Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, supported by record underwriting and strong investment results [5][6] - Core operating income was $2.5 billion, a 13% increase from the previous year [6] - Published underwriting income was $1.6 billion, up 15% year-over-year, leading to a combined ratio of 85.6, an improvement of over one percentage point [7] - Adjusted net investment income was nearly $1.7 billion, an 8% increase [7] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter [8] Business Line Data and Key Metrics Changes - North America P&C premiums excluding agriculture grew 5.3%, with personal insurance up 9.1% and commercial up 4.1% [12] - Premiums in the life insurance division grew almost 17.5% [10] - Middle market and small commercial property lines showed disciplined growth, with rates continuing to rise [11] - Casualty pricing in North America increased by 11.6% [15] - International general insurance operations saw premiums up 8.5% or over 10% in constant dollars [16] Market Data and Key Metrics Changes - Global P&C premiums grew 5.86% in constant dollars, with commercial up 4.2% and consumer up 11.9% [10] - Asia's premiums grew over 12.5% in constant dollars, while Europe and Latin America grew over 8% and 17%, respectively [17] - In the U.S., large account commercial property pricing has become competitive, leading to price softening [10][18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is not pursuing business below adequate pricing [11] - Focus on growth in middle market and small commercial segments, which are expected to continue expanding [59] - The company is leveraging its global diversification and a talented workforce to drive growth [21] - Continued investment in digital and direct marketing strategies in Latin America and Asia [44][59] Management's Comments on Operating Environment and Future Outlook - Management noted a complex economic environment with potential headwinds from budget deficits and trade policies [20] - The company expects continued growth in both revenue and earnings, driven by strong fundamentals and market positioning [21] - Management remains optimistic about the durability of growth in the majority of its business segments [56] Other Important Information - The company authorized a new $5 billion share repurchase program [23][24] - Adjusted net investment income is expected to be approximately $1.72 billion to $1.74 billion next quarter [27] - The company closed on the acquisition of Liberty Mutual's P&C business in Thailand, which slightly diluted tangible book value growth [25] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and the need for public policy reform to address these issues [32][33] Question: Growth in Latin America - Management highlighted strong growth driven by significant presence in Mexico and partnerships in Brazil and Chile [44][46] Question: Potential phase-out of FEMA and its impact on high net worth business - Management indicated that while FEMA provides modest coverage, the private flood market is growing and Chubb is well-positioned [50] Question: Stability of global P&C growth - Management confirmed that growth remains stable and durable, particularly in middle market and small commercial segments [56] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened due to increased litigation and social inflation, impacting coverage demand [78] Question: Investment income trends - Management explained that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [102] Question: Reinsurance market attractiveness - Management stated that growth in the reinsurance business was muted due to a disciplined approach to underwriting [110] Question: Capital management and share buybacks - Management emphasized a flexible approach to capital deployment, balancing between supporting insurance business and returning capital to shareholders [112]

Core Viewpoint - Chubb Limited (CB.US) is a leading global insurance group with strong financial performance and strategic acquisitions aimed at expanding its business and enhancing shareholder value [1][7]. Financial Performance - In Q2 2025, Chubb reported net income of $2.968 billion, a 33.1% increase year-over-year, with core operating income reaching a record $2.48 billion, up 12.9% [3]. - The company achieved net premiums of $14.196 billion, slightly above market expectations of $14.16 billion, reflecting a 6.3% year-over-year growth [4][8]. - The combined ratio for Q2 2025 was 85.6%, an improvement from 86.8% in the same quarter last year, indicating stronger underwriting profitability [3][13]. - The return on equity (ROE) for Q2 was 17.6%, significantly up from 8.2% in Q1, showcasing a recovery from previous challenges [3][8]. Business Segments - The property and casualty insurance segment generated net premiums of $12.39 billion, a 5.2% increase, while life insurance premiums reached $1.8 billion, growing 14.1% [5]. - North American property and casualty premiums grew by 4.5%, with commercial insurance up 4.1% and personal insurance up 9.1% [5]. - Internationally, the combined insurance segment saw an 8.5% increase in premiums, with a combined ratio of 90.3% [5]. Shareholder Returns - Chubb has demonstrated stable premium income, with a projected net premium income of $51.47 billion for 2024, reflecting an 8.7% year-over-year growth [8]. - The company has returned a total of $10.6 billion to shareholders in Q2 2025, including $6.76 billion in stock buybacks and $3.88 billion in dividends [9]. Strategic Acquisitions - Chubb has expanded its business through strategic acquisitions, including increasing its stake in Huatai Group in China and acquiring pet insurance provider Healthy Paws [7]. - The company aims to diversify its portfolio and enhance revenue streams through these acquisitions, contributing to long-term shareholder value [7]. Risk Management - Chubb maintains strong risk management capabilities, employing teams to help clients mitigate risks and stabilize underwriting performance [11]. - The company has a ten-year average combined ratio of 89.8%, outperforming the industry average of 97.8% [11]. Investment Strategy - Chubb's investment strategy focuses on high-quality fixed-income products, with 89% of total investment assets in fixed income and a significant portion maturing within ten years [14]. - The company plans to increase the allocation to less liquid private investments from 11% to 15% as investment assets grow [14]. Market Sentiment - As of Q2 2025, Chubb received a "Moderate Buy" rating from analysts, with an average target price of approximately $313, reflecting positive market sentiment following strong earnings [16].

