QUARTER
- Net income and core operating income were records at
$3.30 billion and $3.41 billion, respectively, up 151.7% and
103.6%, which included a one-time deferred tax benefit of
$1.14 billion, or $2.76 per share, related to the enactment of
Bermuda's new income tax law (tax
benefit). Excluding the tax benefit, net income and core operating
income were $2.16 billion and
$2.27 billion, respectively, up 65.1%
and 35.8%, and on a per share basis were $5.27 and $5.54.
- Consolidated net premiums written were up 13.4%, with
commercial insurance up 10.0% and consumer insurance up 19.9%.
- Global P&C net premiums written were up 10.5%. North America was up 6.2% and Overseas General
was up 19.3%, with growth of 37.2% in Asia and 15.4% for both Europe and Latin
America.
- P&C underwriting income was a record $1.52 billion, up 35.2%, with a combined ratio of
85.5%. P&C current accident year underwriting income excluding
catastrophe losses was $1.64 billion,
up 21.1%, with a combined ratio of 84.3%.
- Life Insurance net premiums written were $1.45 billion, up 20.3%, and segment income was
$263 million, up 43.5%.
- Pre-tax net investment income was $1.37
billion, up 30.2%, and adjusted net investment income was
$1.49 billion, up 33.0%. Both were
records.
- Annualized return on equity (ROE) was 23.6% and annualized core
operating ROE was 21.9%. Annualized core operating return on
tangible equity (ROTE) was 35.3%. Excluding the tax benefit, ROE,
core operating ROE, and core operating ROTE were 15.6%, 14.7%, and
23.9%, respectively.
YEAR
- Net income and core operating income were $9.03 billion and $9.34
billion, respectively, up 72.1% and 45.2%, and included the
tax benefit noted above of $1.14
billion, or $2.74 per share.
Excluding the tax benefit from the fourth quarter, net income and
core operating income were $7.89
billion and a record $8.20
billion, respectively, up 50.4% and 27.6%, and on a per
share basis were $19.06 and a record
$19.80.
- Consolidated net premiums written were up 13.5%, with
commercial insurance up 8.6% and consumer insurance up 24.2%.
- Global P&C net premiums written were up 10.0%, with
commercial insurance up 8.5% and consumer insurance up 13.8%.
North America was up 8.2% and
Overseas General was up 13.7%, with growth in Asia, Europe,
and Latin America of 24.7%, 9.4%,
and 14.8%, respectively.
- P&C underwriting income was $5.46
billion, up 19.9%, leading to a P&C combined ratio of
86.5% compared with 87.6% prior year. P&C current accident year
underwriting income excluding catastrophe losses was $6.52 billion, up 11.1%, leading to a 83.9%
combined ratio compared with 84.2% prior year. All were
records.
- Life Insurance net premiums written were $5.47 billion, up 51.5%, and segment income was
$1.05 billion, up 58.8%.
- Pre-tax net investment income was $4.94
billion, up 31.9%, and adjusted net investment income was
$5.34 billion, up 32.8%. Both were
records.
- ROE was a record 16.4% and core operating ROE was 15.4%. Core
operating ROTE was a record 24.2%. Excluding the tax benefit, ROE,
core operating ROE, and core operating ROTE were 14.5%, 13.6%, and
21.6%, respectively.
ZURICH, Jan. 30,
2024 /PRNewswire/ -- Chubb Limited (NYSE: CB) today
reported net income for the quarter ended December 31, 2023 of $3.30
billion, or $8.03 per share,
and core operating income of $3.41
billion, or $8.30 per share.
Book value per share and tangible book value per share increased
14.4% and 24.1%, respectively, from September 30, 2023, and, excluding the tax
benefit increased 12.2% and 20.2%. Book value per share and
tangible book value per share now stand at $146.83 and $87.98,
respectively. Book value was favorably impacted by after-tax net
realized and unrealized gains of $4.88
billion in the company's investment portfolio, principally
due to the mark-to-market impact from declining interest rates in
the fixed-income portfolio. Book value per share and tangible book
value per share excluding AOCI increased 4.5% and 6.1%,
respectively, from September 30,
2023, and, excluding the tax benefit, increased 2.7% and
3.3%.
Chubb
Limited
Fourth Quarter
Summary
(in millions of U.S.
dollars, except per share amounts and ratios)
(Unaudited)
|
|
|
As
Adjusted
|
|
|
|
As
Adjusted
|
|
|
Q4
|
Q4
|
|
|
(Per
Share)
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
Net income
|
$3,300
|
$1,311
|
151.7 %
|
|
$8.03
|
$3.13
|
156.5 %
|
Cigna integration
expenses and other, net of tax
|
16
|
24
|
(33.3) %
|
|
0.04
|
0.05
|
(20.0) %
|
Adjusted net realized
(gains) losses, net of tax
|
(59)
|
334
|
NM
|
|
(0.14)
|
0.81
|
NM
|
Market risk benefits
(gains) losses, net of tax
|
153
|
5
|
NM
|
|
0.37
|
0.01
|
NM
|
Core operating income,
net of tax
|
$3,410
|
$1,674
|
103.6 %
|
|
$8.30
|
$4.00
|
107.5 %
|
|
|
|
|
|
|
|
|
Net income excluding
tax benefit
|
$2,165
|
$1,311
|
65.1 %
|
|
$5.27
|
$3.13
|
68.4 %
|
Core operating
excluding tax benefit
|
$2,275
|
$1,674
|
35.8 %
|
|
$5.54
|
$4.00
|
38.5 %
|
|
|
|
|
|
|
|
|
Annualized return on
equity (ROE)
|
23.6 %
|
10.7 %
|
|
|
|
|
|
Core operating return
on tangible equity (ROTE)
|
35.3 %
|
18.2 %
|
|
|
|
|
|
Core operating
ROE
|
21.9 %
|
11.7 %
|
|
|
|
|
|
"As Adjusted": Financial data for 2022 is adjusted, as
applicable, and presented in accordance with the LDTI U.S.
