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Item 2. Management’s Discussion and Analysis

2024-04-26 compared with 2023-11-01 · 340 added, 575 removed, 750 unchanged (55% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and nine months ended September 30, 2023.

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three months ended March 31, 2024.

All comparisons in this discussion are to the corresponding prior year period unless otherwise indicated.

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Net Investment Income

Interest Expense

Critical Accounting Estimates

Unpaid Losses and Loss Expenses

Future policy benefits

Asbestos and Environmental (A&E)

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• the effects of public company bankruptcies and accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues;

• acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our planned purchases of additional interests in Huatai Insurance Group Co., Ltd.

(Huatai Group), including our ability to receive Chinese insurance regulatory approval and complete the purchases;

• acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our outstanding purchase of additional interests in Huatai Insurance Group Co., Ltd.

(Huatai Group);

• risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens;

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Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect subsidiaries (collectively, the Chubb Group of Companies, Chubb, we, us, or our) are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide.

At September 30, 2023, we had total assets of $223 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $52.4 billion.

At March 31, 2024, we had total assets of $235 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $60.5 billion.

Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda.

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On July 1, 2023, we completed the acquisition of a controlling majority interest of Huatai Group.

For the three and nine months ended September 30, 2023, the results of operations of Huatai Group is reported at 100 percent in our consolidated results starting from the acquisition date, with amounts attributable to shareholders other than Chubb are reflected under Noncontrolling interests.

For the three months ended March 31, 2024, the results of operations of Huatai Group are reported at 100 percent in our consolidated results starting from the acquisition date, with amounts attributable to shareholders other than Chubb reflected under Noncontrolling interests.

Huatai Group's life and asset management businesses are included in the Life Insurance segment, and Huatai Group's P&C business is included in the Overseas General Insurance segment.

Results for Huatai Group's non-insurance operations, comprising real estate and holding company activity, are included in Corporate.

Consolidated Operating Results – Three and Nine Months Ended September 30, 2023 and 2022

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Consolidated Operating Results – Three Months Ended March 31, 2024 and 2023

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 12,221 $ 10,710 14.1 %

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Net realized gains (losses) (101) (77) 30.9 %

Market risk benefits gains (losses) (32) 69 NM (154) 85 NM

Market risk benefits gains (losses) 21 (115) NM

Total revenues 12,894 11,057 16.6 %

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Interest expense 178 160 11.3 %

Other (income) expense (154) 202 NM (550) (9) NM

Other (income) expense (191) (296) (35.6) %

Amortization of purchased intangibles 80 72 10.8 %

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Net income $ 2,294 $ 1,892 21.3 %

Net loss attributable to noncontrolling interests (3) — NM (3) — NM

Net income attributable to noncontrolling interests 151 — NM

Net income attributable to Chubb $ 2,143 $ 1,892 13.3 %

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Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period.

Financial Highlights for the Three Months Ended September 30, 2023

• On July 1, 2023, Chubb increased its investment in Huatai Group from approximately 64.2 percent to approximately 69.6 percent, discontinued the equity method of accounting and applied consolidation accounting.

Business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements.

The relevant amounts attributable to investors other than Chubb are reflected under Noncontrolling interests, Net income (loss) attributable to noncontrolling interests, and Comprehensive income (loss) attributable to noncontrolling interests on the Consolidated Financial Statements.

Refer to Note 2 to the Consolidated Financial Statements for additional information.

• Net income attributable to Chubb was $2.0 billion compared with $792 million in the prior year period.

Net income in the current quarter was driven by strong underwriting results, including growth in net premiums earned, and record net investment income.

There were after-tax mark-to-market gains on public and private equities of $46 million in the current quarter compared to losses of $287 million in the prior year.

In addition, there were after-tax realized losses on fixed maturities of $37 million, compared to $393 million in the prior year.

• Consolidated net premiums written were $13.1 billion, up 9.1 percent, or 8.4 percent in constant dollars.

P&C net premiums written increased 8.4 percent, or 7.6 percent in constant dollars, with commercial lines and consumer lines up 5.4 percent and 14.9 percent, respectively.

Life Insurance segment net premiums written increased 14.9 percent.

The consolidation of Huatai Group added 2.9 percentage points, 1.8 percentage points, and 11.9 percentage points to consolidated, P&C, and Life Insurance net premiums written growth, respectively.

Financial Highlights for the Three Months Ended March 31, 2024

• Net income attributable to Chubb was $2.1 billion compared with $1.9 billion in the prior year period.

Net income in the current quarter was driven by strong P&C underwriting results, including growth in net premiums earned and net investment income.

Net income included two discrete items:

a deferred tax benefit of $55 million related to the Bermuda tax law enacted in December 2023, partially offset by a contribution to the Chubb Charitable Foundation of $30 million ($24 million after-tax).

• Consolidated net premiums written were $12.2 billion, up 14.1 percent.

P&C net premiums written increased 12.4 percent, with commercial insurance up 10.0 percent and consumer insurance up 19.3 percent.

Life Insurance segment net premiums written increased 26.3 percent due to the impact of the consolidation of Huatai Group on July 1, 2023.

• Pre-tax net investment income was $1.4 billion compared with $1.1 billion in the prior year period, primarily due to strong operating cash flow, higher reinvestment rates on fixed maturities, and the consolidation of Huatai Group.