Group 1 - Chubb's shares have increased by only 6% over the past year, underperforming the market which has reached new highs [1] - Currently, Chubb's shares are approximately 7% below their pre-Liberation Day level, raising concerns about the sustainability of underwriting profitability [1] - The upcoming Q2 results are anticipated to provide further insights into the company's performance [1]

Core Viewpoint - Chubb reported quarterly earnings of $6.14 per share, exceeding the Zacks Consensus Estimate of $5.89 per share, and showing an increase from $5.38 per share a year ago, indicating a positive earnings surprise of +4.24% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters [2] - Chubb's revenues for the quarter ended June 2025 were $14.81 billion, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $13.86 billion year-over-year [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] Group 2: Stock Performance and Outlook - Chubb shares have declined approximately 0.8% year-to-date, while the S&P 500 has gained 7.2% [3] - The future performance of Chubb's stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $5.43, with expected revenues of $15.92 billion, and for the current fiscal year, the EPS estimate is $21.21 on revenues of $59.55 billion [7] Group 3: Industry Context - The Insurance - Property and Casualty industry is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Chubb's stock performance [5]

[Introduction & Cautionary Statements](index=1&type=section&id=Introduction%20%26%20Cautionary%20Statements) [Report Information & Contact](index=1&type=section&id=Report%20Information%20%26%20Contact) This section provides contact details for Chubb Limited's investor relations and clarifies that the financial supplement is for informational purposes, recommending it be read in conjunction with official SEC filings - The report is for informational purposes only and should be read with **Chubb Limited's SEC filings**, including the most recent **10-K** and **10-Q**[1](index=1&type=chunk) - Investor contact information is provided for Karen Beyer at **(212) 827-4445** or investorrelations@chubb.com[1](index=1&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=1&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This statement warns readers that forward-looking statements in the supplement involve risks and uncertainties, such as catastrophic events, market fluctuations, and regulatory changes, which could cause actual results to differ materially from projections. Readers are cautioned against undue reliance on these statements - Forward-looking statements reflect current views but involve risks and uncertainties that may cause actual results to differ materially[2](index=2&type=chunk) - Potential factors affecting results include unpredictable catastrophic events, actual loss experience, reserving uncertainties, currency fluctuations, and regulatory developments[2](index=2&type=chunk) - Other influencing factors include competition, pricing trends, market acceptance, rating agency actions, and geopolitical events[3](index=3&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) Chubb Limited reported strong consolidated financial performance for Q2 2025, with significant growth in net income and diluted EPS, alongside improved P&C underwriting income and a lower combined ratio. Book value and tangible book value per common share also saw healthy increases year-over-year Consolidated Financial Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | | Gross premiums written | $17,276 | $16,491 | 4.8% | | Net premiums written | $14,196 | $13,360 | 6.3% | | P&C net premiums written | $12,394 | $11,780 | 5.2% | | Life Insurance net premiums written | $1,802 | $1,580 | 14.1% | | P&C underwriting income | $1,631 | $1,418 | 15.0% | | Adjusted net investment income | $1,687 | $1,563 | 7.9% | | Core operating income | $2,480 | $2,196 | 12.9% | | Chubb net income | $2,968 | $2,230 | 33.1% | | P&C combined ratio | 85.6% | 86.8% | -1.2 pts | | Diluted earnings per share (Chubb net income) | $7.35 | $5.46 | 34.6% | | Diluted earnings per share (Core operating income) | $6.14 | $5.38 | 14.1% | Book Value per Common Share (as of June 30, 2025) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :----------- | :------------ | | Book value per common share | $174.07 | $164.01 | $159.77 | $151.05 | | Tangible book value per common share | $112.64 | $104.27 | $100.38 | $91.05 | | Book value per common share, excl. AOCI | $189.27 | $183.06 | $181.34 | $171.60 | | Tangible book value per common share, excl. AOCI | $125.80 | $120.44 | $118.57 | $109.08 | - **Chubb's net income** increased by **33.1%** to **$2,968 million** for Q2 **2025**, while **diluted earnings per share** from **Chubb net income** rose by **34.6%** to **$7.35**[8](index=8&type=chunk) - The **P&C combined ratio** improved by **1.2** percentage points to **85.6%** in Q2 **2025**, reflecting better underwriting performance[8](index=8&type=chunk) [Consolidated Financial Results](index=4&type=section&id=Consolidated%20Financial%20Results) [Consolidated Statement of Operations](index=4&type=section&id=Consolidated%20Statement%20of%20Operations) Chubb Limited's consolidated statement of operations for Q2 2025 shows a 33.1% increase in Chubb net income compared to Q2 2024, driven by growth in net premiums earned and net investment income, despite increases in policy benefits and acquisition costs Consolidated Statement of Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Gross premiums written | $17,276 | $16,491 | 4.8% | | Net premiums written | $14,196 | $13,360 | 6.3% | | Net premiums earned | $13,125 | $12,292 | 6.8% | | Losses and loss expenses | $6,572 | $6,431 | 2.2% | | Policy benefits | $1,406 | $1,219 | 15.3% | | Policy acquisition costs | $2,415 | $2,226 | 8.5% | | Administrative expenses | $1,125 | $1,094 | 2.8% | | Net investment income | $1,568 | $1,468 | 6.8% | | Net income | $2,999 | $2,216 | 35.3% | | Chubb net income | $2,968 | $2,230 | 33.1% | - Adjusted policy benefits include gains and losses from fair value changes in separate account liabilities and realized gains/losses on underlying investments for participating policies, reclassified to better reflect economic liabilities[10](index=10&type=chunk)[85](index=85&type=chunk) - Adjusted net investment income excludes amortization of fair value adjustment on acquired invested assets and includes income from private equity partnerships with over **3%** ownership[11](index=11&type=chunk)[86](index=86&type=chunk) [P&C Underwriting Results](index=5&type=section&id=P%26C%20Underwriting%20Results) The P&C segment demonstrated robust underwriting performance in Q2 2025, with a 15.0% increase in underwriting income and a 1.2 percentage point improvement in the combined ratio. This was achieved despite significant catastrophe losses, partially offset by favorable prior period development P&C Underwriting Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $12,394 | $11,780 | 5.2% | | Net premiums earned | $11,336 | $10,724 | 5.7% | | P&C underwriting income | $1,631 | $1,418 | 15.0% | | P&C CAY underwriting income ex Cats | $2,012 | $1,806 | 11.4% | | Combined ratio | 85.6% | 86.8% | -1.2 pts | | CAY combined ratio ex Cats | 82.3% | 83.2% | -0.9 pts | - Catastrophe losses for Q2 **2025** were **$625 million** pre-tax, while prior period development was favorable at **$(249) million** pre-tax[14](index=14&type=chunk) - The impact of catastrophe losses on the **P&C combined ratio** was an unfavorable **5.5%**, while favorable prior period development reduced the ratio by **2.2%**[14](index=14&type=chunk) [Global P&C Underwriting Results](index=6&type=section&id=Global%20P%26C%20Underwriting%20Results) Global P&C underwriting results for Q2 2025 showed solid growth in net premiums written and earned, contributing to a 13.2% increase in underwriting income and an improved combined ratio. Catastrophe losses remained a significant factor, partially mitigated by favorable prior period development Global P&C Underwriting Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $11,661 | $11,022 | 5.8% | | Net premiums earned | $10,738 | $10,098 | 6.3% | | Global P&C underwriting income | $1,566 | $1,383 | 13.2% | | Global P&C CAY underwriting income ex Cats | $1,946 | $1,738 | 12.0% | | Combined ratio | 85.4% | 86.3% | -0.9 pts | | CAY combined ratio ex Cats | 81.9% | 82.8% | -0.9 pts | - **Global P&C catastrophe losses** for Q2 **2025** were **$624 million** pre-tax, with favorable prior period development of **$(222) million** pre-tax[15](index=15&type=chunk) - The impact of catastrophe losses on the **Global P&C combined ratio** was an unfavorable **5.8%**, while favorable prior period development reduced the ratio by **2.2%**[15](index=15&type=chunk) [Summary Consolidated Balance Sheets](index=7&type=section&id=Summary%20Consolidated%20Balance%20Sheets) Chubb Limited's consolidated balance sheet as of June 30, 2025, shows an increase in total assets to $261,563 million and Chubb shareholders' equity to $69,395 million, reflecting overall financial growth. Unpaid losses and loss expenses also increased to $86,376 million Consolidated Balance Sheet (as of June 30, 2025) | Item | June 30, 2025 (Millions USD) | March 31, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------------------------- | | Total investments | $158,314 | $152,301 | $150,650 | | Total assets | $261,563 | $251,752 | $246,548 | | Unpaid losses and loss expenses | $86,376 | $85,471 | $84,004 | | Total liabilities | $187,116 | $180,997 | $178,154 | | Chubb shareholders' equity | $69,395 | $65,726 | $64,021 | | Total shareholders' equity | $74,447 | $70,755 | $68,394 | - **Total assets** increased by **3.9%** from **$251,752 million** at March **31**, **2025**, to **$261,563 million** at June **30**, **2025**[18](index=18&type=chunk) - **Chubb shareholders' equity** grew by **5.6%** quarter-over-quarter to **$69,395 million**, contributing to a **6.1%** increase in **book value per common share** to **$174.07**[18](index=18&type=chunk) [Consolidated Net Premiums Written by Product Line](index=8&type=section&id=Consolidated%20Net%20Premiums%20Written%20by%20Product%20Line) Chubb's consolidated net premiums written for Q2 2025 increased by 6.3% year-over-year, driven by strong growth in Life Insurance (14.1%), Personal Automobile (23.3%), and Commercial Casualty (10.9%). Agriculture and Reinsurance lines experienced declines Net Premiums Written by Product Line (Q2 2025 vs Q2 2024) | Product Line | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------------- | :--------------------- | :--------------------- | :------- | | Property and other short-tail lines | $2,766 | $2,715 | 1.9% | | Commercial casualty | $2,389 | $2,155 | 10.9% | | Financial lines | $1,278 | $1,237 | 3.3% | | Workers' compensation | $547 | $559 | -2.1% | | Commercial multiple peril | $481 | $428 | 12.1% | | Surety | $225 | $200 | 12.4% | | Agriculture | $733 | $758 | -3.3% | | Personal homeowners | $1,466 | $1,355 | 8.1% | | Personal automobile | $756 | $614 | 23.3% | | Personal other | $567 | $520 | 9.1% | | Global A&H - P&C | $806 | $828 | -2.6% | | Reinsurance lines | $380 | $411 | -7.6% | | **Total P&C** | **$12,394** | **$11,780** | **5.2%** | | **Life