 14.1% | 14.2% | ||||||||||
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(1) Commercial multiple peril represents retail package business (property and general liability).
Product Line | Page 6 |
Chubb Limited
Consolidated Results
(in millions of U.S. dollars, except ratios)
(Unaudited)
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
North America |
North America |
North America Agricultural |
Overseas General |
Global | Total | Life | Total | |||||||||||||||||||||||||||||||||
Q1 2024 |
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | P&C | Insurance | Consolidated | |||||||||||||||||||||||||||||||
Net premiums written |
$ | 4,689 | $ | 1,456 | $ | 249 | $ | 3,835 | $ | 359 | $ | - | $ | 10,588 | $ | 1,633 | $ | 12,221 | ||||||||||||||||||||||
% of total net premiums written |
39% | 12% | 2% | 31% | 3% | - | 87% | 13% | 100% | |||||||||||||||||||||||||||||||
Net premiums earned |
4,880 | 1,471 | 128 | 3,198 | 295 | - | 9,972 | 1,611 | 11,583 | |||||||||||||||||||||||||||||||
Adjusted losses and loss expenses |
3,175 | 899 | 49 | 1,426 | 137 | 10 | 5,696 | 32 | 5,728 | |||||||||||||||||||||||||||||||
Adjusted policy benefits |
- | - | - | 100 | - | - | 100 | 1,070 | 1,170 | |||||||||||||||||||||||||||||||
Policy acquisition costs |
688 | 300 | 21 | 823 | 81 | - | 1,913 | 294 | 2,207 | |||||||||||||||||||||||||||||||
Administrative expenses |
328 | 86 | 2 | 331 | 9 | 107 | 863 | 207 | 1,070 | |||||||||||||||||||||||||||||||
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Underwriting income (loss) |
689 | 186 | 56 | 518 | 68 | (117) | 1,400 | 8 | 1,408 | |||||||||||||||||||||||||||||||
Adjusted net investment income |
826 | 102 | 21 | 267 | 57 | (21) | 1,252 | 230 | 1,482 | |||||||||||||||||||||||||||||||
Other income (expense) - operating |
(7) | (1) | - | (5) | - | (33) | (46) | 40 | (6) | |||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles |
- | (2) | (6) | (20) | - | (42) | (70) | (10) | (80) | |||||||||||||||||||||||||||||||
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Segment income (loss) |
$ | 1,508 | $ | 285 | $ | 71 | $ | 760 | $ | 125 | $ | (213) | $ | 2,536 | $ | 268 | $ | 2,804 | ||||||||||||||||||||||
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Combined ratio |
85.9% | 87.4% | 56.6% | 83.8% | 76.9% | 86.0% | ||||||||||||||||||||||||||||||||||
CAY combined ratio ex Cats |
82.0% | 79.3% | 81.6% | 85.8% | 76.5% | 83.7% |
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
North America Commercial P&C |
North America Personal P&C |
North America Agricultural |
Overseas General |
Global | Total | Life | Total | |||||||||||||||||||||||||||||||||
Q1 2023 |
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | P&C | Insurance | Consolidated | |||||||||||||||||||||||||||||||
Net premiums written |
$ | 4,288 | $ | 1,296 | $ | 293 | $ | 3,263 | $ | 277 | $ | - | $ | 9,417 | $ | 1,293 | $ | 10,710 | ||||||||||||||||||||||
% of total net premiums written |
40% | 12% | 3% | 30% | 3% | - | 88% | 12% | 100% | |||||||||||||||||||||||||||||||
Net premiums earned |
4,369 | 1,320 | 159 | 2,786 | 244 | - | 8,878 | 1,264 | 10,142 | |||||||||||||||||||||||||||||||
Adjusted losses and loss expenses |
2,729 | 888 | 140 | 1,237 | 112 | 11 | 5,117 | 32 | 5,149 | |||||||||||||||||||||||||||||||
Adjusted policy benefits |
- | - | - | 110 | - | - | 110 | 712 | 822 | |||||||||||||||||||||||||||||||
Policy acquisition costs |
613 | 272 | 15 | 713 | 62 | - | 1,675 | 273 | 1,948 | |||||||||||||||||||||||||||||||
Administrative expenses |
295 | 79 | 3 | 280 | 9 | 97 | 763 | 167 | 930 | |||||||||||||||||||||||||||||||
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Underwriting income (loss) |
732 | 81 | 1 | 446 | 61 | (108) | 1,213 | 80 | 1,293 | |||||||||||||||||||||||||||||||
Adjusted net investment income |
698 | 82 | 17 | 188 | 49 | 13 | 1,047 | 153 | 1,200 | |||||||||||||||||||||||||||||||
Other income (expense) -operating |
(7) | (1) | (1) | 9 | 1 | (24) | (23) | 15 | (8) | |||||||||||||||||||||||||||||||
Amortization expense of purchased intangibles |
- | (2) | (6) | (18) | - | (42) | (68) | (4) | (72) | |||||||||||||||||||||||||||||||
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Segment income (loss) |
$ | 1,423 | $ | 160 | $ | 11 | $ | 625 | $ | 111 | $ | (161) | $ | 2,169 | $ | 244 | $ | 2,413 | ||||||||||||||||||||||
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Combined ratio |
83.2% | 93.9% | 99.2% | 84.0% | 75.1% | 86.3% | ||||||||||||||||||||||||||||||||||
CAY combined ratio ex Cats |
81.2% | 80.6% | 83.9% | 85.1% | 78.4% | 83.4% |
Consol Results - QTD | Page 7 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
North America Commercial P&C Insurance
Full Year | ||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Gross premiums written |
$ | 5,431 | $ | 5,752 | $ | 6,131 | $ | 6,611 | $ | 5,316 | $ | 23,810 | ||||||||||||
Net premiums written |
4,689 | 4,662 | 5,132 | 5,155 | 4,288 | 19,237 | ||||||||||||||||||
Net premiums earned |
4,880 | 4,706 | 4,735 | 4,606 | 4,369 | 18,416 | ||||||||||||||||||
Losses and loss expenses |
3,175 | 2,631 | 3,025 | 2,871 | 2,729 | 11,256 | ||||||||||||||||||
Policy acquisition costs |
688 | 648 | 640 | 614 | 613 | 2,515 | ||||||||||||||||||
Administrative expenses |
328 | 316 | 323 | 316 | 295 | 1,250 | ||||||||||||||||||
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Underwriting income |
689 | 1,111 | 747 | 805 | 732 | 3,395 | ||||||||||||||||||
Adjusted net investment income |
826 | 813 | 780 | 726 | 698 | 3,017 | ||||||||||||||||||
Other income (expense) - operating |
(7 | ) | (4 | ) | (6 | ) | (5 | ) | (7 | ) | (22 | ) | ||||||||||||
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Segment income |
$ | 1,508 | $ | 1,920 | $ | 1,521 | $ | 1,526 | $ | 1,423 | $ | 6,390 | ||||||||||||
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CAY underwriting income ex Cats |
$ | 877 | $ | 990 | $ | 909 | $ | 890 | $ | 822 | $ | 3,611 | ||||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
65.1% | 55.9% | 63.9% | 62.3% | 62.5% | 61.1% | ||||||||||||||||||
Policy acquisition cost ratio |
14.1% | 13.8% | 13.5% | 13.3% | 14.0% | 13.7% | ||||||||||||||||||
Administrative expense ratio |
6.7% | 6.7% | 6.8% | 6.9% | 6.7% | 6.8% | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|||||||
Combined ratio |
85.9% | 76.4% | 84.2% | 82.5% | 83.2% | 81.6% | ||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
||||||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
61.4% | 58.6% | 61.1% | 60.7% | 60.5% | 60.2% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
20.6% | 20.4% | 20.0% | 20.0% | 20.7% | 20.3% | ||||||||||||||||||
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|
|
|
|||||||
CAY combined ratio ex Cats (1) |
82.0% | 79.0% | 81.1% | 80.7% | 81.2% | 80.5% | ||||||||||||||||||
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|
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|
|||||||
Catastrophe losses - pre-tax |
$ | 236 | $ | 71 | $ | 246 | $ | 231 | $ | 162 | $ | 710 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (48 | ) | $ | (192 | ) | $ | (84 | ) | $ | (146 | ) | $ | (72 | ) | $ | (494 | ) | ||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
9.4% | 4.4% | 8.7% | 10.5% | 6.2% | 7.5% | ||||||||||||||||||
Net premiums earned |
11.7% | 5.5% | 10.6% | 8.4% | 6.2% | 7.7% | ||||||||||||||||||
Other ratios |
||||||||||||||||||||||||
Net premiums written/gross premiums written |
86% | 81% | 84% | 78% | 81% | 81% | ||||||||||||||||||
Production by Size - Net premiums written (2) |
||||||||||||||||||||||||
Major Accounts & Specialty |
$ | 2,779 | $ | 2,788 | $ | 3,075 | $ | 3,307 | $ | 2,483 | $ | 11,653 | ||||||||||||
Commercial |
1,910 | 1,874 | 2,057 | 1,848 | 1,805 | 7,584 | ||||||||||||||||||
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|
|||||||
Total |
$ | 4,689 | $ | 4,662 | $ | 5,132 | $ | 5,155 | $ | 4,288 | $ | 19,237 | ||||||||||||
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|
(1) Q1 2024 includes a 0.7 percentage point adverse impact from a large structured transaction.
(2) Major Accounts & Specialty: large corporate accounts and wholesale business. Commercial: principally middle market and small commercial accounts.