• Consolidated net premiums earned were $11.6 billion, up 14.2 percent, or 14.5 percent in constant dollars.

The consolidation of Huatai Group added 3.3 percentage points to the growth in net premiums earned.

• Total pre-tax and after-tax catastrophe losses were $670 million (6.0 percentage points of the P&C combined ratio) and $544 million, respectively, compared with $1.2 billion (11.3 percentage points of the P&C combined ratio) and $949 million, respectively, in the prior year period.

• Total pre-tax and after-tax favorable prior period development were $200 million (1.9 percentage points of the P&C combined ratio) and $116 million, respectively.

This compares with $222 million (2.2 percentage points of the P&C combined ratio) and $162 million, respectively, in the prior year period.

• Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $435 million (4.4 percentage points of the P&C combined ratio) and $347 million, respectively, compared with $458 million (5.1

percentage points of the P&C combined ratio) and $382 million, respectively, in the prior year period.

• Total pre-tax and after-tax favorable prior period development were $207 million and $168 million, respectively, compared with $196 million and $149 million, respectively, in the prior year period.

• The P&C combined ratio was 86.0 percent compared with 86.3 percent in the prior year period.

The current year P&C combined ratio decreased primarily due to lower catastrophe losses, partially offset by lower favorable prior period development.

The current year ratio improved primarily due to lower catastrophe losses and higher favorable prior period development.

The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.7 percent compared with 83.4 percent in the prior year period.

• Net investment income was a record $1.3 billion compared with $979 million in the prior year period, primarily reflecting higher reinvestment rates and the consolidation of Huatai Group.

• Operating cash flow was a record $4.7 billion compared with $3.4 billion in the prior year period.

• Chubb shareholders' equity decreased 1.0 percent in the quarter, as net income attributable to Chubb was more than offset by net unrealized losses and total capital returned to shareholders of $1.0 billion.

Shareholders' equity also includes a one-time net realized and unrealized gain of $727 million, principally reflecting the discontinuation of the equity method of accounting upon the consolidation of Huatai.

Total capital returned to shareholders comprises share repurchases of $606 million, at an average purchase price of $205.44 per share, and dividends of $352 million.

We previously announced that our Board of Directors approved a new share repurchase program of up to $5 billion with no expiration date, effective July 1, 2023.

• Effective January 1, 2023, we adopted the Long-Duration Targeted Improvements (LDTI) U.S.

GAAP guidance, which principally impacted the Life Insurance segment.

Financial data for the prior reporting periods in this report are adjusted, as applicable, and are presented in accordance with the new guidance.

The impact to 2022 results was immaterial.

• Operating cash flow was $3.2 billion compared with $2.3 billion in the prior year period.

• Chubb shareholders' equity increased $1.0 billion in the quarter, primarily from net income attributable to Chubb of $2.1 billion, partially offset by total capital returned to shareholders of $666 million and net unrealized losses on our investment portfolio of $648 million, principally due to the mark-to-market impact in the fixed-income portfolio.

Total capital returned to shareholders comprises dividends of $350 million, and share repurchases of $316 million at an average purchase price of $258.75 per share.

Net Premiums Written Three Months Ended

% Change Nine Months Ended

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Property and other short-tail lines $ 2,360 $ 2,025 16.5 % 16.4 %

Commercial casualty 2,210 1,903 16.1 % 15.8 %

Workers' compensation 538 476 13.1 % 13.1 % 1,693 1,625 4.2 % 4.2 %

Financial lines 1,108 1,156 (4.1) % (4.4) %

Surety 172 152 13.1 % 10.0 % 506 477 6.1 % 5.0 %

Workers' compensation 629 618 1.8 % 1.8 %

Commercial multiple peril (1)

368 340 8.0 % 8.0 %

Property and other short-tail lines 2,082 1,756 18.5 % 17.8 % 6,453 5,503 17.3 % 18.3 %

Surety 184 160 15.1 % 13.0 %

Total Commercial P&C lines 6,859 6,202 10.6 % 10.3 %

Agriculture 249 293 (15.0) % (15.0) %

Personal automobile 547 404 35.3 % 26.7 % 1,434 1,239 15.7 % 10.8 %

Personal homeowners 1,065 902 18.1 % 18.4 %

Personal automobile 642 427 50.4 % 44.3 %

Personal other 565 507 11.4 % 11.8 %

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(1) Commercial multiple peril represents retail package business (property and general liability).

The increase in consolidated net premiums written for the three and nine months ended September 30, 2023, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business.

The consolidation of Huatai Group contributed $365 million, or 2.9 percentage points and 1.1 percentage points, for the three and nine months ended September 30, 2023, respectively.

• Commercial casualty grew in all regions globally, principally in North America and Europe, driven by strong premium retention, including both rate and exposure increases, and strong new business.

• Workers' compensation growth reflects increased audit exposure in North America.

• Commercial multiple peril increased due to strong premium retention, including both rate and exposure increases, and strong new business in North America.

• Property and other short-tail lines grew globally due to strong premium retention, including both rate and exposure increases, and strong new business.

• Agriculture decreased in the quarter mainly due to the timing of premium recognition this year versus last year, and a modest increase in the premium the company shared with the Federal Government.

Growth for the year reflects the above factors and the prior year return of premium to the U.S.

government of $161 million.

• Personal lines grew principally in North America and Europe, with growth strongest in homeowners.

