Chubb Reports Second Quarter Per Share Net Income and Core Operating Income of $5.46 and $5.38, Up 26.4% and 9.3%, Respectively; Consolidated Net Premiums Written of $13.4 Billion, Up 11.8%, or 12.3% in Constant Dollars, with P&C Up 10.6% and Life Insurance Up 27.6%; P&C Combined Ratio of 86.8%; Record Year-to-Date Per Share Net Income and Core Operating Income of $10.68 and $10.78, Up 20.8% and 15.7%, Respectively
- Net income was $2.23 billion, up 24.3%, and core operating income was $2.20 billion, up 7.5%. For the six months, net income was $4.37 billion, up 18.7%, and core operating income was a record $4.41 billion, up 13.5%.
- Global P&C net premiums written, which excludes Agriculture, were up 11.2%, with commercial insurance up 9.6% and consumer insurance up 15.2%. North America was up 8.0%, including growth of 12.3% in personal insurance and 6.7% in commercial insurance, with P&C lines up 8.7% and financial lines down 2.9 %. Overseas General was up 15.6%, with growth of 19.1% in consumer insurance and 13.3% in commercial insurance; Asia-Pacific, Latin America, and Continental Europe were up 32.9%, 13.7%, and 10.8%, respectively.
- P&C underwriting income was $1.42 billion. P&C current accident year underwriting income excluding catastrophe losses was a record $1.81 billion, up 11.1%, with a record low combined ratio of 83.2%. For the six months, P&C underwriting income was $2.82 billion, up 6.8%, and was $3.43 billion, up 10.7%, on a current accident year excluding catastrophe losses basis. Both were records.
- Pre-tax catastrophe losses were $580 million compared with $400 million last year. For the six months, catastrophe losses were $1.02 billion compared with $858 million last year.
- Life Insurance net premiums written were $1.58 billion, up 24.5%, or 27.6% in constant dollars, and segment income was $276 million, up 8.7%, or 11.4% in constant dollars. Life Insurance net premiums written and deposits collected were $2.13 billion, up 27.4%, or 31.1% in constant dollars.
- Pre-tax net investment income was $1.47 billion, up 28.2%, and adjusted net investment income was $1.56 billion, up 25.9%. Both were records.
- Annualized return on equity (ROE) was 14.7%. Annualized core operating return on tangible equity (ROTE) was 21.1% and annualized core operating ROE was 13.3%.
ZURICH, July 23, 2024 /PRNewswire/ -- Chubb Limited (NYSE: CB) today reported net income for the quarter ended June 30, 2024 of $2.23 billion, or $5.46 per share, and core operating income of $2.20 billion, or $5.38 per share. Book value per share and tangible book value per share increased 1.3% and 1.7%, respectively, from March 31, 2024 and now stand at $151.05 and $91.05. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $437 million in the company's investment portfolio and $457 million of foreign exchange losses. Book value per share and tangible book value per share excluding AOCI increased 2.6% and 3.1%, respectively, from March 31, 2024.
Chubb Limited Second Quarter Summary (in millions of U.S. dollars, except per share amounts and ratios) (Unaudited) | |||||||
(Per Share) | |||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||
Net income | $2,230 | $1,793 | 24.3 % | $5.46 | $4.32 | 26.4 % | |
Adjusted net realized (gains) losses and other, net of tax | (63) | 244 | NM | (0.15) | 0.58 | NM | |
Market risk benefits (gains) losses, net of tax | 29 | 7 | NM | 0.07 | 0.02 | NM | |
Core operating income, net of tax | $2,196 | $2,044 | 7.5 % | $5.38 | $4.92 | 9.3 % | |
Annualized return on equity (ROE) | 14.7 % | 13.6 % | |||||
Core operating return on tangible equity (ROTE) | 21.1 % | 21.0 % | |||||
Core operating ROE | 13.3 % | 13.8 % | |||||
For the six months ended June 30, 2024, net income was $4.37 billion, or $10.68 per share, and core operating income was $4.41 billion, or $10.78 per share. Book value per share and tangible book value per share increased 2.9% and 3.5%, respectively, from December 31, 2023. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $1.06 billion in the company's investment portfolio and $476 million of foreign exchange losses. Book value per share and tangible book value per share excluding AOCI increased 4.9% and 6.1%, respectively, from December 31, 2023.