GAAP guidance adopted on 1/1/2023. Refer to page 12 for additional
information.
For the year ended December 31,
2023, net income was $9.03
billion, or $21.80 per share,
and core operating income was $9.34
billion, or $22.54 per share.
Book value per share and tangible book value per share increased
20.5% and 21.3%, respectively, from December
31, 2022, and, excluding the tax benefit, increased 18.2%
and 17.5%. Book value was favorably impacted by after-tax net
realized and unrealized gains of $3.17
billion in the company's investment portfolio, principally
due to the mark-to-market impact in the fixed-income portfolio.
Tangible book value included the adverse impact of $3.53 billion after tax for Chubb's portion of
goodwill and other intangible assets related to the consolidation
of Huatai Group. Book value per share and tangible book value per
share excluding AOCI increased 11.8% and 8.3%, respectively, from
December 31, 2022, and, excluding the
tax benefit, increased 9.8% and 5.4%.
Chubb
Limited
Full Year
Summary
(in millions of U.S.
dollars, except per share amounts and ratios)
(Unaudited)
|
|
|
As
Adjusted
|
|
|
|
As
Adjusted
|
|
|
FY
|
FY
|
|
|
(Per
Share)
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
Net income
|
$9,028
|
$5,246
|
72.1 %
|
|
$21.80
|
$12.39
|
75.9 %
|
Cigna integration
expenses and other, net of tax
|
58
|
57
|
1.8 %
|
|
0.14
|
0.13
|
7.7 %
|
Adjusted net realized
(gains) losses, net of tax
|
(56)
|
1,206
|
NM
|
|
(0.14)
|
2.85
|
NM
|
Market risk benefits
(gains) losses, net of tax
|
307
|
(80)
|
NM
|
|
0.74
|
(0.19)
|
NM
|
Core operating income,
net of tax
|
$ 9,337
|
$6,429
|
45.2 %
|
|
$ 22.54
|
$15.18
|
48.5 %
|
|
|
|
|
|
|
|
|
Net income excluding
tax benefit
|
$7,893
|
$5,246
|
50.4 %
|
|
$19.06
|
$12.39
|
53.8 %
|
Core operating
excluding tax benefit
|
$8,202
|
$6,429
|
27.6 %
|
|
$19.80
|
$15.18
|
30.4 %
|
|
|
|
|
|
|
|
|
Annualized return on
equity (ROE)
|
16.4 %
|
9.6 %
|
|
|
|
|
|
Core operating return
on tangible equity (ROTE)
|
24.2 %
|
17.0 %
|
|
|
|
|
|
Core operating
ROE
|
15.4 %
|
11.1 %
|
|
|
|
|
|
For the years ended December
31, 2023 and 2022, the tax expenses (benefits)
related to the table above were $(173)
million and $(130) million,
respectively, for adjusted net realized gains and losses; and
$687 million and $1.38 billion, respectively, for core operating
income.
Evan G. Greenberg, Chairman and
Chief Executive Officer of Chubb Limited, commented: "We had a
record fourth quarter which contributed to a blowout year – the
best in our company's history. The quarter's results included
double-digit P&C premium growth globally, record P&C
underwriting income with a world-class 85.5% combined ratio, record
investment income, and strong life operating income, all leading to
exceptional operating earnings on both a per-share and dollar
basis. Our results, both earnings and book value related, were
positively impacted in a significant way by a one-time deferred tax
benefit related to Bermuda's new
income tax law. Core operating income was $2.3 billion excluding the tax benefit, up 36%,
or $5.54 per share, up 39%. The
one-time tax benefit then added $1.1
billion or $2.76 per
share.
"Our full-year performance tells a compelling story: Core
operating income of $9.3 billion, or
a record $8.2 billion excluding the
tax benefit; P&C underwriting income of $5.5 billion with a combined ratio of 86.5%;
investment income of $5.3 billion;
life income over $1 billion; and
consolidated net premiums written growth of 13.5%. Shareholder
returns for the year were excellent. Core operating ROE was 15.4%
and our return on tangible equity was 24.2%. For the year,
per-share book and tangible book value each grew by over 20%.
"In the quarter, P&C premiums were up 12.5% and life
insurance premiums were up 20%. Of the 12.5% P&C growth,
consumer lines were up 20% while commercial P&C was up 10%,
which was, in fact, stronger growth than the full-year average.
Chubb is a globally diversified company, and our growth in the
quarter demonstrates the broad-based nature of our operations:
P&C premiums were up 9.4% in North
America, 37.2% in Asia, and
15.4% for both Europe and
Latin America.
"In North America, commercial P&C premiums in the quarter
were up 4.4%, impacted by growth of only 1.4% in our Major Accounts
division. Growth was adversely impacted by pre-planned underwriting
actions we took in a segment of our large account primary and
excess casualty business. These actions impact future growth in
underwriting income. We fully expect North America Commercial's
growth to return to more robust levels beginning with the first
quarter.
"In the quarter, continuing the trend we experienced all year,
commercial P&C rates and price increases across the majority of
our global portfolio were strong and exceeded loss costs, which
were stable. Pricing in our P&C lines was up 12.4% in
North America and 10.1% in our
international retail business, while financial lines pricing
globally continued to decrease led by public D&O. At year-end,
our loss reserves were in an exceptionally strong position – as
strong as they have ever been.
"We have a lot of momentum around the world going into the first
quarter and have hit the ground running. Notwithstanding the
obvious fact that we are in the risk business and CAT volatility is
a reality, we are confident in our ability to continue growing
operating earnings at a double-digit pace through P&C revenue
growth and underwriting margins, investment income, and life
income."