• Global A&H – P&C increased primarily due to the acquisition of Cigna's business in Asia;

and higher new business and increased consumer activity, including higher travel volume, in Europe, Latin America, and Japan.

• Reinsurance lines decreased in the quarter, as continued growth in the portfolio, primarily in property lines, was more than offset by the impact of catastrophe reinstatement premiums recognized in the prior year.

Growth for the year reflects continued growth in the portfolio, primarily in property lines, partially offset by the impact of catastrophe reinstatement premiums recognized in the prior year.

• Life increased primarily due to the consolidation of Huatai Group in the third quarter of 2023, which contributed $149 million or 11.9 percentage points.

Growth for the year is primarily due to the acquisition of Cigna's business in Asia, and growth in Latin America and Asia.

The increase in consolidated net premiums written for the three months ended March 31, 2024, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business.

The consolidation of Huatai Group's life and P&C businesses contributed $559 million, or 5.0 percentage points, for the three months ended March 31, 2024.

• Property and other short-tail lines grew globally due to strong new business and retention, including both rate and exposure increases.

• Commercial casualty grew globally due to strong retention, including both rate and exposure increases, and strong new business which included a large structured transaction in North America for the current year.

• Financial lines declined in the quarter due to lost business due to a competitive market environment and lower retention.

• Workers' compensation grew slightly due to new business and retention, including exposure increases.

• Commercial multiple peril grew due to strong new business and retention, including higher rates, in North America.

• Surety grew due to strong new business.

• Agriculture declined primarily due to a return of premium under the U.S.

government risk-sharing formula related to the 2023 crop year and lower commodity prices in the current year.

• Personal lines grew globally due to strong new business and retention, including both rate and exposure increases, and the consolidation of Huatai.

• Global A&H – P&C grew in Europe and Asia, with Asia benefiting from the consolidation of Huatai.

• Reinsurance lines reflected continued growth, mainly in property lines.

• Life Insurance grew principally due to the consolidation of Huatai Group and underlying growth in existing business in Asia.

The consolidation of Huatai Group contributed $265.8 million, or 20.6 percentage points, to growth.

For additional information on net premiums written, refer to the segment results discussions.

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Net premiums earned for long-duration contracts, typically traditional life contracts, generally are recognized as earned when due from policyholders.

For the three months ended September 30, 2023, net premiums earned increased $1.1 billion, up 9.9 percent, or 9.0 percent in constant dollars.

P&C net premiums earned increased 9.2 percent, or 8.1 percent in constant dollars, comprising growth in commercial and consumer lines of 6.9 percent and 11.9 percent, respectively.

For the nine months ended September 30, 2023, net premiums earned increased $4.0 billion, up 13.4 percent, or 13.7 percent in constant dollars.

For the three months ended March 31, 2024, net premiums earned increased $1.4 billion, up 14.2 percent, or 14.5 percent in constant dollars.

P&C net premiums earned increased 12.3 percent, or 12.2 percent in constant dollars, comprising growth in commercial and consumer lines of 11.5 percent and 14.2 percent, respectively.

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and Canada, we generally use a similar definition.

Catastrophe losses are net of reinsurance and include reinstatement premiums, which are additional premiums paid on certain reinsurance agreements in order to reinstate coverage that had been exhausted by loss occurrences.

The reinstatement premium amount is typically a pro rata portion of the original ceded premium paid based on how much of the reinsurance limit had been exhausted.

Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years.

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Refer to the Non-GAAP Reconciliation section for further information on reinstatement premiums on catastrophe losses and adjustments to prior period development.

Three Months Ended Nine Months Ended

September 30 September 30

Three Months Ended

(in millions of U.S.

dollars) 2024 2023

Catastrophe losses $ 670 $ 1,158 $ 1,528 $ 1,782

Net catastrophe losses $ 435 $ 458

Favorable prior period development $ 207 $ 196

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

Catastrophe losses through March 31, 2024 and 2023, were primarily from the following events:

Severe weather-related events in the U.S and internationally.

Severe weather-related events in the U.S.

and internationally, Hawaii wildfires, and New Zealand storms.

Hurricane Ian losses of $975 million, severe weather-related events in the U.S.

and internationally, Australia storms, and Colorado wildfires.

Pre-tax net favorable PPD for the three months ended September 30, 2023, was $200 million, including adverse development of $116 million in long-tail lines, with $50 million related to legacy environmental exposures.

Net favorable development of $316 million in short-tail lines is primarily in property lines.

Pre-tax net favorable PPD for the nine months ended September 30, 2023, was $596 million, including adverse development of $50 million related to legacy environmental exposures and $49 million for molestation claims.

Excluding the adverse development, we had net favorable development of $695 million with 5 percent in long-tail lines, principally from accident years 2013 through 2019, and 95 percent in short-tail lines, primarily in property, A&H, and surety lines.

Pre-tax net favorable PPD for the three months ended September 30, 2022, was $222 million, including adverse development of $52 million related to legacy environmental exposures.

Excluding the adverse development, we had favorable development of $274 million, with 5 percent in long-tail lines, principally from accident years 2018 and prior, and 95 percent in short-tail lines, primarily in property lines.

Pre-tax net favorable PPD for the nine months ended September 30, 2022, was $709 million, including adverse development of $155 million for molestation claims, predominantly reviver statute-related, and adverse development of $52 million related to legacy environmental exposures.

The molestation adverse development includes no change to the previously established reserve for the Boy Scouts of America settlement.