NA Commercial | Page 8 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
North America Personal P&C Insurance
Full Year | ||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Gross premiums written |
$ | 1,679 | $ | 1,695 | $ | 1,750 | $ | 1,811 | $ | 1,483 | $ | 6,739 | ||||||||||||
Net premiums written |
1,456 | 1,474 | 1,527 | 1,581 | 1,296 | 5,878 | ||||||||||||||||||
Net premiums earned |
1,471 | 1,452 | 1,407 | 1,357 | 1,320 | 5,536 | ||||||||||||||||||
Losses and loss expenses |
899 | 877 | 900 | 846 | 888 | 3,511 | ||||||||||||||||||
Policy acquisition costs |
300 | 292 | 287 | 277 | 272 | 1,128 | ||||||||||||||||||
Administrative expenses |
86 | 82 | 84 | 84 | 79 | 329 | ||||||||||||||||||
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|
|||||||
Underwriting income |
186 | 201 | 136 | 150 | 81 | 568 | ||||||||||||||||||
Net investment income |
102 | 96 | 94 | 86 | 82 | 358 | ||||||||||||||||||
Other income (expense) - operating |
(1 | ) | (1 | ) | (2 | ) | 1 | (1 | ) | (3 | ) | |||||||||||||
Amortization expense of purchased intangibles |
(2 | ) | (1 | ) | (3 | ) | (3 | ) | (2 | ) | (9 | ) | ||||||||||||
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|||||||
Segment income |
$ | 285 | $ | 295 | $ | 225 | $ | 234 | $ | 160 | $ | 914 | ||||||||||||
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|
|||||||
CAY underwriting income ex Cats |
$ | 304 | $ | 285 | $ | 297 | $ | 264 | $ | 257 | $ | 1,103 | ||||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
61.1% | 60.4% | 63.9% | 62.4% | 67.3% | 63.4% | ||||||||||||||||||
Policy acquisition cost ratio |
20.4% | 20.1% | 20.4% | 20.4% | 20.6% | 20.4% | ||||||||||||||||||
Administrative expense ratio |
5.9% | 5.7% | 6.0% | 6.1% | 6.0% | 5.9% | ||||||||||||||||||
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|
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|
|||||||
Combined ratio |
87.4% | 86.2% | 90.3% | 88.9% | 93.9% | 89.7% | ||||||||||||||||||
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|
|||||||
CAY combined ratio ex Cats |
||||||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
53.1% | 54.7% | 52.4% | 54.0% | 53.9% | 53.8% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
26.2% | 25.7% | 26.5% | 26.5% | 26.7% | 26.3% | ||||||||||||||||||
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|
|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
79.3% | 80.4% | 78.9% | 80.5% | 80.6% | 80.1% | ||||||||||||||||||
|
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|
|||||||
Catastrophe losses - pre-tax |
$ | 170 | $ | 83 | $ | 280 | $ | 147 | $ | 159 | $ | 669 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (52 | ) | $ | 1 | $ | (119 | ) | $ | (33 | ) | $ | 17 | $ | (134 | ) | ||||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
12.3% | 12.1% | 9.6% | 10.8% | 9.9% | 10.6% | ||||||||||||||||||
Net premiums earned |
11.4% | 9.4% | 5.5% | 6.7% | 5.9% | 6.9% | ||||||||||||||||||
Other ratios |
||||||||||||||||||||||||
Net premiums written/gross premiums written |
87% | 87% | 87% | 87% | 87% | 87% |
NA Personal | Page 9 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
North America Agricultural Insurance
Full Year | ||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Gross premiums written |
$ | 428 | $ | 508 | $ | 2,404 | $ | 1,089 | $ | 405 | $ | 4,406 | ||||||||||||
Net premiums written |
249 | 607 | 1,521 | 767 | 293 | 3,188 | ||||||||||||||||||
Net premiums earned |
128 | 835 | 1,540 | 635 | 159 | 3,169 | ||||||||||||||||||
Adjusted losses and loss expenses |
49 | 871 | 1,356 | 507 | 140 | 2,874 | ||||||||||||||||||
Policy acquisition costs |
21 | 22 | 76 | 37 | 15 | 150 | ||||||||||||||||||
Administrative expenses |
2 | (10 | ) | 3 | 3 | 3 | (1 | ) | ||||||||||||||||
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|
|||||||||||||
Underwriting income (loss) |
56 | (48 | ) | 105 | 88 | 1 | 146 | |||||||||||||||||
Net investment income |
21 | 20 | 12 | 14 | 17 | 63 | ||||||||||||||||||
Other income (expense) - operating |
- | (1 | ) | - | 1 | (1 | ) | (1 | ) | |||||||||||||||
Amortization expense of purchased intangibles |
(6 | ) | (6 | ) | (6 | ) | (7 | ) | (6 | ) | (25 | ) | ||||||||||||
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|||||||||||||
Segment income (loss) |
$ | 71 | $ | (35 | ) | $ | 111 | $ | 96 | $ | 11 | $ | 183 | |||||||||||
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|
|
|
|||||||||||||
CAY underwriting income (loss) ex Cats |
$ | 31 | $ | (52 | ) | $ | 114 | $ | 80 | $ | 25 | $ | 167 | |||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
38.6% | 104.4% | 88.1% | 79.7% | 88.5% | 90.7% | ||||||||||||||||||
Policy acquisition cost ratio |
16.8% | 2.7% | 4.9% | 5.9% | 9.3% | 4.7% | ||||||||||||||||||
Administrative expense ratio |
1.2% | -1.3% | 0.2% | 0.6% | 1.4% | 0.0% | ||||||||||||||||||
|
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|
|
|
|||||||||||||
Combined ratio |
56.6% | 105.8% | 93.2% | 86.2% | 99.2% | 95.4% | ||||||||||||||||||
|
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|
|
|
|
|
|
|||||||||||||
CAY combined ratio ex Cats |
||||||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
69.5% | 104.7% | 87.5% | 80.9% | 73.1% | 90.1% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
12.1% | 1.4% | 5.2% | 6.5% | 10.8% | 4.6% | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||
CAY combined ratio ex Cats |
81.6% | 106.1% | 92.7% | 87.4% | 83.9% | 94.7% | ||||||||||||||||||
|
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|
|||||||||||||
Unfavorable (favorable) Catastrophe losses - pre-tax |
$ | 3 | $ | 2 | $ | 18 | $ | (5 | ) | $ | 24 | $ | 39 | |||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (28 | ) | $ | (6 | ) | $ | (9 | ) | $ | (3 | ) | $ | - | $ | (18 | ) | |||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
-15.0% | 58.2% | -11.7% | 4.0% | NM | 9.7% | ||||||||||||||||||
Net premiums earned |
-19.4% | 34.4% | -8.0% | 11.0% | NM | 11.7% | ||||||||||||||||||
Other ratios |
||||||||||||||||||||||||
Net premiums written/gross premiums written |
58% | 119% | 63% | 70% | 72% | 72% |
NA Agriculture | Page 10 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
Overseas General Insurance | ||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
|||||||||||||||||||
Gross premiums written |
$ | 4,775 | $ | 3,961 | $ | 3,897 | $ | 3,677 | $ | 4,131 | $ | 15,666 | ||||||||||||
Net premiums written |
3,835 | 3,216 | 3,211 | 2,885 | 3,263 | 12,575 | ||||||||||||||||||
Net premiums earned |
3,198 | 3,226 | 3,311 | 2,908 | 2,786 | 12,231 | ||||||||||||||||||
Losses and loss expenses |
1,426 | 1,504 | 1,635 | 1,267 | 1,237 | 5,643 | ||||||||||||||||||
Policy benefits |
100 | 119 | 91 | 137 | 110 | 457 | ||||||||||||||||||
Policy acquisition costs |
823 | 827 | 827 | 746 | 713 | 3,113 | ||||||||||||||||||
Administrative expenses |
331 | 320 | 327 | 292 | 280 | 1,219 | ||||||||||||||||||
|
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|
|
|
|
|||||||
Underwriting income |
518 | 456 | 431 | 466 | 446 | 1,799 | ||||||||||||||||||
Adjusted net investment income |
267 | 259 | 248 | 200 | 188 | 895 | ||||||||||||||||||
Other income (expense) - operating |
(5 | ) | (4 | ) | 10 | 10 | 9 | 25 | ||||||||||||||||
Amortization expense of purchased intangibles |
(20 | ) | (18 | ) | (19 | ) | (15 | ) | (18 | ) | (70 | ) | ||||||||||||
|
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|
|||||||
Segment income |
$ | 760 | $ | 693 | $ | 670 | $ | 661 | $ | 625 | $ | 2,649 | ||||||||||||
|
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|
|
|
|
|
|||||||
CAY underwriting income ex Cats |
$ | 455 | $ | 477 | $ | 502 | $ | 431 | $ | 416 | $ | 1,826 | ||||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
47.7% | 50.3% | 52.1% | 48.3% | 48.4% | 49.9% | ||||||||||||||||||
Policy acquisition cost ratio |
25.7% | 25.6% | 25.0% | 25.7% | 25.6% | 25.4% | ||||||||||||||||||
Administrative expense ratio |
10.4% | 10.0% | 9.9% | 10.0% | 10.0% | 10.0% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Combined ratio |
83.8% | 85.9% | 87.0% | 84.0% | 84.0% | 85.3% | ||||||||||||||||||
|
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|
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|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
||||||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
49.7% | 49.7% | 50.0% | 49.5% | 49.4% | 49.7% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
36.1% | 35.5% | 34.8% | 35.7% | 35.7% | 35.4% | ||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
85.8% | 85.2% | 84.8% | 85.2% | 85.1% | 85.1% | ||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Catastrophe losses - pre-tax |
$ | 26 | $ | 144 | $ | 120 | $ | 26 | $ | 113 | $ | 403 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | (89 | ) | $ | (123 | ) | $ | (49 | ) | $ | (61 | ) | $ | (143 | ) | $ | (376 | ) | ||||||
% Change versus prior year period | ||||||||||||||||||||||||
Net premiums written |
17.5% | 19.3% | 21.4% | 9.3% | 6.0% | 13.7% | ||||||||||||||||||
Net premiums written - Commercial |
12.2% | 13.2% | 17.0% | 9.2% | 6.2% | 11.2% | ||||||||||||||||||
Net premiums written - Consumer |
27.1% | 29.5% | 28.4% | 9.3% | 5.6% | 17.8% | ||||||||||||||||||
Net premiums earned |
14.8% | 17.8% | 20.8% | 7.9% | 6.0% | 13.2% | ||||||||||||||||||
Net premiums written constant $ |
16.7% | 15.0% | 17.3% | 10.9% | 10.0% | 13.3% | ||||||||||||||||||
Net premiums written - Commercial |
11.4% | 10.1% | 14.6% | 11.9% | 10.8% | 11.8% | ||||||||||||||||||
Net premiums written - Consumer |
26.2% | 23.2% | 21.4% | 9.5% | 8.6% | 15.7% | ||||||||||||||||||
Net premiums earned constant $ |
14.4% | 13.5% | 16.1% | 9.2% | 9.9% | 12.3% | ||||||||||||||||||
Other ratios: Net premiums written/gross premiums written |
80% | 81% | 82% | 78% | 79% | 80% | ||||||||||||||||||
Production by Region - Net premiums written | 1Q-24 | 1Q-23 | % Change | Constant $ % Change |
||||||||||||||||||||
Europe, Middle East and Africa |
$ | 1,869 | $ | 1,721 | 8.6% | 6.8% | ||||||||||||||||||
Latin America |
777 | 661 | 17.5% | 12.9% | ||||||||||||||||||||
Asia |
1,161 | 861 | 34.7% | 40.1% | ||||||||||||||||||||
Other (1) |
28 | 20 | 42.5% | 42.9% | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | 3,835 | $ | 3,263 | 17.5% | 16.7% | ||||||||||||||||||
|
|
|
|
|
|
(1) Includes the company’s international supplemental A&H business of Combined Insurance and other international operations.