Insurance** | **$1,802** | **$1,580** | **14.1%** | | **Total Consolidated** | **$14,196** | **$13,360** | **6.3%** | - **Life Insurance net premiums written** showed strong growth of **14.1%** in Q2 **2025**, reaching **$1,802 million**[21](index=21&type=chunk) - **Personal automobile net premiums written** surged by **23.3%** to **$756 million** in Q2 **2025**[21](index=21&type=chunk) [Segment Performance](index=9&type=section&id=Segment%20Performance) [North America Commercial P&C Insurance](index=11&type=section&id=North%20America%20Commercial%20P%26C%20Insurance) The North America Commercial P&C segment reported a 4.1% increase in net premiums written and a 2.1% rise in underwriting income for Q2 2025, with a combined ratio of 83.5%. The segment experienced $229 million in catastrophe losses, partially offset by $106 million in favorable prior period development North America Commercial P&C Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $5,723 | $5,501 | 4.1% | | Net premiums earned | $5,177 | $4,900 | 5.7% | | Underwriting income | $857 | $839 | 2.1% | | Combined ratio | 83.5% | 82.9% | +0.6 pts | | CAY combined ratio ex Cats | 81.1% | 80.7% | +0.4 pts | - Catastrophe losses for the **segment** were **$229 million** pre-tax in Q2 **2025**, while prior period development was favorable at **$(106) million** pre-tax[28](index=28&type=chunk) - Net premiums written for Major Accounts & Specialty totaled **$3,578 million**, and Commercial accounts contributed **$2,145 million** in Q2 **2025**[28](index=28&type=chunk) [North America Personal P&C Insurance](index=12&type=section&id=North%20America%20Personal%20P%26C%20Insurance) The North America Personal P&C segment saw significant improvements in Q2 2025, with net premiums written growing by 9.1% and underwriting income surging by 78.7% to $445 million. The combined ratio improved by 10.0 percentage points to 73.5%, despite $142 million in catastrophe losses North America Personal P&C Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $1,938 | $1,776 | 9.1% | | Net premiums earned | $1,681 | $1,512 | 11.1% | | Underwriting income (loss) | $445 | $249 | 78.7% | | Combined ratio | 73.5% | 83.5% | -10.0 pts | | CAY combined ratio ex Cats | 72.2% | 78.6% | -6.4 pts | - Catastrophe losses for the **segment** were **$142 million** pre-tax in Q2 **2025**, with favorable prior period development of **$(121) million** pre-tax[31](index=31&type=chunk) [North America Agricultural Insurance](index=13&type=section&id=North%20America%20Agricultural%20Insurance) The North America Agricultural Insurance segment experienced a slight decline in net premiums written by 3.3% in Q2 2025, but underwriting income increased by 85.7% to $65 million, and the combined ratio improved by 5.3 percentage points to 89.1% North America Agricultural Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $733 | $758 | -3.3% | | Net premiums earned | $598 | $626 | -4.3% | | Underwriting income | $65 | $35 | 85.7% | | Combined ratio | 89.1% | 94.4% | -5.3 pts | | CAY combined ratio ex Cats | 88.8% | 89.1% | -0.3 pts | - Catastrophe losses for the **segment** were **$1 million** pre-tax in Q2 **2025**, with no prior period development reported[33](index=33&type=chunk) [Overseas General Insurance](index=14&type=section&id=Overseas%20General%20Insurance) The Overseas General Insurance segment reported an 8.5% increase in net premiums written for Q2 2025, reaching $3,620 million. Underwriting income decreased by 13.2% to $342 million, and the combined ratio was 90.3%. Growth was notable in Asia (11.8%) and Europe, Middle East and Africa (9.9%) Overseas General Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $3,620 | $3,334 | 8.5% | | Net premiums earned | $3,542 | $3,347 | 5.8% | | Underwriting income | $342 | $394 | -13.2% | | Combined ratio | 90.3% | 88.2% | +2.1 pts | | CAY combined ratio ex Cats | 85.4% | 85.3% | +0.1 pts | - Catastrophe losses for the **segment** were **$247 million** pre-tax in Q2 **2025**, with favorable prior period development of **$(77) million** pre-tax[35](index=35&type=chunk) Net Premiums Written by Region (Q2 2025 vs Q2 2024) | Region | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Europe, Middle East and Africa | $1,548 | $1,409 | 9.9% | | Latin America | $743 | $697 | 6.6% | | Asia | $1,316 | $1,177 | 11.8% | [Global Reinsurance](index=15&type=section&id=Global%20Reinsurance) The Global Reinsurance segment reported a 7.6% decrease in net premiums written for Q2 2025, but underwriting income increased by 5.4% to $98 million. The combined ratio improved by 1.7 percentage points to 71.0%. Excluding a prior year structured transaction, net premiums written growth was 1.5% Global Reinsurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $380 | $411 | -7.6% | | Net premiums earned | $338 | $339 | -0.3% | | Underwriting income | $98 | $93 | 5.4% | | Combined ratio | 71.0% | 72.7% | -1.7 pts | | CAY combined ratio ex Cats | 73.5% | 77.4% | -3.9 pts | - Catastrophe losses for the **segment** were **$6 million** pre-tax in Q2 **2025**, with favorable prior period development of **$(15) million** pre-tax[38](index=38&type=chunk) - Excluding a **$37 million** large one-off structured transaction in the prior year, net premiums written growth for Q2 **2025** was **1.5%**[38](index=38&type=chunk) [Life Insurance](index=16&type=section&id=Life%20Insurance) The Life Insurance segment demonstrated strong growth in Q2 2025, with net premiums written increasing by 14.1% to $1,802 million and segment income rising by 10.5% to $305 million. International life insurance net premiums written also grew by 