Chubb Ltd

Segment Operating Results – Three and Nine Months Ended September 30, 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 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.

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.

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.

The combined ratio increased for the three and nine months ended September 30, 2024, reflecting higher catastrophe losses and lower favorable prior period development.

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.

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.

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.

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.

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.

The combined ratio decreased for the three and nine months ended September 30, 2024, reflecting higher favorable prior period development and lower catastrophe losses.

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.

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.

Catastrophe losses through both September 30, 2024 and 2023, were primarily from flooding in the U.S., hail, tornadoes, and wind events, including Hurricane Helene in 2024.

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.

Net premiums earned decreased $121 million, or 7.9 percent, and $161 million, or 6.9 percent, for the three and nine months ended September 30, 2024, reflecting the factors described above.

The combined ratio and the CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, which contemplates a higher underwriting gain for the current crop year. The improvement for the three months ended September 30, 2024, also includes a favorable impact from our crop commodity price hedge activity, which produced a lower loss this year versus the prior year quarter.

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

•2024: Hurricane Helene, Rio Grande storms, and International weather-related events.

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

(1)2023 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 $156 million and $1,177 million, or $234 million and $1,256 million on a constant-dollar basis, for the three and nine months ended September 30, 2024, respectively, reflecting growth in commercial lines of 5.1 percent and 10.2 percent, or 6.7 percent and 10.6 percent on a constant-dollar basis, respectively, and growth in consumer lines of 4.5 percent and 16.4 percent, or 8.5 percent and 18.2 percent on a constant-dollar basis, respectively.

Our European division increased for the three and nine months ended September 30, 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 growth in A&H.

Asia increased for the three and nine months ended September 30, 2024, reflecting higher new business, higher retention and positive rate increases in commercial lines. Consumer lines had strong growth in Asia with growth in new business for both A&H and personal lines. The increase for the nine months ended September 30, 2024, also reflects the consolidation of Huatai Group's P&C business effective July 1, 2023.

Latin America increased for the three and nine months ended September 30, 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 including automobile in Mexico, also continues to have strong growth.

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.

The combined ratio decreased for the three months ended September 30, 2024, primarily reflecting lower catastrophe losses and higher favorable prior period development. The combined ratio increased for the nine months ended September 30, 2024, primarily reflecting lower favorable prior period development. The CAY combined ratio excluding catastrophe losses increased for the nine months ended September 30, 2024, 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

•2024: Hurricane Helene and flooding in Canada.

•2023: Hurricane Idalia.

Net premiums written increased $91 million and $291 million for the three and nine months ended September 30, 2024, respectively, primarily reflecting continued growth driven by strong new business. Growth was most notably in property and casualty lines, partially offset by a decrease in financial and specialty lines. The increase for the nine months ended September 30, 2024 included a large one-off structured transaction in the second quarter, which benefited growth by 4.4 percentage points.

Net premiums earned increased $77 million and $230 million for the three and nine months ended September 30, 2024, respectively, reflecting the increase in net premiums written described above including the large one-off structured transaction in the second quarter, which was fully earned when written.

The combined ratio increased for the three months ended September 30, 2024, primarily reflecting the impact of higher catastrophe losses, partially offset by the impact of favorable prior period development. The combined ratio increased for the nine months ended September 30, 2024, primarily reflecting the impact of higher catastrophe losses and the impact of lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, primarily due to favorable market conditions in property lines. The improvement also reflects the favorable impact of higher net premiums earned on the administrative expense ratio. The improvement for the nine months ended September 30, 2024 was partially offset by the impact of the large structured transaction 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 $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.

For our international life operations, net premiums written increased 5.5 percent and 20.8 percent for the three and nine months ended September 30, 2024, primarily due to strong growth in North Asia, notably Hong Kong and Taiwan. The increase for the nine months ended September 30, 2024, is also due to the consolidation of Huatai Group's life business, which contributed 15.7 percentage points of growth.

Net premiums written in our North American Combined Insurance business increased 14.4 percent and 10.5 percent for the three and nine months ended September 30, 2024, respectively, due to growth in its worksite business of 31.7 percent and 27.0 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 $198 million and $636 million for the three and nine months ended September 30, 2024, respectively, primarily from Taiwan. The increase for the nine months ended September 30, 2024 also reflects the consolidation of Huatai Life business.

Life Insurance segment income

Life Insurance segment income decreased $4 million, but increased $6 million on a constant-dollar basis, for the three months ended September 30, 2024, which was impacted by lower favorable loss reserve development related to our Combined Insurance supplemental A&H business and impact of foreign exchange from the Korean Won. Life Insurance segment income increased $42 million, or $65 million on a constant-dollar basis, for the nine months ended September 30, 2024, reflecting the growth in premiums described above, as well as higher net investment income from higher assets under management and fixed income yield.

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 $6 million and $20 million for the three and nine months ended September 30, 2024, respectively, primarily due to increased spending to support growth, including digital growth initiatives.

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 11 and 17 to the Consolidated Financial Statements for additional information on Market risk benefits gains (losses) and Other (income) expense, respectively.