Operating highlights for the quarter ended December 31, 2023 were as follows:
|
|
As Adjusted
|
|
Chubb Limited
|
Q4
|
Q4
|
|
(in millions of U.S.
dollars except for percentages)
|
2023
|
2022
|
Change
|
Consolidated
|
|
|
|
|
|
Net premiums written
(increase of 12.0% in constant dollars)
|
$
|
11,596
|
$
|
10,226
|
13.4 %
|
|
|
|
|
|
|
P&C
|
|
|
|
|
|
Net premiums written
(increase of 11.3% in constant dollars)
|
$
|
10,146
|
$
|
9,021
|
12.5 %
|
Underwriting
income
|
$
|
1,517
|
$
|
1,121
|
35.2 %
|
Combined
ratio
|
|
85.5 %
|
|
88.0 %
|
|
Current accident year
underwriting income excluding catastrophe losses
|
$
|
1,640
|
$
|
1,354
|
21.1 %
|
Current accident year
combined ratio excluding catastrophe losses
|
|
84.3 %
|
|
85.6 %
|
|
|
|
|
|
|
|
Global P&C (excludes
Agriculture)
|
|
|
|
|
|
Net premiums written
(increase of 9.2% in constant dollars)
|
$
|
9,539
|
$
|
8,637
|
10.5 %
|
Underwriting
income
|
$
|
1,565
|
$
|
1,228
|
27.4 %
|
Combined
ratio
|
|
83.7 %
|
|
85.9 %
|
|
Current accident year
underwriting income excluding catastrophe losses
|
$
|
1,692
|
$
|
1,493
|
13.2 %
|
Current accident year
combined ratio excluding catastrophe losses
|
|
82.4 %
|
|
82.9 %
|
|
|
|
|
|
|
|
Life Insurance
|
|
|
|
|
|
Net premiums written
(increase of 17.2% in constant dollars)
|
$
|
1,450
|
$
|
1,205
|
20.3 %
|
Segment income
(increase of 38.4% in constant dollars)
|
$
|
263
|
$
|
182
|
43.5 %
|
- Consolidated net premiums earned increased 12.8%, or 11.4% in
constant dollars. P&C net premiums earned increased 11.8%, or
10.6% in constant dollars.
- Operating cash flow was $3.19
billion and adjusted operating cash flow was $2.74 billion for the quarter.
- Total pre-tax and after-tax P&C catastrophe losses, net of
reinsurance and including reinstatement premiums, were $300 million (2.9 percentage points of the
combined ratio) and $257 million,
respectively, compared with $400
million (4.2 percentage points of the combined ratio) and
$323 million, respectively, last
year.
- Total pre-tax and after-tax favorable prior period development
were $177 million and $184 million, respectively, compared with
$167 million for both pre-tax and
after-tax last year.
- Total capital returned to shareholders in the quarter was
$1.07 billion, including share
repurchases of $720 million at an
average purchase price of $225.58 per
share, and dividends of $351
million.
- On December 18, 2023, the company
increased its ownership in Huatai with the closing of an
incremental 4.5% interest, bringing its total aggregate interest in
Huatai to 76.5% as of December 31,
2023. On January 2, 2024, the
company further closed on an incremental 2.9% interest, raising its
total aggregate interest in Huatai to approximately 79.5%.
Operating highlights for the year ended December 31, 2023 were as follows:
|
|
As
Adjusted
|
|
Chubb
Limited
|
FY
|
FY
|
|
(in millions of U.S.
dollars except for percentages)
|
2023
|
2022
|
Change
|
Consolidated
|
|
|
|
|
|
Net premiums written
(increase of 13.5% in constant dollars)
|
$
|
47,361
|
$
|
41,720
|
13.5 %
|
|
|
|
|
|
|
P&C
|
|
|
|
|
|
Net premiums written
(increase of 9.9% in constant dollars)
|
$
|
41,896
|
$
|
38,112
|
9.9 %
|
Underwriting
income
|
$
|
5,460
|
$
|
4,555
|
19.9 %
|
Combined
ratio
|
|
86.5 %
|
|
87.6 %
|
|
Current accident year
underwriting income excluding catastrophe losses
|
$
|
6,515
|
$
|
5,861
|
11.1 %
|
Current accident year
combined ratio excluding catastrophe losses
|
|
83.9 %
|
|
84.2 %
|
|
|
|
|
|
|
|
Global P&C
(excludes Agriculture)
|
|
|
|
|
|
Net premiums written
(increase of 10.0% in constant dollars)
|
$
|
38,708
|
$
|
35,205
|
10.0 %
|
Underwriting
income
|
$
|
5,314
|
$
|
4,390
|
21.0 %
|
Combined
ratio
|
|
85.7 %
|
|
87.1 %
|
|
Current accident year
underwriting income excluding catastrophe losses
|
$
|
6,348
|
$
|
5,693
|
11.5 %
|
Current accident year
combined ratio excluding catastrophe losses
|
|
83.0 %
|
|
83.3 %
|
|
|
|
|
|
|
|
Life
Insurance
|
|
|
|
|
|
Net premiums written
(increase of 50.9% in constant dollars)
|
$
|
5,465
|
$
|
3,608
|
51.5 %
|
Segment income
(increase of 58.4% in constant dollars)
|
$
|
1,049
|
$
|
661
|
58.8 %
|
- Consolidated net premiums earned increased 13.3%, or 13.1% in
constant dollars. P&C net premiums earned increased 9.4%, or
9.3% in constant dollars.
- Operating cash flow was $12.63
billion and adjusted operating cash flow was $12.18 billion for the year. Both were
records.
