01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Chubb Limited (NYSE: CB) closed 2024 with record results: net income attributable to Chubb of $9.27 billiona (vs. $9.03 billion in 2023), driven by record underwriting results and record pre-tax net investment income of $5.93 billion.
Net premiums written rose 8.7% to $51.5 billionb (9.2% in constant dollars), with growth across commercial and consumer lines and a P&C combined ratio of 86.6% (vs. 86.5% in 2023). Catastrophe losses increased to $2.39 billion pre-tax, but favorable prior period development of $856 million partly offset them. Total shareholders' equity attributable to Chubb reached $64.0 billion and total assets $246.5 billion.
The main investor considerations are the sustained growth in premiums and investment income, the modest deterioration in the combined ratio, and the outlook. Management describes 2025 as a year with good momentum and expects robust growth in operating earnings and EPS, though a first-quarter 2025 California wildfire event carries an estimated $1.5 billionc net pre-tax cost. Other items to watch include a new 15% Bermuda corporate income tax effective January 1, 2025, rising interest expense (guided to $779 million for 2025), and continued share repurchases ($1.53 billion of authorization remaining as of February 26, 2025).
Risk-related disclosures highlight reserve adequacy sensitivity, particularly long-tail casualty lines and asbestos and environmental exposures (about 1.6% of gross loss reserves), exposure to natural catastrophes including a 1-in-100 U.S. hurricane aggregate loss of $3.8 billiond, and roughly 17% of the fixed income portfolio in below-investment-grade securities. Chubb's book value growth, diversified global footprint across 54 countries, and strong capital position support its competitive standing, while ongoing regulatory changes (OECD global minimum tax, AI and data privacy rules) represent areas of uncertainty.
02—Key points
Key Highlights
- Record net income attributable to Chubb of $9.27 billion, up 2.7% from $9.03 billion in 2023; diluted EPS of $22.70 vs. $21.80.
- Net premiums written grew 8.7% to $51.47 billion (9.2% in constant dollars), with Life Insurance NPW up 15.7% and Personal lines up 14.2%.
- P&C combined ratio of 86.6% (vs. 86.5% in 2023), with a current accident year combined ratio ex-catastrophes improving to 83.1% from 83.9%.
- Record pre-tax net investment income of $5.93 billion, up 20.1%, driven by higher reinvestment rates and the consolidation of Huatai Group.
- Catastrophe losses rose to $2.39 billion pre-tax (from $1.83 billion), led by Hurricanes Helene and Milton; favorable prior period development of $856 million partly offset them.
- Q1 2025 California wildfire event estimated at $1.5 billion net pre-tax cost, a subsequent event that will weigh on early 2025 results.
- Total Chubb shareholders' equity rose to $64.0 billion, total assets reached $246.5 billion, and the company repurchased $2.0 billion of shares in 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $55.75B$49.73B | +12.1% |
| Interest Expense | $741.00M$672.00M | +10.3% |
| Net Income | $9.27B$9.03B | +2.7% |
| EPS (Basic) | $22.94$21.97 | +4.4% |
| EPS (Diluted) | $22.70$21.80 | +4.1% |
| Shares Outstanding (Basic) | 404.19M410.85M | −1.6% |
| Shares Outstanding (Diluted) | 408.49M414.20M | −1.4% |
05—Questions
Frequently Asked Questions
How did Chubb's profitability trend in 2024?
Net income attributable to Chubb reached a record $9.27 billion, up from $9.03 billion in 2023. The increase was driven by record underwriting results and record net investment income. Income tax expense rose to $1.82 billion from $511 million, partly because 2023 included a one-time $1.14 billion deferred tax benefit tied to Bermuda's new tax law, which makes year-over-year comparisons less clean.
What is the financial impact of the California wildfires on Chubb?
Management estimates a net pre-tax cost of approximately $1.5 billion from the January 2025 California wildfire disaster, which will be recorded as a first-quarter 2025 catastrophe loss. Management nonetheless expects continued strong performance across segments and robust growth in operating earnings and EPS for 2025.
What are the main risks to Chubb's loss reserves?
Unpaid losses and loss expenses totaled $84.0 billion gross ($66.3 billion net), and about 77% relate to casualty lines with long reporting and payout tails. Reserve estimates for excess casualty, asbestos and environmental claims, and molestation claims under 'reviver' legislation are highly judgmental. A one-point change in the workers' compensation tail factor would move net reserves by about $1.1 billion, so reserve adequacy is a key area of uncertainty for investors.
How exposed is Chubb to catastrophe and interest rate risk?
Chubb's modeled 1-in-100 year U.S. hurricane aggregate loss, net of reinsurance, is $3.8 billion, or 6.0% of shareholders' equity. A 100 basis point rise in interest rates would reduce the fixed income portfolio's fair value by about $6.2 billion, or 5.1%. The portfolio's average duration is 5.1 years, and about 17% of fixed income holdings are below investment grade.
What tax and capital-return changes should investors monitor?
Bermuda enacted a 15% corporate income tax effective January 1, 2025, which will raise Chubb's effective tax rate and cash taxes beginning in 2025. Global minimum tax rules under the OECD framework are also in flux following a January 2025 U.S. presidential memorandum. On capital returns, $1.53 billion of share repurchase authorization remained as of February 26, 2025, and the 2024 annual dividend was up to $3.64 per share.
06—Continue