Chubb Ltd
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Oct 30, 2024
CB$365.02-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-26.
0000896159-24-000010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsForward-Looking StatementsOverviewConsolidated Operating ResultsSegment Operating ResultsNet Realized and Unrealized Gains (Losses)Effective Income Tax RateNon-GAAP ReconciliationAmortization of Purchased Intangibles and Other AmortizationNet Investment IncomeInvestmentsUnpaid Losses and Loss ExpensesAsbestos and Environmental (A&E)Fair Value MeasurementsCatastrophe ManagementGlobal Property Catastrophe Reinsurance ProgramCapital ResourcesLiquidityInformation Provided In Connection With Outstanding Debt of SubsidiariesCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0000896159-24-000013
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsForward-Looking StatementsOverviewConsolidated Operating ResultsSegment Operating ResultsNet Realized and Unrealized Gains (Losses)Effective Income Tax RateNon-GAAP ReconciliationAmortization of Purchased Intangibles and Other AmortizationNet Investment IncomeInterest ExpenseInvestmentsUnpaid Losses and Loss ExpensesAsbestos and Environmental (A&E)Fair Value MeasurementsCatastrophe ManagementGlobal Property Catastrophe Reinsurance ProgramCapital ResourcesLiquidityInformation Provided In Connection With Outstanding Debt of SubsidiariesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 241 previous paragraphs and 241 current paragraphs.
136 unchanged; 88 reworded; 17 added; 17 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 43 previous and 43 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
•Consolidated net premiums earned were $13.4 billion, up 5.5 percent, or 6.7 percent in constant dollars.
Current report
•Operating cash flow was $4.3 billion compared with $4.7 billion in the prior year period.
Current report
•Life Insurance grew primarily due to strong growth in Asia and Combined Insurance North America. Growth for the nine months ended September 30, 2024, is also due to the consolidation of Huatai Group's life business, which contributed 12.6 percentage points of growth.
Current report
Pre-tax net favorable PPD for the three months ended September 30, 2023, was $200 million, including adverse development of $116 million in long-tail lines, with $50 million related to legacy environmental exposures. Net favorable development of $316 million in short-tail lines is primarily in property.
Current report
The P&C combined ratio and the P&C CAY combined ratio excluding catastrophe losses decreased for the three months ended September 30, 2024, reflecting the favorable impact of higher net premiums earned, a higher percentage of net premiums earned from property lines and excess and surplus homeowners, and the contemplation of a higher underwriting gain in MPCI for the current crop year. These factors were partially offset by price changes not keeping pace with loss trends in financial lines. The P&C combined ratio also reflects higher catastrophe losses, which were partially offset by higher favorable prior period development.
Current report
The P&C CAY combined ratio excluding catastrophe losses decreased for the nine months ended September 30, 2024, reflecting the favorable factors mentioned above.
Current report
Net premiums earned increased $375 million, or 7.9 percent, and $1,180 million, or 8.6 percent, for the three and nine months ended September 30, 2024, respectively, reflecting the growth in net premiums written described above.
Current report
The combined ratio increased for the three and nine months ended September 30, 2024, reflecting higher catastrophe losses and lower favorable prior period development.
Current report
Net premiums earned increased $170 million, or 12.0 percent, and $476 million, or 11.7 percent, for the three and nine months ended September 30, 2024, respectively, reflecting the growth in net premiums written described above.
Current report
Net premiums written decreased $142 million, or 9.3 percent, and $195 million, or 7.6 percent, for the three and nine months ended September 30, 2024, primarily due to lower commodity prices in the current year. The decrease was partially offset by strong new business and rate in our Agriculture P&C business.
Current report
Net premiums earned increased $110 million and $961 million, or $190 million and $1,057 million on a constant-dollar basis, for the three and nine months ended September 30, 2024, respectively, reflecting the increase in net premiums written described above.
Current report
•2024: Hurricane Helene and flooding in Canada.
Current report
Net premiums written increased $100 million and $750 million, or $149 million and $865 million on a constant-dollar basis, for the three and nine months ended September 30, 2024, respectively.
Current report
Pre-tax net realized gains of $198 million and $201 million for the three and nine months ended September 30, 2024, respectively, includes $111 million and $186 million, respectively on fixed maturities, comprising mark-to-market gains on Other investments - fixed maturities, partially offset by losses on sales of fixed income securities. In addition, there were pre-tax net realized gains from mark-to-market gains on public equity securities, partially offset by foreign exchange losses.
