Chubb(US:CB)2025-02-27 20:56Financial Performance - The company reported gross losses of $84,004 million and net losses of $66,270 million as of December 31, 2024, compared to gross losses of $80,122 million and net 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 $9.27 billion in 2024, up 2.7% from $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 $3,703 million in 2024, a 42.3% increase in loss compared to $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 $32,534 million, up from $31,346 million in 2023, reflecting a year-over-year increase of 3.8%[262]. - The company paid out $27,970 million in losses and loss expenses in 2024, compared to $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 $1.1 billion, impacting recorded net loss and loss expense reserves of about $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 $0.8 billion, representing an impact of about 18% relative to recorded net loss and loss expense reserves 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 $1,014 million in 2024[351]. - The combined ratio increased to 83.9% in 2024, up from 81.6% in 2023, primarily due to higher catastrophe losses[349]. - The North America Personal P&C Insurance segment saw net premiums written increase by $654 million, or 11.1%, in 2024[354]. - Personal automobile premiums grew by 25.1% to $2,491 million in 2024, compared to $1,991 million in 2023[323]. Investment Income - Pre-tax net investment income set a record at $5.93 billion, a 20.1% increase from $4.94 billion in 2023, attributed to strong operating cash flow and higher reinvestment rates[319]. - Net investment income rose by 32.7% to $1,003 million in 2024, compared to $756 million in 2023[383]. - Average invested assets increased to $131,926 million in 2024 from $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 $661 million in 2024, up from $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 $2.39 billion in 2024, compared to $1.83 billion in 2023[319]. - The estimated net pre-tax cost of the recent California wildfire disaster is $1.5 billion, highlighting the company's commitment to policyholders[321]. - The modeled net probable maximum loss (PML) for U.S. hurricane events is estimated at $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].