Excluding the adverse development, we had favorable development of $916 million with 29 percent in long-tail lines, principally from accident years 2018 and prior, and 71 percent in short-tail lines, primarily in property and A&H lines.

and internationally;

and New Zealand storms.

Pre-tax net favorable PPD for the three months ended March 31, 2024, was $207 million including adverse development of $104 million in long-tail lines, principally in large account commercial excess and umbrella lines.

Net favorable development of $311 million in short-tail lines is primarily in property and credit-related lines.

Pre-tax net favorable PPD for the three months ended March 31, 2023, was $196 million including adverse development of $19 million in long-tail lines, principally from accident years 2013 through 2017.

The net favorable development of $215 million in short-tail lines is primarily in surety and A&H lines.

Refer to the prior period development discussion in Note 7 to the Consolidated Financial Statements for additional information.

P&C Combined Ratio

In evaluating our segments, excluding Life Insurance financial performance, we use the P&C combined ratio.

We calculate this ratio by dividing the respective expense amounts by net premiums earned.

We do not calculate this ratio for the Life Insurance segment as we do not use this measure to monitor or manage that segment.

In evaluating our segments, excluding Life Insurance financial performance, we use the P&C combined ratio, the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio.

We calculate these ratios by dividing the respective expense amounts by net premiums earned.

We do not calculate these ratios for the Life Insurance segment as we do not use these measures to monitor or manage the business in that segment.

The P&C combined ratio is determined by adding the loss and loss expense ratio, the policy acquisition cost ratio, and the administrative expense ratio.

A P&C combined ratio under 100 percent indicates underwriting income, and a combined ratio exceeding 100 percent indicates underwriting loss.

Three Months Ended Nine Months Ended

September 30 September 30

2023 2022 2023 2022

Three Months Ended

Loss and loss expense ratio

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Catastrophe losses 4.4 % 5.2 %

Prior period development (2.0) % (2.4) % (2.1) % (3.0) %

Favorable prior period development (2.4) % (2.2) %

Loss and loss expense ratio 58.1 % 58.9 %

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P&C Combined ratio 86.0 % 86.3 %

The loss and loss expense ratio decreased for the three and nine months ended September 30, 2023, reflecting lower catastrophe losses, partially offset by lower favorable prior period development.

The CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2023, primarily from a higher percentage of net premiums earned from lines with a lower loss ratio.

The policy acquisition cost ratio increased for the three months ended September 30, 2023, primarily due to changes in mix of business away from products that have a lower acquisition cost ratio.

The administrative expense ratio increased for the three and nine months ended September 30, 2023, primarily due to higher pension expenses and higher employee-related expenses, partially offset by the favorable impact of higher net premiums earned.

The increase in pension expense reflects the adverse impact of market conditions in 2022 and will continue through 2023.

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting lower catastrophe losses, and higher favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2024, primarily from the unfavorable impact of a large structured transaction in North America and higher loss trends in certain casualty lines, partially offset by a higher percentage of net premiums earned from property lines, and the consolidation of Huatai Group's P&C business effective July 1, 2023, which has a lower loss ratio.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, primarily due to higher ceded commissions and the impact of the consolidation of Huatai, partially offset by the favorable impact of the large structured transaction written in the current year that generated minimal acquisition expenses.

The administrative expense ratio was relatively flat for the three months ended March 31, 2024, as the impact of increased spending to support growth and the consolidation of Huatai were offset by the favorable impact of higher net premiums earned.

Policy benefits

Policy benefits represent losses on contracts classified as long-duration and generally include accident and supplemental health products, term and whole life products, endowment products, and annuities.

Policy benefits for the three and nine months ended September 30, 2023, include the results of Huatai Group from July 1, 2023.

In addition, Policy benefits for the three and nine months ended September 30, 2023, include the results of Cigna's business acquired during the third quarter of 2022.

Policy benefits for the three months ended March 31, 2024, include the results of Huatai Group.

Refer to the Life Insurance segment operating results section for further discussion.

For the three months ended September 30, 2023 and 2022, Policy benefits were $938 million and $707 million, respectively, which include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account reporting under GAAP of $(19) million and $(67) million, respectively.

The offsetting movements of these liabilities are recorded in Other (income) expense on the Consolidated statements of operations.

Excluding the separate account gains and losses, Policy benefits were $957 million and $774 million for the three months ended September 30, 2023 and 2022, respectively.

For the nine months ended September 30, 2023 and 2022, Policy benefits were $2,565 million and $1,441 million, respectively, which include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account reporting under GAAP of $(56) million and $(116) million, respectively.

For the three months ended March 31, 2024 and 2023, Policy benefits were $1,180 million and $797 million, respectively, which include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account reporting under U.S.

GAAP of $10 million and $(25) million, respectively.

The offsetting movements of these liabilities are recorded in Other (income) expense on the Consolidated statements of operations.

Excluding the separate account gains and losses, Policy benefits were $2,621 million and $1,557 million for the nine months ended September 30, 2023 and 2022, respectively.

Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Amortization of purchased intangibles, and Income tax expense.

Segment Operating Results – Three and Nine Months Ended September 30, 2023 and 2022

Excluding the separate account gains and losses, Policy benefits were $1,170 million and $822 million for the three months ended March 31, 2024 and 2023, respectively.

Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Interest expense, Amortization of purchased intangibles, and Income tax expense.

