Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Chubb Limited's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, along with detailed notes on accounting policies and key financial components [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show the company's financial position as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in millions USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $158,314 | $150,650 | | **Total Assets** | $261,563 | $246,548 | | **Unpaid Losses and Loss Expenses** | $86,376 | $84,004 | | **Total Liabilities** | $187,116 | $178,154 | | **Total Chubb Shareholders' Equity** | $69,395 | $64,021 | | **Total Shareholders' Equity** | $74,447 | $68,394 | - Total assets increased to **$261.6 billion** as of June 30, 2025, from **$246.5 billion** at year-end 2024, driven by growth in total investments and insurance-related receivables[8](index=8&type=chunk) - Total Chubb shareholders' equity rose to **$69.4 billion** from **$64.0 billion**, primarily due to net income and an increase in accumulated other comprehensive income[8](index=8&type=chunk) [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This section details the company's financial performance, including revenues, expenses, and net income, for the three and six months ended June 30, 2025, and 2024 Key Operating Results (in millions USD, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Premiums Earned** | $13,125 | $12,292 | $25,125 | $23,875 | | **Total Revenues** | $14,836 | $13,835 | $28,189 | $26,729 | | **Income Before Income Tax** | $3,716 | $2,706 | $5,380 | $5,342 | | **Net Income Attributable to Chubb** | $2,968 | $2,230 | $4,299 | $4,373 | | **Diluted EPS Attributable to Chubb** | $7.35 | $5.46 | $10.63 | $10.68 | - Net income attributable to Chubb for Q2 2025 increased to **$2.97 billion** from **$2.23 billion** in Q2 2024, a **33.1% increase**, while for the six months ended June 30, net income slightly decreased to **$4.30 billion** in 2025 from **$4.37 billion** in 2024[9](index=9&type=chunk) - Comprehensive income attributable to Chubb saw a significant increase to **$4.55 billion** in Q2 2025 from **$1.31 billion** in Q2 2024, largely driven by a positive swing in Other Comprehensive Income from a loss of **$961 million** to a gain of **$1.59 billion**[9](index=9&type=chunk) [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) This section outlines changes in the company's shareholders' equity, including net income, share repurchases, and dividends - Total Chubb shareholders' equity increased from **$64.0 billion** at the beginning of the period to **$69.4 billion** at the end of Q2 2025[10](index=10&type=chunk) - For the six months ended June 30, 2025, the company repurchased **$1.06 billion** of its common shares and declared dividends of **$754 million**[10](index=10&type=chunk) - Accumulated other comprehensive income (AOCI) improved significantly, moving from a loss of **$8.64 billion** at the start of the year to a loss of **$6.06 billion** at the end of Q2 2025, mainly due to positive changes in unrealized appreciation on investments and foreign currency translation adjustments[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Cash Flow Summary (in millions USD) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $5,117 | $7,299 | | **Net Cash Used for Investing Activities** | ($3,625) | ($6,066) | | **Net Cash Used for Financing Activities** | ($1,887) | ($1,184) | | **Net Decrease in Cash** | ($178) | ($53) | - Net cash from operating activities decreased to **$5.1 billion** for the first six months of 2025 from **$7.3 billion** in the prior year period, primarily due to changes in unpaid losses, insurance balances receivable, and other operating items[11](index=11&type=chunk) - Cash used for financing activities increased, driven by higher common share repurchases (**$1.44 billion** in 2025 vs. **$1.06 billion** in 2024) and net repayment of long-term debt[11](index=11&type=chunk) [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, including significant accounting policies, acquisitions, and financial instruments - On April 1, 2025, Chubb completed the acquisition of LMG Insurance in Thailand from Liberty Mutual for **$321 million**, recognizing **$183 million** in goodwill, with the acquisition of Liberty Insurance in Vietnam expected to close by early 2026[18](index=18&type=chunk)[19](index=19&type=chunk) - Chubb increased its aggregate ownership interest in Huatai Group to approximately **87.2%** as of June 30, 2025, after closing on an incremental **1.6%** interest in Q2 2025[20](index=20&type=chunk) - The company established a commercial paper program in Q2 2025, allowing it to issue up to **$2.0 billion** in short-term, unsecured notes, supported by its **$3.0 billion** credit facility, with no commercial paper outstanding as of June 30, 2025[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Shareholders approved an annual dividend of up to **$3.88 per share** at the May 2025 meeting, to be paid in quarterly installments of **$0.97 per share**[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Chubb's financial condition and operating results, analyzing performance drivers across consolidated and segment levels, capital resources, liquidity, and critical accounting estimates [Overview](index=55&type=section&id=Overview) This section provides a high-level summary of Chubb's global operations and financial scale - Chubb is a global insurance and reinsurance organization with total assets of **$262 billion** and total Chubb shareholders' equity of **$69 billion** as of June 30, 2025[154](index=154&type=chunk) - The company operates through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance[154](index=154&type=chunk) [Consolidated Operating Results](index=56&type=section&id=Consolidated%20Operating%20Results) This section analyzes Chubb's overall financial performance, including premium growth, underwriting results, and net income, for the reported periods Consolidated Operating Highlights (in millions USD) | Metric | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Premiums Written** | $14,196 | $13,360 | 6.3% | $26,842 | $25,581 | 4.9% | | **Net Premiums Earned** | $13,125 | $12,292 | 6.8% | $25,125 | $23,875 | 5.2% | | **Net Income Attributable to Chubb** | $2,968 | $2,230 | 33.1% | $4,299 | $4,373 | (1.7)% | - Q2 2025 net income attributable to Chubb rose to **$2.97 billion**, driven by double-digit growth in P&C underwriting income, Life segment income, and higher income from private equity investments[157](index=157&type=chunk) - Net catastrophe losses were **$630 million** in Q2 2025 and **$2.27 billion** for the first six months of 2025, with the six-month figure significantly impacted by **$1.47 billion** in California wildfire losses[163](index=163&type=chunk)[167](index=167&type=chunk) - The P&C combined ratio was **85.6%** for Q2 2025, an improvement from **86.8%** in Q2 2024, and the P&C current accident year (CAY) combined ratio excluding catastrophe losses also improved to **82.3%** from **83.2%**[170](index=170&type=chunk) [Segment Operating Results](index=60&type=section&id=Segment%20Operating%20Results) This section provides a detailed analysis of the financial performance of each of Chubb's six operating segments - **North America Commercial P&C:** Segment income grew **5.8%** in Q2 2025 to **$1.79 billion**, with net premiums written increasing **4.1%**, driven by **8.5%** growth in the Commercial (middle market and small) business[175](index=175&type=chunk)[176](index=176&type=chunk) - **North America Personal P&C:** Segment income surged **57.2%** to **$561 million** in Q2 2025, with the combined ratio improving significantly to **73.5%** from **83.5%** in Q2 2024, though for the first six months, the segment recorded a loss of **$258 million** due to **$1.48 billion** in catastrophe losses, primarily from California wildfires[186](index=186&type=chunk) - **Overseas General Insurance:** Net premiums written grew **8.5%** (**10.2%** constant dollar) in Q2 2025, with strong performance in Europe, Asia, and Latin America, but the combined ratio increased to **90.3%** from **88.2%** due to higher catastrophe losses[200](index=200&type=chunk)[202](index=202&type=chunk) - **Life Insurance:** Segment income increased **10.4%** (**15.3%** constant dollar) to **$305 million** in Q2 2025, with net premiums written growing **14.1%** (**17.3%** constant dollar), driven by strong new business in Asia and the Combined Insurance worksite business[218](index=218&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) [Net Realized and Unrealized Gains (Losses)](index=71&type=section&id=Net%20Realized%20and%20Unrealized%20Gains%20(Losses)) This section details the gains and losses from investment activities, distinguishing between realized and unrealized components Net Realized and Unrealized Gains (Losses) Summary (in millions USD) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Realized Gains (Losses)** | $160 | $104 | $44 | $3 | | **Net Unrealized Gains (Losses)** | $1,627 | ($990) | $2,674 | ($1,604) | | **Total Net Impact, Pre-tax** | $1,787 | ($886) | $2,718 | ($1,601) | - Pre-tax net unrealized gains of **$986 million** in Q2 2025 were primarily driven by lower interest rates impacting the fixed maturities portfolio[230](index=230&type=chunk) - Pre-tax net realized gains of **$160 million** in Q2 2025 were driven by mark-to-market gains on equity securities and gains on investment derivatives, partially offset by foreign exchange and fixed maturity losses[231](index=231&type=chunk) [Investments](index=79&type=section&id=Investments) This section provides an overview of the company's investment portfolio, including its composition, credit quality, and changes over the period - Total investments increased by **$7.7 billion** to **$158.4 billion** in the first six months of 2025, mainly due to investing operating cash flow and gains in fixed maturities[249](index=249&type=chunk) - The investment portfolio remains primarily in publicly traded, investment-grade fixed income securities with an average credit quality of A/A as of June 30, 2025[248](index=248&type=chunk) - Below-investment grade and non-rated securities comprised approximately **15%** of the corporate fixed income portfolio, diversified across over 1,600 issuers[256](index=256&type=chunk) [Capital Resources](index=87&type=section&id=Capital%20Resources) This section discusses Chubb's capital structure, including financial debt, hybrid debt, shareholders' equity, and capital management activities like share repurchases and dividends