10-QPeriod: Q2 FY2024

Chubb Ltd Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 26, 2024For Securities:CB

Summary

Chubb Limited reported a strong second quarter for 2024, with net income attributable to Chubb increasing by 24.3% to $2.2 billion, driven by robust underwriting results and record net investment income. Consolidated net premiums written grew by 11.8% to $13.4 billion, reflecting broad-based growth across most product lines, including a significant contribution from the consolidation of Huatai Group. The P&C combined ratio was 86.8%, a slight increase from the prior year's 85.4%, primarily due to higher catastrophe losses and lower favorable prior period development, though the current accident year combined ratio remained stable. The company's investment portfolio performed well, with pre-tax net investment income reaching a record $1.5 billion, up 28.2% year-over-year, benefiting from higher reinvestment rates and the Huatai consolidation. Chubb returned $939 million to shareholders through dividends and share repurchases during the quarter. The company's financial position remains solid, with total Chubb shareholders' equity increasing to $61 billion and a debt-to-total capitalization ratio of 19.4%. Management is focused on continued growth, underwriting discipline, and capital returns to shareholders.

Financial Highlights

39 data points
Beta

Revenue

$13.84B

Net Income

$2.23B

16.1% Net Margin

EPS (Diluted)

$5.46

Total Assets

$238.55B

Cash & Equivalents

$2.57B

Free Cash Flow

$4.08B

Financial Statements
Beta
Revenue$13.84B
Interest Expense$182.00M
Net Income$2.23B
EPS (Basic)$5.51
EPS (Diluted)$5.46
Shares Outstanding (Basic)404.62M
Shares Outstanding (Diluted)408.61M

Key Highlights

  • 1Net income attributable to Chubb increased by 24.3% to $2.2 billion for the quarter, driven by strong underwriting and investment income.
  • 2Consolidated net premiums written grew by 11.8% to $13.4 billion, with notable contributions from the consolidation of Huatai Group.
  • 3Pre-tax net investment income reached a record $1.5 billion, up 28.2% year-over-year, due to higher reinvestment rates and Huatai's inclusion.
  • 4The P&C combined ratio was 86.8%, with the current accident year combined ratio excluding catastrophe losses remaining stable at 83.2%.
  • 5Chubb returned $939 million to shareholders through dividends ($369 million) and share repurchases ($570 million) in the quarter.
  • 6Operating cash flow significantly increased to $7.3 billion for the first six months of 2024 from $4.8 billion in the prior year period.
  • 7Total Chubb shareholders' equity stood at $61 billion, with a debt-to-total capitalization ratio of 19.4%.

Frequently Asked Questions

Chubb's net income attributable to Chubb increased by 24.3% to $2.2 billion, primarily driven by strong underwriting results across its various insurance segments and record net investment income, which grew 28.2% year-over-year. The consolidation of Huatai Group also contributed to the overall growth.

The P&C combined ratio was 86.8% for the quarter, an increase from 85.4% in the prior year. This rise was mainly attributed to higher catastrophe losses and a lower impact from favorable prior period development. However, the current accident year combined ratio, excluding catastrophe losses, remained stable at 83.2%, indicating stable underlying underwriting performance.

Chubb actively returns capital to shareholders through dividends and share repurchases. In Q2 2024, the company returned $939 million to shareholders, comprising $369 million in dividends and $570 million in share repurchases. The company also has an ongoing share repurchase authorization with a remaining balance of $2.8 billion as of June 30, 2024.

The consolidation of Huatai Group, which became effective on July 1, 2023, has a significant positive impact on Chubb's reported financial results. It contributed to the growth in net premiums written across segments, particularly in Life Insurance and Overseas General Insurance, and boosted net investment income due to the inclusion of Huatai's asset management and investment businesses.