14.0% Life Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net premiums written | $1,802 | $1,580 | 14.1% | | Net premiums earned | $1,789 | $1,568 | 14.2% | | Segment income | $305 | $276 | 10.5% | International Life Insurance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | % Change | | :------------------------------------------ | :--------------------- | :--------------------- | :------- | | International life insurance net premiums written | $1,499 | $1,315 | 14.0% | | International life insurance deposits | $518 | $547 | -5.4% | | Total international life insurance net premiums written and deposits | $2,017 | $1,862 | 8.3% | | International life insurance segment income | $239 | $232 | 3.2% | - International life insurance net premiums written and deposits collected are included to present growth in the life insurance business, as new deposits are a key component of production[97](index=97&type=chunk) [Corporate](index=17&type=section&id=Corporate) The Corporate segment reported a net loss of $(540) million for Q2 2025, primarily due to an underwriting loss of $(176) million, adjusted interest expense of $(186) million, and income tax expense of $(717) million, partially offset by $662 million in adjusted net realized gains Corporate Segment Performance (Q2 2025, Millions USD) | Metric | Q2 2025 (Millions USD) | | :-------------------------- | :--------------------- | | Underwriting loss | $(176) | | Adjusted net investment income | $(25) | | Adjusted interest expense | $(186) | | Adjusted net realized gains (losses) | $662 | | Income tax expense | $(717) | | Net loss | $(540) | - The **Corporate segment** recorded **$70 million** in unfavorable prior period development (PPD) pre-tax for Q2 **2025**[44](index=44&type=chunk) [Balance Sheet Details](index=18&type=section&id=Balance%20Sheet%20Details) [Loss Reserve Rollforward](index=18&type=section&id=Loss%20Reserve%20Rollforward) The loss reserve rollforward shows that Chubb's gross unpaid losses and loss expenses increased to $86,376 million as of June 30, 2025. This reflects $7,661 million in incurred losses and $7,620 million in paid losses during Q2 2025, with a net paid to gross ratio of 90% Unpaid Losses and Loss Expenses (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :------------ | :------------- | :----------- | | Balance at period end (Gross) | $86,376 | $85,471 | $84,004 | | Balance at period end (Net) | $68,685 | $67,390 | $66,270 | - For Q2 **2025**, **gross losses and loss expenses incurred** were **$7,661 million**, while **gross losses and loss expenses paid** were **$(7,620) million**[46](index=46&type=chunk) - The **net paid to gross ratio** for Q2 **2025** was **90%**[46](index=46&type=chunk) [Reinsurance Recoverable Analysis](index=19&type=section&id=Reinsurance%20Recoverable%20Analysis) Chubb's net reinsurance recoverable stood at $19,595 million as of June 30, 2025, with the majority ($17,952 million) related to unpaid losses and loss expenses. The provision for uncollectible reinsurance was $(323) million, based on a default analysis net of $4.1 billion in usable collateral Net Reinsurance Recoverable (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :------------------------------------------ | :------------ | :------------- | :----------- | | Reinsurance recoverable on paid losses and loss expenses | $1,966 | $2,000 | $2,111 | | Reinsurance recoverable on unpaid losses and loss expenses | $17,952 | $18,335 | $17,976 | | Gross reinsurance recoverable | $19,918 | $20,335 | $20,087 | | Provision for uncollectible reinsurance | $(323) | $(320) | $(310) | | **Net reinsurance recoverable** | **$19,595** | **$20,015** | **$19,777** | - The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of approximately **$4.1 billion** in usable collateral[48](index=48&type=chunk) [Investment Portfolio](index=20&type=section&id=Investment%20Portfolio) Chubb's investment portfolio, totaling $158,314 million, is primarily composed of fixed maturities, with a diversified allocation across corporate, non-U.S., and mortgage-backed securities. The portfolio maintains a strong credit quality (average A/A) and an average duration of 4.8 years Total Investments (Millions USD) | Item | June 30, 2025 | | :-------------------------- | :------------ | | Total investments | $158,314 | | Total fixed maturities (market value) | $127,068 | | Equity securities | $9,913 | | Private equities | $16,313 | | Other investments | $9,032 | - The **investment portfolio** has an **average duration** of **fixed maturities** of **4.8** years and an **average market yield** of fixed income investments of **5.3%**[51](index=51&type=chunk) - The **average credit quality** of the fixed income portfolio is **A/A**[51](index=51&type=chunk) [Fixed Maturities and Asset Allocation](index=20&type=section&id=Fixed%20Maturities%20and%20Asset%20Allocation) Chubb's fixed maturities portfolio, valued at $127,068 million as of June 30, 2025, is predominantly allocated to corporate and asset-backed securities (36%), non-U.S. securities (35%), and mortgage-backed securities (22%). The portfolio maintains a high credit quality, with 66% rated A or higher Asset Allocation by Market Value (June 30, 2025) | Category | Amount (Millions USD) | % of Total | | :------------------------------ | :-------------------- | :--------- | | Corporate and asset-backed securities | $45,126 | 36% | | Non-U.S. | $44,904 | 35% | | Mortgage-backed securities | $28,497 | 22% | | U.S. and local government securities | $4,033 | 3% | | Short-term investments | $4,508 | 4% | | **Total fixed maturities** | **$127,068** | **100%** | Credit Quality by Market Value (June 30, 2025) | Rating | % of Total | | :----- | :--------- | | AAA | 11% | | AA | 30% | | A | 25% | | BBB | 18% | | BB | 9% | | B | 7% | | Other | 0% | | **Total fixed maturities** | **100%** | [Mortgage-backed and U.S. Corporate/Asset-backed Fixed Income Portfolios](index=21&type=section&id=Mortgage-backed%20and%20U.S.