Overseas General Insurance | Page 11 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)
Global Reinsurance |
||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
|||||||||||||||||||
Gross premiums written |
$ | 411 | $ | 206 | $ | 285 | $ | 350 | $ | 310 | $ | 1,151 | ||||||||||||
Net premiums written |
359 | 187 | 261 | 293 | 277 | 1,018 | ||||||||||||||||||
Net premiums earned |
295 | 242 | 239 | 237 | 244 | 962 | ||||||||||||||||||
Losses and loss expenses |
137 | 107 | 116 | 91 | 112 | 426 | ||||||||||||||||||
Policy acquisition costs |
81 | 68 | 69 | 65 | 62 | 264 | ||||||||||||||||||
Administrative expenses |
9 | 10 | 9 | 9 | 9 | 37 | ||||||||||||||||||
|
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|
|||||||
Underwriting income |
68 | 57 | 45 | 72 | 61 | 235 | ||||||||||||||||||
Adjusted net investment income |
57 | 64 | 47 | 48 | 49 | 208 | ||||||||||||||||||
Other income (expense) - operating |
- | 1 | - | - | 1 | 2 | ||||||||||||||||||
|
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|
|||||||
Segment income |
$ | 125 | $ | 122 | $ | 92 | $ | 120 | $ | 111 | $ | 445 | ||||||||||||
|
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|
|
|
|
|||||||
CAY underwriting income ex Cats |
$ | 69 | $ | 54 | $ | 51 | $ | 56 | $ | 53 | $ | 214 | ||||||||||||
Combined ratio |
||||||||||||||||||||||||
Loss and loss expense ratio |
46.3% | 44.1% | 48.4% | 38.7% | 45.7% | 44.3% | ||||||||||||||||||
Policy acquisition cost ratio |
27.5% | 28.1% | 29.1% | 27.0% | 25.6% | 27.4% | ||||||||||||||||||
Administrative expense ratio |
3.1% | 3.9% | 3.8% | 3.9% | 3.8% | 3.8% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Combined ratio |
76.9% | 76.1% | 81.3% | 69.6% | 75.1% | 75.5% | ||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
||||||||||||||||||||||||
CAY loss and loss expense ratio ex Cats |
46.0% | 45.7% | 45.9% | 46.7% | 49.0% | 46.8% | ||||||||||||||||||
CAY policy acquisition cost and administrative expense ratio ex Cats |
30.5% | 31.9% | 32.9% | 30.1% | 29.4% | 31.1% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CAY combined ratio ex Cats |
76.5% | 77.6% | 78.8% | 76.8% | 78.4% | 77.9% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Catastrophe losses - pre-tax |
$ | - | $ | - | $ | 6 | $ | 1 | $ | - | $ | 7 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | 1 | $ | (3 | ) | $ | - | $ | (17 | ) | $ | (8 | ) | $ | (28 | ) | ||||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written as reported |
29.7% | 15.1% | -1.4% | 11.6% | 9.4% | 8.0% | ||||||||||||||||||
Net premiums earned as reported |
20.8% | 15.5% | -6.5% | 6.7% | 3.9% | 4.3% | ||||||||||||||||||
Net premiums written constant $ |
29.7% | 14.3% | -1.8% | 12.4% | 10.4% | 8.2% | ||||||||||||||||||
Net premiums earned constant $ |
20.8% | 14.2% | -7.1% | 7.0% | 5.0% | 4.2% | ||||||||||||||||||
Other ratios |
||||||||||||||||||||||||
Net premiums written/gross premiums written |
87% | 91% | 91% | 84% | 89% | 88% |
Global Reinsurance | Page 12 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars)
(Unaudited)
Life Insurance | Full Year | |||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Gross premiums written |
$ | 1,701 | $ | 1,524 | $ | 1,529 | $ | 1,342 | $ | 1,359 | $ | 5,754 | ||||||||||||
Net premiums written |
1,633 | 1,450 | 1,452 | 1,270 | 1,293 | 5,465 | ||||||||||||||||||
Net premiums earned |
1,611 | 1,436 | 1,442 | 1,256 | 1,264 | 5,398 | ||||||||||||||||||
Losses and loss expenses |
32 | 27 | 20 | 35 | 32 | 114 | ||||||||||||||||||
Adjusted policy benefits |
1,070 | 933 | 866 | 705 | 712 | 3,216 | ||||||||||||||||||
Policy acquisition costs |
294 | 260 | 279 | 277 | 273 | 1,089 | ||||||||||||||||||
Administrative expenses |
207 | 218 | 216 | 170 | 167 | 771 | ||||||||||||||||||
Adjusted net investment income |
230 | 231 | 211 | 161 | 153 | 756 | ||||||||||||||||||
Other income (expense) - operating (1) |
40 | 46 | 28 | 26 | 15 | 115 | ||||||||||||||||||
Amortization expense of purchased intangibles |
(10 | ) | (12 | ) | (12 | ) | (2 | ) | (4 | ) | (30 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Segment income |
$ | 268 | $ | 263 | $ | 288 | $ | 254 | $ | 244 | $ | 1,049 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
% Change versus prior year period |
||||||||||||||||||||||||
Net premiums written |
26.3% | 20.3% | 14.9% | 126.1% | 124.4% | 51.5% | ||||||||||||||||||
Net premiums earned |
27.5% | 21.2% | 15.9% | 132.9% | 133.1% | 53.8% | ||||||||||||||||||
Net premiums written constant $ |
29.7% | 17.2% | 15.2% | 127.6% | 128.7% | 50.9% | ||||||||||||||||||
Net premiums earned constant $ |
31.2% | 18.2% | 16.2% | 134.5% | 137.2% | 53.2% |
International life insurance net premiums written and deposits breakdown (excludes Combined North America and Life reinsurance businesses):
Constant $ | ||||||||||||||||
1Q-24 | 1Q-23 | % Change | % Change | |||||||||||||
International life insurance net premiums written |
$ | 1,374 | $ | 1,045 | 31.5% | 35.9% | ||||||||||
International life insurance deposits (2) |
600 | 309 | 93.9% | 99.4% | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total international life insurance net premiums written and deposits |
$ | 1,974 | $ | 1,354 | 45.8% | 50.5% | ||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
International life insurance segment income |
$ | 225 | $ | 198 | 13.6% | 17.3% | ||||||||||
|
|
|
|
|
|
(1) Includes non-premium revenue and expenses unrelated to our core insurance operations from the management of third-party assets by Huatai’s asset management businesses.
(2) Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.
Life Insurance | Page 13 |
Chubb Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars)
(Unaudited)
Corporate |
||||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | Full Year 2023 |
|||||||||||||||||||
Adjusted loss and loss expenses |
$ | 10 | $ | 148 | $ | 61 | $ | 61 | $ | 11 | $ | 281 | ||||||||||||
Administrative expenses |
107 | 112 | 98 | 95 | 97 | 402 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Underwriting loss |
(117 | ) | (260 | ) | (159 | ) | (156 | ) | (108 | ) | (683 | ) | ||||||||||||
Adjusted net investment income |
(21 | ) | 4 | 23 | 6 | 13 | 46 | |||||||||||||||||
Other income (expense) - operating |
(33 | ) | (14 | ) | (8 | ) | (5 | ) | (24 | ) | (51 | ) | ||||||||||||
Adjusted interest expense |
(183 | ) | (179 | ) | (179 | ) | (170 | ) | (165 | ) | (693 | ) | ||||||||||||
Amortization expense of purchased intangibles |
(42 | ) | (47 | ) | (44 | ) | (43 | ) | (42 | ) | (176 | ) | ||||||||||||
Cigna integration expenses |
(7 | ) | (18 | ) | (14 | ) | (15 | ) | (22 | ) | (69 | ) | ||||||||||||
Amortization of fair value adjustment of acquired invested assets |
- | (1 | ) | (4 | ) | 2 | 3 | - | ||||||||||||||||
Adjusted net realized gains (losses) |
1 | 22 | (37 | ) | (318 | ) | 162 | (171 | ) | |||||||||||||||
Market risk benefits gains (losses) |
21 | (153 | ) | (32 | ) | (7 | ) | (115 | ) | (307 | ) | |||||||||||||
Income tax (expense) benefit |
(342 | ) | 678 | (413 | ) | (392 | ) | (384 | ) | (511 | ) | |||||||||||||
Less: NCI income (loss) |
151 | (10 | ) | (3 | ) | - | - | (13 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) benefit |
$ | (874 | ) | $ | 42 | $ | (864 | ) | $ | (1,098 | ) | $ | (682 | ) | $ | (2,602 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
$ | 9 | $ | 146 | $ | 61 | $ | 60 | $ | 10 | $ | 277 |
Corporate | Page 14 |
Chubb Limited
Loss Reserve Rollforward
(in millions of U.S. dollars, except ratios)
(Unaudited)
Unpaid Losses | Net Paid to | |||||||||||||||||
|
|
|||||||||||||||||
Gross | Ceded | Net | Incurred Ratio | |||||||||||||||
|
|
|
|
|||||||||||||||
Balance at December 31, 2022 |
$ | 75,747 | $ | 17,086 | $ | 58,661 | ||||||||||||
Losses and loss expenses incurred |
6,306 | 1,158 | 5,148 | |||||||||||||||
Losses and loss expenses paid |
(6,315 | ) | (1,599 | ) | (4,716 | ) | 92% | |||||||||||
Other (incl. foreign exch. revaluation) |
(321 | ) | (125 | ) | (196 | ) | ||||||||||||
|
|
|||||||||||||||||
Balance at March 31, 2023 |
$ | 75,417 | $ | 16,520 | $ | 58,897 | ||||||||||||
Losses and loss expenses incurred |
7,174 | 1,491 | 5,683 | |||||||||||||||
Losses and loss expenses paid |
(6,595 | ) | (1,520 | ) | (5,075 | ) | 89% | |||||||||||
Other (incl. foreign exch. revaluation) |
484 | 117 | 367 | |||||||||||||||
|
|
|||||||||||||||||
Balance at June 30, 2023 |
$ | 76,480 | $ | 16,608 | $ | 59,872 | ||||||||||||
Losses and loss expenses incurred |
9,709 | 2,603 | 7,106 | |||||||||||||||
Losses and loss expenses paid |
(6,921 | ) | (1,701 | ) | (5,220 | ) | 73% | |||||||||||
Other (incl. foreign exch. revaluation) |
437 | 298 | 139 | |||||||||||||||
|
|
|||||||||||||||||
Balance at September 30, 2023 |
$ | 79,705 | $ | 17,808 | $ | 61,897 | ||||||||||||
Losses and loss expenses incurred |
8,157 | 1,994 | 6,163 | |||||||||||||||
Losses and loss expenses paid |
(7,971 | ) | (1,971 | ) | (6,000 | ) | 97% | |||||||||||
Other (incl. foreign exch. revaluation) |
231 | 53 | 178 | |||||||||||||||
|
|
|||||||||||||||||
Balance at December 31, 2023 |
$ | 80,122 | $ | 17,884 | $ | 62,238 | ||||||||||||
Losses and loss expenses incurred |
6,603 | 876 | 5,727 | |||||||||||||||
Losses and loss expenses paid |
(6,423 | ) | (1,601 | ) | (4,822 | ) | 84% | |||||||||||
Other (incl. foreign exch. revaluation) |
39 | 4 | 35 | |||||||||||||||
|
|
|||||||||||||||||
Balance at March 31, 2024 |
$ | 80,341 | $ | 17,163 | $ | 63,178 | ||||||||||||
Add net recoverable on paid losses |
- | 1,946 | (1,946 | ) | ||||||||||||||
|
|
|||||||||||||||||
Balance including net recoverable on paid losses |
$ | 80,341 | $ | 19,109 | $ | 61,232 | ||||||||||||
|
|
Loss Reserve Rollforward | Page 15 |
Chubb Limited
Reinsurance Recoverable Analysis
(in millions of U.S. dollars)
(Unaudited)
Net Reinsurance Recoverable by Division |
||||||||
March 31 | December 31 | |||||||
2024 | 2023 | |||||||
Reinsurance recoverable on paid losses and loss expenses |
||||||||
Active operations |
$ | 1,573 | $ | 1,670 | ||||
Brandywine and Other Run-off |
458 | 480 | ||||||
|
|
|
|
|
|
|||
Total |
$ | 2,031 | $ | 2,150 | ||||
|
|
|
|
|
|
|||
Reinsurance recoverable on unpaid losses and loss expenses |
||||||||
Active operations |
$ | 16,238 | $ | 16,949 | ||||
Brandywine and Other Run-off |
1,215 | 1,220 | ||||||
|
|
|
|
|
|
|||
Total |
$ | 17,453 | $ | 18,169 | ||||
|
|
|
|
|
|
|||
Gross reinsurance recoverable |
||||||||
Active operations |
$ | 17,811 | $ | 18,619 | ||||
Brandywine and Other Run-off |
1,673 | 1,700 | ||||||
|
|
|
|
|
|
|||
Total |
$ | 19,484 | $ | 20,319 | ||||
|
|
|
|
|
|
|||
Provision for uncollectible reinsurance (1) |
||||||||
Active operations |
$ | (252 | ) | $ | (240 | ) | ||
Brandywine and Other Run-off |
(123 | ) | (127 | ) | ||||
|
|
|
|
|
|
|||
Total |
$ | (375 | ) | $ | (367 | ) | ||
|
|
|
|
|
|
|||
Net reinsurance recoverable |
||||||||
Active operations |
$ | 17,559 | $ | 18,379 | ||||
Brandywine and Other Run-off |
1,550 | 1,573 | ||||||
|
|
|
|
|
|
|||
Total |
$ | 19,109 | $ | 19,952 | ||||
|
|
|
|
|
|
(1) The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $4.4 billion.