Capitalization Summary (in millions USD) | Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Financial Debt** | $14,976 | $15,179 | | **Total Hybrid Debt** | $420 | $419 | | **Total Chubb Shareholders' Equity** | $69,395 | $64,021 | | **Total Capitalization** | $84,791 | $79,619 | | **Ratio of Financial Debt to Total Capitalization** | 17.7% | 19.1% | - The company repurchased **$1.1 billion** of its Common Shares in the first six months of 2025, and a new **$5.0 billion** share repurchase authorization was approved by the Board, effective July 1, 2025[275](index=275&type=chunk) - The quarterly dividend was increased by **$0.06** to **$0.97 per share**, following shareholder approval of an annual dividend of up to **$3.88 per share** at the May 2025 meeting[278](index=278&type=chunk) [Liquidity](index=88&type=section&id=Liquidity) This section describes Chubb's ability to meet its short-term and long-term financial obligations, including operating cash flow, credit facilities, and intercompany dividends - Operating cash flow was **$5.1 billion** for the first six months of 2025, down from **$7.3 billion** in the prior year period, mainly due to higher net losses paid and income taxes paid[286](index=286&type=chunk) - The company maintains a **$3.0 billion** syndicated credit facility, which supports a **$2.0 billion** commercial paper program, with usage of **$931 million** in letters of credit and no commercial paper outstanding as of June 30, 2025[281](index=281&type=chunk)[282](index=282&type=chunk) - Chubb Limited received dividends of **$510 million** from its Bermuda subsidiaries and **$207 million** from other international subsidiaries during the first half of 2025[284](index=284&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Chubb's management of market risks, particularly foreign currency risk and the risks associated with its Market Risk Benefits (MRB) reinsurance business, including sensitivity analyses - Chubb's policy is to generally match assets, liabilities, and required capital in local currencies to manage foreign currency risk[292](index=292&type=chunk) - The company provides sensitivity analysis for its Market Risk Benefits (MRB) portfolio, estimating that a flat interest rate environment combined with a **20%** decline in worldwide equity markets would result in an estimated **$46 million** decrease in net income[295](index=295&type=chunk) - The net amount at risk for the MRB portfolio is limited by annual or aggregate claim limits in the reinsurance treaties, with Guaranteed Living Benefits (GLB) net amount at risk increasing from **$909 million** to **$1.67 billion** following an immediate **40%** decline in equity markets[296](index=296&type=chunk)[298](index=298&type=chunk) [Controls and Procedures](index=93&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, concluding they are effective with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that Chubb's disclosure controls and procedures were effective as of June 30, 2025[300](index=300&type=chunk) - No material changes were made to the company's internal controls over financial reporting during the second quarter of 2025[301](index=301&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=94&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 13 h) to the Consolidated Financial Statements, indicating that the company is subject to various claims and lawsuits not likely to be material to its financial condition - The company is subject to claims litigation and other lawsuits typical to the insurance industry, with management's opinion that the ultimate liability from these matters is not likely to be material to the company's consolidated financial condition and results of operations[116](index=116&type=chunk)[302](index=302&type=chunk) [Risk Factors](index=94&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - No material changes to the risk factors described in the 2024 Form 10-K have occurred[303](index=303&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=94&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchases of its common shares during the second quarter of 2025, including the number of shares, average price, and the authorization of a new repurchase plan Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | April 2025 | 518,333 | $280.32 | 511,000 | | May 2025 | 731,293 | $289.73 | 598,000 | | June 2025 | 1,232,506 | $292.82 | 1,230,727 | | **Total** | **2,482,132** | **$289.30** | **2,339,727** | - The total value of shares repurchased under the publicly announced plan in Q2 2025 was **$676 million**[304](index=304&type=chunk) - A new **$5.0 billion** share repurchase authorization was approved by the Board, effective July 1, 2025[304](index=304&type=chunk) [Other Information](index=94&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no director or officer of Chubb adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[305](index=305&type=chunk) [Exhibits](index=95&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002 and financial data formatted in Inline XBRL - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[306](index=306&type=chunk) - Financial statements and notes are provided in Inline XBRL format as part of the filing[306](index=306&type=chunk)