- Total pre-tax and after-tax P&C catastrophe losses, net of
reinsurance and including reinstatement premiums, were $1.83 billion (4.5 percentage points of the
combined ratio) and $1.50 billion,
respectively, compared with $2.18
billion (5.9 percentage points of the combined ratio) and
$1.80 billion, respectively, last
year.
- Total pre-tax and after-tax favorable prior period development
were $773 million and $604 million, respectively, compared with
$876 million and $729 million, respectively, last year.
- Total capital returned to shareholders for the year was
$3.88 billion, including share
repurchases of $2.48 billion at an
average purchase price of $209.52 per
share, and dividends of $1.40
billion.
Details of financial results by business segment are available
in the Chubb Limited Financial Supplement. Key segment items for
the quarter ended December 31, 2023
are presented below:
|
|
|
As
Adjusted
|
|
Chubb
Limited
|
Q4
|
Q4
|
|
(in millions of U.S.
dollars except for percentages)
|
2023
|
2022
|
Change
|
|
|
|
|
|
|
Total North
America P&C Insurance
|
|
|
|
|
|
(Comprising NA
Commercial P&C Insurance, NA Personal P&C Insurance and NA
Agricultural Insurance)
Net premiums
written
|
$
|
6,743
|
$
|
6,162
|
9.4 %
|
Combined
ratio
|
|
81.9 %
|
|
88.5 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
82.5 %
|
|
84.0 %
|
|
|
|
|
|
|
|
North America
Commercial P&C Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
4,662
|
$
|
4,463
|
4.4 %
|
Major accounts retail
and excess and surplus (E&S) wholesale
|
$
|
2,788
|
$
|
2,682
|
3.9 %
|
Middle market and
small commercial
|
$
|
1,874
|
$
|
1,781
|
5.2 %
|
Combined
ratio
|
|
76.4 %
|
|
84.3 %
|
|
Current accident
year combined ratio excluding catastrophe losses
|
|
79.0 %
|
|
80.8 %
|
|
|
|
|
|
|
|
North America
Personal P&C Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
1,474
|
$
|
1,315
|
12.1 %
|
Combined
ratio
|
|
86.2 %
|
|
89.3 %
|
|
Current accident
year combined ratio excluding catastrophe losses
|
|
80.4 %
|
|
77.1 %
|
|
|
|
|
|
|
|
North America
Agricultural Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
607
|
$
|
384
|
58.2 %
|
Combined
ratio
|
|
105.8 %
|
|
117.2 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
106.1 %
|
|
122.1 %
|
|
|
|
|
|
|
|
Overseas General
Insurance
|
|
|
|
|
|
Net premiums written
(increase of 15.0% in constant dollars)
|
$
|
3,216
|
$
|
2,696
|
19.3 %
|
Commercial P&C
(increase of 10.1% in constant dollars)
|
$
|
1,911
|
$
|
1,688
|
13.2 %
|
Consumer P&C
(increase of 23.2% in constant dollars)
|
$
|
1,305
|
$
|
1,008
|
29.5 %
|
Combined
ratio
|
|
85.9 %
|
|
79.6 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
85.2 %
|
|
84.8 %
|
|
|
|
|
|
|
|
Life
Insurance
|
|
|
|
|
|
Net premiums written
(increase of 17.2% in constant dollars)
|
$
|
1,450
|
$
|
1,205
|
20.3 %
|
Segment income
(increase of 38.4% in constant dollars)
|
$
|
263
|
$
|
182
|
43.5 %
|
- North America Commercial P&C Insurance: Net premiums
written increased 4.4% with P&C lines up 6.3% and financial
lines down 2.1%. Growth in net premiums written and in P&C
lines were adversely impacted by 3.0 and 4.0 percentage points,
respectively, due to planned corrective underwriting actions in
Major Accounts primary and excess casualty. One-half of the
reduction in premium was due to increased client risk retentions
with the balance lost business. The actions result in improved
underwriting margins. The combined ratio decreased 7.9 percentage
points, primarily reflecting higher favorable prior period
development and lower catastrophe losses. The current accident year
combined ratio excluding catastrophe losses decreased 1.8
percentage points, reflecting a 2.2 percentage point decrease in
the loss ratio and a 0.4 percentage point increase in the expense
ratio primarily from higher pension expenses reflecting financial
market conditions at the time of valuation late in 2022.
- North America Personal P&C Insurance: Net premiums written
increased 12.1%. The combined ratio decreased 3.1 percentage
points, reflecting a 3.1 percentage point decrease in the loss
ratio. The current accident year combined ratio excluding
catastrophe losses increased 3.3 percentage points, including a 3.4
percentage point increase in the loss ratio primarily from a
favorable reserve action in the prior year of 2.6 percentage
points, which did not repeat this quarter.
- North America Agricultural Insurance: The combined ratio
decreased 11.4 percentage points, reflecting a 12.7 percentage
point decrease in the loss ratio and a 1.3 percentage point
increase in the expense ratio. The current accident year combined
ratio excluding catastrophe losses decreased 16.0 percentage
points, including a 17.3 percentage points decrease in the
loss ratio. The prior year combined ratio included a true-up to
projected full-year crop insurance results reflecting late season
development. The full year combined ratio was 95.4%.
- Overseas General Insurance: The combined ratio increased 6.3
percentage points, primarily reflecting lower favorable prior
period development and higher catastrophe losses. The current
accident year combined ratio excluding catastrophe losses increased
0.4 percentage point, including a 0.7 percentage point increase in
the loss ratio and a 0.3 percentage point decrease in the expense
ratio, primarily due to the consolidation of Huatai.
- Life Insurance: Segment income was $263
million, up 43.5%, principally driven by growth in
International life which increased $102
million, up 90.2%, reflecting earnings from Huatai and
higher net investment income. In addition, the prior year included
a non-recurring $52 million adverse
adjustment related to Huatai. Combined Insurance North America
segment income decreased primarily due to a favorable reserve
development in the prior year.