Current report
Interest expense for the nine months ended September 30, 2024, was $552 million comprising $568 million related to fixed expenses on existing debt obligations and variable expenses, and a $16 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition. The variable expenses relate to fees from the usage of certain facilities, including letters of credit, and interest on held collateral and repurchase agreements. Based on projected variable expenses and our existing debt obligations, including the $1.0 billion of 5.00 percent senior notes issued on March 7, 2024, the new $700 million of 4.65 percent senior notes issued on July 31, 2024, and the new $600 million of 5.00 percent senior notes issued on July 31, 2024, we expect pre-tax interest expense to be approximately $200 million for the remainder of 2024, or $768 million for the full year. We also expect a $5 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition for the remainder of 2024. For more information on our debt obligations, refer to Note 12 to the Consolidated Financial Statements herein, and Note 13 to the Consolidated Financial Statements, under Item 8 in our 2023 Form 10-K.
Removed paragraphs (17)
Previous report
•Consolidated net premiums earned were $12.3 billion, up 11.7 percent, or 12.3 percent in constant dollars.
Previous report
•Operating cash flow was $4.1 billion compared with $2.5 billion in the prior year period.
Previous report
•Life Insurance grew due to the consolidation of Huatai Group, and organic growth in Asia, Latin America, and in Combined Insurance North America. The consolidation of Huatai Group contributed $219 million, or 17.3 percentage points, and $485 million, or 18.9 percentage points, to growth for the three and six months ended June 30, 2024, respectively.
Previous report
Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events:
Previous report
Pre-tax net favorable PPD for the three months ended June 30, 2023, was $200 million, including adverse development of $49 million for molestation-related claims development.
Previous report
The P&C combined ratio increased for the three and six months ended June 30, 2024, reflecting higher catastrophe losses and a lower impact from favorable prior period development.
Previous report
Net premiums earned increased $294 million, or 6.4 percent, and $805 million, or 9.0 percent, for the three and six months ended June 30, 2024, respectively, reflecting the growth in net premiums written described above.
Previous report
The combined ratio increased for the three and six months ended June 30, 2024, reflecting higher catastrophe losses and lower favorable prior period development.
Previous report
Net premiums earned increased $155 million, or 11.5 percent, and $306 million, or 11.5 percent, for the three and six months ended June 30, 2024, respectively, reflecting the growth in net premiums written described above.
Previous report
Net premiums written decreased $9 million, or 1.2 percent, and $53 million, or 5.0 percent, for the three and six months ended June 30, 2024, primarily due lower commodity prices in the current year. The decrease in net premiums written for the six months ended June 30, 2024, also reflects a return of premium of $41 million under the U.S. government risk-sharing formula related to the 2023 crop 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.
Previous report
Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events:
Previous report
Net premiums earned increased $439 million and $851 million, or $465 million and $867 million on a constant-dollar basis, for the three and six months ended June 30, 2024, respectively, reflecting the increase in net premiums written described above.
Previous report
Net premiums written increased $310 million and $650 million, or $342 million and $716 million on a constant-dollar basis, for the three and six months ended June 30, 2024, respectively.
Previous report
Effective September 1, 2023, Chubb purchased an additional layer of per occurrence coverage for named windstorms and earthquakes within Northeast states. Coverage is provided for losses for North American and international operations within the territory through August 31, 2024.
Previous report
(d)Northeast states are defined as Virginia to Maine. This coverage is fully placed with Reinsurers and inures to the benefit of the United States (excluding Alaska and Hawaii) layer.
Reworded paragraphs (88)
Previous wording
The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and six months ended June 30, 2024.
Current wording
The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and nine months ended September 30, 2024.
Previous wording
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Any written or oral statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. The words “believe,” “anticipate,” “estimate,” “project,” “should,” “plan,” “expect,” “intend,” “hope,” “feel,” “foresee,” “will likely result,” “will continue,” and variations thereof and similar expressions, identify forward-looking statements. These forward-looking statements are subject to certain risks, uncertainties, and other factors that could, should potential events occur, cause actual results to differ materially from such statements. These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the U.S. Securities and Exchange Commission (SEC), include but are not limited to:
Current wording
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Any written or oral statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks, uncertainties, and other factors that could, should potential events occur, cause actual results to differ materially from such statements. These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the SEC, include but are not limited to:
Previous wording
•the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; the amount of dividends received from subsidiaries;
Current wording
•the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; and the amount of dividends received from subsidiaries;
Previous wording
•acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our outstanding purchase of additional interests in Huatai Insurance Group Co., Ltd. (Huatai Group);
Current wording
•acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our planned purchases of additional interests in Huatai Insurance Group Co., Ltd;
Previous wording
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events or otherwise.