Reinsurance Recoverable | Page 16 |
Chubb Limited
Investment Portfolio
(in millions of U.S. dollars)
(Unaudited)
March 31 | December 31 | |||||||||||||||
2024 | 2023 | |||||||||||||||
Market Value |
||||||||||||||||
Fixed maturities available for sale |
$ | 108,289 | $ | 106,571 | ||||||||||||
Other investments-fixed maturities |
4,408 | 3,773 | ||||||||||||||
Short-term investments |
5,107 | 4,551 | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Total fixed maturities |
$ | 117,804 | $ | 114,895 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Asset Allocation by Market Value |
||||||||||||||||
U.S. Treasury / Agency |
$ | 2,899 | 2% | $ | 3,590 | 3% | ||||||||||
Corporate and asset-backed securities |
43,447 | 38% | 42,830 | 37% | ||||||||||||
Mortgage-backed securities |
23,755 | 20% | 22,058 | 19% | ||||||||||||
Municipal |
2,043 | 2% | 2,929 | 3% | ||||||||||||
Non-U.S. |
40,553 | 34% | 38,937 | 34% | ||||||||||||
Short-term investments |
5,107 | 4% | 4,551 | 4% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total fixed maturities |
$ | 117,804 | 100% | $ | 114,895 | 100% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit Quality by Market Value |
||||||||||||||||
AAA |
$ | 14,289 | 12% | $ | 12,669 | 11% | ||||||||||
AA |
34,371 | 29% | 34,312 | 30% | ||||||||||||
A |
28,134 | 24% | 27,674 | 24% | ||||||||||||
BBB |
21,283 | 18% | 20,810 | 18% | ||||||||||||
BB |
10,529 | 9% | 10,270 | 9% | ||||||||||||
B |
8,539 | 7% | 8,580 | 7% | ||||||||||||
Other |
659 | 1% | 580 | 1% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total fixed maturities |
$ | 117,804 | 100% | $ | 114,895 | 100% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost/Amortized Cost, net |
||||||||||||||||
Fixed maturities available for sale |
$ | 113,364 | $ | 110,972 | ||||||||||||
Other investments-fixed maturities |
4,408 | 3,773 | ||||||||||||||
Short-term investments |
5,108 | 4,551 | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Subtotal fixed maturities (1) |
122,880 | 119,296 | ||||||||||||||
Equity securities |
3,769 | 3,455 | ||||||||||||||
Private debt held-for-investment (1) |
2,708 | 2,553 | ||||||||||||||
Private equities and other |
16,089 | 15,832 | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Total investment portfolio |
$ | 145,446 | $ | 141,136 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Avg. duration of fixed maturities (2) |
4.9 years | 4.7 years | ||||||||||||||
Avg. market yield of fixed income investments (3) |
5.8% | 5.6% | ||||||||||||||
Avg. credit quality |
A/A | A/A | ||||||||||||||
Avg. book yield of fixed income investments (3) |
4.9% | 4.8% |
(1) Net of valuation allowance for expected credit losses.
(2) Excludes Huatai.
(3) Includes fixed maturities and other debt investments and excludes Huatai.
Investments | Page 17 |
Chubb Limited
Investment Portfolio - 2
(in millions of U.S. dollars)
(Unaudited)
Mortgage-backed Fixed Income Portfolio
Mortgage-backed securities
S&P Credit Rating | ||||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | Total | |||||||||||||||||||
|
||||||||||||||||||||||||
Market Value at March 31, 2024 |
||||||||||||||||||||||||
Agency residential mortgage-backed securities (RMBS) |
$ | 9 | $ | 20,413 | $ | - | $ | - | $ | - | $ | 20,422 | ||||||||||||
Non-agency RMBS |
1,086 | 101 | 61 | 62 | 6 | 1,316 | ||||||||||||||||||
Commercial mortgage-backed securities |
1,716 | 173 | 113 | 14 | 1 | 2,017 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total mortgage-backed securities at market value |
$ | 2,811 | $ | 20,687 | $ | 174 | $ | 76 | $ | 7 | $ | 23,755 | ||||||||||||
|
|
|||||||||||||||||||||||
U.S. Corporate and Asset-backed Fixed Income Portfolios | ||||||||||||||||||||||||
Market Value at March 31, 2024 | S&P Credit Rating | |||||||||||||||||||||||
Investment Grade | ||||||||||||||||||||||||
AAA | AA | A | BBB | Total | ||||||||||||||||||||
|
||||||||||||||||||||||||
Asset-backed |
$ | 4,599 | $ | 821 | $ | 146 | $ | 105 | $ | 5,671 | ||||||||||||||
Banks |
- | 1 | 2,604 | 2,163 | 4,768 | |||||||||||||||||||
Basic Materials |
- | - | 101 | 358 | 459 | |||||||||||||||||||
Communications |
- | 202 | 369 | 1,416 | 1,987 | |||||||||||||||||||
Consumer, Cyclical |
- | 122 | 610 | 906 | 1,638 | |||||||||||||||||||
Consumer, Non-Cyclical |
32 | 473 | 2,402 | 1,759 | 4,666 | |||||||||||||||||||
Diversified Financial Services |
1 | 137 | 440 | 339 | 917 | |||||||||||||||||||
Energy |
- | 89 | 299 | 1,140 | 1,528 | |||||||||||||||||||
Industrial |
- | 10 | 590 | 1,310 | 1,910 | |||||||||||||||||||
Utilities |
211 | 2 | 1,067 | 983 | 2,263 | |||||||||||||||||||
All Others |
132 | 351 | 1,436 | 1,892 | 3,811 | |||||||||||||||||||
|
|
|||||||||||||||||||||||
Total |
$ | 4,975 | $ | 2,208 | $ | 10,064 | $ | 12,371 | $ | 29,618 | ||||||||||||||
|
|
|||||||||||||||||||||||
Market Value at March 31, 2024 | S&P Credit Rating | |||||||||||||||||||||||
Below Investment Grade | ||||||||||||||||||||||||
BB | B | CCC | Total | |||||||||||||||||||||
|
||||||||||||||||||||||||
Asset-backed |
$ | 23 | $ | 52 | $ | 1 | $ | 76 | ||||||||||||||||
Banks |
- | - | - | - | ||||||||||||||||||||
Basic Materials |
409 | 261 | 27 | 697 | ||||||||||||||||||||
Communications |
725 | 675 | 126 | 1,526 | ||||||||||||||||||||
Consumer, Cyclical |
1,285 | 1,180 | 41 | 2,506 | ||||||||||||||||||||
Consumer, Non-Cyclical |
1,367 | 1,441 | 67 | 2,875 | ||||||||||||||||||||
Diversified Financial Services |
293 | 290 | - | 583 | ||||||||||||||||||||
Energy |
786 | 512 | 5 | 1,303 | ||||||||||||||||||||
Industrial |
896 | 802 | 21 | 1,719 | ||||||||||||||||||||
Utilities |
292 | 114 | - | 406 | ||||||||||||||||||||
All Others |
780 | 1,270 | 88 | 2,138 | ||||||||||||||||||||
|
|
|||||||||||||||||||||||
Total |
$ | 6,856 | $ | 6,597 | $ | 376 | $ | 13,829 | ||||||||||||||||
|
|
Investments 2 | Page 18 |
Chubb Limited
Investment Portfolio - 3
(in millions of U.S. dollars)
(Unaudited)
Non-U.S. Fixed Income Portfolio
March 31, 2024
Non-U.S. Government Securities | Market Value by S&P Credit Rating | |||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | Total | |||||||||||||||||||
|
||||||||||||||||||||||||
Republic of Korea |
$ | - | $ | 1,770 | $ | - | $ | - | $ | - | $ | 1,770 | ||||||||||||
People’s Republic of China |
- | 184 | 1,402 | - | - | 1,586 | ||||||||||||||||||
Taiwan |
- | 985 | - | - | - | 985 | ||||||||||||||||||
Canada |
907 | - | - | - | - | 907 | ||||||||||||||||||
Federative Republic of Brazil |
- | - | - | - | 631 | 631 | ||||||||||||||||||
United Mexican States |
- | - | - | 611 | - | 611 | ||||||||||||||||||
Kingdom of Thailand |
- | - | 587 | - | - | 587 | ||||||||||||||||||
Commonwealth of Australia |
553 | - | - | - | - | 553 | ||||||||||||||||||
Province of Ontario |
- | - | 510 | - | - | 510 | ||||||||||||||||||
Socialist Republic of Vietnam |
- | - | - | - | 474 | 474 | ||||||||||||||||||
Other Non-U.S. Government Securities |
552 | 2,561 | 1,336 | 852 | 923 | 6,224 | ||||||||||||||||||
|
|
|
||||||||||||||||||||||
Total |
$ | 2,012 | $ | 5,500 | $ | 3,835 | $ | 1,463 | $ | 2,028 | $ | 14,838 | ||||||||||||
|
|
|
||||||||||||||||||||||
Non-U.S. Corporate Securities | Market Value by S&P Credit Rating | |||||||||||||||||||||||
AAA | AA | A | BBB | BB and below | Total | |||||||||||||||||||
|
||||||||||||||||||||||||
China |
$ | - | $ | - | $ | 6,240 | $ | 270 | $ | 14 | $ | 6,524 | ||||||||||||
United Kingdom |
24 | 36 | 934 | 1,184 | 451 | 2,629 | ||||||||||||||||||
Canada |
145 | 73 | 942 | 678 | 411 | 2,249 | ||||||||||||||||||
United States (1) |
- | 9 | 295 | 452 | 858 | 1,614 | ||||||||||||||||||
South Korea |
- | 473 | 438 | 654 | 7 | 1,572 | ||||||||||||||||||
France |
6 | 45 | 844 | 548 | 124 | 1,567 | ||||||||||||||||||
Australia |
58 | 286 | 377 | 394 | 22 | 1,137 | ||||||||||||||||||
Japan |
- | - | 665 | 140 | 11 | 816 | ||||||||||||||||||
Germany |
80 | 102 | 79 | 305 | 65 | 631 | ||||||||||||||||||
Netherlands |
61 | - | 332 | 49 | 144 | 586 | ||||||||||||||||||
Other Non-U.S. Corporate Securities |
331 | 453 | 1,760 | 2,340 | 1,506 | 6,390 | ||||||||||||||||||
|
|
|
||||||||||||||||||||||
Total |
$ | 705 | $ | 1,477 | $ | 12,906 | $ | 7,014 | $ | 3,613 | $ | 25,715 | ||||||||||||
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(1) Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.