The increase in Policy benefits for 2024 is primarily due to the consolidation of Huatai Group.

Segment Operating Results – Three Months Ended March 31, 2024 and 2023

We operate through six business segments:

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This segment includes our North America Major Accounts and Specialty Insurance division (large corporate accounts and wholesale business), and the North America Commercial Insurance division (principally middle market, and small commercial accounts).

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 4,689 $ 4,288 9.4 %

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Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 61.1 % 61.5 % (0.4) pts 60.8 % 61.5 % (0.7) pts

Catastrophe losses 5.2 % 14.0 % (8.8) pts 4.7 % 6.3 % (1.6) pts

Prior period development (2.4) % (4.6) % 2.2 pts (2.6) % (4.7) % 2.1 pts

Loss and loss expense ratio 63.9 % 70.9 % (7.0) pts 62.9 % 63.1 % (0.2) pts

Policy acquisition cost ratio 13.5 % 13.6 % (0.1) pts 13.6 % 13.5 % 0.1 pts

Administrative expense ratio 6.8 % 6.4 % 0.4 pts 6.8 % 6.4 % 0.4 pts

Combined ratio 84.2 % 90.9 % (6.7) pts 83.3 % 83.0 % 0.3 pts

Catastrophe Losses and Prior Period Development Three Months Ended Nine Months Ended

September 30 September 30

CAY loss ratio excluding catastrophe losses 61.4 % 60.5 % 0.9 pts

Catastrophe losses 4.9 % 3.7 % 1.2 pts

Prior period development (1.2) % (1.7) % 0.5 pts

Loss and loss expense ratio 65.1 % 62.5 % 2.6 pts

Policy acquisition cost ratio 14.1 % 14.0 % 0.1 pts

Administrative expense ratio 6.7 % 6.7 % — pts

Combined ratio 85.9 % 83.2 % 2.7 pts

Net Catastrophe Losses and Prior Period Development Three Months Ended

(in millions of U.S.

dollars) 2024 2023

Catastrophe losses $ 246 $ 598 $ 639 $ 803

Net catastrophe losses $ 236 $ 162

Favorable prior period development $ 48 $ 72

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

flooding, hail, tornadoes, wind events, winter storm losses, and Hawaii wildfires.

Hurricane Ian losses, severe weather-related events and winter storm losses in the U.S.

Refer to Note 8 in the Consolidated Financial Statements for detail on prior period development.

Net premiums written increased $410 million, or 8.7 percent, and $1,149 million, or 8.6 percent for the three and nine months ended September 30, 2023, respectively, reflecting strong premium retention, including both rate and exposure increases, strong new business, as well as an increase in workers' compensation audit exposure in the current year.

The increase in premiums was across most lines of business, most notably in property, but also in casualty and commercial multiple peril.

Net premiums earned increased $452 million, or 10.6 percent, and $1,065 million, or 8.4 percent for the three and nine months ended September 30, 2023, respectively, reflecting the growth in net premiums written described above.

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S.

flooding, hail, tornadoes, wind events, and winter storm losses.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Net premiums written increased $401 million, or 9.4 percent, for the three months ended March 31, 2024, reflecting strong new business and retention, including rate and exposure increases.

The increase in premiums was across most lines of business, most notably in property lines and casualty lines, which included a large structured transaction in the current year.

This growth was partially offset by declines in financial lines, reflecting a competitive market environment and lower retention,

and planned corrective underwriting actions in Major Accounts primary and excess casualty.

Net premiums earned increased $511 million, or 11.7 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above, including from the large structured transaction, which was fully earned when written.

Combined Ratio

The loss and loss expense ratio decreased for the three and nine months ended September 30, 2023, primarily from lower catastrophe losses and a higher percentage of premiums earned from lines that have a lower loss ratio, partially offset by lower favorable prior period development.

Refer to Note 8 in the Consolidated Financial Statements for detail on prior period development.

The administrative expense ratio increased for the three and nine months ended September 30, 2023, primarily from higher pension expenses and higher employee-related expenses, partially offset by the favorable impact of higher net premiums earned.

The increase in pension expense reflects the adverse impact of market conditions in 2022, and will continue through 2023.

The loss and loss expense ratio increased for the three months ended March 31, 2024, reflecting higher catastrophe losses and lower favorable prior period development.

The CAY loss ratio excluding catastrophe losses increased for the three months ended March 31, 2024, driven by the unfavorable impact of the large structured transaction and higher loss trends in certain casualty lines, partially offset by a higher percentage of net premiums earned from property lines.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024, reflecting the favorable impact of the large structured transaction in the current year that generated minimal expenses, partially offset by a lower ceded commission benefit in the current year.