Current wording
The words “believe,” “anticipate,” “estimate,” “project,” “should,” “plan,” “expect,” “intend,” “hope,” “feel,” “foresee,” “will likely result,” “will continue,” and variations thereof and similar expressions, identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates such statements were made. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events, or otherwise.
Previous wording
Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies. Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect subsidiaries (collectively, the Chubb Group of Companies, Chubb, we, us, or our) are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide. At June 30, 2024, we had total assets of $239 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $61 billion. Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda. 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.
Current wording
Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies. Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect subsidiaries (collectively, the Chubb Group of Companies, Chubb, we, us, or our) are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide. At September 30, 2024, we had total assets of $251 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $66 billion. Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda. 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.
Previous wording
On July 1, 2023, we completed the acquisition of a controlling majority interest of Huatai Group. For the three and six months ended June 30, 2024, the results of operations of Huatai Group are reported at 100 percent in our consolidated results starting from the acquisition date, with amounts attributable to shareholders other than Chubb reflected under Noncontrolling interests. Huatai Group's life and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment. Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.
Current wording
On July 1, 2023, we completed the acquisition of a controlling majority interest of Huatai Group. The results of operations of Huatai Group are reported at 100 percent in our consolidated results starting from the acquisition date, with amounts attributable to shareholders other than Chubb reflected under Noncontrolling interests. Huatai Group's life and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment. Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.
Previous wording
Consolidated Operating Results – Three and Six Months Ended June 30, 2024 and 2023
Current wording
Consolidated Operating Results – Three and Nine Months Ended September 30, 2024 and 2023
Previous wording
•Net income attributable to Chubb was $2.2 billion compared with $1.8 billion in the prior year period. Net income in the current quarter was driven by strong underwriting results and record net investment income.
Current wording
•Net income attributable to Chubb was $2.3 billion compared with $2.0 billion in the prior year period. Net income in the current quarter was driven by strong underwriting results and record net investment income.
Previous wording
•Consolidated net premiums written were $13.4 billion, up 11.8 percent, or 12.3 percent in constant dollars. P&C net premiums written increased 10.3 percent, or 10.6 percent in constant dollars, with commercial insurance up 8.8 percent and consumer insurance up 15.9 percent. Life Insurance segment net premiums written increased 24.5 percent, or 27.6 percent in constant dollars, reflecting the impact of the consolidation of Huatai Group on July 1, 2023, and growth in existing business.
Current wording
•Consolidated net premiums written were $13.8 billion, up 5.5 percent, or 6.6 percent in constant dollars. P&C net premiums written increased 5.4 percent, or 6.1 percent in constant dollars, with commercial insurance up 5.1 percent and consumer insurance up 9.4 percent. Life Insurance segment net premiums written increased 6.8 percent, or 10.6 percent in constant dollars.
Previous wording
•Pre-tax net investment income was a record $1.5 billion compared with $1.1 billion in the prior year period, primarily due to strong operating cash flow at higher reinvestment rates on fixed maturities, and the consolidation of Huatai Group.
Current wording
•Pre-tax net investment income was a record $1.5 billion compared with $1.3 billion in the prior year period, primarily due to strong operating cash flow at higher reinvestment rates on fixed maturities.
Previous wording
•Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $580 million (5.4 percentage points of the P&C combined ratio) and $482 million, respectively, compared with $400 million (4.1 percentage points of the P&C combined ratio) and $319 million, respectively, in the prior year period.
Current wording
•Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $765 million (6.4 percentage points of the P&C combined ratio) and $629 million, respectively, compared with $670 million (6.0 percentage points of the P&C combined ratio) and $544 million, respectively, in the prior year period.
Previous wording
•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, in the prior year period.
Current wording
•Total pre-tax and after-tax favorable prior period development were $244 million and $181 million, respectively, compared with $200 million and $116 million, respectively, in the prior year period.
Previous wording
•The P&C combined ratio was 86.8 percent compared with 85.4 percent in the prior year period. The current year ratio increased primarily due to higher catastrophe losses and lower favorable prior period development. The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.2 percent compared with 83.3 percent in the prior year period.