%20Corporate%2FAsset-backed%20Fixed%20Income%20Portfolios) The mortgage-backed securities portfolio, totaling $28,497 million, is primarily composed of highly-rated Agency residential mortgage-backed securities ($24,706 million, mostly AA-rated). The U.S. corporate and asset-backed portfolio, valued at $45,126 million, is diversified across various sectors, with a significant portion in investment-grade securities Mortgage-backed Securities by S&P Credit Rating (Market Value at June 30, 2025, Millions USD) | Category | AAA | AA | A | BBB | BB and below | Total | | :-------------------------------- | :---- | :----- | :-- | :-- | :----------- | :---- | | Agency residential mortgage-backed securities (RMBS) | $4 | $24,702 | $- | $- | $- | $24,706 | | Non-agency RMBS | $2,103 | $188 | $184 | $76 | $2 | $2,553 | | Commercial mortgage-backed securities | $998 | $123 | $101 | $14 | $2 | $1,238 | | **Total** | **$3,105** | **$25,013** | **$285** | **$90** | **$4** | **$28,497** | U.S. Corporate and Asset-backed Fixed Income Portfolios by S&P Credit Rating (Market Value at June 30, 2025, Millions USD) | Category | Investment Grade (AAA, AA, A, BBB) | Below Investment Grade (BB, B, CCC) | Total | | :-------------------------- | :---------------------------------- | :---------------------------------- | :---- | | Asset-backed | $5,170 | $122 | $5,292 | | Banks | $4,735 | $- | $4,735 | | Consumer, Non-Cyclical | $4,782 | $3,077 | $7,859 | | All Others | $3,666 | $2,687 | $6,353 | | **Total** | **$29,828** | **$15,298** | **$45,126** | [Non-U.S. Fixed Income Portfolio and Top Corporate Exposures](index=22&type=section&id=Non-U.S.%20Fixed%20Income%20Portfolio%20and%20Top%20Corporate%20Exposures) Chubb's non-U.S. fixed income portfolio includes significant holdings in government securities from China ($2,111 million) and South Korea ($2,010 million), and corporate securities from China ($6,791 million). The top 10 global corporate exposures are primarily in the banking and financial services sectors, with Bank of America Corp. being the largest at $809 million Non-U.S. Government Securities by S&P Credit Rating (Market Value at June 30, 2025, Millions USD) | Country | AAA | AA | A | BBB | BB and below | Total | | :-------------------------- | :---- | :----- | :---- | :---- | :----------- | :---- | | People's Republic of China | $- | $206 | $1,905 | $- | $- | $2,111 | | Republic of Korea | $- | $2,010 | $- | $- | $- | $2,010 | | Kingdom of Thailand | $- | $- | $1,005 | $- | $- | $1,005 | | Canada | $936 | $- | $- | $- | $- | $936 | | **Total** | **$2,146** | **$5,721** | **$6,254** | **$1,704** | **$2,027** | **$17,852** | Non-U.S. Corporate Securities by S&P Credit Rating (Market Value at June 30, 2025, Millions USD) | Country | AAA | AA | A | BBB | BB and below | Total | | :-------------------------- | :---- | :----- | :----- | :----- | :----------- | :----- | | China | $- | $- | $6,399 | $377 | $15 | $6,791 | | United Kingdom | $14 | $29 | $922 | $1,181 | $416 | $2,562 | | Canada | $186 | $58 | $989 | $821 | $491 | $2,545 | | **Total** | **$810** | **$1,684** | **$13,111** | **$7,984** | **$3,463** | **$27,052** | Top 10 Global Corporate Exposures (Market Value at June 30, 2025, Millions USD) | Company | Market Value | Rating | | :-------------------------- | :----------- | :----- | | Bank of America Corp | $809 | A- | | Morgan Stanley | $763 | A- | | JPMorgan Chase & Co | $713 | A | | Goldman Sachs Group Inc | $562 | BBB+ | | Wells Fargo & Co | $555 | BBB+ | | Citigroup Inc | $512 | BBB+ | | AT&T Inc | $411 | BBB | | Verizon Communications Inc | $406 | BBB+ | | UBS Group AG | $404 | A- | | HSBC Holdings PLC | $360 | A- | [Net Realized and Unrealized Gains (Losses)](index=24&type=section&id=Net%20Realized%20and%20Unrealized%20Gains%20(Losses)) Chubb reported significant pre-tax net gains of $2,243 million in Q2 2025, a substantial improvement from a net loss in Q2 2024. This was primarily driven by $1,079 million in fixed income investments and $513 million in private equity mark-to-market gains, alongside $674 million from foreign exchange Net Realized and Unrealized Gains (Losses) (Q2 2025 Pre-Tax, Millions USD) | Category | Realized Gains (Losses) | Unrealized Gains (Losses) | Total Gains (Losses) | | :-------------------------- | :---------------------- | :------------------------ | :------------------- | | Fixed income investments | $97 | $982 | $1,079 | | Public equity (sales & mark-to-market) | $119 | $- | $119 | | Private equity (mark-to-market) | $513 | $- | $513 | | Foreign exchange | $(89) | $763 | $674 | | **Total Net Gains (Losses)** | **$633** | **$1,610** | **$2,243** | Net Realized and Unrealized Gains (Losses) (YTD 2025 Pre-Tax, Millions USD) | Category | Realized Gains (Losses) | Unrealized Gains (Losses) | Total Gains (Losses) | | :-------------------------- | :---------------------- | :------------------------ | :------------------- | | Fixed income investments | $14 | $1,891 | $1,905 | | Public equity (sales & mark-to-market) | $177 | $- | $177 | | Private equity (mark-to-market) | $502 | $- | $502 | | Foreign exchange | $(154) | $1,115 | $961 | | **Total Net Gains (Losses)** | **$529** | **$2,662** | **$3,191** | - The **total pre-tax net gains** for Q2 **2025** were **$2,243 million**, a significant positive swing compared to a net