Chubb Limited Six Months Ended Summary (in millions of U.S. dollars, except per share amounts and ratios) (Unaudited) | |||||||
(Per Share) | |||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||
Net income | $4,373 | $3,685 | 18.7 % | $10.68 | $8.84 | 20.8 % | |
Adjusted net realized (gains) losses and other, net of tax | 31 | 79 | (60.8) % | 0.08 | 0.19 | (57.9) % | |
Market risk benefits (gains) losses, net of tax | 8 | 122 | (93.4) % | 0.02 | 0.29 | (93.1) % | |
Core operating income, net of tax | $4,412 | $3,886 | 13.5 % | $10.78 | $9.32 | 15.7 % | |
Annualized return on equity (ROE) | 14.5 % | 14.3 % | |||||
Core operating return on tangible equity (ROTE) | 21.6 % | 20.2 % | |||||
Core operating ROE | 13.6 % | 13.2 % | |||||
For the six months ended June 30, 2024 and 2023, the tax expenses (benefits) related to the table above were $(76) million and $(109) million, respectively, for adjusted net realized gains and losses and other; and $905 million and $885 million, respectively, for core operating income.
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: "We had another great quarter which contributed to record six-month results. Per-share core operating income in the quarter was up 9.3% while record year-to-date operating income was up 15.7%. Our P&C underwriting results in the quarter were simply excellent in spite of a higher level of catastrophe losses, highlighted by a published combined ratio of 86.8%, and supported by record ex-CAT current accident year underwriting income of $1.8 billion and a combined ratio of 83.2%. Adjusted investment income topped $1.5 billion, up nearly 26% and a record, and we grew life segment income about 11.5% in constant dollars with international life up over 15%. We produced double-digit premium revenue growth across the globe with strong results in our North America P&C, International P&C, and Life Insurance divisions.
"Commercial P&C underwriting conditions are favorable, with property naturally more competitive and casualty pricing firming in the areas that need it. We see this trend in casualty enduring. Loss-cost inflation in short- and long-tail lines remained steady. Consumer P&C underwriting and growth conditions are quite attractive, and we are growing at a double-digit pace our market-leading high-net-worth personal lines business in North America while we are pursuing a broad set of opportunities in A&H and personal lines across the globe.
"Total company net premiums increased 11.8%, with Global P&C up 11.2% and Life Insurance up 24.5%. Premiums in North America were up 8% and consisted of 12.3% growth in high-net-worth personal insurance and 6.7% growth in commercial, with P&C lines up 8.7% and financial lines down about 3%. For the rest of the world, our premiums were up more than 15.5%, with commercial up 13.3% and consumer up over 19%. Asia-Pacific, Latin America, and the Continent of Europe were up 32.9%, 13.7%, and 10.8%, respectively.
"In summary, we had a great quarter, and, again, our results reflect the strength, breadth and depth globally of the company. We are confident in our ability to continue growing our operating earnings at a superior rate through P&C revenue growth and underwriting margins, investment income, and life income."