Current wording
•The P&C combined ratio was 87.7 percent compared with 88.4 percent in the prior year period. The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.4 percent compared with 84.3 percent in the prior year period.
Previous wording
•Chubb shareholders' equity increased $503 million in the quarter, primarily from net income attributable to Chubb of $2.2 billion, partially offset by total capital returned to shareholders of $939 million, net unrealized losses of $478 million related to cumulative foreign exchange translation, and net unrealized losses on our investment portfolio of $476 million, reflecting the mark-to-market impact in the fixed-income portfolio. Total capital returned to shareholders comprises share repurchases of $570 million at an average purchase price of $253.02 per share, and dividends of $369 million.
Current wording
•Chubb shareholders' equity increased $4.7 billion in the quarter, primarily from net income attributable to Chubb of $2.3 billion and net unrealized gains on our investment portfolio of $3.3 billion, reflecting the mark-to-market impact of lower interest rates on the fixed-income portfolio, partially offset by total capital returned to shareholders of $782 million. Total capital returned to shareholders comprises share repurchases of $413 million at an average purchase price of $286.18 per share, and dividends of $369 million.
Previous wording
The increase in consolidated net premiums written for the three and six months ended June 30, 2024, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business. The consolidation of Huatai Group's life and P&C businesses contributed $445 million, or 3.6 percentage points, and $1,004 million, or 4.2 percentage points, for the three and six months ended June 30, 2024, respectively.
Current wording
The increase in consolidated net premiums written for the three and nine months ended September 30, 2024, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business.
Previous wording
•Financial lines declined due to a competitive market environment and lower retention.
Current wording
•Financial lines declined due to lower renewal retention, including lower rates, due to a competitive market environment.
Previous wording
•Workers' compensation grew slightly due to new business and retention, including exposure increases.
Current wording
•Workers' compensation grew slightly for the nine months ended September 30, 2024, due to new business and retention.
Previous wording
•Commercial multiple peril grew due to strong new business and retention, including higher rates in North America.
Current wording
•Commercial multiple peril grew due to strong new business and retention, including higher rates and exposure, in North America.
Previous wording
•Agriculture declined primarily due to lower commodity prices in the current year. The decrease in net premiums written for the six months ended June 30, 2024, also reflects a return of premium under the U.S. government risk-sharing formula related to the 2023 crop year.
Current wording
•Agriculture declined primarily due to lower commodity prices in the current year, partially offset by strong new business and rate in our Agriculture P&C business.
Previous wording
•Personal lines grew globally due to new business and renewal retention, as well as increases in both rate and exposure, and the consolidation of Huatai.
Current wording
•Personal lines grew globally due to new business and renewal retention, as well as increases in both rate and exposure, in homeowners and excess lines, in addition to growth in auto lines in certain international markets. Growth for the nine months ended September 30, 2024, also benefited from the consolidation of Huatai.
Previous wording
•Global A&H – P&C grew in Europe and Asia, with Asia partially benefiting from the consolidation of Huatai.
Current wording
•Global A&H – P&C grew in Europe and Asia, with Asia partially benefiting from the consolidation of Huatai for the nine months ended September 30, 2024.
Previous wording
•Reinsurance lines reflected continued growth, mainly in property lines and a large one-off structured transaction in the three months ended June 30, 2024.
Current wording
•Reinsurance lines reflected continued growth, mainly in property and casualty lines. Growth for the nine months ended September 30, 2024, included a large one-off structured transaction from the second quarter.
Previous wording
Net premiums earned for short-duration contracts, typically P&C contracts, generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Net premiums earned for long-duration contracts, typically traditional life contracts, generally are recognized as earned when due from policyholders. For the three months ended June 30, 2024, net premiums earned increased $1.3 billion, up 11.7 percent, or 12.3 percent in constant dollars. P&C net premiums earned increased 10.1 percent, or 10.4 percent in constant dollars, comprising growth in commercial insurance andconsumer insurance of 8.8 percent and 15.1 percent, respectively. For the six months ended June 30, 2024, net premiums earned increased $2.7 billion, up 12.9 percent, or 13.4 percent in constant dollars. P&C net premiums earned increased 11.1 percent, or 11.3 percent in constant dollars, comprising growth in commercial insurance andconsumer insurance of 10.1 percent and 14.6 percent, respectively.
