Chubb Limited (CB) Q3 Earnings call transcript Oct 30, 2024

In a recent earnings call, Chubb Limited, a leading global insurer, showcased a robust performance for the third quarter of 2024. The company reported double-digit growth in P&C underwriting and investment income, leading to core operating EPS growth of over 15.5%. Chubb's global P&C premium revenue, excluding agriculture, grew by 7.6% and its core operating income reached $2.3 billion, up 14.3%. These figures underscore Chubb's strong financial health and market position.

Navigating the Catastrophe Landscape

The quarter saw significant challenges in terms of natural catastrophes, with hurricanes, floods, fires, and tornadoes impacting the industry. However, Chubb's underwriting prowess shone through, with a published combined ratio of 87.7 and ex-cat current accident year ratio of 83.4. This highlights the company's ability to navigate the volatile catastrophe landscape while maintaining strong underwriting income.

Strategic Growth and Diversification

Chubb's growth is not limited to P&C underwriting. The company's life insurance segment also saw income growth, with a record $284 million in the third quarter. Chubb's strategic diversification into life insurance is paying off, contributing to its overall financial strength and revenue growth.

Navigating Competitive Markets

Despite a competitive market, Chubb's pricing and rate environment remain favorable, with global P&C net premiums growing by 7.6%. The company's strong market position and disciplined approach to underwriting have enabled it to maintain pricing and growth across various markets, including North America, Europe, Asia, and Latin America.

Investment Strategies and Outlook

Chubb's investment strategies have also played a significant role in its financial success. The company's fixed income portfolio yield stands at 4.9%, and its current new money rate averages 5.5%. This strong investment performance, coupled with Chubb's strategic underwriting and risk management, positions the company well for future growth.

Management Confidence and Future Outlook

Chubb's management remains optimistic about the company's future prospects, expressing confidence in its ability to continue growing its operating earnings and EPS at a superior rate. The company's focus on P&C revenue growth, underwriting margins, investment income, and life income positions it well for sustained success.

Addressing Challenges and Opportunities

The earnings call also highlighted some challenges, including the need to address certain troubled classes in North America commercial. However, Chubb's management remains focused on these issues and is confident in its ability to navigate them. The company's strategic approach to risk selection, structure, and pricing, as well as its strong capital position, are key strengths that will continue to drive its growth and success.

In conclusion, Chubb's third quarter earnings call highlighted the company's robust financial performance, strategic growth, and ability to navigate challenges in the volatile insurance market. With a strong focus on underwriting, risk management, and investment strategies, Chubb is well-positioned for sustained growth and success in the future.