Chubb(CB)2025-02-27 20:56Financial Performance - The company reported gross losses of 66,270 million as of December 31, 2024, compared to gross losses of 62,238 million as of December 31, 2023, indicating an increase in gross losses by 4.8% and net losses by 6.5%[262]. - Net income attributable to Chubb reached a record 9.03 billion in 2023, driven by strong underwriting results and net investment income[319]. - The total net income attributable to Chubb was a loss of 2,602 million in 2023[390]. - Consolidated net premiums written increased by 8.7% to 51.47 billion, with P&C net premiums written rising 7.7%[319]. - Net premiums earned rose by 4.1 billion, a 9.0% increase in 2024, with P&C net premiums earned increasing by 8.1%[328]. Losses and Reserves - Losses and loss expenses incurred for 2024 were 31,346 million in 2023, reflecting a year-over-year increase of 3.8%[262]. - The company paid out 27,802 million in 2023, representing a slight increase of 0.6%[262]. - The company’s loss reserves are subject to considerable uncertainty, influenced by factors such as inflation and climate change, which may affect future claims[264]. - A one percentage point change in the tail factor for Workers' Compensation could result in a change of approximately 10.2 billion by approximately 10.9%[270]. - A five percentage point change in the tail factor for U.S. Excess/Umbrella portfolios could lead to a change of approximately 4.3 billion[272]. Premiums and Underwriting - The P&C combined ratio was 86.6%, slightly up from 86.5% in 2023, while the current accident year combined ratio excluding catastrophe losses improved to 83.1%[319]. - The underwriting income for the North America Personal P&C Insurance segment increased by 78.5% to 654 million, or 11.1%, in 2024[354]. - Personal automobile premiums grew by 25.1% to 1,991 million in 2023[323]. Investment Income - Pre-tax net investment income set a record at 4.94 billion in 2023, attributed to strong operating cash flow and higher reinvestment rates[319]. - Net investment income rose by 32.7% to 756 million in 2023[383]. - Average invested assets increased to 118,357 million in 2023, contributing to the growth in net investment income[411]. - The total mark-to-market gain on private equity investments was 504 million in 2023[412]. - The yield on average invested assets improved to 4.5% in 2024 from 4.2% in 2023, indicating better returns on investments[411]. Catastrophe and Risk Management - Total pre-tax catastrophe losses amounted to 1.83 billion in 2023[319]. - The estimated net pre-tax cost of the recent California wildfire disaster is 3,831 million, representing 6.0% of total Chubb shareholders' equity as of December 31, 2024[435]. - Chubb's assessment of pandemic exposure includes stress scenarios considering mortality and morbidity, which could adversely affect operations[443]. - The Global Property Catastrophe Reinsurance Program was renewed effective April 1, 2024, through March 31, 2025, covering natural catastrophes impacting primary property operations[446]. Regulatory and Compliance - The effective tax rate increased to 15.8% in 2024, up from 5.4% in 2023, primarily due to a one-time deferred tax benefit recorded in 2023[394]. - The company applies rigorous risk transfer analyses for structured products to ensure compliance with accounting requirements[302]. - The company has not purchased any retroactive ceded reinsurance contracts since 1999, focusing instead on cost-effective multi-year excess of loss contracts[303]. - The company actively monitors terrorism risk and manages exposures through risk limits and reinsurance, with TRIPRA covering 81% of insured losses above a deductible of approximately $3.2 billion[439]. - The company holds no collateralized debt obligations in its investment portfolio and has strict contractual investment rules for managers[417].