Chubb has reported net income of US$2.58 billion, or US$6.33 per share, for the fourth quarter of 2024, with core operating income reaching US$2.45 billion, or US$6.02 per share.
The company’s book value per share decreased by 2.1% from the previous quarter to US$159.77, while tangible book value per share declined by 2.2% to US$100.38. The reductions were attributed to after-tax net realised and unrealised losses of US$2.44 billion in the investment portfolio and US$1.13 billion in foreign currency losses.
Excluding accumulated other comprehensive income (AOCI), book value per share increased by 2.9%, and tangible book value per share rose by 4.3%.
Chubb’s net income and core operating income for the quarter were US$2.58 billion and US$2.45 billion, respectively, while on a pre-tax basis, both figures reached record levels of US$3.05 billion and US$3.00 billion.
Adjusting for the prior year’s deferred tax benefit of US$1.14 billion linked to Bermuda’s income tax law, net income increased by 18.9%, and core operating income rose by 7.7%.
Global property and casualty (P&C) net premiums written, excluding agriculture, increased by 6.7%, with commercial insurance rising by 6.4% and consumer insurance by 7.5%. In North America, P&C net premiums written grew by 6.3%, while Overseas General increased by 6.8% in constant dollars, with Latin America, Asia-Pacific, and Europe reporting increases of 11.5%, 9.3%, and 3.9%, respectively.
P&C underwriting income reached a record US$1.58 billion, up 3.8% from the prior year, with a combined ratio of 85.7%. Underwriting income for the current accident year, excluding catastrophe losses, was US$1.97 billion, representing a 20.1% increase, with a combined ratio of 82.2%.
Pre-tax catastrophe losses for the quarter totalled US$607 million, including US$309 million from Hurricane Milton. This compares to US$300 million in catastrophe losses reported in the prior year.
Life insurance net premiums written grew by 8.5% in constant dollars to US$1.56 billion, with segment income rising by 3.8% to US$270 million. Total life insurance net premiums written and deposits collected were US$2.40 billion, reflecting a 24.4% increase in constant dollars.
Pre-tax net investment income reached US$1.56 billion, a 14.0% increase, while adjusted net investment income rose by 13.7% to US$1.69 billion. Both figures represent record highs.
Annualised return on equity (ROE) for the quarter was 15.9%, with core operating return on tangible equity (ROTE) at 22.0% and core operating ROE at 14.3%.
For the full year, Chubb reported net income of US$9.27 billion, up 2.7% from the prior year, while core operating income was US$9.20 billion. On a pre-tax basis, net income and core operating income were US$11.08 billion and US$11.15 billion, respectively.
Adjusting for the prior year’s deferred tax benefit, net income rose by 16.8%, and core operating income increased by 11.5%, with per-share growth of 18.4% and 13.0%, respectively.
Global P&C net premiums written increased by 9.6%, with commercial insurance rising by 8.7% and consumer insurance by 12.1%. North America recorded an 8.0% increase in net premiums written, while Overseas General grew by 11.8% in constant dollars. Asia-Pacific saw a 22.2% increase, Latin America rose by 11.0%, and Europe recorded a 6.3% gain.
P&C underwriting income reached a record US$5.85 billion, up 7.1%, with a combined ratio of 86.6%. Current accident year underwriting income, excluding catastrophe losses, rose by 13.3% to a record US$7.38 billion, with a combined ratio of 83.1%.
Pre-tax catastrophe losses totalled US$2.39 billion for the year, compared with US$1.83 billion in 2023.
Life insurance net premiums written rose by 15.7% to US$6.33 billion, or 18.5% in constant dollars, with segment income increasing by 7.3% to US$1.10 billion. Total net premiums written and deposits collected in the life insurance segment grew by 29.1% in constant dollars to US$8.90 billion.
Pre-tax net investment income increased by 20.1% to US$5.93 billion, while adjusted net investment income rose by 19.3% to US$6.38 billion, both reaching record levels.
Annual ROE for 2024 was 15.0%, while core operating ROTE stood at 21.6% and core operating ROE at 13.9%.
Chubb chairman and chief executive officer Evan G. Greenberg (pictured above) addressed the California wildfires, saying that company representatives had been assisting policyholders affected by property damage, displacement, and business disruption.
“While it doesn't erase the enormous difficulty they have and will continue to experience, we are doing all we can, in small and big ways, to ease their burden. Our thoughts are with those who have suffered, and our gratitude goes to those firefighters and emergency workers who have served tirelessly,” Greenberg said.
Greenberg also commented on the company’s outlook for 2025, stating that market conditions remain favourable for growth in more than 80% of Chubb’s global P&C business, including commercial, consumer, and life insurance segments.
“We are confident in our ability to continue growing operating earnings and EPS at a double-digit rate, driven by our three major sources: P&C underwriting, investment income, and life income,” Greenberg said.
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