Chubb Ltd. Q3 FY2024 earnings call

• Financial Performance: Strong double-digit growth in P&C underwriting and investment income led to core operating EPS growth over 15.5%. Earnings for the year at record levels with net and operating income up 16.9% and 13.8% respectively.
• Underwriting: Published combined ratio for the quarter was 87.7% with P&C underwriting income of $1.5 billion up over 11.5%; ex-cat current accident year underwriting income was $2 billion, up 11.5%, combined ratio 83.4%.
• Investments: Invested assets at $151 billion. Adjusted net investment income topped $1.6 billion, up 15.9%; fixed income portfolio yield 4.9%, new money rate averaging 5.5%.
• North America Details: Personal lines growth, high net worth segments had premium growth of 10% and 16.8% for true high net worth; agriculture gained market share with excellent underwriting results.
• International Details: International general insurance net premiums up; Asia Pacific leading, London wholesale market competitive; international life premiums and deposits up 21% in constant dollar.

Global P&C premium revenue, excluding agriculture, grew 7.6% or 8.5% in constant dollars. Core operating income for the quarter was $2.3 billion, up 14.3%. North America P&C: Premiums excluding agriculture grew 7.8%, with personal insurance up 10% and commercial up 7.2%. International P&C: Net premiums up 4.9% or 7.5% in constant dollars; Asia Pacific led with 9.2% growth, Latin America over 7.5%, Europe over 7%. Life insurance: Segment income was $284 million, ahead of plan, on pace to exceed the year's life division income target of $1 billion. Agriculture: Gained market share but premiums down due to lower commodity prices, but crop underwriting results were excellent.

• Earnings: Earnings for the year at record levels. Core operating ROE for the quarter was 13.9% with a return on tangible equity of 21.7.
• Tax Rate: Expected fourth quarter core effective tax rate between 19% and 19.25%, full year between 18% and 18.25%; guidance on 2025 tax rate in fourth quarter earnings.
• Life Insurance: On pace to exceed life division income target of $1 billion for the year.

• Catastrophes: Industry-wide natural catastrophes posed risks, but Chubb's underwriting remained strong.
• Market Competition: London wholesale market exhibited competitive behavior, which could impact profitability.
• Economic Factors: Volatility in economic conditions and inflation could affect underwriting and investment results.

Q: On North America commercial pricing, should growth accelerate?

A: Evan says they don't give forward guidance, but in a healthy market and underwriter's market, risk selection and pricing matter Q: On international business and London competition, impact of election?

A: London wholesale is 10% of international, rest of international growth strong, election link unclear Q: On property lines and hurricane activity, expectations for 1:1 renewals?

A: On primary side, pricing remains firm in middle market, but rate pressure in shared/layered large account/E&S; market remains robust Q: On North America casualty, troubled classes and future acceleration?

A: There's still some development in large account casualty, but in grand scheme of premiums it's not significant; casualty lines are growing quickly Q: On international life and time to next billion in operating earnings?

A: Evan says to stay tuned, it won't take a decade Q: On asset base growth and invested assets?

A: Invested assets grow due to business growth, strong margins; invested asset is a source of income with superior risk-adjusted returns