Operating highlights for the quarter ended June 30, 2024 were as follows:
Chubb Limited | Q2 | Q2 | |||
(in millions of U.S. dollars except for percentages) | 2024 | 2023 | Change | ||
Consolidated | |||||
Net premiums written (increase of 12.3% in constant dollars) | $ | 13,360 | $ | 11,951 | 11.8 % |
P&C | |||||
Net premiums written (increase of 10.6% in constant dollars) | $ | 11,780 | $ | 10,681 | 10.3 % |
Underwriting income | $ | 1,418 | $ | 1,425 | (0.5) % |
Combined ratio | 86.8 % | 85.4 % | |||
Current accident year underwriting income excluding catastrophe losses | $ | 1,806 | $ | 1,625 | 11.1 % |
Current accident year combined ratio excluding catastrophe losses | 83.2 % | 83.3 % | |||
Global P&C (excludes Agriculture) | |||||
Net premiums written (increase of 11.5% in constant dollars) | $ | 11,022 | $ | 9,914 | 11.2 % |
Underwriting income | $ | 1,383 | $ | 1,337 | 3.4 % |
Combined ratio | 86.3 % | 85.3 % | |||
Current accident year underwriting income excluding catastrophe losses | $ | 1,738 | $ | 1,545 | 12.4 % |
Current accident year combined ratio excluding catastrophe losses | 82.8 % | 83.1 % | |||
Life Insurance | |||||
Net premiums written (increase of 27.6% in constant dollars) | $ | 1,580 | $ | 1,270 | 24.5 % |
Segment income (increase of 11.4% in constant dollars) | $ | 276 | $ | 254 | 8.7 % |
- Consolidated net premiums earned increased 11.7%, or 12.3% in constant dollars. P&C net premiums earned increased 10.1%, or 10.4% in constant dollars.
- Operating cash flow was $4.08 billion and adjusted operating cash flow was $3.57 billion.
- Total pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, were $580 million (5.4 percentage points of the combined ratio) and $482 million, respectively, compared with $400 million (4.1 percentage points of the combined ratio) and $319 million, respectively, last year.
- Total pre-tax and after-tax favorable prior period development were $192 million and $167 million, respectively, compared with $200 million and $155 million, respectively, last year.
- Total capital returned to shareholders was $939 million, comprising share repurchases of $570 million at an average purchase price of $253.02 per share and dividends of $369 million.
Details of financial results by business segment are available in the Chubb Limited Financial Supplement. Key segment items for the quarter ended June 30, 2024 are presented below:
Chubb Limited | Q2 | Q2 | |||
(in millions of U.S. dollars except for percentages) | 2024 | 2023 | 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 | $ | 8,035 | $ | 7,503 | 7.1 % |
Combined ratio | 84.0 % | 84.2 % | |||
Current accident year combined ratio excluding catastrophe losses | 81.0 % | 81.3 % | |||
North America Commercial P&C Insurance | |||||
Net premiums written | $ | 5,501 | $ | 5,155 | 6.7 % |
Major accounts retail and excess and surplus (E&S) wholesale | $ | 3,524 | $ | 3,307 | 6.5 % |
Middle market and small commercial | $ | 1,977 | $ | 1,848 | 7.0 % |
Combined ratio | 82.9 % | 82.5 % | |||
Current accident year combined ratio excluding catastrophe losses | 80.7 % | 80.7 % | |||
North America Personal P&C Insurance | |||||
Net premiums written | $ | 1,776 | $ | 1,581 | 12.3 % |
Combined ratio | 83.5 % | 88.9 % | |||
Current accident year combined ratio excluding catastrophe losses | 78.6 % | 80.5 % | |||
North America Agricultural Insurance | |||||
Net premiums written | $ | 758 | $ | 767 | (1.2) % |
Combined ratio | 94.4 % | 86.2 % | |||
Current accident year combined ratio excluding catastrophe losses | 89.1 % | 87.4 % | |||
Overseas General Insurance | |||||
Net premiums written (increase of 16.6% in constant dollars) | $ | 3,334 | $ | 2,885 | 15.6 % |
Commercial P&C (increase of 13.9% in constant dollars) | $ | 1,957 | $ | 1,728 | 13.3 % |
Consumer P&C (increase of 20.7% in constant dollars) | $ | 1,377 | $ | 1,157 | 19.1 % |
Combined ratio | 88.2 % | 84.0 % | |||
Current accident year combined ratio excluding catastrophe losses | 85.3 % | 85.2 % | |||
Global Reinsurance | |||||
Net premiums written (increase of 40.5% in constant dollars) | $ | 411 | $ | 293 | 40.3 % |
Combined ratio | 72.7 % | 69.6 % | |||
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