Investments 3 | Page 19 |
Chubb Limited
Investment Portfolio - 4
(in millions of U.S. dollars)
(Unaudited)
Fixed Maturity Investment Portfolio
Top 10 Global Corporate Exposures
March 31, 2024 | Market Value | Rating | ||||||||
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1 |
Bank of America Corp | $ | 818 | A- | ||||||
2 |
Morgan Stanley | 724 | A- | |||||||
3 |
JP Morgan Chase & Co | 664 | A- | |||||||
4 |
Wells Fargo & Co | 597 | BBB+ | |||||||
5 |
Citigroup Inc | 556 | BBB+ | |||||||
6 |
Goldman Sachs Group Inc | 550 | BBB+ | |||||||
7 |
UBS Group AG | 410 | A- | |||||||
8 |
HSBC Holdings Plc | 399 | A- | |||||||
9 |
Verizon Communications Inc | 396 | BBB+ | |||||||
10 |
AT&T Inc | 394 | BBB |
Investments 4 | Page 20 |
Chubb Limited
Chubb Net Realized and Unrealized Gains (Losses)
(in millions of U.S. dollars)
(Unaudited)
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||
Realized Gains (Losses) | Unrealized Gains (Losses) | Realized and Unrealized Gains (Losses) | ||||||||||||||||||||||||||||||||||
Gains | Tax | Gains | Gains | Tax | Gains | Gains | Tax | Gains | ||||||||||||||||||||||||||||
(Losses) | (Expense) | (Losses) | (Losses) | (Expense) | (Losses) | (Losses) | (Expense) | (Losses) | ||||||||||||||||||||||||||||
Pre-Tax | Benefit | After-Tax | Pre-Tax | Benefit | After-Tax | Pre-Tax | Benefit | After-Tax | ||||||||||||||||||||||||||||
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Fixed income investments (1) |
$ | (162 | ) | $ | 17 | $ | (145 | ) | $ | (690 | ) | $ | 42 | $ | (648 | ) | $ | (852 | ) | $ | 59 | $ | (793 | ) | ||||||||||||
Public equity: |
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Realized gains (losses) on sales |
(1 | ) | - | (1 | ) | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||||
Mark-to-market |
36 | 3 | 39 | - | - | - | 36 | 3 | 39 | |||||||||||||||||||||||||||
Private equity: Mark-to-market |
127 | 6 | 133 | - | - | - | 127 | 6 | 133 | |||||||||||||||||||||||||||
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Total investment portfolio |
- | 26 | 26 | (690 | ) | 42 | (648 | ) | (690 | ) | 68 | (622 | ) | |||||||||||||||||||||||
Foreign exchange |
(131 | ) | 31 | (100 | ) | 88 | (7 | ) | 81 | (43 | ) | 24 | (19 | ) | ||||||||||||||||||||||
Partially-owned entities (2) |
(3 | ) | - | (3 | ) | - | - | - | (3 | ) | - | (3 | ) | |||||||||||||||||||||||
Current discount rate on future policy benefits |
- | - | - | (20 | ) | (20 | ) | (40 | ) | (20 | ) | (20 | ) | (40 | ) | |||||||||||||||||||||
Instrument-specific credit risk - market risk benefits |
- | - | - | 5 | - | 5 | 5 | - | 5 | |||||||||||||||||||||||||||
Other |
(10 | ) | (2 | ) | (12 | ) | 31 | (6 | ) | 25 | 21 | (8 | ) | 13 | ||||||||||||||||||||||
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Net gains (losses) |
$ | (144 | ) | $ | 55 | $ | (89 | ) | $ | (586 | ) | $ | 9 | $ | (577 | ) | $ | (730 | ) | $ | 64 | $ | (666 | ) | ||||||||||||
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(1) The quarter includes pre-tax realized losses on investment derivatives of $43 million, a net decrease of the valuation allowance of expected credit losses of $41 million on fixed maturities and a net increase of $1 million on private debt held-for-investment, and impairments of $34 million for fixed maturities.
(2) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||
Realized Gains (Losses) | Unrealized Gains (Losses) | Realized and Unrealized Gains (Losses) | ||||||||||||||||||||||||||||||||||
Gains | Tax | Gains | Gains | Tax | Gains | Gains | Tax | Gains | ||||||||||||||||||||||||||||
(Losses) | (Expense) | (Losses) | (Losses) | (Expense) | (Losses) | (Losses) | (Expense) | (Losses) | ||||||||||||||||||||||||||||
Pre-Tax | Benefit | After-Tax | Pre-Tax | Benefit | After-Tax | Pre-Tax | Benefit | After-Tax | ||||||||||||||||||||||||||||
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Fixed income investments (3) |
$ | (226 | ) | $ | 26 | $ | (200 | ) | $ | 1,786 | $ | (166 | ) | $ | 1,620 | $ | 1,560 | $ | (140 | ) | $ | 1,420 | ||||||||||||||
Public equity: |
||||||||||||||||||||||||||||||||||||
Realized gains (losses) on sales |
(5 | ) | 1 | (4 | ) | - | - | - | (5 | ) | 1 | (4 | ) | |||||||||||||||||||||||
Mark-to-market |
16 | (2 | ) | 14 | - | - | - | 16 | (2 | ) | 14 | |||||||||||||||||||||||||
Private equity: Mark-to-market |
257 | 11 | 268 | - | - | - | 257 | 11 | 268 | |||||||||||||||||||||||||||
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Total investment portfolio |
42 | 36 | 78 | 1,786 | (166 | ) | 1,620 | 1,828 | (130 | ) | 1,698 | |||||||||||||||||||||||||
Foreign exchange |
131 | (18 | ) | 113 | (177 | ) | 7 | (170 | ) | (46 | ) | (11 | ) | (57 | ) | |||||||||||||||||||||
Partially-owned entities (4) |
(4 | ) | - | (4 | ) | - | - | - | (4 | ) | - | (4 | ) | |||||||||||||||||||||||
Current discount rate on future policy benefits |
- | - | - | (151 | ) | 21 | (130 | ) | (151 | ) | 21 | (130 | ) | |||||||||||||||||||||||
Instrument-specific credit risk - market risk benefits |
- | - | - | (3 | ) | - | (3 | ) | (3 | ) | - | (3 | ) | |||||||||||||||||||||||
Other |
(7 | ) | 2 | (5 | ) | (33 | ) | 6 | (27 | ) | (40 | ) | 8 | (32 | ) | |||||||||||||||||||||
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Net gains (losses) |
$ | 162 | $ | 20 | $ | 182 | $ | 1,422 | $ | (132 | ) | $ | 1,290 | $ | 1,584 | $ | (112 | ) | $ | 1,472 | ||||||||||||||||
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(3) The quarter includes pre-tax realized losses on investment derivatives of $46 million, a net reduction of the valuation allowance of expected credit losses of $2 million, and impairments of $25 million for fixed maturities.
(4) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. Refer to the Non-GAAP financial measures section for additional details.
Net Gains (Losses) | Page 21 |
Chubb Limited
Debt and Capital
(in millions of U.S. dollars, except ratios)
(Unaudited)
March 31 | December 31 | December 31 | ||||||||||
2024 | 2023 | 2022 | ||||||||||
Financial Debt: |
||||||||||||
Total short-term debt (1) |
$ | 2,265 | $ | 1,460 | $ | 475 | ||||||
Total long-term debt (1) (2) |
13,248 | 13,035 | 14,402 | |||||||||
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Total financial debt |
$ | 15,513 | $ | 14,495 | $ | 14,877 | ||||||
Hybrid debt: |
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Total trust preferred securities |
309 | 308 | 308 | |||||||||
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Total |
$ | 15,822 | $ | 14,803 | $ | 15,185 | ||||||
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Capitalization: |
||||||||||||
Chubb shareholders’ equity |
$ | 60,535 | $ | 59,507 | $ | 50,519 | ||||||
Hybrid debt |
309 | 308 | 308 | |||||||||
Financial debt |
15,513 | 14,495 | 14,877 | |||||||||
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Total capitalization |
$ | 76,357 | $ | 74,310 | $ | 65,704 | ||||||
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Leverage ratios (based on total capital): |
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Hybrid debt |
0.4% | 0.4% | 0.5% | |||||||||
Financial debt |
20.3% | 19.5% | 22.6% | |||||||||
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Total hybrid & financial debt |
20.7% | 19.9% | 23.1% |
Note: As of March 31, 2024, there was $1.0 billion usage of credit facilities on total capacity of $4.0 billion.
(1) During Q1 2024, the $800 million 3.15% senior notes due to mature in March 2025 were reclassified to short-term debt.
(2) In March 2024, the company issued $1.0 billion of 5.00% senior notes due 2034. The use of proceeds was for general corporate purposes, including the repayment at maturity of its $0.7 billion 3.35% senior notes due May 2024.
Debt and Capital | Page 22 |
Chubb Limited
Computation of Basic and Diluted Earnings Per Share
(in millions of U.S. dollars, except share and per share data)
(Unaudited)
Three months ended March 31 | ||||||||
2024 | 2023 | |||||||
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Numerator |
||||||||
Core operating income |
$ | 2,216 | $ | 1,842 | ||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax |
1 | 3 | ||||||
Tax expense on amortization adjustment |
(5 | ) | (1 | ) | ||||
Cigna integration expenses, pre-tax |
(7 | ) | (22 | ) | ||||
Tax benefit on Cigna integration expenses |
6 | 3 | ||||||
Adjusted net realized gains (losses), pre-tax |
(144 | ) | 162 | |||||
Tax benefit on adjusted net realized gains (losses) |
55 | 20 | ||||||
Market risk benefits gains (losses), pre- and after-tax |
21 | (115 | ) | |||||
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Chubb net income |
$ | 2,143 | $ | 1,892 | ||||
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Rollforward of Common Shares Outstanding |
||||||||
Shares - beginning of period |
405,269,637 | 414,594,856 | ||||||
Repurchase of shares |
(1,220,121 | ) | (2,010,400 | ) | ||||
Shares issued (canceled), excluding option exercises |
728,964 | 1,105,813 | ||||||
Issued for option exercises |
1,254,586 | 468,411 | ||||||
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Shares - end of period |
406,033,066 | 414,158,680 | ||||||
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Denominator |
||||||||
Weighted average shares outstanding (1) |
405,662,694 | 414,289,150 | ||||||
Effect of other dilutive securities |
4,076,941 | 3,639,042 | ||||||
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Adj. wtd. avg. shares outstanding and assumed conversions |
409,739,635 | 417,928,192 | ||||||
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Basic earnings per share |
||||||||
Core operating income |
$ | 5.46 | $ | 4.45 | ||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax |
(0.01 | ) | - | |||||
Cigna integration expenses, net of tax |
- | (0.05 | ) | |||||
Adjusted net realized gains (losses), net of tax |
(0.22 | ) | 0.45 | |||||
Market risk benefits gains (losses), net of tax |
0.05 | (0.28 | ) | |||||
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Chubb net income |
$ | 5.28 | $ | 4.57 | ||||
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Diluted earnings per share |
||||||||
Core operating income |
$ | 5.41 | $ | 4.41 | ||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, net of tax |
(0.01 | ) | - | |||||
Cigna integration expenses, net of tax |
- | (0.05 | ) | |||||
Adjusted net realized gains (losses), net of tax |
(0.22 | ) | 0.45 | |||||
Market risk benefits gains (losses), net of tax |
0.05 | (0.28 | ) | |||||
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Chubb net income |
$ | 5.23 | $ | 4.53 | ||||
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(1) Includes unvested restricted stock units that are not included in common shares outstanding as the shares are not issued until time of vesting, but are eligible to receive dividends (participating securities).
