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Chubb Ltd Annual Report (Amendment), Year Ended Sep 30, 1998

Filing Date
Filed February 11, 1999
Period End
September 30, 1998
Security
CB
In the record · 2016–202610-K1110-Q328-K112

CB filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 112 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’16Jan ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · May ’21May ’21
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed February 11, 1999. Cited figures are marked; the original filing is the authoritative source.

This is an amended Form 10-K (Part II, Item 8 and Part III, Item 12) for the fiscal year ended 1998, filed by the company identified in the filing as a Bermuda-incorporated insurer with Ordinary Shares and Brian Duperreault as Chairman, President and CEO.

The filing names the registrant as ACE Limited, not Chubb Ltd. Chubb did not take the CB ticker until after its 2016 combination with ACE, so the entity and ticker in the request should be verified against the original filing. The amendment restates the quarterly financial data for 1998 and 1997 and updates beneficial ownership disclosures as of December 1998. The restated 1998 quarterly data is adjusted for pooling-of-interests and shows full-year net income of about $560.2 milliona, compared with about $534.0 million in the originally reported figures.

Adjusted total revenues were about $1.41 billionb. Adjusted 1997 net income was about $502.7 million, so 1998 net income grew roughly 11% on the adjusted basis. Second-quarter 1998 was the strongest quarter, helped by $145.6 million of realized investment gains, while fourth-quarter 1998 net income fell to $13.5 million because of a $54.2 million realized investment loss.

Investors should note that the pooled restatement changes quarterly comparability, and that results in 1998 were supported by realized gains that may not recur. On ownership, directors and executive officers as a group beneficially owned about 4.3 million Ordinary Shares, or roughly 4.2%c of the outstanding shares, with a further 3.3 million shares subject to options. The largest disclosed outside holder was Oppenheimer Capital, with 27.4 million shares (14.17%).

Several directors are affiliated with significant shareholders, including Marsh & McLennan Risk Capital Holdings, J.P. Morgan and Emerson Electric, which may matter for governance and potential future share sales.

02—Key points

Key Highlights

  1. Restated 1998 net income is about $560.2 million on a pooling-adjusted basis, up from about $534.0 million as originally reported, an increase of roughly $26 million.
  2. Adjusted 1998 total revenues were about $1.41 billion, and adjusted 1997 net income was about $502.7 million, implying roughly 11% year-over-year net income growth.
  3. Second-quarter 1998 was the strongest quarter, with net income of $247.9 million and $145.6 million of realized investment gains.
  4. Fourth-quarter 1998 net income fell to $13.5 million after a $54.2 million realized investment loss, showing sensitivity to investment portfolio results.
  5. Diluted EPS for 1998 summed to roughly $3.01 on the adjusted quarterly figures, compared with roughly $2.68 for 1997.
  6. Directors and executive officers as a group held about 4.2% of outstanding Ordinary Shares, with about 3.3 million additional shares under options.
  7. Oppenheimer Capital held the largest disclosed outside stake at 14.17%, and several directors are affiliated with significant shareholders such as Marsh & McLennan Risk Capital and J.P. Morgan.

03—Questions

Frequently Asked Questions

  1. Is this filing from Chubb Ltd (CB)?

    The filing text identifies the registrant as a Bermuda company with Ordinary Shares, and its content does not reference Chubb. The company appears to be ACE Limited, which later combined with Chubb in 2016 and adopted the Chubb name and CB ticker. The entity should be confirmed against the original filing and EDGAR records.

  2. Why was this amendment filed?

    The amendment restates Note 14 (quarterly financial data) and the Item 12 ownership disclosures that were incorporated by reference in the original 10-K. The quarterly data is now shown both adjusted for pooling-of-interests and as originally reported, so investors can see how a merger changed the reported figures.

  3. How did restated 1998 results differ from the original numbers?

    Adjusted net income for 1998 was about $560.2 million versus about $534.0 million originally reported. Adjusted revenues were higher in each quarter, and the difference mainly reflects the pooling-of-interests adjustment for acquired operations. Q3 1998 net income was $176.5 million adjusted versus $171.5 million as originally reported.

  4. How much of the company do insiders own, and who are the largest outside holders?

    Directors and executive officers as a group beneficially owned about 4.3 million Ordinary Shares, roughly 4.2% of the outstanding total, plus about 3.3 million shares under options. The largest outside holder was Oppenheimer Capital with 27.4 million shares (14.17%), followed by American Express Financial Corporation at 6.86% and Wellington Management at 6.56%.

  5. What risks should investors consider from the 1998 results?

    A large share of 1998 earnings came from realized investment gains, particularly $145.6 million in the second quarter, and fourth-quarter results were sharply lower after a $54.2 million realized loss. Investors should weigh whether underlying underwriting and investment income can sustain earnings without similar gains, and should consider the potential overhang from significant shareholders with board affiliations.

04—Continue

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