Chubb Ltd

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

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. In addition, the results of our run-off Brandywine business, including all run-off asbestos and environmental (A&E) exposures, and the results of Westchester specialty operations for 1996 and prior years are presented within Corporate.

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).

•2024: Flooding in the U.S., hail, tornadoes, wind events, winter storm losses, Hurricane Helene, and Hurricane Milton.

•2023: Flooding in the U.S., hail, tornadoes, wind events, winter storm losses, and Hawaii wildfires.

•2022: Hurricane Ian losses, winter storm Elliott losses, and other severe weather-related events in the U.S.

Net premiums written increased $1,352 million, or 7.0 percent, in 2024, reflecting strong new business and retention, including rate increases. The increase in premiums reflects growth of 7.4 percent in the North America Major Accounts and Specialty Insurance division and 6.5 percent in the North America Commercial Insurance division, and 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 $1,592 million, or 8.6 percent, in 2024, reflecting the growth in net premiums written described above.

The combined ratio increased in 2024, reflecting higher catastrophe losses and lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses was relatively flat in 2024, reflecting price changes not keeping pace with loss trends in financial lines, offset by a higher percentage of net premiums earned from 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.

•2024: Flooding in the U.S., hail, tornadoes, wind events, winter storm losses, Hurricane Helene, and Hurricane Milton.

•2023: Flooding in the U.S., hail, tornadoes, wind events, winter storm losses, and Hawaii wildfires.

•2022: Hurricane Ian losses, winter storm Elliott losses, and other severe weather-related events in the U.S., including Colorado wildfires.

Net premiums written increased $654 million, or 11.1 percent, in 2024, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $652 million, or 11.8 percent, in 2024, reflecting the growth in net premiums written described above.

The combined ratio decreased in 2024, reflecting higher favorable prior period development and lower catastrophe losses.

The CAY combined ratio excluding catastrophe losses decreased in 2024, primarily reflecting an improvement from earned rate and exposure growth. 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.

Net catastrophe Losses and Prior Period Development

•2024: Flooding in the U.S., hail, tornadoes, wind events, and Hurricane Helene.

•2023: Flooding in the U.S., hail, tornadoes, and wind events.

•2022: Hurricane Ian losses, severe weather-related events in the Chubb Agribusiness, and winter storm losses in the U.S.

Net premiums written decreased $485 million, or 15.2 percent, in 2024, primarily due to lower commodity prices in the current year, and higher year-over-year premium cessions to the U.S. government of $326 million. Under the profit-sharing agreement, we retained more premium in 2023 given the below average crop year and higher losses experienced in certain states that year.

Net premiums earned decreased $464 million, or 14.6 percent, in 2024, reflecting the factors described above.

The combined ratio decreased in 2024, reflecting higher favorable prior period development, partially offset by higher catastrophe losses.

The CAY combined ratio excluding catastrophe losses decreased in 2024, which contemplates a higher underwriting gain for the current crop year. This was partially offset by the unfavorable impact of lower net premiums earned, and a change in the mix of business away from products that have a lower 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.

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

•2023: Storms in New Zealand, international weather-related events, and Hurricane Otis losses.

•2022: Hurricane Ian losses, international weather-related events, and storms in Australia.

(1)2023 and 2024 include 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 $1,397 million in 2024, or $1,475 million on a constant-dollar basis, reflecting growth in commercial lines of 9.7 percent, or 9.8 percent on a constant-dollar basis, and growth in consumer lines of 13.3 percent, or 15.0 percent on a constant-dollar basis.

Our European division increased in 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 in 2024, reflecting the consolidation of Huatai Group's P&C business effective July 1, 2023. Commercial growth was driven by higher new business, higher retention, and positive rate increases, primarily in property and casualty lines. Consumer lines had strong growth in new business for both A&H and personal lines.

Latin America increased in 2024, reflecting strong growth in our consumer lines, including automobile in Mexico, and in commercial lines driven by new business and positive rate increases across property and casualty lines.

Net premiums earned increased $1,169 million in 2024, or $1,265 million on a constant-dollar basis, reflecting the increase in net premiums written described above.

The combined ratio increased in 2024 primarily reflecting lower favorable prior period development and higher catastrophe losses. The CAY combined ratio excluding catastrophe losses was relatively flat in 2024.

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.

•2024: Hurricane Milton, Hurricane Helene, and other severe weather-related events in the U.S., Europe, and Canada.

•2023: Hurricane Idalia, and other severe weather-related events in the U.S.

•2022: Hurricane Ian, and other severe weather-related events in the U.S., Australia, and Canada.

Net premiums written increased $328 million, or 32.2 percent, in 2024, primarily reflecting continued growth driven by new business. Growth was most notably in property and casualty lines, partially offset by a decrease in financial and specialty lines. Net premiums written in 2024 also benefited from a large one-off structured transaction in the second quarter and from catastrophe reinstatement premiums.

Net premiums earned increased $310 million, or 32.2 percent, in 2024, primarily reflecting the increase in net premiums written described above including the large one-off structured transaction and catastrophe reinstatement premiums, which were fully earned when written.

The combined ratio increased in 2024, primarily reflecting the impact of higher catastrophe losses and lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses decreased in 2024, primarily due to favorable market conditions in property lines. The decrease also reflects the favorable impact of higher net premiums earned on the administrative expense ratio, partially offset by the impact of the large one-off structured transaction described above.

Life Insurance

The Life Insurance segment comprises our international life operations, Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance. Effective July 1, 2023, the Life Insurance segment also 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.

NM - not meaningful

Net premiums written increased $861 million in 2024, or $987 million on a constant-dollar basis.

For our international life operations, net premiums written increased 17.1 percent, or 20.5 percent on a constant-dollar basis, primarily due to Huatai Group's life insurance business, as well as strong growth in North Asia, notably Hong Kong, Taiwan, and Korea, including face-to-face channels.

Net premiums written in our Combined Insurance business increased 12.3 percent in 2024, from growth in worksite business of 31.2 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. However, 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 $981 million in 2024, primarily in Taiwan and from the consolidation of Huatai Life business effective July 1, 2023.

Life Insurance segment income

Life Insurance segment income increased $49 million in 2024, or $75 million on a constant-dollar basis, reflecting the growth in premiums described above, strong underwriting margins in A&H products, expense synergies and higher net investment income from larger assets under management and better portfolio yield.

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.

Losses and loss expenses increased in 2024 primarily due to adverse development relating to our legacy asbestos and environmental exposures, and non A&E run-off casualty exposure, including molestation.

Administrative expenses increased in 2024, primarily due to increased spending to support growth, including digital growth initiatives.

Integration expenses principally comprised legal and professional fees and all other costs primarily 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 18 to the Consolidated Financial Statements for additional information on Market risk benefits gains (losses) and Other (income) expense, respectively.