Earnings per share | Page 23 |
Chubb Limited
Book Value and Book Value per Common Share
(in millions of U.S. dollars, except share and per share data)
(Unaudited)
Reconciliation of Book Value per Common Share
March 31 | December 31 | March 31 | ||||||||||
2024 | 2023 | 2023 | ||||||||||
Chubb shareholders’ equity |
$ | 60,535 | $ | 59,507 | $ | 52,987 | ||||||
Less: Chubb goodwill and other intangible assets, net of tax |
24,175 | 23,853 | 20,333 | |||||||||
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||||
Numerator for tangible book value per share |
$ | 36,360 | $ | 35,654 | $ | 32,654 | ||||||
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|
||||
Book value - % change over prior quarter |
1.7% | 13.6% | 4.9% | |||||||||
Tangible book value - % change over prior quarter |
2.0% | 23.3% | 8.6% | |||||||||
Denominator: shares outstanding |
406,033,066 | 405,269,637 | 414,158,680 | |||||||||
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||||
Book value per common share |
$ | 149.09 | $ | 146.83 | $ | 127.94 | ||||||
Tangible book value per common share |
$ | 89.55 | $ | 87.98 | $ | 78.84 | ||||||
Reconciliation of Book Value |
||||||||||||
Chubb shareholders’ equity, beginning of quarter |
$ | 59,507 | $ | 52,373 | $ | 50,519 | ||||||
Core operating income |
2,216 | 3,410 | 1,842 | |||||||||
Amortization of fair value adjustment of acquired invested assets and long-term debt |
(4 | ) | 1 | 2 | ||||||||
Cigna integration expenses |
(1 | ) | (17 | ) | (19 | ) | ||||||
Adjusted net realized gains (losses) (1) |
(89 | ) | 59 | 182 | ||||||||
Market risk benefits gains (losses) |
21 | (153 | ) | (115 | ) | |||||||
Net unrealized gains (losses) on investments |
(648 | ) | 4,776 | 1,620 | ||||||||
Repurchase of shares |
(316 | ) | (720 | ) | (428 | ) | ||||||
Dividend declared on common shares |
(350 | ) | (351 | ) | (344 | ) | ||||||
Cumulative translation gains (losses) |
81 | 203 | (170 | ) | ||||||||
Postretirement benefit liability |
(1 | ) | 75 | (1 | ) | |||||||
Current discount rate on future policy benefits |
(40 | ) | (353 | ) | (130 | ) | ||||||
Instrument-specific credit risk - market risk benefits |
5 | (1 | ) | (3 | ) | |||||||
Other (2) |
154 | 205 | 32 | |||||||||
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|
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|
|
|
|
|
||||
Chubb shareholders’ equity, end of quarter |
$ | 60,535 | $ | 59,507 | $ | 52,987 | ||||||
|
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|
|
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|
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|
|
(1) Includes net realized gains (losses) related to unconsolidated entities.
(2) Other primarily includes proceeds from exercise of stock options and stock compensation, offset by the value of any share cancellations for restricted stock vesting taxes.
Reconciliation Book Value | Page 24 |
Chubb Limited
Non-GAAP Financial Measures
(Unaudited)
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
P&C underwriting income (loss) excludes the Life Insurance segment and is calculated by subtracting adjusted losses and loss expenses, adjusted policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, Cigna integration expense, amortization of fair value of acquired invested assets and debt, income tax expense, adjusted net realized gains (losses), and market risk benefits gains (losses).
P&C CAY underwriting income excluding catastrophe losses (Cats) is P&C underwriting income (loss) adjusted to exclude P&C Cats and prior period development (PPD). We believe it is useful to exclude Cats, as they are not predictable as to timing and amount, and PPD, as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Adjusted losses and loss expenses include realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to adjusted losses and loss expenses.
Adjusted policy benefits includes gains and losses from fair value changes in separate account assets, as well as the offsetting movement in separate account liabilities, for purposes of reporting Life Insurance underwriting income. The gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP have been reclassified from Other (income) expense. We view gains and losses from fair value changes in both separate account assets and liabilities as part of the results of our underwriting operations, and therefore these gains and losses are reclassified to adjusted policy benefits.
Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from certain acquisitions, and including investment income from partially-owned investment companies (private equity partnerships) where our ownership interest is in excess of 3% that are accounted for under the equity method. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.
Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives.
Adjusted interest expense is interest expense excluding the amortization of the fair value adjustment on acquired long-term debt, related to the Chubb Corp acquisition due to the size and complexity of this acquisition.
Other income (expense) - operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities, other income (expense) from private equity partnerships, and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from core operating income (loss) in order to enhance the understanding of our results of underwriting operations as they are heavily influenced by, and fluctuate in part according to, market conditions. Other income (expense) from private equity partnerships and net realized gains and losses related to unconsolidated entities are recorded to Other income (expense) in our income statement on a GAAP basis.
P&C combined ratio excludes the Life Insurance segment. P&C loss and loss expense ratio and P&C combined ratio include adjusted losses and loss expenses and policy benefits in the ratio numerator. P&C expense ratio and P&C combined ratio include policy acquisition costs and administrative expenses in the ratio numerator. A reconciliation of combined ratio to P&C combined ratio is provided on pages 28-29.
CAY P&C combined ratio excluding catastrophe losses excludes Cats and PPD from the P&C combined ratio. We exclude Cats as they are not predictable as to timing and amount and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. The combined ratio numerator is adjusted to exclude Cats, net premiums earned adjustments on PPD, prior period expense adjustments and reinstatement premiums on PPD, and the denominator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on Cats and PPD. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net premiums earned when calculating the ratios. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items. This measure is commonly reported among our peer companies and allows for a better comparison.
Expense ratio excluding accident and health (A&H) excludes the impact of our A&H business from our expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of the company’s P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Core operating income, net of tax, relates only to Chubb income, which excludes noncontrolling interests. It excludes from Chubb net income the after-tax impact of adjusted net realized gains (losses), market risk benefit gains (losses), Cigna integration expenses, the amortization of fair value adjustment of acquired invested assets and long-term debt related to certain acquisitions. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the amortization of fair value adjustments on purchased invested assets and long-term debt related to certain acquisitions due to the size and complexity of these acquisitions. We also exclude Cigna integration expenses, which are incurred by the overall company and are included in Corporate. These expenses include legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition. The costs are not related to the ongoing activities of the individual segments and are therefore also excluded from our definition of segment income. We believe these integration expenses are not indicative of our underlying profitability, and excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.
Chubb core operating effective tax rate is income tax expense (benefit) excluding tax expense (benefit) on adjusted net realized gains (losses), tax benefit on amortization of fair value of acquired invested assets and debt, and tax benefit on Cigna integration expenses, all attributable to Chubb, divided by Chubb income before tax excluding adjusted net realized gains (losses) before tax, market risk benefit gains (losses) before tax, amortization of fair value of acquired invested assets and debt before tax, and Cigna integration expenses, all attributable to Chubb, before tax. We believe the use of this measure is meaningful to show the tax on the underlying performance of our insurance business, by excluding the taxes on adjusted net realized gains (losses), market risk benefit gains (losses), amortization of the fair value adjustments related to purchased invested assets and long-term debt and Cigna integration expenses. Refer to the definition of core operating income (loss), net of tax above for more information on these adjustments.
Metrics adjusted for the impact of the Bermuda Tax Law are adjusted to exclude the incremental deferred tax benefit for Q1 2024 of $55 million, giving recognition for transition provisions of the Bermuda Tax Law. We believe that excluding the impact of the incremental deferred tax benefit provides a better evaluation of our operating performance and enhances the understanding of the trends in the underlying business that may be obscured by this one-time item. For Q1 2024 we also exclude expense related to the Chubb Charitable Foundation given that it’s a discrete item that is not part of operating results. Excluding these one-time items facilitates the comparison of our financial results to our historical operating results.
Tangible book value per common share is Chubb shareholders’ equity less Chubb goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Book value per share and tangible book value per share excluding accumulated other comprehensive income (loss) (AOCI), excludes AOCI from the numerator because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates and foreign currency movement, to highlight underlying growth in book and tangible book value.
International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because new life deposits are an important component of production and key to our efforts to grow our business.
Adjusted operating cash flow is Operating cash flow excluding the operating cash flow related to the net investing activities of Huatai’s asset management companies as it relates to the Consolidated Investment Products as required under consolidation accounting. Because these entities are investment companies, we are required to retain the investment company presentation in our consolidated results, which means, we include the net investing activities of these entities in our operating cash flows. Due to the significant impact that this required investment company classification has on the presentation of the company’s operating cash flow, the company has elected to remove the impact of these net investing activities of these investment companies. The investment company presentation is not consistent with our consolidated cash flow presentation. These net investing activities are more appropriately classified outside of operating cash flows, consistent with our consolidated investing activities, and may impact a reader’s analysis of our underlying operating cash flow related to the core insurance company operations. Accordingly, we believe that it is appropriate to adjust operating cash flow for the impact of these consolidated investment products.
