01—Abstract
Summary
Summary of the 8-K filed October 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Chubb reported third quarter 2024 results on October 29, 2024, with core operating income of $2.33 billiona, or $5.72 per diluted share, up 15.6% year over year, and net income of $2.32 billion, or $5.70 per share, up 15.2%.
Year-to-date, net income and core operating income reached record levels of $6.70 billionb and $6.75 billion, with EPS of $16.38 and $16.50. Growth was broad-based: consolidated net premiums written rose 5.5% (6.6% in constant dollars), and global P&C net premiums written excluding agriculture grew 7.6% (8.5% in constant dollars). Management highlighted double-digit growth in both P&C underwriting income and net investment income.
Underwriting profitability remained strong despite elevated catastrophe losses. The reported P&C combined ratio was 87.7%, compared with 88.4% a year earlier, and the current accident year combined ratio excluding catastrophes was a company-best-level 83.4%. Pre-tax catastrophe losses were $765 millionc, including $250 million from Hurricane Helene.
Net investment income rose 14.7% to $1.51 billiond, and the core operating ROE was 13.9%, with core operating ROTE at 21.7%. Balance sheet metrics also improved. Book value per share increased 8.0% quarter over quarter to $163.16, and tangible book value per share rose 12.8% to $102.67, aided by after-tax realized and unrealized investment gains of $3.53 billion and foreign currency gains.
Capital returned to shareholders totaled $782 million, including $413 million in buybacks. Financial debt increased to $16.1 billion after July 2024 senior note issuance. Agriculture premiums declined 9.3% on lower commodity prices, a notable soft spot in an otherwise strong quarter.
02—Key points
Key Highlights
- Core operating income of $2.33B ($5.72/share) rose 14.3% (15.6% per share); net income of $2.32B ($5.70/share) rose 13.8% (15.2% per share)
- P&C combined ratio improved to 87.7% from 88.4%; current accident year combined ratio ex-catastrophes was 83.4%
- Global P&C net premiums written grew 7.6% (8.5% constant dollars); Life Insurance NPW rose 6.8% (10.6% constant dollars)
- Pre-tax catastrophe losses of $765M, including $250M from Hurricane Helene, versus $670M a year earlier
- Net investment income up 14.7% to $1.51B, with adjusted net investment income of $1.64B (up 15.9%), both records
- Tangible book value per share up 12.8% quarter over quarter to $102.67; year-to-date up 16.7%
- Agriculture NPW declined 9.3% on lower commodity prices, the main weak spot in the quarter
03—Questions
Frequently Asked Questions
How did Chubb's core operating earnings perform in Q3 2024?
Core operating income was $2.33 billion, or $5.72 per diluted share, up 14.3% in dollars and 15.6% per share from Q3 2023. For the nine months, core operating income reached a record $6.75 billion, or $16.50 per share, up 13.8% and 15.6%, respectively.
Were catastrophe losses a significant drag on the quarter?
Yes, but they were manageable. Pre-tax catastrophe losses were $765 million, including $250 million from Hurricane Helene, adding 6.4 percentage points to the P&C combined ratio. Excluding catastrophes and prior period development, the current accident year combined ratio was 83.4%, which management characterized as world-class.
What drove growth in premiums and investment income?
Global P&C premiums excluding agriculture grew 7.6% (8.5% in constant dollars), led by consumer insurance (+9.4%) and commercial (+8.1%). Life Insurance premiums rose 6.8% (10.6% constant dollars). Net investment income grew 14.7% to $1.51 billion, supported by a larger invested asset base of $151 billion.
How did book value and capital return change?
Book value per share rose 8.0% quarter over quarter to $163.16, and tangible book value per share rose 12.8% to $102.67, helped by after-tax investment gains of $3.53 billion. Chubb returned $782 million to shareholders in the quarter, including $413 million in share repurchases at an average price of $286.18 and $369 million in dividends.
What are the main risks or weak spots investors should watch?
Agriculture premiums fell 9.3% due to lower commodity prices, and North America financial lines declined about 5%. Catastrophe losses remain volatile, and reported quarterly results were affected by industrywide events. Financial debt also rose to $16.1 billion from $14.7 billion in the prior quarter, partly due to new senior note issuance, though leverage remained around 19.6%.
04—Continue