North America Personal P&C Insurance

The North America Personal P&C Insurance segment comprises operations that provide high net worth personal lines products, including homeowners and complementary products such as valuable articles, excess liability, automobile, and recreational marine insurance and services in the U.S.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 1,456 $ 1,296 12.3 %

5 unchanged sentences

Net investment income 102 82 24.5 %

Other (income) expense 2 1 NM 2 3 NM

Amortization of purchased intangibles 3 2 NM 8 7 NM

Other (income) expense 1 1 —

Amortization of purchased intangibles 2 2 —

Segment income $ 285 $ 160 78.2 %

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 52.4 % 53.6 % (1.2) pts 53.4 % 53.5 % (0.1) pts

Catastrophe losses 19.8 % 20.6 % (0.8) pts 14.3 % 12.2 % 2.1 pts

Prior period development (8.3) % (10.0) % 1.7 pts (3.2) % (4.9) % 1.7 pts

Loss and loss expense ratio 63.9 % 64.2 % (0.3) pts 64.5 % 60.8 % 3.7 pts

Policy acquisition cost ratio 20.4 % 20.6 % (0.2) pts 20.5 % 20.6 % (0.1) pts

Administrative expense ratio 6.0 % 5.3 % 0.7 pts 6.0 % 5.5 % 0.5 pts

Combined ratio 90.3 % 90.1 % 0.2 pts 91.0 % 86.9 % 4.1 pts

CAY loss ratio excluding catastrophe losses 53.1 % 53.9 % (0.8) pts

Catastrophe losses 11.6 % 12.1 % (0.5) pts

Prior period development (3.6) % 1.3 % (4.9) pts

Loss and loss expense ratio 61.1 % 67.3 % (6.2) pts

Policy acquisition cost ratio 20.4 % 20.6 % (0.2) pts

Administrative expense ratio 5.9 % 6.0 % (0.1) pts

Combined ratio 87.4 % 93.9 % (6.5) pts

NM - Not meaningful

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

Net Catastrophe Losses and Prior Period Development

Three Months Ended

(in millions of U.S.

dollars) 2024 2023

Catastrophe losses $ 280 $ 274 $ 586 $ 469

Favorable prior period development $ 119 $ 133 $ 135 $ 187

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

flooding, hail, tornadoes, wind events, winter storm losses, and Hawaii wildfires.

Hurricane Ian losses, severe weather-related events in the U.S.

and Colorado wildfires.

Refer to Note 8 in the Consolidated Financial Statements for detail on prior period development.

Net premiums written increased $135 million, or 9.6 percent, and $406 million, or 10.1 percent for the three and nine months ended September 30, 2023, respectively, primarily driven by strong new business and strong renewal retention, from both rate and exposure increases, across most lines, but most notably in homeowners.

Net premiums earned increased $73 million, or 5.5 percent, and $232 million, or 6.0 percent for the three and nine months ended September 30, 2023, respectively, reflecting the growth in net premiums written described above.

Net catastrophe losses $ 170 $ 159

Favorable (unfavorable) prior period development $ 52 $ (17)

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S.

winter storm losses, flooding, hail, tornadoes, and wind events.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Net premiums written increased $160 million, or 12.3 percent, for the three months ended March 31, 2024, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $151 million, or 11.4 percent, for the three months ended March 31, 2024, reflecting the growth in net premiums written described above.

Combined Ratio

The CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2023, primarily reflecting earned rate and exposure exceeding loss cost trends, as well as lower actual loss experience in homeowners, partially offset by higher auto and excess liability losses.

The loss and loss expense ratio decreased for the three months ended September 30, 2023, primarily reflecting the factors mentioned above, as well as a lower impact from catastrophe losses, partially offset by lower favorable prior period development.

The loss and loss expense ratio increased for the nine months ended September 30, 2023, primarily reflecting higher catastrophe losses in the current year and lower favorable prior period development.

The administrative expense ratio increased for the three and nine months ended September 30, 2023, primarily from higher pension expenses, partially offset by the favorable impact of higher net premiums earned.

The increase in pension expense reflects the adverse impact of market conditions in 2022, and will continue through 2023.

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting a lower impact from catastrophe losses and favorable prior period development, compared with unfavorable development in the prior year period.

The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, partly offset by an increase in excess liability and auto loss trends.

The policy acquisition cost ratio and the administrative expense ratio were relatively flat for the three months ended March 31, 2024.

North America Agricultural Insurance

1 unchanged sentence

and Canada including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail through Rain and Hail Insurance Service, Inc.

(Rain and Hail), as well as farm and ranch and specialty P&C commercial insurance products and services through our Chubb Agribusiness unit.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(Rain and Hail), as well as farm and ranch and specialty P&C commercial insurance products and services through our Agriculture P&C business.

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 249 $ 293 (15.0) %

3 unchanged sentences

Administrative expenses 2 3 (29.1) %

Underwriting income 105 158 (33.4) % 194 272 (28.7) %

Underwriting income 56 1 NM

Net investment income 21 17 27.1 %

Other (income) expense — 1 NM — 1 NM

Other (income) expense — 1 NM

Amortization of purchased intangibles 6 6 —

Segment income $ 111 $ 159 (30.3) % $ 218 $ 274 (20.5) %

Segment income $ 71 $ 11 NM

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 87.5 % 84.0 % 3.5 pts 84.7 % 82.2 % 2.5 pts

Catastrophe losses 1.2 % 1.8 % (0.6) pts 1.6 % 2.3 % (0.7) pts

Prior period development (0.6) % 0.5 % (1.1) pts (0.5) % (2.0) % 1.5 pts

Loss and loss expense ratio 88.1 % 86.3 % 1.8 pts 85.8 % 82.5 % 3.3 pts

Policy acquisition cost ratio 4.9 % 4.1 % 0.8 pts 5.5 % 5.1 % 0.4 pts

Administrative expense ratio 0.2 % 0.2 % — pts 0.4 % 0.2 % 0.2 pts

Combined ratio 93.2 % 90.6 % 2.6 pts 91.7 % 87.8 % 3.9 pts

CAY loss ratio excluding catastrophe losses 69.5 % 73.1 % (3.6) pts

Catastrophe losses 2.1 % 15.4 % (13.3) pts

Prior period development (33.0) % — (33.0) pts

Loss and loss expense ratio 38.6 % 88.5 % (49.9) pts

Policy acquisition cost ratio 16.8 % 9.3 % 7.5 pts

Administrative expense ratio 1.2 % 1.4 % (0.2) pts

Combined ratio 56.6 % 99.2 % (42.6) pts

NM - Not meaningful

Catastrophe Losses and Prior Period Development Three Months Ended Nine Months Ended

