Chubb Ltd

Segment Operating Results – Three Months Ended March 31, 2024 and 2023

We operate through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. For more information on our segments refer to “Segment Information” under Item 1 in our 2023 Form 10-K.

North America Commercial P&C Insurance

The North America Commercial P&C Insurance segment comprises operations that provide P&C insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. This segment includes our North America Major Accounts and Specialty Insurance division (large corporate accounts and wholesale business), and the North America Commercial Insurance division (principally middle market, and small commercial accounts).

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.

Net premiums written increased $401 million, or 9.4 percent, for the three months ended March 31, 2024, reflecting strong new business and retention, including rate and exposure increases. The increase in premiums was across most lines of business, most notably in property lines and casualty lines, which included a large structured transaction in the current year. This growth was partially offset by declines in financial lines, reflecting a competitive market environment and lower retention,

and planned corrective underwriting actions in Major Accounts primary and excess casualty.

Net premiums earned increased $511 million, or 11.7 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above, including from the large structured transaction, which was fully earned when written.

The loss and loss expense ratio increased for the three months ended March 31, 2024, reflecting higher catastrophe losses and lower favorable prior period development. The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2024, driven by the unfavorable impact of the large structured transaction and higher loss trends in certain casualty lines, partially offset by a higher percentage of net premiums earned from property lines.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024, reflecting the favorable impact of the large structured transaction in the current year that generated minimal expenses, partially offset by a lower ceded commission benefit in the current year.

North America Personal P&C Insurance

The North America Personal P&C Insurance segment comprises operations that provide high net worth personal lines products, including homeowners and complementary products such as valuable articles, excess liability, automobile, and recreational marine insurance and services in the U.S. and Canada.

NM - Not meaningful

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. winter storm losses, flooding, hail, tornadoes, and wind events.

Net premiums written increased $160 million, or 12.3 percent, for the three months ended March 31, 2024, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $151 million, or 11.4 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above.

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting a lower impact from catastrophe losses and favorable prior period development, compared with unfavorable development in the prior year period. The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, partly offset by an increase in excess liability and auto loss trends.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024.

North America Agricultural Insurance

The North America Agricultural Insurance segment comprises our North American based businesses that provide a variety of coverages in the U.S. and Canada including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail through Rain and Hail Insurance Service, Inc. (Rain and Hail), as well as farm and ranch and specialty P&C commercial insurance products and services through our Agriculture P&C business.

NM - Not meaningful

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.

Net premiums written decreased $44 million, or 15.0 percent, for the three months ended March 31, 2024, primarily due to a return of premium of $41 million under the U.S. government risk-sharing formula related to the 2023 crop year and lower commodity prices in the current year. Under the profit-sharing agreement, we ceded more premium due to lower losses experienced in certain states. The decrease was partially offset by strong new business and rate increases in our Agriculture P&C business.

Net premiums earned decreased $31 million, or 19.4 percent, for the three months ended March 31, 2024, reflecting the factors described above.

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting higher favorable prior period development and lower catastrophe losses. The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, due to higher net premiums earned from our Agriculture P&C business that has a lower loss ratio, and earned rate exceeding loss trend in that business.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, reflecting the impact of the government profit share adjustment and agent commission adjustments relating to the 2023 crop year, and higher net premiums earned from our Agriculture P&C business that has a higher policy acquisition cost ratio.

Overseas General Insurance

Overseas General Insurance segment comprises Chubb International and Chubb Global Markets (CGM). Chubb International comprises our international commercial P&C traditional and specialty lines serving large corporations, middle market and small customers; A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada. CGM, our London-based international commercial P&C excess and surplus lines business, includes Lloyd's of London (Lloyd's) Syndicate 2488. Chubb provides funds at Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb Underwriting Agencies Limited. Effective July 1, 2023, the Overseas General Insurance segment includes 100 percent of the results of Huatai Group's P&C business as required under consolidation accounting. We previously included our share of Huatai results based on our equity method investment within Other (income) expense.

Net Catastrophe Losses and Prior Period Development

Catastrophe losses through March 31, 2024 and 2023, were primarily from the following events:

•2024: International weather-related events.

•2023: Storms in New Zealand and international weather-related events.

(1)2024 includes the consolidated results of Huatai P&C effective July 1, 2023.

(2)Includes the international supplemental A&H business of Combined Insurance and other international operations.

Overall, net premiums written increased $572 million, or $549 million on a constant dollar basis, for the three months ended March 31, 2024 reflecting growth in commercial lines of 12.2 percent, or 11.4 percent on a constant-dollar basis, and growth in consumer lines of 27.1 percent, or 26.2 percent on a constant-dollar basis.

