Chubb Ltd
For the period ended Jun 30, 2024. Filed Jul 26, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 26, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Unpaid losses and loss expenses
- Unpaid losses and loss expenses
The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
| Six Months Ended | ||
|---|---|---|
| June 30 | ||
| (in millions of U.S. dollars) | 2024 | 2023 |
| Gross unpaid losses and loss expenses – beginning of period | $80,122 | $75,747 |
| Reinsurance recoverable on unpaid losses – beginning of period (1) | (17,884) | (17,086) |
| Net unpaid losses and loss expenses – beginning of period | 62,238 | 58,661 |
| Net losses and loss expenses incurred in respect of losses occurring in: | ||
| Current year | 12,604 | 11,227 |
| Prior years (2) | (446) | (396) |
| Total | 12,158 | 10,831 |
| Net losses and loss expenses paid in respect of losses occurring in: | ||
| Current year | 2,492 | 2,264 |
| Prior years | 6,918 | 7,527 |
| Total | 9,410 | 9,791 |
| Foreign currency revaluation and other | (204) | 171 |
| Net unpaid losses and loss expenses – end of period | 64,782 | 59,872 |
| Reinsurance recoverable on unpaid losses (1) | 17,409 | 16,608 |
| Gross unpaid losses and loss expenses – end of period | $82,191 | $76,480 |
(2)Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, earned premiums, and A&H long-duration lines totaling $47 million andnil for the six months ended June 30, 2024 and 2023, respectively.
Net unpaid losses and loss expenses increased $2,544 million for the six months ended June 30, 2024, principally reflecting underlying exposure growth and the impact of a reinsurance commutation in connection with a large structured transaction during the first quarter, partially offset by the impact of favorable prior period development.
Prior Period Development
Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||
|---|---|---|---|---|---|---|
| (in millions of U.S. dollars) | Long-tail | Short-tail | Total | Long-tail | Short-tail | Total |
| North America Commercial P&C Insurance | $(142) | $(2) | $(144) | $(46) | $(146) | $(192) |
| North America Personal P&C Insurance | — | (64) | (64) | — | (116) | (116) |
| North America Agricultural Insurance | — | — | — | — | (28) | (28) |
| Overseas General Insurance | 36 | (97) | (61) | 35 | (185) | (150) |
| Global Reinsurance | 5 | (21) | (16) | 5 | (20) | (15) |
| Corporate | 93 | — | 93 | 102 | — | 102 |
| Total | $(8) | $(184) | $(192) | $96 | $(495) | $(399) |
| North America Commercial P&C Insurance | $(139) | $(7) | $(146) | $(130) | $(88) | $(218) |
| North America Personal P&C Insurance | — | (33) | (33) | — | (16) | (16) |
| North America Agricultural Insurance | — | (3) | (3) | — | (3) | (3) |
| Overseas General Insurance | — | (61) | (61) | — | (204) | (204) |
| Global Reinsurance | 7 | (24) | (17) | 7 | (32) | (25) |
| Corporate | 60 | — | 60 | 70 | — | 70 |
| Total | $(72) | $(128) | $(200) | $(53) | $(343) | $(396) |
Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate.
North America Commercial P&C Insurance. Net favorable development for the three and six months ended June 30, 2024, included $288 million and $338 million, respectively, from workers' compensation due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents. The favorable development was partially offset by net adverse development of $117 million and $167 million, respectively, in commercial auto liability mainly due to higher-than-expected loss development and severity trend. Development for the six months ended June 30, 2024, included $144 million of favorable development in surety, property and marine lines, partially offset by net adverse development of $97 million in commercial excess and umbrella lines.
Net favorable development for the three and six months ended June 30, 2023 included $264 million and $308 million, respectively, from workers' compensation lines due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents. The favorable development was partially offset by net adverse development of $119 million and $125 million, respectively, in commercial auto liability due to adverse reported loss experience.
Overseas General Insurance. Net favorable development for the three months ended June 30, 2024 included favorable claim development, mainly in marine and property lines. Net favorable development for the six months ended June 30, 2024 included favorable development of $85 million in property and $73 million in marine.
Net favorable development for the three months ended June 30, 2023 included favorable claim development in short-tail property and casualty and A&H. Net favorable development for the six months ended June 30, 2023 included $110 million of favorable catastrophe development and non-catastrophe property loss emergence.
Corporate. Net adverse development for the three and six months ended June 30, 2024 and 2023 was driven primarily by molestation-related claims development.
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