Chubb(CB) - 2025 Q2 - Quarterly Results

Introduction & Cautionary Statements Report Information & Contact 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] - Investor contact information is provided for Karen Beyer at (212) 827-4445 or investorrelations@chubb.com[1] Cautionary Statement Regarding Forward-Looking Statements 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] - Potential factors affecting results include unpredictable catastrophic events, actual loss experience, reserving uncertainties, currency fluctuations, and regulatory developments[2] - Other influencing factors include competition, pricing trends, market acceptance, rating agency actions, and geopolitical events[3] Financial Highlights Consolidated Financial Highlights 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] - The P&C combined ratio improved by 1.2 percentage points to 85.6% in Q2 2025, reflecting better underwriting performance[8] Consolidated Financial Results Consolidated Statement of Operations 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][85] - 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][86] P&C Underwriting Results 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] - 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] Global P&C Underwriting Results 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] - 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] Summary Consolidated Balance Sheets 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] - 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] Consolidated Net Premiums Written by Product Line 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] - Personal automobile net premiums written surged by 23.3% to $756 million in Q2 2025[21] Segment Performance North America Commercial P&C Insurance 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] - Net premiums written for Major Accounts & Specialty totaled $3,578 million, and Commercial accounts contributed $2,145 million in Q2 2025[28] North America Personal P&C Insurance 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] North America Agricultural Insurance 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] Overseas General Insurance 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] 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 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] - Excluding a $37 million large one-off structured transaction in the prior year, net premiums written growth for Q2 2025 was 1.5%[38] Life Insurance 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] 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] Balance Sheet Details Loss Reserve Rollforward 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] - The net paid to gross ratio for Q2 2025 was 90%[46] Reinsurance Recoverable Analysis 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] Investment Portfolio 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] - The average credit quality of the fixed income portfolio is A/A[51] Fixed Maturities and Asset Allocation 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 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 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) 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][64] Debt and Capital 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] Computation of Basic and Diluted Earnings Per Share 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] Book Value and Book Value per Common Share 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] - Tangible book value per common share increased by 8.0% quarter-over-quarter and 23.7% year-over-year[78] Other Disclosures Non-GAAP Financial Measures 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][81][83][89][91][94] - Core operating income for Q2 2025 was $2,480 million, a 12.9% increase from $2,196 million in Q2 2024[8][94][101] 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][111] 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][124][125][126][127] - Key insurance-specific terms defined include 'Catastrophe losses (Cats),' 'Prior period development (PPD),' 'Reinstatement premiums,' and 'Segment income (loss)'[132][133][134][136]