September 30 September 30

Net Catastrophe Losses and Prior Period Development Three Months Ended

(in millions of U.S.

dollars) 2024 2023

Catastrophe losses $ 18 $ 31 $ 37 $ 52

Favorable (unfavorable) prior period development $ 9 $ (9) $ 12 $ 17

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

flooding, hail, tornadoes, and wind events.

Hurricane Ian losses, severe weather-related events in Chubb Agribusiness, and winter storm losses in the U.S.

Refer to Note 8 in the Consolidated Financial Statements for detail on prior period development.

Net premiums written decreased $202 million, or 11.7 percent for the three months ended September 30, 2023, mainly due to the timing of premium recognition this year versus last year, and a modest increase in the premium the company shared with the Federal Government.

Net premiums written increased $58 million, or 2.3 percent for the nine months ended September 30, 2023, reflecting the return of premium to the U.S.

government of $161 million in the first quarter of 2022 as part of a profit-sharing agreement and strong new business in Chubb Agribusiness, partially offset by higher cessions to the U.S.

government in

the current year.

Under the profit-sharing agreement, we returned additional premiums to the government because of the lower losses experienced in certain states in 2021.

Net premiums earned decreased $133 million, or 8.0 percent for the three months ended September 30, 2023, and increased $117 million, or 5.3 percent for the nine months ended September 30, 2023, reflecting the factors described above.

Net catastrophe losses $ 3 $ 24

Favorable prior period development $ 28 $ —

Catastrophe losses through both March 31, 2024 and 2023, were primarily from U.S.

flooding, hail, tornadoes, wind events, and winter storm losses.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Net premiums written decreased $44 million, or 15.0 percent, for the three months ended March 31, 2024, primarily due to a return of premium of $41 million under the U.S.

government risk-sharing formula related to the 2023 crop year and lower commodity prices in the current year.

Under the profit-sharing agreement, we ceded more premium due to lower losses experienced in certain states.

The decrease was partially offset by strong new business and rate increases in our Agriculture P&C business.

Net premiums earned decreased $31 million, or 19.4 percent, for the three months ended March 31, 2024, reflecting the factors described above.

Combined Ratio

The CAY loss ratio excluding catastrophe losses increased for the three and nine months ended September 30, 2023, which contemplates a lower underwriting gain for the current crop year, partially offset by the year-over-year impact of crop commodity price hedge activity, which had a favorable impact of 0.7 percentage points and 0.2 percentage points, respectively.

Estimated development for the current crop year was recognized this quarter compared to the fourth quarter in the prior year.

The loss and loss expense ratio increased for the three and nine months ended September 30, 2023, reflecting the factors mentioned above.

The increase for the three months ended September 30, 2023, was partially offset by favorable prior period development, compared with unfavorable prior period development in the prior year, and lower catastrophe losses.

The increase in loss and loss expense ratio for the nine months ended September 30, 2023, also reflects the prior year impact of the return of premium to the U.S.

government mentioned above, which had a corresponding reduction in incurred losses, and lower favorable prior period development, partially offset by lower catastrophe losses.

The policy acquisition cost ratio increased for the three and nine months ended September 30, 2023, reflecting changes in mix of business away from products that have a lower acquisition cost ratio.

The loss and loss expense ratio improved for the three months ended March 31, 2024, reflecting higher favorable prior period development and lower catastrophe losses.

The CAY loss ratio excluding catastrophe losses improved for the three months ended March 31, 2024, due to higher net premiums earned from our Agriculture P&C business that has a lower loss ratio, and earned rate exceeding loss trend in that business.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, reflecting the impact of the government profit share adjustment and agent commission adjustments relating to the 2023 crop year, and higher net premiums earned from our Agriculture P&C business that has a higher policy acquisition cost ratio.

Overseas General Insurance

6 unchanged sentences

We previously included our share of Huatai results based on our equity method investment within Other (income) expense.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 3,835 $ 3,263 17.5 %

7 unchanged sentences

Net investment income 267 188 42.5 %

Other (income) expense (10) (2) NM (29) 3 NM

Other (income) expense 5 (9) NM

Amortization of purchased intangibles 20 18 17.1 %

1 unchanged sentence

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 50.0 % 49.2 % 0.8 pts 49.7 % 49.5 % 0.2 pts