Industry Overview - The Zacks Property and Casualty Insurance (P&C) industry is expected to benefit from improved pricing, prudent underwriting, and exposure growth despite an increase in catastrophic events [1] - The industry includes companies providing commercial and personal property insurance, casualty insurance products, and services, with premiums being the primary revenue source [3] - The industry is currently facing a decline in pricing after several years of increases, with three interest rate cuts last year and potential further cuts this year [2] Trends and Projections - Global commercial insurance rates fell by 4% in Q2, but personal auto insurance is projected to remain strong, supported by better investment returns and reduced claims [4] - Deloitte estimates gross premiums to grow sixfold to $722 billion by 2030, with China and North America accounting for over two-thirds of the total [4] - Swiss Re predicts premium growth of 5% in 2025 and 4% in 2026 [4] Catastrophe Impact - The industry is vulnerable to catastrophe events, which can negatively impact underwriting profits; the 2025 hurricane season is expected to be above normal with 23 named storms [5] - Global insured losses from natural disasters in the first half of 2025 are estimated to be at least $100 billion [5] - The combined ratio is expected to improve from 2023 to 98.5% in 2025 but may deteriorate to 99% in 2026 [5] Mergers and Acquisitions - Consolidation in the P&C industry is anticipated to continue as companies seek to diversify operations and gain market share [6] Technology Adoption - The industry is increasingly adopting technologies such as blockchain, artificial intelligence, and advanced analytics to enhance operations and reduce costs [8] - Insurtechs are emerging, focusing on the P&C insurance sector, with significant investments in technology expected to improve efficiency [8] Industry Performance - The Zacks Property and Casualty Insurance industry ranks 92, placing it in the top 38% of over 250 Zacks industries, indicating positive near-term prospects [9] - The industry has underperformed compared to its sector and the S&P 500, with a year-to-date increase of 4.7% compared to 9.8% for the sector and 6.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 1.53X, compared to the S&P 500's 8.5X and the sector's 4.27X [13] Company Highlights - Progressive Corporation is a major auto insurer with a Zacks Rank 2, expected to see 23.4% year-over-year earnings growth in 2025 [17][18] - Berkshire Hathaway, with a Zacks Rank 3, continues to benefit from its diverse operations and is expected to see a 5% increase in earnings for 2026 [21][23] - Chubb Limited, also a Zacks Rank 3, is focusing on middle-market businesses and cyber insurance, with an expected 18.9% growth in earnings for 2026 [25][26] - Travelers Companies, carrying a Zacks Rank 3, is well-positioned for growth with a projected 20.5% increase in earnings for 2026 [29][30] - Allstate, the third-largest P&C insurer, is expected to see earnings growth of 0.1% in 2025 and 22% in 2026, supported by rate increases and strategic acquisitions [32][33]

Core Viewpoint - Chubb's latest earnings report, while beating analyst estimates, did not impress investors, leading to a more than 4% drop in stock price on the day of the announcement [1][5] Financial Performance - Chubb's net premiums written increased by 6% year-over-year, reaching just under $14.2 billion [2] - The company's net income was slightly below $3 billion, up from $2.2 billion in the same quarter last year [4] - Core operating income rose to $6.14 per share, compared to $5.38 per share in the previous year [4] - Analysts had estimated revenue of $14.16 billion and core operating income of $5.96 per share [4] Management Commentary - Management attributed the improvements in performance to strength across various markets, highlighting the diversified nature of the company [5] Market Reaction - The negative market reaction is attributed more to external factors rather than dissatisfaction with Chubb's performance, as investors are currently moving away from defensive stocks [5]

Core Insights - Chubb Limited (CB) reported a second-quarter 2025 core operating income of $6.14 per share, exceeding the Zacks Consensus Estimate by 4.2% and reflecting a 14.1% year-over-year increase [1] - The quarter's performance was driven by solid underwriting, strong investment income, and double-digit growth in life insurance income [1] Quarterly Performance Details - Net premiums written rose 6.3% year over year to $14.2 billion, aligning with the Zacks Consensus Estimate of $14 billion [2] - Net investment income reached $1.5 billion, a 6.8% increase year over year, though it fell short of the Zacks Consensus Estimate of $1.8 billion [2] - Total revenues were $14.8 million, slightly missing the Zacks Consensus Estimate but improving 6.9% year over year [2] Underwriting and Losses - Property and casualty (P&C) underwriting income was $1.6 billion, up 15% year over year, driven by premium growth and improved underwriting margins [3] - The P&C combined ratio improved by 120 basis points year over year to 85.6%, indicating strong underwriting margins [4] Segment Performance - North America Commercial P&C Insurance: Net premiums written increased 4.1% year over year to $5.7 billion, with a combined ratio of 83.5% [5] - North