📢 Earnings Summary — CB

Chubb delivered a record quarter with strong top-line growth, exceptional underwriting performance, and record investment income, driving core EPS up 31%. Broad-based expansion across consumer, international, and North America segments—coupled with disciplined underwriting—improved the combined ratio to 81.8% and lifted ROTCE to 24.5%. Management raised its medium-term core operating ROE target to 14%+, citing sustainable earning power from underwriting, life, and investment income, and is accelerating buybacks while continuing to build invested assets. The commercial P&C market is in transition, with intensifying competition and softening in large account property, but mid-market property remains disciplined and casualty pricing is rational. Despite ongoing catastrophe volatility and softness in financial lines, Chubb’s diversification, capital strength, and active capital management underpin a positive outlook.

📈 Growth Highlights

• Total company premiums +7.5% YoY; consumer +~16%, commercial +3.3%
• Underlying renewable commercial P&C premiums +~5.5%
• Life Insurance premiums +24.5% YoY; +16.6% ex-$126M one-time NZ premium
• Overseas General premiums +9.7% (+~7.5% in constant currency); consumer +15.5%, commercial +~6%
• Regional growth: Asia >14%, Latin America >10.5%, Europe ~5%; London wholesale +>8.5%
• North America P&C premiums +4.4% (personal lines >8%; commercial +3.5%)
• NA commercial renewable premiums +6.2% (P&C +5.8%; financial lines +~8.5%)
• High Net Worth personal lines NWP >$1.8B; true HNW growth ~11.5%
• NA Middle Market +4.1% reported; ~+7% adjusting for retrospective comp item (P&C +8.6%; financial lines flat)
• Major Accounts & Specialty +2.5% (Major +3.2%, E&S +6.6%); Major +5.6% adj. for prior-year LPT
• NA Commercial new business +24% YoY; renewal retention >86% (policy count)

🔨 Business Development

• Diversified distribution across brokerage, agency, phone-based direct marketing, and digital
• Digital and AI initiatives contributing to growth and transforming operations
• Portfolio breadth across consumer, commercial, A&H, and life driving multi-channel, multi-region expansion
• High Net Worth personal lines scaled to near parity with Middle Market and Major Accounts businesses (~$2.1B each in quarterly premiums)

💵 Financial Performance

• Core operating income $3.0B (+29% YoY); core EPS $7.49 (+31% YoY)
• Record underwriting income $2.3B (+55% YoY); combined ratio 81.8% (~600 bps better YoY)
• Current accident year ex-cat underwriting income $2.2B (+10% YoY); ex-cat combined ratio 82.5% (~90 bps better YoY)
• Adjusted net investment income $1.78B (+8.3% YoY); Q4 guide $1.775B–$1.81B
• Fixed income portfolio yield 5.1%; new money rate ~5.2%
• Operating cash flow $4.5B; cash and invested assets >$168B; book value nearly $72B
• Tangible book value per share +17% YoY and +6.6% QoQ; BVPS ex-AOCI +2.8% QoQ; TBVPS ex-AOCI +3.8% QoQ; YoY +10.4% and +14.8%, respectively
• Core operating ROTCE 24.5%; core operating ROE 16.3% (quarter)
• Pretax catastrophe losses $285M (86% U.S., 14% international); $2.6B YTD vs $1.8B prior-year YTD
• Pretax prior period development favorable $422M in active companies (short-tail +$460M; long-tail -$38M); runoff adverse -$61M (environmental)
• Paid-to-incurred ratio 83% (quarter), 87% YTD; core operating effective tax rate 20.5% (quarter); FY guide 19.5%–20%

🏦 Capital & Funding

• Returned $1.6B to shareholders: $1.2B buybacks and $385M dividends in Q3
• Issued ~$2.2B of debt at ~4% cost, average term ~12 years
• Stepped up share repurchases to capitalize on stock trading below intrinsic value; plan to continue elevated buybacks
• Continued capital build and growth in invested assets; invested asset up ~10% YoY
• Management notes ‘excess capital’ ROE drag of ~2+ pts but views deployment into alternatives as accretive

🧠 Operations & Strategy

• Maintaining underwriting discipline and cycle management across geographies and segments
• No change to selected loss cost trends in North America Commercial
• Global diversification (~50% U.S./50% ex-U.S.) supports balanced growth and risk management
• Targeting sustained double-digit EPS, book and tangible book growth; core operating ROE goal increased to 14%+ over the medium term
• Allocating capital to both buybacks and invested asset growth, including alternatives, to enhance earning power

🌍 Market Outlook

• Commercial P&C market in transition; growing competition in large account short-tail property (admitted and E&S)
• Property: prices softening in large account/E&S; terms and conditions steady; mid-market/small commercial property remains disciplined with moderating rate increases
• Casualty pricing slowing but firming where needed; financial lines soft with selective signs of firming
• International retail commercial rates: P&C -1.3%; financial lines -8%+
• Management expects enduring, broad-based earnings growth across underwriting, life, and investment income
• Q4 adjusted NII guided to $1.775B–$1.81B; full-year core operating ETR 19.5%–20%

⚠ Risks & Headwinds

• Catastrophe risk remains volatile; YTD cat losses $2.6B vs $1.8B prior year
• Intensifying competition and softening prices in large account/E&S property raise underpricing risk
• Financial lines pricing remains soft; buyer beware in certain classes
• Adverse development in corporate runoff portfolio (-$61M, environmental)
• Potential ROE drag from surplus capital (~2+ pts) if not fully deployed into accretive assets

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.