Europe increased for the three months ended March 31, 2024, supported by both our wholesale and retail divisions. The growth in commercial lines was driven by higher new business, and positive rate increases, primarily in commercial property and casualty lines. Consumer lines increased primarily due to new business from growth in our digital channels, including travel, and high net worth.

Asia increased for the three months ended March 31, 2024, reflecting the consolidation of Huatai Group's P&C business effective July 1, 2023, as well as higher new business, higher retention and positive rate increases in commercial lines. Consumer lines had strong growth in Southeast Asian countries with growth in new business for both A&H and personal lines, fueled in part by new digital distribution.

Latin America increased for the three months ended March 31, 2024, reflecting growth in commercial lines driven by growth in new business and positive rate increases across property and casualty lines. Our personal lines business, primarily automobile in Mexico, also continues to have strong growth.

Net premiums earned increased $412 million, or $402 million on a constant-dollar basis, for the three months ended March 31, 2024, reflecting the increase in net premiums written described above.

The combined ratio improved for the three months ended March 31, 2024, primarily reflecting lower catastrophe losses. The CAY combined ratio excluding catastrophe losses increased, principally related to the consolidation of Huatai.

Global Reinsurance

The Global Reinsurance segment represents our reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Global Reinsurance markets its reinsurance products worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand name and provides a broad range of traditional and non-traditional reinsurance coverage to a diverse array of primary P&C companies.

Net Catastrophe Losses and Prior Period Development

Refer to Note 7 in the Consolidated Financial Statements for detail on prior period development.

Net premiums written increased $82 million for the three months ended March 31, 2024, primarily reflecting continued growth, mainly in catastrophe exposed property lines.

Net premiums earned increased $51 million for the three months ended March 31, 2024, primarily reflecting the increase in net premiums written described above.

The loss and loss expense ratio increased for the three months ended March 31, 2024, mainly reflecting unfavorable prior period development compared with favorable development in the prior year. The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, primarily from a shift in the mix of business towards property lines, which generally has lower loss ratios excluding catastrophe losses.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, primarily due to a shift in the mix of business and the impact of a treaty written in the prior year with a lower acquisition cost ratio.

The administrative expense ratio improved for the three months ended March 31, 2024, reflecting the favorable impact of higher net premiums earned, as described above.

Life Insurance

The Life Insurance segment comprises our international life operations. Effective July 1, 2023, the Life Insurance segment includes 100 percent of the results of Huatai Group's life and asset management business as required under consolidation accounting. We previously included our share of Huatai results based on our equity method investment within Other (income) expense. The Life Insurance segment also includes Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.

Net premiums written increased $340 million, or $374 million on a constant-dollar basis, for the three months ended March 31, 2024.

For our international life operations, net premiums written increased 31.5 percent for the three months ended March 31, 2024, substantially due to the consolidation of Huatai Group's life business which contributed $265.8 million or 25.4 percentage points. The remaining increase in net premiums written is primarily driven by the underlying growth of existing business in Asia, specifically in Hong Kong, Taiwan, and Southeast Asia, as well as by higher new business in Latin America.

Net premiums written in our North American Combined Insurance business increased 5.5 percent for the three months ended March 31, 2024, due to growth in its worksite benefits business of 20.2 percent, partially offset by the non-renewal of a large program.

Deposits

The following table presents deposits collected on universal life and investment contracts:

Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our Consolidated statements of operations in accordance with U.S. GAAP. New life deposits are an important component of production, and although they do not significantly affect current period income from operations, they are key to our efforts to grow our business. Life deposits collected increased $291 million for the three months ended March 31, 2024, primarily from the consolidation of Huatai Life business.

Life Insurance segment income

Life Insurance segment income increased $24 million for the three months ended March 31, 2024 reflecting the growth in premiums described above and includes higher-than-expected other income totaling $8 million.

Corporate

Corporate results primarily include the results of our non-insurance companies, income and expenses not attributable to reportable segments, and loss and loss expenses of asbestos and environmental (A&E) liabilities and certain other non-A&E run-off exposures, including molestation. Effective July 1, 2023, 100 percent of Huatai Group’s non-insurance operations results, comprising real estate and holding company activity, are included in Corporate.

Administrative expenses increased $10 million for the three months ended March 31, 2024, respectively, primarily due to increased spending to support digital growth initiatives.

Cigna integration expenses principally comprised legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition. These expenses are one-time in nature and are not related to the on-going business activities of the segments. The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income.

Refer to the respective sections that follow for a discussion of Net realized gains (losses), Net investment income (loss), Amortization of purchased intangibles, and Income tax expense (benefit). Refer to Notes 10 and 16 to the Consolidated Financial Statements for additional information on Market risk benefits gains (losses) and Other (income) expense, respectively.