America Personal P&C Insurance: Net premiums written climbed 9.1% year over year to $1.9 billion, with a combined ratio improving to 73.5% [6] - North America Agricultural Insurance: Net premiums written decreased 3.3% year over year to $733 million, with a combined ratio improving to 89.1% [7] - Overseas General Insurance: Net premiums written increased 8.5% year over year to $3.6 billion, with a combined ratio deteriorating to 90.3% [8] - Global Reinsurance: Net premiums written decreased 7.6% year over year to $380 million, with a combined ratio improving to 71% [9] - Life Insurance: Net premiums written increased 14.1% year over year to $1.8 billion, with segment income rising to $305 million [9][10] Financial Position - As of June 30, 2025, cash and restricted cash balance was $2.4 billion, down 7% from the end of 2024 [11] - Total shareholders' equity grew 8.8% to $74.4 billion, with book value per share increasing to $174.07 [11] - Core operating return on tangible equity declined 10 basis points year over year to 21% [12] Capital Management - In the quarter, Chubb repurchased shares worth $676 million and paid $388 million in dividends [13]

Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, driven by record underwriting, strong investment results, and premium revenue growth [5][6] - Core operating income was $2.5 billion, a 13% increase, indicating broad-based growth across the company's diversified operations [6] - Adjusted net investment income was nearly $1.7 billion, up 8%, with a fixed income portfolio yield of 5.1% [8][9] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter, with an annualized core operating return on tangible equity of 21% [9][22] Business Line Data and Key Metrics Changes - North America P&C premiums, excluding agriculture, increased by 5.3%, with personal insurance growing by 9.1% and commercial by 4.1% [12] - The life insurance division saw premiums grow almost 17.5%, while global P&C premiums grew 5.86% in constant dollars [10][12] - The middle market and small commercial segments showed strong growth, with premiums in the leading middle market division up 8.4% [13] Market Data and Key Metrics Changes - In North America, casualty pricing increased by 11.6%, while financial lines pricing decreased by 1.2% [15] - Internationally, premiums grew 8.5% or over 10% in constant dollars, with Asia growing over 12.5% and Latin America over 17% [17] - The London wholesale business saw premiums rise over 7%, while the international retail commercial business experienced a slight increase in P&C pricing [18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is stepping away from unprofitable large account property business while focusing on middle market and small commercial growth [11][20] - The management highlighted the importance of global diversification and a talented workforce to support long-term growth [20] - The company is actively pursuing opportunities in emerging markets, particularly in Latin America and Asia, with expectations of double-digit growth [44][58] Management's Comments on Operating Environment and Future Outlook - The management noted a dynamic economic and geopolitical environment, with potential headwinds from budget deficits and trade policies, but remains confident in the company's fundamentals and growth prospects [19][20] - The company expects continued growth in both revenue and earnings, supported by a disciplined approach to underwriting and a diversified portfolio [20][22] Other Important Information - The company authorized a new $5 billion share repurchase program, reflecting confidence in its capital management strategy [22] - The quarter produced adjusted operating cash flow of $3.2 billion, supporting ongoing investments [22] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and emphasized the need for public policy reform to address these issues [28][30] Question: Growth in Latin America - Management highlighted strong growth in Mexico and Argentina, driven by various segments including auto and small commercial [41][44] Question: Stability of global P&C growth - Management confirmed that growth remains durable, particularly in middle market and small commercial segments, despite stepping away from some large account property business [53][54] Question: Medical cost inflation's effect on workers' comp - Management clarified that medical inflation trends differ from those affecting workers' comp, and they are using conservative factors in reserving [71] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened in response to social inflation, impacting coverage demands [75][76] Question: Breakdown of international growth - Management explained that growth is driven by new buyers and industries, alongside market share gains [79][80] Question: Investment income trends - Management indicated that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [99][100] Question: Share buybacks strategy - Management stated that share buybacks will be flexible based on market conditions and opportunities, with a recent authorization for $5 billion in repurchases [106] Question: Reinsurance market attractiveness - Management mentioned a disciplined approach to reinsurance, avoiding trades they deemed unattractive [110]

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)