Reconciliation Non-GAAP | Page 25 |
Chubb Limited
Non-GAAP Financial Measures - 2
(in millions of U.S. dollars, except per share data and ratios)
(Unaudited)
Regulation G - Non-GAAP Financial Measures (continued)
Chubb Core operating effective tax rate
The following table presents the reconciliation of effective tax rate to the Core operating effective tax rate: | Full Year | |||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Tax expense (benefit), as reported |
$ | 340 | $ | (680 | ) | $ | 412 | $ | 392 | $ | 384 | $ | 508 | |||||||||||
Less: tax expense on amortization of fair value of acquired invested assets and debt |
5 | 1 | - | 6 | 1 | 8 | ||||||||||||||||||
Less: tax benefit on Cigna integration expenses |
(6 | ) | (1 | ) | (4 | ) | (6 | ) | (3 | ) | (14 | ) | ||||||||||||
Less: tax benefit on adjusted net realized gains (losses) |
(55 | ) | (9 | ) | (57 | ) | (87 | ) | (20 | ) | (173 | ) | ||||||||||||
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Tax expense (benefit), adjusted |
$ | 396 | $ | (671 | ) | $ | 473 | $ | 479 | $ | 406 | $ | 687 | |||||||||||
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Income before tax, as reported |
$ | 2,483 | $ | 2,620 | $ | 2,455 | $ | 2,185 | $ | 2,276 | $ | 9,536 | ||||||||||||
Less: amortization of fair value of acquired invested assets and debt |
1 | 2 | (2 | ) | 2 | 3 | 5 | |||||||||||||||||
Less: Cigna integration expenses |
(7 | ) | (18 | ) | (14 | ) | (15 | ) | (22 | ) | (69 | ) | ||||||||||||
Less: adjusted realized gains (losses) |
(238 | ) | (84 | ) | (70 | ) | (309 | ) | (76 | ) | (539 | ) | ||||||||||||
Less: realized gains (losses) related to unconsolidated entities |
94 | 134 | 59 | (9 | ) | 238 | 422 | |||||||||||||||||
Less: market risk benefits gains (losses) |
21 | (153 | ) | (32 | ) | (7 | ) | (115 | ) | (307 | ) | |||||||||||||
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Core operating income before tax |
$ | 2,612 | $ | 2,739 | $ | 2,514 | $ | 2,523 | $ | 2,248 | $ | 10,024 | ||||||||||||
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Effective tax rate |
13.7% | -26.0% | 16.8% | 17.9% | 16.9% | 5.3% | ||||||||||||||||||
Adjustment for tax impact of amortization of fair value of acquired invested assets and debt |
-0.2% | -0.1% | 0.0% | -0.2% | 0.0% | -0.1% | ||||||||||||||||||
Adjustment for tax impact of Cigna integration expenses |
0.2% | 0.2% | 0.1% | 0.1% | 0.0% | 0.1% | ||||||||||||||||||
Adjustment for tax impact of adjusted net realized gains (losses) |
1.4% | 0.0% | 2.1% | 1.3% | 2.2% | 1.8% | ||||||||||||||||||
Adjustment for tax impact of market risk benefits gains (losses) |
0.1% | 1.4% | -0.2% | -0.1% | -1.0% | -0.2% | ||||||||||||||||||
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Core operating effective tax rate |
15.2% | -24.5% | 18.8% | 19.0% | 18.1% | 6.9% | ||||||||||||||||||
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Core operating income |
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The following table presents the reconciliation of Chubb net income to Core operating income: | Full Year | |||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Net income, as reported |
$ | 2,143 | $ | 3,300 | $ | 2,043 | $ | 1,793 | $ | 1,892 | $ | 9,028 | ||||||||||||
Amortization of fair value adjustment of acquired invested assets and long-term debt, pre-tax |
1 | 2 | (2 | ) | 2 | 3 | 5 | |||||||||||||||||
Tax (expense) benefit on amortization adjustment |
(5 | ) | (1 | ) | - | (6 | ) | (1 | ) | (8 | ) | |||||||||||||
Cigna integration expenses, pre-tax |
(7 | ) | (18 | ) | (14 | ) | (15 | ) | (22 | ) | (69 | ) | ||||||||||||
Tax benefit on Cigna integration expenses |
6 | 1 | 4 | 6 | 3 | 14 | ||||||||||||||||||
Adjusted realized gains (losses), pre-tax |
(238 | ) | (84 | ) | (70 | ) | (309 | ) | (76 | ) | (539 | ) | ||||||||||||
Net realized gains (losses) related to unconsolidated entities, pre-tax (1) |
94 | 134 | 59 | (9 | ) | 238 | 422 | |||||||||||||||||
Tax (expense) benefit on adjusted net realized gains (losses) |
55 | 9 | 57 | 87 | 20 | 173 | ||||||||||||||||||
Market risk benefits gains (losses), pre- and after-tax |
21 | (153 | ) | (32 | ) | (7 | ) | (115 | ) | (307 | ) | |||||||||||||
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Core operating income |
$ | 2,216 | $ | 3,410 | $ | 2,041 | $ | 2,044 | $ | 1,842 | $ | 9,337 | ||||||||||||
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Catastrophe losses - after-tax |
$ | 347 | $ | 257 | $ | 544 | $ | 319 | $ | 382 | $ | 1,502 | ||||||||||||
Unfavorable (favorable) prior period development (PPD) - after-tax |
$ | (168 | ) | $ | (184 | ) | $ | (116 | ) | $ | (155 | ) | $ | (149 | ) | $ | (604 | ) | ||||||
P&C Underwriting income and P&C CAY underwriting income ex Cats |
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The following table presents the reconciliation of Net income to P&C underwriting income and P&C CAY underwriting income ex Cats: | Full Year | |||||||||||||||||||||||
1Q-24 | 4Q-23 | 3Q-23 | 2Q-23 | 1Q-23 | 2023 | |||||||||||||||||||
Net income, as reported |
$ | 2,294 | $ | 3,290 | $ | 2,040 | $ | 1,793 | $ | 1,892 | $ | 9,015 | ||||||||||||
Less: Income tax (expense) benefit |
(342 | ) | 678 | (413 | ) | (392 | ) | (384 | ) | (511 | ) | |||||||||||||
Amortization expense of purchased intangibles |
(80 | ) | (84 | ) | (84 | ) | (70 | ) | (72 | ) | (310 | ) | ||||||||||||
Other income (expense) |
191 | 286 | 154 | 100 | 296 | 836 | ||||||||||||||||||
Interest expense |
(178 | ) | (173 | ) | (174 | ) | (165 | ) | (160 | ) | (672 | ) | ||||||||||||
Net investment income |
1,391 | 1,371 | 1,314 | 1,145 | 1,107 | 4,937 | ||||||||||||||||||
Net realized gains (losses) |
(101 | ) | (123 | ) | (103 | ) | (304 | ) | (77 | ) | (607 | ) | ||||||||||||
Market risk benefits gains (losses) |
21 | (153 | ) | (32 | ) | (7 | ) | (115 | ) | (307 | ) | |||||||||||||
Cigna integration expenses |
(7 | ) | (18 | ) | (14 | ) | (15 | ) | (22 | ) | (69 | ) | ||||||||||||
Life Insurance underlying income (loss) (2) |
(2 | ) | (13 | ) | 80 | 81 | 105 | 253 | ||||||||||||||||
Add: Realized gains (losses) on crop derivatives |
(1 | ) | (2 | ) | (7 | ) | 5 | (1 | ) | (5 | ) | |||||||||||||
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P&C underwriting income |
$ | 1,400 | $ | 1,517 | $ | 1,305 | $ | 1,425 | $ | 1,213 | $ | 5,460 | ||||||||||||
Add: Catastrophe losses (including reinstatement premiums) - pre-tax |
435 | 300 | 670 | 400 | 458 | 1,828 | ||||||||||||||||||
Unfavorable (favorable) prior period development (PPD) - pre-tax |
(207 | ) | (177 | ) | (200 | ) | (200 | ) | (196 | ) | (773 | ) | ||||||||||||
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P&C CAY underwriting income ex Cats |
$ | 1,628 | $ | 1,640 | $ | 1,775 | $ | 1,625 | $ | 1,475 | $ | 6,515 | ||||||||||||
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(1) Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense) under GAAP.
(2) Life Insurance underlying income (loss) is calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned related to the Life Insurance segment.
Reconciliation Non-GAAP 2 | Page 26 |
Chubb Limited
Non-GAAP Financial Measures - 3
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited)
Regulation G - Non-GAAP Financial Measures (continued)
Core operating ROE and Core operating ROTE
Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average Chubb shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, current discount rate on future policy benefits (FPB), and instrument-specific credit risk – market risk benefits (MRB), all net of tax and attributable to Chubb. For the ROTE calculation, the denominator is also adjusted to exclude Chubb goodwill and other intangible assets, net of tax. These measures enhance the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of these items as these are heavily influenced by changes in market conditions. We believe ROTE is meaningful because it measures the performance of our operations without the impact of goodwill and other intangible assets.
Full Year | ||||||||||||
1Q-24 | 1Q-23 | 2023 | ||||||||||
Chubb net income |
$ | 2,143 | $ | 1,892 | $ | 9,028 | ||||||
Core operating income |
$ | 2,216 | $ | 1,842 | $ | 9,337 | ||||||
Equity - beginning of period, as reported |
$ | 59,507 | $ | 50,519 | $ | 50,519 | ||||||
Less: unrealized gains (losses) on investments, net of deferred tax |
(4,177 | ) | (7,279 | ) | (7,279 | ) | ||||||
Less: changes in current discount rate on FPB, net of deferred tax |
51 | (75 | ) | (75 | ) | |||||||
Less: changes in instrument-specific credit risk on MRB, net of deferred tax |
(22 | ) | (24 | ) | (24 | ) | ||||||
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Equity - beginning of period, as adjusted |
$ | 63,655 | $ | 57,897 | $ | 57,897 | ||||||
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Less: Chubb goodwill and other intangible assets, net of tax |
23,853 | 20,455 | 20,455 | |||||||||
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Equity - beginning of period, as adjusted ex Chubb goodwill and other intangible assets |
$ | 39,802 | $ | 37,442 | $ | 37,442 | ||||||
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Equity - end of period, as reported |
$ | 60,535 | $ | 52,987 | $ | 59,507 | ||||||
Less: unrealized gains (losses) on investments, net of deferred tax |
(4,825 | ) | (5,659 | ) | (4,177 | ) | ||||||
Less: changes in current discount rate on FPB, net of deferred tax |
11 | (205 | ) | 51 | ||||||||
Less: changes in instrument-specific credit risk on MRB, net of deferred tax |
(17 | ) | (27 | ) | (22 | ) | ||||||
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Equity - end of period, as adjusted |
$ | 65,366 | $ | 58,878 | $ | 63,655 | ||||||
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Less: Chubb goodwill and other intangible assets, net of tax |
24,175 | 20,333 | 23,853 | |||||||||
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Equity - end of period, as adjusted ex Chubb goodwill and other intangible assets |
$ | 41,191 | $ | 38,545 | $ | 39,802 | ||||||
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Weighted average equity, as reported |
$ | 60,021 | $ | 51,753 | $ | 55,013 | ||||||
Weighted average equity, as adjusted |
$ | 64,511 | $ | 58,388 | $ | 60,776 | ||||||
Weighted average equity, as adjusted ex Chubb goodwill and other intangible assets |
$ | 40,497 | $ | 37,994 | $ | 38,622 | ||||||
ROE |
14.3% | 14.6% | 16.4% | |||||||||
Core operating ROTE |
21.9% | 19.4% | 24.2% | |||||||||
Core operating ROE |
13.7% | 12.6% | 15.4% | |||||||||
Private equities realized gains (losses), after-tax (1) |
$ | 133 | $ | 268 | $ | 523 | ||||||
Impact of Private equities if included in Core operating ROE - Favorable (unfavorable) (1) |
0.8 pts | 1.8 pts | 0.9 pts | |||||||||
Reconciliation of Book Value and Tangible Book Value per Share to adjusted measures |
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March 31 | December 31 | |||||||||||
2024 | 2023 | % Change | ||||||||||
Book value |
$ | 60,535 | $ | 59,507 | ||||||||
Less: AOCI |
(7,386 | ) | (6,809 | ) | ||||||||
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Book value excluding AOCI |
67,921 | 66,316 | ||||||||||
Tangible book value |
36,360 | 35,654 | ||||||||||
Less: Tangible AOCI |
(6,581 | ) | (5,999 | ) | ||||||||
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Tangible book value excluding tangible AOCI |
$ | 42,941 | $ | 41,653 | ||||||||
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Denominator: shares outstanding |
406,033,066 | 405,269,637 | ||||||||||
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Book value per share excluding AOCI |
$ | 167.28 | $ | 163.64 | 2.2% | |||||||
Tangible book value per share excluding tangible AOCI |
$ | 105.75 | $ | 102.78 | 2.9% |
(1) We record the change in the fair value mark and gains (losses) on sales of private equity funds as realized gains (losses) instead of investment income.
Reconciliation of Net income and Core Operating Income adjusted to exclude one-time items for Q1 2024
Metrics below for Q1 2024 exclude two items: an incremental deferred tax benefit of $55 million related to the Bermuda tax law and a contribution to the Chubb Charitable Foundation of $30 million ($24 million after-tax) (one-time items).
As Reported | Excluding one-time items |
Excluding one-time items |
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Three months ended March 31 | ||||||||||||||||
2024 | 2024 | 2023 | % Change | |||||||||||||
Core operating income |
$ | 2,216 | $ | 2,185 | $ | 1,842 | 18.6% | |||||||||
Chubb net income |
$ | 2,143 | $ | 2,112 | $ | 1,892 | 11.7% | |||||||||
Diluted earnings per share |
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Chubb net income |
$ | 5.23 | $ | 5.15 | $ | 4.53 | 13.7% | |||||||||
Core operating income |
$ | 5.41 | $ | 5.33 | $ | 4.41 | 20.9% |
Reconciliation Non-GAAP 3 | Page 27 |
Chubb Limited
Non-GAAP Financial Measures - 4
(in millions of U.S. dollars, except ratios)
(Unaudited)
Regulation G - Non-GAAP Financial Measures (continued)
P&C combined ratio
The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.
The following tables present the calculation of combined ratio, as reported, for each segment to P&C combined ratio, adjusted for catastrophe losses (Cats) and prior period development (PPD).