Current wording
Net premiums earned for short-duration contracts, typically P&C contracts, generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Net premiums earned for long-duration contracts, typically traditional life contracts, generally are recognized as earned when due from policyholders. For the three months ended September 30, 2024, net premiums earned increased $699 million, up 5.5 percent, or 6.7 percent in constant dollars. P&C net premiums earned increased 5.4 percent, or 6.3 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 5.5 percent and 8.7 percent, respectively. For the nine months ended September 30, 2024, net premiums earned increased $3.4 billion, up 10.2 percent, or 10.9 percent in constant dollars. P&C net premiums earned increased 9.0 percent, or 9.4 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 8.3 percent and 12.5 percent, respectively.
Previous wording
•2024: Severe weather-related events in the U.S. and internationally, including Rio Grande storms.
Current wording
•2024: Severe weather-related events in the U.S. and internationally, including Hurricane Helene and Rio Grande storms.
Previous wording
•2023: Severe weather-related events in the U.S. and internationally, including New Zealand storms.
Current wording
•2023: Severe weather-related events in the U.S. and internationally, Hawaii wildfires, and New Zealand storms.
Previous wording
Pre-tax net favorable PPD for the six months ended June 30, 2024, was $501 million in our active companies, principally in short-tail property and marine lines. Our corporate run-off portfolio had adverse development of $102 million, primarily for molestation-related claims development.
Current wording
Pre-tax net favorable PPD for the three months ended September 30, 2024, was $299 million in our active companies, including adverse development of $59 million in long-tail lines, principally casualty, and favorable development of $358 million in short-tail lines, principally in property and marine. Our corporate run-off portfolio had adverse development of $55 million, with $47 million related to legacy environmental exposures.
Previous wording
Pre-tax net favorable PPD for the three months ended June 30, 2024, was $285 million in our active companies with 35 percent in long-tail lines, primarily in workers' compensation lines, partially offset by unfavorable development in commercial auto liability, and 65 percent in short-tail lines, primarily in marine and property lines. Our corporate run-off portfolio had adverse development of $93 million, which included molestation-related claims development of approximately $60 million.
Current wording
Pre-tax net favorable PPD for the nine months ended September 30, 2024, was $800 million in our active companies, including adverse development of $53 million in long-tail lines, principally in casualty, and favorable development of $853 million in short-tail lines, principally in property and marine. Our corporate run-off portfolio had adverse development of $157 million, with $60 million related to molestation claims and $47 million related to legacy environmental exposures.
Previous wording
Pre-tax net favorable PPD for the six months ended June 30, 2023, was $396 million, including adverse development of $49 million for molestation claims. Excluding the adverse development, we had net favorable development of $445 million with 23 percent in long-tail lines, principally from accident years 2011 through 2019, and 77 percent in short-tail lines, primarily in A&H and surety lines.
Current wording
Pre-tax net favorable PPD for the nine months ended September 30, 2023, was $596 million, including adverse development of $50 million related to legacy environmental exposures and $49 million for molestation claims. Excluding the adverse development, we had net favorable development of $695 million with $36 million in long-tail lines, principally from accident years 2013 through 2019, and $659 million in short-tail lines, primarily in property, A&H, and surety.
Previous wording
The P&C CAY combined ratio excluding catastrophe losses was relatively flat for the three and six months ended June 30, 2024, primarily reflecting the favorable impact of higher net premiums earned and a higher percentage of net premiums earned from property lines and homeowners. These factors were substantially offset by higher loss trends in certain casualty lines, price changes not keeping pace with loss trends in financial lines, and increased spending to support growth.
Current wording
The P&C combined ratio was relatively flat for the nine months ended September 30, 2024, as the favorable factors mentioned above were substantially offset by higher loss trends in certain casualty lines, price changes not keeping pace with loss trends in financial lines, and higher catastrophe losses.
Previous wording
Policy benefits represent losses on contracts classified as long-duration and generally include accident and supplemental health products, term and whole life products, endowment products, and annuities. Policy benefits include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account treatment under U.S. GAAP. The offsetting movements of these liabilities are recorded in Other (income) expense in the Consolidated statements of operations. In addition, Policy benefits include the impact on the liabilities from (gains) losses on investment portfolios supporting certain participating policies. The offsetting movements of these liabilities are recorded in Realized gains (losses) in the Consolidated statements of operations. Policy benefits for the three and six months ended June 30, 2024, include the results of Huatai Group. Refer to the Life Insurance segment operating results section for further discussion.