loss of **$(899) million** in Q2 **2024**[63](index=63&type=chunk)[64](index=64&type=chunk) [Debt and Capital](index=26&type=section&id=Debt%20and%20Capital) Chubb's total capitalization increased to $84,791 million as of June 30, 2025, with total financial debt at $14,976 million and hybrid debt at $420 million. The company maintains a conservative leverage profile, with total hybrid and financial debt representing 18.2% of total capital Debt and Capital (Millions USD) | Item | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :-------------------------- | :------------ | :------------- | :----------- | | Total financial debt | $14,976 | $14,508 | $15,179 | | Total hybrid debt | $420 | $419 | $419 | | Chubb shareholders' equity | $69,395 | $65,726 | $64,021 | | **Total capitalization** | **$84,791** | **$80,653** | **$79,619** | Leverage Ratios (June 30, 2025) | Metric | Ratio | | :-------------------------- | :---- | | Hybrid debt | 0.5% | | Financial debt | 17.7% | | Total hybrid & financial debt | 18.2% | - During Q2 **2025**, **$1.5 billion** of **3.35%** senior notes due May **2026** were reclassified to short-term debt. In April **2025**, the company secured a **1.8 billion** Chinese Yuan Renminbi term loan (approximately **$249 million**) maturing in **2028**[72](index=72&type=chunk) [Computation of Basic and Diluted Earnings Per Share](index=27&type=section&id=Computation%20of%20Basic%20and%20Diluted%20Earnings%20Per%20Share) Chubb reported a significant increase in diluted earnings per share (EPS) for Q2 2025, with Chubb net income diluted EPS rising by 34.6% to $7.35 and core operating income diluted EPS increasing by 14.1% to $6.14, reflecting strong profitability Diluted Earnings Per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Chubb net income | $7.35 | $5.46 | 34.6% | | Core operating income | $6.14 | $5.38 | 14.1% | - The **weighted average diluted common shares outstanding** for Q2 **2025** was **403.8 million**[75](index=75&type=chunk) [Book Value and Book Value per Common Share](index=28&type=section&id=Book%20Value%20and%20Book%20Value%20per%20Common%20Share) Chubb's book value per common share increased by 6.1% quarter-over-quarter to $174.07 as of June 30, 2025, and tangible book value per common share rose by 8.0% to $112.64. Year-over-year, these metrics saw increases of 15.2% and 23.7%, respectively, highlighting strong shareholder value growth Book Value per Common Share (as of June 30, 2025) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :----------- | :------------ | | Book value per common share | $174.07 | $164.01 | $159.77 | $151.05 | | Tangible book value per common share | $112.64 | $104.27 | $100.38 | $91.05 | | Book value per common share, excl. AOCI | $189.27 | $183.06 | $181.34 | $171.60 | | Tangible book value per common share, excl. AOCI | $125.80 | $120.44 | $118.57 | $109.08 | - **Book value per common share** increased by **6.1%** quarter-over-quarter and **15.2%** year-over-year[78](index=78&type=chunk) - **Tangible book value per common share** increased by **8.0%** quarter-over-quarter and **23.7%** year-over-year[78](index=78&type=chunk) [Other Disclosures](index=29&type=section&id=Other%20Disclosures) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles Chubb's non-GAAP financial measures, emphasizing their role in providing a clearer view of underlying business performance by excluding volatile or non-recurring items. Key metrics like core operating income, P&C underwriting income ex Cats, and tangible book value are explained, along with their impact on ROE and ROTE - **Non-GAAP measures** are used to enhance understanding of overall results by excluding impacts of foreign exchange, unpredictable catastrophic events, prior period development, and market-driven fluctuations[80](index=80&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk) - **Core operating income** for Q2 **2025** was **$2,480 million**, a **12.9%** increase from **$2,196 million** in Q2 **2024**[8](index=8&type=chunk)[94](index=94&type=chunk)[101](index=101&type=chunk) Core Operating ROE and ROTE (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :---------------------- | :------ | :------ | | ROE | 17.6% | 14.7% | | Core operating ROTE | 21.0% | 21.1% | | Core operating ROE | 13.9% | 13.3% | - The **P&C combined ratio** was **85.6%** in Q2 **2025**, improving from **86.8%** in Q2 **2024**, while the **CAY P&C combined ratio ex Cats** improved to **82.3%** from **83.2%**[8](index=8&type=chunk)[111](index=111&type=chunk) [Glossary](index=36&type=section&id=Glossary) This glossary provides definitions for key financial and operational terms used in the report, including various combined ratios, book value metrics, investment yields, capitalization, and specific insurance-related terms such as catastrophe losses and prior period development, ensuring clarity and consistent understanding - **Definitions are provided for terms** like '**Chubb Limited Consolidated**,' '**Total P&C**,' '**Global P&C**,' '**P&C combined ratio**,' '**Book value per common share**,' and '**Tangible book value per common share**'[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - **Key insurance-specific terms defined** include '**Catastrophe losses (Cats)**,' '**Prior period development (PPD)**,' '**Reinstatement premiums**,' and '**Segment income (loss)**'[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk)

Investors are always looking for stocks that are poised to beat at earnings season and Chubb Limited (CB) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Chubb is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator o ...