North | North | North | ||||||||||||||||||||||||||||
America | America | America | Overseas | |||||||||||||||||||||||||||
Commercial P&C | Personal P&C | Agricultural | General | Global | Total | |||||||||||||||||||||||||
Q1 2024 |
Insurance | Insurance | Insurance | Insurance | Reinsurance | Corporate | P&C | |||||||||||||||||||||||
Numerator |
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Losses and loss expenses |
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Losses and loss expenses/policy benefits |
$ | 3,175 | $ | 899 | $ | 48 | $ | 1,526 | $ | 137 | $ | 10 | $ | 5,795 | ||||||||||||||||
Realized (gains) losses on crop derivatives |
- | - | 1 | - | - | - | 1 | |||||||||||||||||||||||
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Adjusted losses and loss expenses/policy benefits |
A | $ | 3,175 | $ | 899 | $ | 49 | $ | 1,526 | $ | 137 | $ | 10 | $ | 5,796 | |||||||||||||||
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Catastrophe losses and related adjustments |
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Catastrophe losses, net of related adjustments |
(236 | ) | (170 | ) | (3 | ) | (26 | ) | - | - | (435 | ) | ||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses |
- | - | - | - | - | - | - | |||||||||||||||||||||||
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Catastrophe losses, gross of related adjustments |
(236 | ) | (170 | ) | (3 | ) | (26 | ) | - | - | (435 | ) | ||||||||||||||||||
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PPD and related adjustments |
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PPD, net of related adjustments - favorable (unfavorable) |
48 | 52 | 28 | 89 | (1 | ) | (9 | ) | 207 | |||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) |
- | - | 39 | - | - | - | 39 | |||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) |
8 | - | 3 | - | - | - | 11 | |||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) |
- | - | - | - | - | - | - | |||||||||||||||||||||||
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PPD, gross of related adjustments - favorable (unfavorable) |
56 | 52 | 70 | 89 | (1 | ) | (9 | ) | 257 | |||||||||||||||||||||
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CAY loss and loss expense ex Cats |
B | $ | 2,995 | $ | 781 | $ | 116 | $ | 1,589 | $ | 136 | $ | 1 | $ | 5,618 | |||||||||||||||
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Policy acquisition costs and administrative expenses |
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Policy acquisition costs and administrative expenses |
C | $ | 1,016 | $ | 386 | $ | 23 | $ | 1,154 | $ | 90 | $ | 107 | $ | 2,776 | |||||||||||||||
Expense adjustments - favorable (unfavorable) |
(8 | ) | - | (3 | ) | - | - | - | (11 | ) | ||||||||||||||||||||
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CAY Policy acquisition costs and administrative expenses |
D | $ | 1,008 | $ | 386 | $ | 20 | $ | 1,154 | $ | 90 | $ | 107 | $ | 2,765 | |||||||||||||||
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Denominator |
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Net premiums earned |
E | $ | 4,880 | $ | 1,471 | $ | 128 | $ | 3,198 | $ | 295 | $ | 9,972 | |||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses |
- | - | - | - | - | - | ||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) |
- | - | 39 | - | - | 39 | ||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) |
- | - | - | - | - | - | ||||||||||||||||||||||||
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Net premiums earned excluding adjustments |
F | $ | 4,880 | $ | 1,471 | $ | 167 | $ | 3,198 | $ | 295 | $ | 10,011 | |||||||||||||||||
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P&C combined ratio |
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Loss and loss expense ratio |
A/E | 65.1 | % | 61.1 | % | 38.6 | % | 47.7 | % | 46.3 | % | 58.1 | % | |||||||||||||||||
Policy acquisition cost and administrative expense ratio |
C/E | 20.8 | % | 26.3 | % | 18.0 | % | 36.1 | % | 30.6 | % | 27.9 | % | |||||||||||||||||
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P&C combined ratio |
85.9 | % | 87.4 | % | 56.6 | % | 83.8 | % | 76.9 | % | 86.0 | % | ||||||||||||||||||
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CAY P&C combined ratio ex Cats |
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Loss and loss expense ratio, adjusted |
B/F | 61.4 | % | 53.1 | % | 69.5 | % | 49.7 | % | 46.0 | % | 56.1 | % | |||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted |
D/F | 20.6 | % | 26.2 | % | 12.1 | % | 36.1 | % | 30.5 | % | 27.6 | % | |||||||||||||||||
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CAY P&C combined ratio ex Cats |
82.0 | % | 79.3 | % | 81.6 | % | 85.8 | % | 76.5 | % | 83.7 | % | ||||||||||||||||||
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Combined ratio |
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Combined ratio |
86.0 | % | ||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives |
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P&C combined ratio |
86.0 | % | ||||||||||||||||||||||||||||
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Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.
Reconciliation Non-GAAP 4 | Page 28 |
Chubb Limited
Non-GAAP Financial Measures - 5
(in millions of U.S. dollars, except ratios)
(Unaudited)
Regulation G - Non-GAAP Financial Measures (continued)
P&C combined ratio (continued)
Q1 2023 |
North America Commercial P&C Insurance |
North America Personal P&C Insurance |
North America Agricultural Insurance |
Overseas General Insurance |
Global Reinsurance |
Corporate | Total P&C |
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Numerator |
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Losses and loss expenses |
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Losses and loss expenses/policy benefits |
$ | 2,729 | $ | 888 | $ | 139 | $ | 1,347 | $ | 112 | $ | 11 | $ | 5,226 | ||||||||||||||||
Realized (gains) losses on crop derivatives |
- | - | 1 | - | - | - | 1 | |||||||||||||||||||||||
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Adjusted losses and loss expenses/policy benefits |
A | $ | 2,729 | $ | 888 | $ | 140 | $ | 1,347 | $ | 112 | $ | 11 | $ | 5,227 | |||||||||||||||
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Catastrophe losses and related adjustments |
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Catastrophe losses, net of related adjustments |
(162) | (159) | (24) | (113) | - | - | (458) | |||||||||||||||||||||||
Reinstatement premiums collected (expensed) on catastrophe losses |
- | - | - | - | - | - | - | |||||||||||||||||||||||
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Catastrophe losses, gross of related adjustments |
(162) | (159) | (24) | (113) | - | - | (458) | |||||||||||||||||||||||
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PPD and related adjustments |
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PPD, net of related adjustments - favorable (unfavorable) |
72 | (17) | - | 143 | 8 | (10) | 196 | |||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Expense adjustments - unfavorable (favorable) |
3 | - | - | - | - | - | 3 | |||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) |
- | (1) | - | - | - | - | (1) | |||||||||||||||||||||||
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PPD, gross of related adjustments - favorable (unfavorable) |
75 | (18) | - | 143 | 8 | (10) | 198 | |||||||||||||||||||||||
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CAY loss and loss expense ex Cats |
B | $ | 2,642 | $ | 711 | $ | 116 | $ | 1,377 | $ | 120 | $ | 1 | $ | 4,967 | |||||||||||||||
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Policy acquisition costs and administrative expenses |
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Policy acquisition costs and administrative expenses |
C | $ | 908 | $ | 351 | $ | 18 | $ | 993 | $ | 71 | $ | 97 | $ | 2,438 | |||||||||||||||
Expense adjustments - favorable (unfavorable) |
(3) | - | - | - | - | - | (3) | |||||||||||||||||||||||
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CAY Policy acquisition costs and administrative expenses |
D | $ | 905 | $ | 351 | $ | 18 | $ | 993 | $ | 71 | $ | 97 | $ | 2,435 | |||||||||||||||
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Denominator |
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Net premiums earned |
E | $ | 4,369 | $ | 1,320 | $ | 159 | $ | 2,786 | $ | 244 | $ | 8,878 | |||||||||||||||||
Reinstatement premiums (collected) expensed on catastrophe losses |
- | - | - | - | - | - | ||||||||||||||||||||||||
Net premiums earned adjustments on PPD - unfavorable (favorable) |
- | - | - | - | - | - | ||||||||||||||||||||||||
PPD reinstatement premiums - unfavorable (favorable) |
- | (1) | - | - | - | (1) | ||||||||||||||||||||||||
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Net premiums earned excluding adjustments |
F | $ | 4,369 | $ | 1,319 | $ | 159 | $ | 2,786 | $ | 244 | $ | 8,877 | |||||||||||||||||
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P&C combined ratio |
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Loss and loss expense ratio |
A/E | 62.5% | 67.3% | 88.5% | 48.4% | 45.7% | 58.9% | |||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio |
C/E | 20.7% | 26.6% | 10.7% | 35.6% | 29.4% | 27.4% | |||||||||||||||||||||||
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P&C combined ratio |
83.2% | 93.9% | 99.2% | 84.0% | 75.1% | 86.3% | ||||||||||||||||||||||||
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CAY P&C combined ratio ex Cats |
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Loss and loss expense ratio, adjusted |
B/F | 60.5% | 53.9% | 73.1% | 49.4% | 49.0% | 55.9% | |||||||||||||||||||||||
Policy acquisition cost and administrative expense ratio, adjusted |
D/F | 20.7% | 26.7% | 10.8% | 35.7% | 29.4% | 27.5% | |||||||||||||||||||||||
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CAY P&C combined ratio ex Cats |
81.2% | 80.6% | 83.9% | 85.1% | 78.4% | 83.4% | ||||||||||||||||||||||||
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Combined ratio |
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Combined ratio |
86.3% | |||||||||||||||||||||||||||||
Add: impact of gains and losses on crop derivatives |
0.0% | |||||||||||||||||||||||||||||
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P&C combined ratio |
86.3% | |||||||||||||||||||||||||||||
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Note: The ratios above are calculated using whole U.S. dollars. Accordingly, calculations using rounded amounts may differ. Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.
Reconciliation Non-GAAP 5 | Page 29 |
Chubb Limited
Glossary
Chubb Limited Consolidated comprises all segments including Corporate.
Total P&C comprises all segments (including Corporate) except the Life Insurance segment.
Global P&C comprises all segments (including Corporate) except the Life Insurance and North America Agricultural segments.
P&C combined ratio: The sum of the loss and loss expense ratio, policy acquisition cost ratio and the administrative expense ratio excluding the Life insurance segment and including the realized gains and losses on the crop derivatives.
Book value per common share: Chubb shareholders’ equity divided by the shares outstanding.
Tangible book value per common share: Chubb shareholders’ equity less Chubb goodwill and other intangible assets, net of tax, divided by the shares outstanding.
Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.
Average yield on invested assets: Adjusted net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.
Total capitalization: The sum of the short-term debt, long-term debt, trust preferreds, and Chubb shareholders’ equity.
Cigna integration expenses: Cigna integration expenses comprise legal and professional fees and all other costs directly related to the integration activities primarily of the Cigna acquisition. Cigna integration expenses are incurred by the overall company and are therefore included in Corporate. These costs are not related to the on-going business activities of the segments and are therefore excluded from our definition of segment income.
Catastrophe losses (Cats): We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured losses and affects a significant number of insureds. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe loss events are events that occurred in the current calendar year only. Changes in catastrophe loss estimates in the current calendar year that relate to loss events that occurred in previous calendar years are considered prior period development.
Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years.
Reinstatement premiums are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences. The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.
Net premiums earned adjustments within prior period development are adjustments to the initial premium earned on retrospectively rated policies based on actual claim experience that develops after the policy period ends. The premium adjustments correlate to the prior period loss development on these same policies and are fully earned in the period the adjustments are recorded.
Prior period expense adjustments typically relate to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies.
Segment income (loss) includes underwriting income (loss), adjusted net investment income, other income (expense) – operating, and amortization expense of purchased intangibles.
Non-premium revenues and expenses included in Other income and expense, principally pertain to the management of third-party assets by Huatai Asset Management Co., Ltd. (HAM) and Huatai Baoxing, which are unrelated to Huatai Group’s core insurance operations. These revenues and expenses are recognized in the period in which the services are performed.
NM: Not meaningful.
Glossary | Page 30 |