Details of financial results by business segment are available
in the Chubb Limited Financial Supplement. Key segment items
for the year ended December 31, 2023 are presented below:
|
|
As
Adjusted
|
|
Chubb
Limited
|
FY
|
FY
|
|
(in millions of U.S.
dollars except for percentages)
|
2023
|
2022
|
Change
|
|
|
|
|
|
|
Total North
America P&C Insurance
|
|
|
|
|
|
(Comprising NA
Commercial P&C Insurance, NA Personal P&C Insurance and NA
Agricultural Insurance)
Net premiums
written
|
$
|
28,303
|
$
|
26,109
|
8.4 %
|
Combined
ratio
|
|
84.9 %
|
|
85.4 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
82.1 %
|
|
82.2 %
|
|
|
|
|
|
|
|
North America
Commercial P&C Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
19,237
|
$
|
17,889
|
7.5 %
|
Major accounts retail
and excess and surplus (E&S) wholesale
|
$
|
11,653
|
$
|
10,782
|
8.1 %
|
Middle market and
small commercial
|
$
|
7,584
|
$
|
7,107
|
6.7 %
|
Combined
ratio
|
|
81.6 %
|
|
83.3 %
|
|
Current accident
year combined ratio excluding catastrophe losses
|
|
80.5 %
|
|
81.1 %
|
|
|
|
|
|
|
|
North America
Personal P&C Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
5,878
|
$
|
5,313
|
10.6 %
|
Combined
ratio
|
|
89.7 %
|
|
87.5 %
|
|
Current accident
year combined ratio excluding catastrophe losses
|
|
80.1 %
|
|
78.9 %
|
|
|
|
|
|
|
|
North America
Agricultural Insurance
|
|
|
|
|
|
Net premiums
written
|
$
|
3,188
|
$
|
2,907
|
9.7 %
|
Combined
ratio
|
|
95.4 %
|
|
94.2 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
94.7 %
|
|
94.4 %
|
|
|
|
|
|
|
|
Overseas General
Insurance
|
|
|
|
|
|
Net premiums written
(increase of 13.3% in constant dollars)
|
$
|
12,575
|
$
|
11,060
|
13.7 %
|
Commercial P&C
(increase of 11.8% in constant dollars)
|
$
|
7,633
|
$
|
6,865
|
11.2 %
|
Consumer P&C
(increase of 15.7% in constant dollars)
|
$
|
4,942
|
$
|
4,195
|
17.8 %
|
Combined
ratio
|
|
85.3 %
|
|
84.6 %
|
|
Current accident year
combined ratio excluding catastrophe losses
|
|
85.1 %
|
|
85.4 %
|
|
|
|
|
|
|
|
Life
Insurance
|
|
|
|
|
|
Net premiums written
(increase of 50.9% in constant dollars)
|
$
|
5,465
|
$
|
3,608
|
51.5 %
|
Segment income
(increase of 58.4% in constant dollars)
|
$
|
1,049
|
$
|
661
|
58.8 %
|
- North America Commercial P&C Insurance: Net premiums
written increased 7.5% with P&C lines up 9.9% and financial
lines down 1.7%. The combined ratio decreased 1.7 points, primarily
reflecting lower catastrophe losses. The current accident year
combined ratio excluding catastrophe losses decreased 0.6
percentage points, including a 1.1 percentage point decrease in the
loss ratio and a 0.5 percentage point increase in the expense ratio
primarily from higher pension expenses reflecting financial market
conditions at the time of valuation late in 2022.
- North America Personal P&C Insurance: Net premiums written
increased 10.6%. The combined ratio increased 2.2 percentage
points, primarily reflecting higher catastrophe losses and lower
favorable prior period development. The current accident year
combined ratio excluding catastrophe losses increased 1.2
percentage points, including a 0.9 percentage point increase in the
loss ratio and a 0.3 percentage point increase in the expense
ratio. The increase in the expense ratio is primarily from higher
pension expenses as noted above.
- North America Agricultural Insurance: The combined ratio
increased 1.2 percentage points, primarily reflecting lower
favorable prior period development. The current accident year
combined ratio excluding catastrophe losses increased 0.3
percentage points, including a 0.7 percentage point increase
in the expense ratio and a 0.4 percentage point decrease in the
loss ratio.
- Overseas General Insurance: The combined ratio increased 0.7
percentage points, primarily reflecting lower favorable prior
period development and higher catastrophe losses. The current
accident year combined ratio excluding catastrophe losses decreased
0.3 percentage points, including a 0.6 percentage point decrease in
the expense ratio and a 0.3 percentage point increase in the loss
ratio.
- Life Insurance: Segment income was $1.05
billion, up 58.8%, including earnings from Huatai and
underlying improvement in Asia.
The current year included $50 million
related to higher than expected asset management fee income and
dividend income in Huatai, and the favorable impact of reserve
development in Combined Insurance North America.
All comparisons are with the same period last year unless
otherwise specifically stated.
Please refer to the Chubb Limited Financial Supplement, dated
December 31, 2023, which is posted on the company's
investor relations website, investors.chubb.com, in the
Financials section for more detailed information on individual
segment performance, together with additional disclosure on
reinsurance recoverable, loss reserves, investment
portfolio, and debt and capital.
Chubb Limited will hold its fourth quarter earnings conference
call on Wednesday, January 31, 2024
beginning at 8:30 a.m. Eastern. The
earnings conference call will be available via live webcast at
investors.chubb.com or by dialing 877-400-4403 (within
the United States) or 332-251-2601
(international), passcode 1641662. Please refer to the Chubb
website under Events and Presentations for details. A replay will
be available after the call at the same location. To listen to the
replay, please click here to register and receive dial-in
numbers.