Current wording
Policy benefits represent losses on contracts classified as long-duration and generally include accident and supplemental health products, term and whole life products, endowment products, and annuities. Policy benefits include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account treatment under U.S. GAAP. The offsetting movements of these liabilities are recorded in Other (income) expense in the Consolidated statements of operations. In addition, Policy benefits include the impact on the liabilities from (gains) losses on investment portfolios supporting certain participating policies. The offsetting movements of these liabilities are recorded in Realized gains (losses) in the Consolidated statements of operations. Policy benefits include the results of Huatai Group as of July 1, 2023. Refer to the Life Insurance segment operating results section for further discussion.
Previous wording
Policy benefits were $1,219 million and $830 million for the three months ended June 30, 2024 and 2023, respectively, and $2,399 million and $1,627 million for the six months ended June 30, 2024 and 2023, respectively. The increase in Policy benefits is primarily due to the consolidation of Huatai Group.
Current wording
Policy benefits were $1,099 million and $938 million for the three months ended September 30, 2024 and 2023, respectively, and $3,498 million and $2,565 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in Policy benefits for the nine months ended September 30, 2024, is primarily due to the consolidation of Huatai Group.
Previous wording
Segment Operating Results – Three and Six Months Ended June 30, 2024 and 2023
Current wording
Segment Operating Results – Three and Nine Months Ended September 30, 2024 and 2023
Previous wording
Catastrophe losses through both June 30, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.
Current wording
Catastrophe losses were primarily from flooding in the U.S., hail, tornadoes, wind events, and winter storm losses, including Hurricane Helene in 2024 and Hawaii wildfires in 2023.
Previous wording
Net premiums written increased $346 million, or 6.7 percent, and $747 million, or 7.9 percent, for the three and six months ended June 30, 2024, respectively, 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 and casualty lines, 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 that adversely impacted growth.
Current wording
Net premiums written increased $368 million, or 7.2 percent, and $1,115 million, or 7.7 percent, for the three and nine months ended September 30, 2024, respectively, 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 and casualty lines. 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 that adversely impacted growth.
Previous wording
The CAY combined ratio excluding catastrophe losses increased for the six months ended June 30, 2024, reflecting higher loss trends in certain casualty lines, which were mostly offset by a higher percentage of net premiums earned from property lines.
Current wording
The CAY combined ratio excluding catastrophe losses decreased for the three months ended September 30, 2024, reflecting a higher percentage of net premiums earned from property lines. The improvement was partially offset by price changes not keeping pace with loss trends in financial lines. The CAY combined ratio excluding catastrophe losses was relatively flat for the nine months ended September 30, 2024, reflecting higher loss trends in certain casualty lines and price changes not keeping pace with loss trends in financial lines, offset by lower loss trends in property lines.
Previous wording
Catastrophe losses through both June 30, 2024 and 2023, were primarily from U.S. flooding, hail, tornadoes, wind events, and winter storm losses.
Current wording
Catastrophe losses through both September 30, 2024 and 2023, were primarily from flooding in the U.S., hail, tornadoes, wind events, and winter storm losses, including Hurricane Helene in 2024 and Hawaii wildfires in 2023.
Previous wording
Net premiums written increased $195 million, or 12.3 percent, and $355 million, or 12.3 percent, for the three and six months ended June 30, 2024, respectively, driven by strong new business and retention, including positive rate and exposure increases in all lines.
Current wording
Net premiums written increased $152 million, or 10.0 percent, and $507 million, or 11.5 percent, for the three and nine months ended September 30, 2024, respectively, driven by strong new business and retention, including positive rate and exposure increases in all lines.
Previous wording
The combined ratio improved for the three and six months ended June 30, 2024, reflecting higher favorable prior period development and a lower impact from catastrophe losses.
Current wording
The combined ratio decreased for the three and nine months ended September 30, 2024, reflecting higher favorable prior period development and lower catastrophe losses.
Previous wording
The CAY combined ratio excluding catastrophe losses improved for the three and six months ended June 30, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, and a higher percentage of net premiums earned from homeowners, partly offset by an increase in excess liability and auto loss trends. Additionally, the improvement includes lower acquisition expenses due to commission reductions in our auto and excess lines, and a higher percentage of net premiums earned from excess and surplus homeowners lines, which carry a lower acquisition cost.
Current wording
The CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, and a higher percentage of net premiums earned from excess and surplus homeowners, which carry a lower loss and expense ratio. Additionally, the improvement includes lower acquisition expenses due to commission reductions in our auto and excess lines. The improvement was partly offset by an increase in excess liability loss trends.
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