Core Viewpoint - Chubb Limited (CB) is anticipated to show improvements in both revenue and earnings for the second quarter of 2025, with a revenue estimate of $14.83 billion, reflecting a 7% year-over-year growth [1] Revenue and Earnings Estimates - The consensus estimate for earnings per share (EPS) is $5.85, indicating an 8.7% year-over-year increase, with a slight upward revision of 0.1% in the past 30 days [2] - The Earnings ESP for Chubb Limited stands at +1.11%, with the Most Accurate Estimate at $5.91, suggesting a favorable outlook for an earnings beat [3] Factors Influencing Q2 Results - Premium growth is expected across most product lines, driven by strong retention, rate increases, and new business [4][9] - The International Life Insurance segment is projected to benefit from strong new business in North Asia, particularly in Hong Kong, Taiwan, and Korea, with net premiums earned estimated at $13.1 billion, a 6.7% increase from the previous year [5] - Net investment income is forecasted to be $1.9 billion, benefiting from higher average invested assets and reinvestment rates, with the Zacks Consensus Estimate at $1.8 billion [6] Underwriting Profitability and Expenses - Improved pricing, increased exposure, and prudent underwriting are expected to enhance underwriting profitability, leading to a combined ratio estimate of 85%, an improvement of 200 basis points [7] - Total expenses are anticipated to rise to $10.3 billion due to higher losses, policy benefits, and administrative costs, although share buybacks are expected to support the bottom line [8]

The partnership offers collectors and enthusiasts a streamlined solution to insure their luxury timepieces with coverage backed by Chubb, the number one personal lines insurer for high-net worth families in the U.S., providing peace of mind with unmatched confidence and ease. The 1916 Company's core value system is rooted in supporting the needs of clients and collectors, offering products and services designed to enhance their watch and jewelry experience. Through this partnership, clients of The 1916 Comp ...

Core Viewpoint - Chubb (CB) is expected to report quarterly earnings of $5.85 per share, an increase of 8.7% year-over-year, with revenues projected at $14.83 billion, reflecting a 7.1% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 0.1% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Key Metrics Estimates - Analysts estimate 'Net premiums written - North American Personal P&C Insurance' at $1.90 billion, a year-over-year increase of 6.7% [5]. - 'Net investment income - Overseas General Insurance' is projected at $306.90 million, suggesting an 8.4% increase year-over-year [5]. - 'Net investment income - Global Reinsurance' is expected to reach $65.20 million, indicating a 12.4% increase from the prior year [6]. - 'Net premiums written - Total P&C' is forecasted at $12.58 billion, reflecting a 6.8% year-over-year change [6]. - The 'Combined ratio' is anticipated to be 85.2%, down from 86.8% in the same quarter last year [6]. Loss and Expense Ratios - The 'Loss and loss expense ratio' is expected to be 58.8%, a decrease from 60.6% reported in the same quarter last year [7]. - The 'Total P&C - Expense Ratio' is projected at 26.3%, slightly up from 26.2% in the previous year [7]. - 'North America Agricultural Insurance - Loss and loss expense ratio' is estimated at 84.1%, down from 86.8% year-over-year [8]. - 'North America Commercial P&C Insurance - Combined ratio' is expected to be 80.8%, compared to 82.9% last year [8]. - 'North America Commercial P&C Insurance - Loss and loss expense ratio' is projected at 60.9%, down from 62.7% in the same quarter last year [9]. - 'Overseas General Insurance - Combined ratio' is estimated at 86.0%, down from 88.2% year-over-year [9]. - 'Overseas General Insurance - Loss and loss expense ratio' is expected to be 50.0%, a decrease from 52.7% reported last year [10]. Stock Performance - Chubb shares have decreased by 1.6% over the past month, contrasting with the S&P 500 composite's increase of 4.2% [10].

Core Insights - The iShares U.S. Insurance ETF (IAK) offers broad exposure to the Financials - Insurance segment, appealing to both retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] Fund Overview - IAK is a passively managed ETF launched on May 1, 2006, with assets exceeding $779.12 million, positioning it as an average-sized ETF in its category [3] - The fund aims to replicate the performance of the Dow Jones U.S. Select Insurance Index, which includes companies providing specialized financial services [4] Cost Structure - The annual operating expenses for IAK are 0.39%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 1.85% [5] Sector Exposure and Holdings - IAK is fully allocated to the Financials sector, with Progressive Corp (PGR) making up approximately 16.98% of total assets, followed by Chubb Ltd (CB) and Travelers Companies Inc (TRV) [6] - The top 10 holdings constitute about 66.91% of total assets under management [7] Performance Metrics - As of July 14, 2025, IAK has gained approximately 2.35% year-to-date and 13.53% over the past year, with a trading range between $115.29 and $138.47 in the last 52 weeks [8] - The ETF has a beta of 0.66 and a standard deviation of 18.05% over the trailing three-year period, indicating a medium risk profile [8] Alternatives - IAK holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Financials ETFs sector [9] - Other alternatives include Invesco KBW Property & Casualty Insurance ETF (KBWP) and SPDR S&P Insurance ETF (KIE), with respective assets of $471.58 million and $827.52 million [10]