"As Adjusted": Effective January 1,
2023, the company adopted the Long-Duration Targeted
Improvements (LDTI) U.S. GAAP guidance, which principally impacted
the Life Insurance segment. LDTI requires more frequent updating of
assumptions and a standardized discount rate for long-duration
contracts, a requirement to use the fair value measurement model
for policies with market risk benefits, and amortization of
deferred acquisition costs on a constant level basis. Under LDTI,
the company's reinsurance programs covering variable annuity
guarantees (principally guaranteed minimum death benefits and
guaranteed minimum income benefits) meet the definition of
market-risk benefits (MRB) and are measured at fair value and are
now reported within "Market risk benefits" in the financial
statements. The impact to 2022 results was immaterial.
Effective July 1, 2023, the
company acquired a majority controlling interest in Huatai Group
(Huatai), and applied consolidation accounting beginning in the
third quarter. In this release, business activity for, and the
financial position of, Huatai is reported at 100%, as required,
except for core operating income, net income, book value, tangible
book value, ROE, per share data, and certain other key metrics,
which include only the company's ownership interest and exclude the
non-controlling interest.
About Chubb
Chubb is a world leader in insurance. With
operations in 54 countries and territories, Chubb provides
commercial and personal property and casualty insurance, personal
accident and supplemental health insurance, reinsurance and life
insurance to a diverse group of clients. As an underwriting
company, we assess, assume and manage risk with insight and
discipline. We service and pay our claims fairly and promptly. The
company is also defined by its extensive product and service
offerings, broad distribution capabilities, exceptional financial
strength and local operations globally. Parent company Chubb
Limited is listed on the New York Stock Exchange (NYSE: CB) and is
a component of the S&P 500 index. Chubb maintains executive
offices in Zurich, New York, London, Paris
and other locations, and employs approximately 40,000 people
worldwide. Additional information can be found at:
www.chubb.com.
Regulation G – Non-GAAP Financial Measures
In
presenting our results, we included and discussed certain
non-GAAP measures. These non-GAAP measures, which may be
defined differently by other companies, are important for an
understanding of our overall results of operations and financial
condition. However, they should not be viewed as a
substitute for measures determined in accordance with generally
accepted accounting principles (GAAP).
Throughout this document there are various measures presented on
a constant-dollar basis (i.e., excludes the impact of foreign
exchange). We believe it is useful to evaluate the trends in
our results exclusive of the effect of fluctuations in exchange
rates between the U.S. dollar and the currencies in which our
international business is transacted, as these exchange rates
could fluctuate significantly between periods and distort the
analysis of trends. The impact is determined by assuming constant
foreign exchange rates between periods by translating prior period
results using the same local currency exchange rates as the
comparable current period.
Adjusted net investment income is net investment income
excluding the amortization of the fair value adjustment on acquired
invested assets from certain acquisitions of $7 million and $5
million in Q4 2023 and Q4 2022, respectively, and including
investment income of $109 million and
$60 million in Q4 2023 and Q4 2022,
respectively, from partially owned investment companies (private
equity partnerships) where our ownership interest is in excess of
3% that are accounted for under the equity method. The amortization
of the fair value adjustment on acquired invested assets was
$21 million and $41 million for full-year 2023 and 2022,
respectively, and the investment income from private equity
partnerships was $385 million and
$240 million for full-year 2023 and
2022, respectively. The mark-to-market movement on these private
equity partnerships are included in adjusted net realized gains
(losses) as described below. We believe this measure is meaningful
as it highlights the underlying performance of our invested assets
and portfolio management in support of our lines of business.
Adjusted net realized gains (losses), net of tax, includes
net realized gains (losses) and net realized gains (losses)
recorded in other income (expense) related to unconsolidated
subsidiaries, and excludes realized gains and losses on crop
derivatives. These derivatives were purchased to provide
economic benefit, in a manner similar to reinsurance
protection, in the event that a significant decline in
commodity pricing impacts underwriting results. We view gains
and losses on these derivatives as part of the results of our
underwriting operations, and therefore realized gains (losses)
from these derivatives are reclassified to adjusted losses and loss
expenses.
P&C underwriting income (loss) excludes the Life Insurance
segment and is calculated by subtracting adjusted losses and loss
expenses, adjusted policy benefits, policy acquisition costs and
administrative expenses from net premiums earned. We use
underwriting income (loss) and operating ratios to monitor the
results of our operations without the impact of certain
factors, including net investment income, other income
(expense), interest expense, amortization expense of
purchased intangibles, Cigna integration expense, amortization
of fair value of acquired invested assets and debt, income tax
expense, adjusted net realized gains (losses), and market risk
benefits gains (losses).
P&C current accident year underwriting income excluding
catastrophe losses is P&C underwriting income adjusted to
exclude P&C catastrophe losses and prior period development
(PPD). We believe it is useful to exclude catastrophe
losses, as they are not predictable as to timing and
amount, and PPD as these unexpected loss developments on
historical reserves are not indicative of our current underwriting
performance. We believe the use of these measures enhances the
understanding of our results of operations by highlighting the
underlying profitability of our insurance business.
Core operating income, net of tax, relates only to Chubb income,
which excludes noncontrolling interests. It excludes from Chubb net
income the after-tax impact of adjusted net realized gains
(losses), market risk benefit gains (losses), Cigna integration
expenses, the amortization of fair value adjustment of acquired
invested assets and long-term debt related to certain acquisitions.
