Chubb Ltd

Consolidated Operating Results – Years Ended December 31, 2024, 2023, and 2022

NM - not meaningful

(1)On a constant-dollar basis. Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period.

Financial Highlights for the Year Ended December 31, 2024

•Net income attributable to Chubb was a record $9.27 billion compared with $9.03 billion in 2023. Net income in 2024 was driven by record underwriting results and net investment income. Net income in 2023 includes the one-time deferred tax benefit of $1.14 billion, reflecting the transition provisions related to the enactment of Bermuda’s new income tax law.

•Consolidated net premiums written were $51.47 billion, up 8.7 percent, or 9.2 percent in constant dollars. P&C net premiums written increased 7.7 percent, or 8.0 percent in constant dollars, with commercial insurance up 6.3 percent and consumer insurance up 12.9 percent.

•The P&C combined ratio was 86.6 percent compared with 86.5 percent in 2023. The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.1 percent compared with 83.9 percent in 2023.

•Total pre-tax catastrophe losses were $2.39 billion compared with $1.83 billion in 2023.

•Life Insurance segment net premiums written increased 15.7 percent, or 18.5 percent in constant dollars, and segment income was a record $1.10 billion, up 4.6 percent, or 7.3 percent in constant dollars. Life insurance deposits collected increased $981 million, up 61.8 percent, or 65.5 percent in constant dollars.

•Pre-tax net investment income was a record $5.93 billion compared with $4.94 billion in 2023, primarily due to strong operating cash flow at higher reinvestment rates on fixed maturities.

Outlook

2024 was a simply outstanding year, as our results, top and bottom line, continue to demonstrate the broad and diversified nature of our company and the consistency of contributions from our businesses around the world: North America, Asia, Europe, Latin America, both commercial and consumer. As we look forward to 2025, we have good momentum and are optimistic about the year ahead.

The recent California wildfire disaster, which is a first quarter 2025 event, has an estimated net pre-tax cost of $1.5 billion and highlights our commitment to supporting our policyholders in times of need. Despite this, we expect continued strong performance across all business segments. Global P&C market conditions remain favorable, with significant growth opportunities across our operations, including commercial and consumer lines. We anticipate robust growth in operating earnings and earnings per share, driven by our key sources of income: P&C underwriting, investment income, and life insurance.

While we acknowledge the challenges posed by natural disasters, we are well-positioned to continue delivering outstanding results in 2025. Our resilient business model and unwavering support for our policyholders will guide us as we move forward in the year ahead.

(1)Commercial multiple peril represents retail package business (property and general liability).

The increase in consolidated net premiums written in 2024 principally reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business.

•Property and other short-tail lines grew globally due to strong new business and retention, including rate increases.

•Commercial casualty grew globally due to strong retention, including both rate and exposure increases, and strong new business.

•Financial lines declined due to lower renewal retention, including lower rates, due to a competitive market environment where pricing does not provide an adequate return.

•Workers’ compensation was flat.

•Commercial multiple peril grew due to strong new business and retention, including higher rates and exposure, in North America.

•Surety grew due to strong new business.

•Agriculture declined primarily due to lower commodity prices in the current year, and higher year-over-year premium cessions to the U.S. government.

•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 also benefited from the consolidation of Huatai on July 1, 2023.

•Global A&H – P&C grew in Europe and Asia due to new business, including rate increases in Europe, and with Asia benefiting from the consolidation of Huatai.

•Reinsurance lines reflected continued growth, mainly in property and casualty lines, reflecting favorable market conditions and included a large one-off structured transaction from the second quarter in the current year.

•Life Insurance grew primarily due to strong growth in Asia, Latin America, and Combined Insurance North America. Growth also benefited from the consolidation of Huatai Group's life business.

For additional information on net premiums written, refer to the segment results discussions.

Net Premiums Earned

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. Net premiums earned increased $4.1 billion, up 9.0 percent, or 9.6 percent in constant dollars in 2024. P&C net premiums earned increased 8.1 percent, or 8.4 percent in constant dollars, comprising growth in commercial and consumer lines of 7.2 percent and 11.7 percent, respectively.

Catastrophe Losses and Prior Period Development

We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured losses and affects a significant number of insureds. For events outside of the U.S. and Canada, we generally use a similar definition. Catastrophe losses are net of reinsurance and include reinstatement premiums, which are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences. The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.

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. PPD includes adjustments relating to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies.

Refer to the Non-GAAP Reconciliation section for further information on reinstatement premiums on catastrophe losses and adjustments to prior period development.

• 2024: Severe weather-related events in the U.S. and internationally, including Hurricane Helene of $390 million and Hurricane Milton of $309 million.

•2023: Severe weather-related events in the U.S. and internationally, Hawaii wildfires, and New Zealand storms.

• 2022: Hurricane Ian losses of $975 million, winter storm Elliott losses of $400 million, severe weather-related events in the U.S. and internationally, Australia storms, and Colorado wildfires.

Pre-tax net favorable PPD for 2024 was $1,152 million in our active companies, including favorable development of $1,144 million in short-tail lines, mainly in property, marine, and U.S. homeowners, and favorable development of $8 million in long-tail lines, comprising favorable development in workers’ compensation mostly offset by adverse development in casualty lines, predominantly commercial excess and umbrella and commercial auto liability. Our corporate run-off portfolio had adverse development of $296 million, with $166 million related to legacy asbestos and environmental exposures, and $58 million related to molestation claims.

Pre-tax net favorable PPD for 2023 was $1,050 million in our active companies, including favorable development of $921 million in short-tail lines, mainly in property, and surety lines, and favorable development of $129 million in long-tail lines, comprising favorable development in workers’ compensation partially offset by adverse development in casualty lines. Our corporate run-off portfolio had adverse development of $277 million, with $149 million related to legacy asbestos and environmental exposures and $49 million related to molestation claims.

P&C Combined Ratio

In evaluating our segments excluding Life Insurance financial performance, we use the P&C combined ratio, the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio. We calculate these ratios by dividing the respective expense amounts by net premiums earned. We do not calculate these ratios for the Life Insurance segment as we do not use these measures to monitor or manage the business in that segment. The P&C combined ratio is determined by adding the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio. A P&C combined ratio under 100 percent indicates underwriting income, and a combined ratio exceeding 100 percent indicates underwriting loss.

The P&C CAY combined ratio excluding catastrophe losses decreased in 2024, reflecting a higher percentage of net premiums earned from property lines, and the contemplation of a higher underwriting gain in MPCI for the current crop year. These factors were offset by price changes not keeping pace with loss trends in financial lines, a change in mix of business away from products that have a lower policy acquisition cost ratio, and increased spending to support growth.

The P&C combined ratio was relatively flat, reflecting higher catastrophe losses in addition to the factors mentioned above.

Policy benefits

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.

Policy benefits were $4,714 million and $3,628 million in 2024 and 2023, respectively. The increase in Policy benefits is primarily due to the consolidation of Huatai Group.

Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Interest expense, Amortization of purchased intangibles, and Income tax expense.