We believe this presentation enhances the understanding of our
results of operations by highlighting the underlying profitability
of our insurance business. We exclude adjusted net realized gains
(losses) because the amount of these gains (losses) are heavily
influenced by, and fluctuate in part according to, the availability
of market opportunities. We exclude the amortization of fair value
adjustments on purchased invested assets and long-term debt related
to certain acquisitions due to the size and complexity of these
acquisitions. We also exclude Cigna integration expenses, which are
incurred by the overall company and are included in
Corporate. These expenses include legal and professional fees
and all other costs directly related to the integration activities
of the Cigna acquisition. The costs are not related to the
on-going activities of the individual segments and are therefore
also excluded from our definition of segment income. We
believe these integration expenses are not indicative of our
underlying profitability, and excluding these integration
expenses facilitates the comparison of our financial results to our
historical operating results. References to core operating
income measures mean net of tax, whether or not noted.
Core operating return on equity (ROE) and Core operating
return on tangible equity (ROTE) are annualized non-GAAP financial
measures. The numerator includes core operating income
(loss), net of tax. The denominator includes the average
Chubb shareholders' equity for the period adjusted to exclude
unrealized gains (losses) on investments, current discount rate on
future policy benefits (FPB), and instrument-specific credit risk
on MRB, all net of tax. For the ROTE calculation, the denominator
is also adjusted to exclude Chubb goodwill and other intangible
assets, net of tax. These measures enhance the understanding of the
return on shareholders' equity by highlighting the underlying
profitability relative to shareholders' equity and tangible equity
excluding the effect of these items as these are heavily influenced
by changes in market conditions. We believe ROTE is meaningful
because it measures the performance of our operations without the
impact of goodwill and other intangible assets.
P&C combined ratio is the sum of the loss and loss
expense ratio, acquisition cost ratio and the administrative
expense ratio excluding the life business and including the
realized gains and losses on the crop derivatives, as noted
above.
P&C current accident year combined ratio excluding
catastrophe losses excludes the impact of P&C catastrophe
losses and PPD from the P&C combined ratio. We believe this
measure provides a better evaluation of our underwriting
performance and enhances the understanding of the trends in our
property and casualty business that may be obscured by these
items.
Global P&C performance metrics comprise consolidated
operating results (including corporate) and exclude the operating
results of the company's Life Insurance and North America
Agricultural Insurance segments. The agriculture insurance business
is a different business in that it is a public sector and private
sector partnership in which insurance rates, premium growth, and
risk-sharing is not market-driven like the remainder of the
company's P&C insurance business. We believe that these
measures are useful and meaningful to investors as they are used by
management to assess the company's global P&C operations which
are the most economically similar. We exclude the North America
Agricultural Insurance and Life Insurance segments because the
results of these businesses do not always correlate with the
results of our global P&C operations.
Tangible book value per common share is Chubb shareholders'
equity less Chubb goodwill and other intangible assets, net of tax,
divided by the shares outstanding. We believe that goodwill and
other intangible assets are not indicative of our underlying
insurance results or trends and make book value comparisons to less
acquisitive peer companies less meaningful.
Book value per share and tangible book value per share excluding
accumulated other comprehensive income (loss) (AOCI), excludes AOCI
from the numerator because it eliminates the effect of items that
can fluctuate significantly from period to period, primarily based
on changes in interest rates and foreign currency movement, to
highlight underlying growth in book and tangible book value.
Metrics adjusted for the impact of the enactment of the Bermuda
Tax Law are adjusted to exclude the one-time deferred tax benefit
of $1.14 billion, giving recognition
for transition provisions of the Bermuda Tax Law. We believe that
excluding the impact of the one-time deferred tax benefit provides
a better evaluation of our operating performance and enhances the
understanding of the trends in the underlying business that may be
obscured by this one-time item.
Adjusted operating cash flow is Operating cash flow
excluding the operating cash flow related to the net investing
activities of Huatai's asset management companies as it relates to
the Consolidated Investment Products as required under
consolidation accounting. Because these entities are investment
companies, we are required to retain the investment company
presentation in our consolidated results, which means, we include
the net investing activities of these entities in our operating
cash flows. Due to the significant impact that this required
investment company classification has on the presentation of the
company's operating cash flow, the company has elected to remove
the impact of these net investing activities of these investment
companies. The investment company presentation is not consistent
with our consolidated cash flow presentation. These net investing
activities are more appropriately classified outside of operating
cash flows, consistent with our consolidated investing activities,
and may impact a reader's analysis of our underlying operating cash
flow related to the core insurance company operations. Accordingly,
we believe that it is appropriate to adjust operating cash flow for
the impact of these consolidated investment products.
See the reconciliation of Non-GAAP Financial Measures on pages
29-35 in the Financial Supplement. These measures should not be
viewed as a substitute for measures determined in accordance with
GAAP, including premium, net income, book value, return on equity,
and net investment income.
NM – not meaningful comparison
Cautionary Statement Regarding Forward-Looking
Statements:
Forward-looking statements made in this press
release, such as those related to company performance,
pricing, growth opportunities, economic and market conditions, and
our expectations and intentions and other statements that are not
historical facts, reflect our current views with respect to future
events and financial performance and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such statements involve risks and uncertainties that
could cause actual results to differ materially, including without
limitation, the following: competition, pricing and policy term
trends, the levels of new and renewal business achieved, the
frequency and severity of unpredictable catastrophic events, actual
loss experience, uncertainties in the reserving or settlement
process, integration activities and performance of acquired
companies, loss of key employees or disruptions to our operations,
new theories of liability, judicial, legislative, regulatory and
other governmental developments, litigation tactics and
developments, investigation developments and actual settlement
terms, the amount and timing of reinsurance recoverable, credit
developments among reinsurers, rating agency action, infection
rates and severity of pandemics, including COVID-19, and their
effects on our business operations and claims activity, possible
terrorism or the outbreak and effects of war, economic, political,
regulatory, insurance and reinsurance business conditions,
potential strategic opportunities including acquisitions and our
ability to achieve and integrate them, as well as management's
response to these factors, and other factors identified in our
filings with the Securities and Exchange Commission (SEC). Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the dates on which they are
made. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Chubb
Limited
|
Summary Consolidated
Balance Sheets
|
(in millions of U.S.
dollars, except per share data)
|
(Unaudited)
|
|
|
|
|
As
Adjusted
|
|
December
31
2023
|
|
December 31
2022
|
Assets
|
|
|
|
Investments
|
$
|
136,735
|
|
$
|
113,551
|
Cash and restricted
cash
|
2,621
|
|
2,127
|
Insurance and
reinsurance balances receivable
|
13,379
|
|
11,933
|
Reinsurance recoverable
on losses and loss expenses
|
19,952
|
|
18,859
|
Goodwill and other
intangible assets ($25,314 represents Chubb portion as of
12/31/2023)
|
26,461
|
|
21,669
|
Other assets
|
29,713
|
|
30,878
|
|
Total assets
|
$
|
228,861
|
|
$
|
199,017
|
|
|
|
|
|
Liabilities
|
|
|
|
Unpaid losses and loss
expenses
|
$
|
80,122
|
|
$
|
75,747
|
Unearned
premiums
|
22,051
|
|
19,713
|
Other
liabilities
|
62,997
|
|
53,038
|
|
Total
liabilities
|
|
165,170
|
|
|
148,498
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Chubb shareholders'
equity, excl. AOCI
|
66,316
|
|
60,704
|
Accumulated other
comprehensive income (loss) (AOCI)
|
(6,809)
|
|
(10,185)
|
|
Chubb shareholders'
equity
|
59,507
|
|
50,519
|
Noncontrolling
interests
|
4,184
|
|
-
|
|
Total shareholders'
equity
|
63,691
|
|
50,519
|
|
Total liabilities and
shareholders' equity
|
$
|
228,861
|
|
$
|
199,017
|
|
|
|
|
|
Book value per common
share
|
$
|
146.83
|
|
$
|
121.85
|
Tangible book value per
common share
|
$
|
87.98
|
|
$
|
72.51
|
Book value per common
share, excl. AOCI
|
$
|
163.64
|
|
$
|
146.42
|
Tangible book value per
common share, excl. AOCI
|
$
|
102.78
|
|
$
|
94.90
|
Chubb
Limited
|
Summary Consolidated
Financial Data
|
(in millions of U.S.
dollars, except share, per share data, and ratios)
|
(Unaudited)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31
|
|
December
31
|
|
|
|
As
Adjusted
|
|
|
|
As
Adjusted
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Gross premiums
written
|
$
|
13,646
|
|
$
|
12,440
|
|
$
|
57,526
|
|
$
|
51,978
|
Net premiums
written
|
11,596
|
|
10,226
|
|
47,361
|
|
41,720
|
Net premiums
earned
|
11,897
|
|
10,544
|
|
45,712
|
|
40,360
|
Losses and loss
expenses
|
6,163
|
|
5,739
|
|
24,100
|
|
22,572
|
Policy
benefits
|
1,063
|
|
873
|
|
3,628
|
|
2,314
|
Policy acquisition
costs
|
2,117
|
|
1,924
|
|
8,259
|
|
7,339
|
Administrative
expenses
|
1,048
|
|
916
|
|
4,007
|
|
3,395
|
Net investment
income
|
1,371
|
|
1,053
|
|
4,937
|
|
3,742
|
Net realized gains
(losses)
|
(123)
|
|
(149)
|
|
(607)
|
|
(1,085)
|
Market risk benefits
gains (losses)
|
(153)
|
|
(5)
|
|
(307)
|
|
80
|
Interest
expense
|
173
|
|
154
|
|
672
|
|
570
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Gains (losses) from
separate account assets
|
11
|
|
74
|
|
(45)
|
|
(42)
|
|
Other
|
275
|
|
(172)
|
|
881
|
|
(47)
|
Amortization of
purchased intangibles
|
84
|
|
74
|
|
310
|
|
285
|
Cigna integration
expenses
|
18
|
|
22
|
|
69
|
|
48
|
Income tax expense
(benefit) (1)
|
(678)
|
|
332
|
|
511
|
|
1,239
|
Net income
|
$
|
3,290
|
|
$
|
1,311
|
|
$
|
9,015
|
|
$
|
5,246
|
|
Less: NCI income
(loss)
|
(10)
|
|
-
|
|
(13)
|
|
-
|
Chubb net
income
|
$
|
3,300
|
|
$
|
1,311
|
|
$
|
9,028
|
|
$
|
5,246
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Chubb net
income
|
$
|
8.03
|
|
$
|
3.13
|
|
$
|
21.80
|
|
$
|
12.39
|
Core operating
income
|
$
|
8.30
|
|
$
|
4.00
|
|
$
|
22.54
|
|
$
|
15.18
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
410.7
|
|
418.9
|
|
414.2
|
|
423.5
|
|
|
|
|
|
|
|
|
(1)
2023 includes a one-time deferred tax benefit of $1.14
billion.
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined
ratio
|
|
|
|
|
|
|
|
Loss and loss expense
ratio
|
59.8 %
|
|
62.1 %
|
|
60.6 %
|
|
62.0 %
|
Policy acquisition cost
ratio
|
17.8 %
|
|
17.9 %
|
|
17.8 %
|
|
17.8 %
|
Administrative expense
ratio
|
7.9 %
|
|
8.0 %
|
|
8.1 %
|
|
7.8 %
|
P&C combined
ratio
|
85.5 %
|
|
88.0 %
|
|
86.5 %
|
|
87.6 %
|
|
|
|
|
|
|
|
|
|
P&C underwriting
income
|
$
|
1,517
|
|
$
|
1,121
|
|
$
|
5,460
|
|
$
|
4,555
|
Chubb®, Chubb logo® and Chubb. Insured.SM are
trademarks of Chubb.
SOURCE Chubb Limited