Catastrophe losses 3.6 % 3.6 % — pts 2.9 % 3.7 % (0.8) pts

Prior period development (1.5) % (0.2) % (1.3) pts (2.9) % (2.9) % — pts

Loss and loss expense ratio 52.1 % 52.6 % (0.5) pts 49.7 % 50.3 % (0.6) pts

Policy acquisition cost ratio 25.0 % 26.3 % (1.3) pts 25.4 % 26.0 % (0.6) pts

Administrative expense ratio 9.9 % 9.6 % 0.3 pts 10.0 % 10.0 % — pts

Combined ratio 87.0 % 88.5 % (1.5) pts 85.1 % 86.3 % (1.2) pts

CAY loss ratio excluding catastrophe losses 49.7 % 49.4 % 0.3 pts

Catastrophe losses 0.8 % 4.1 % (3.3) pts

Prior period development (2.8) % (5.1) % 2.3 pts

Loss and loss expense ratio 47.7 % 48.4 % (0.7) pts

Policy acquisition cost ratio 25.7 % 25.6 % 0.1 pts

Administrative expense ratio 10.4 % 10.0 % 0.4 pts

Combined ratio 83.8 % 84.0 % (0.2) pts

NM - not meaningful

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

Net Catastrophe Losses and Prior Period Development

Three Months Ended

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 89 $ 143

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

Catastrophe losses through March 31, 2024 and 2023, were primarily from the following events:

International weather-related events.

Storms in New Zealand and international weather-related events.

Hurricane Ian losses, International weather-related events, and storms in Australia.

Refer to Note 7 to the Consolidated Financial Statements for detail on prior period development.

Net Premiums Written by Region

Three months ended September 30

Three months ended March 31

(in millions of U.S.

4 unchanged sentences

Europe, Middle East, and Africa $ 1,869 49 % $ 1,721 53 % $ 1,749 8.6 % 6.8 %

Latin America 695 22 % 565 21 % 628 23.0 % 10.7 %

Asia Pacific (1)

1,161 30 % 861 26 % 829 34.7 % 40.1 %

Japan 102 3 % 101 4 % 96 0.9 % 5.5 %

51 2 % 30 1 % 29 77.7 % 76.6 %

Net premiums written $ 3,211 100 % $ 2,645 100 % $ 2,738 21.4 % 17.3 %

Nine months ended September 30

(in millions of U.S.

dollars, except for percentages) 2023 2023

% of Total 2022 2022

% of Total C$

2022 Y-23 vs.

Europe, Middle East, and Africa $ 4,292 46 % $ 3,990 48 % $ 3,921 7.6 % 9.4 %

Latin America 777 20 % 661 20 % 688 17.5 % 12.9 %

Asia Pacific (1)

28 1 % 20 1 % 20 42.5 % 42.9 %

Japan 349 4 % 359 4 % 328 (2.8) % 6.2 %

105 1 % 104 1 % 101 1.8 % 3.8 %

Net premiums written $ 3,835 100 % $ 3,263 100 % $ 3,286 17.5 % 16.7 %

1 unchanged sentence

(2) Includes the international supplemental A&H business of Combined Insurance and other international operations.

Overall, net premiums written increased $566 million and $995 million, or $473 million and $1,055 million on a constant dollar basis, for the three and nine months ended September 30, 2023, respectively, reflecting growth in both commercial and consumer lines.

For the three and nine months ended September 30, 2023, commercial lines grew 17.0 percent and 10.5 percent, or 14.6 percent and 12.4 percent on a constant-dollar basis, respectively, and consumer lines grew 28.4 percent and 14.1 percent, or 21.4 percent and 13.2 percent on a constant-dollar basis, respectively.

Our European division increased for the three and nine months ended September 30, 2023, supported by both our wholesale and retail divisions.

The growth in commercial lines was primarily driven by higher new business, and positive rate increases, including commercial property and casualty lines.

Consumer lines increased primarily due to increased travel volume in A&H.

Latin America increased for the three and nine months ended September 30, 2023, driven by growth in commercial lines due to exposure increases, positive rate increases, and new business, primarily property and casualty lines.

Growth in consumer was driven by an increase in personal lines.

Asia Pacific increased for the three and nine months ended September 30, 2023, reflecting the consolidation of Huatai Group's P&C business effective July 1, 2023, higher new business, higher retention and positive rate increases in commercial lines, primarily property and casualty lines.

Growth in consumer lines is attributable to the acquisition of Cigna's business in Asia, as well as increased travel in A&H.

Japan increased for the three and nine months ended September 30, 2023, on a constant-dollar basis, primarily from higher new business in A&H.

Net premiums earned increased $570 million and $940 million, or $460 million and $956 million on a constant-dollar basis, for the three and nine months ended September 30, 2023, respectively, reflecting the increase in net premiums written described above.

Overall, net premiums written increased $572 million, or $549 million on a constant dollar basis, for the three months ended March 31, 2024 reflecting growth in commercial lines of 12.2 percent, or 11.4 percent on a constant-dollar basis, and growth in consumer lines of 27.1 percent, or 26.2 percent on a constant-dollar basis.

Europe increased for the three months ended March 31, 2024, supported by both our wholesale and retail divisions.

The growth in commercial lines was driven by higher new business, and positive rate increases, primarily in commercial property and casualty lines.

Consumer lines increased primarily due to new business from growth in our digital channels, including travel, and high net worth.

Asia increased for the three months ended March 31, 2024, reflecting the consolidation of Huatai Group's P&C business effective July 1, 2023, as well as higher new business, higher retention and positive rate increases in commercial lines.

Consumer lines had strong growth in Southeast Asian countries with growth in new business for both A&H and personal lines, fueled in part by new digital distribution.

Latin America increased for the three months ended March 31, 2024, reflecting growth in commercial lines driven by growth in new business and positive rate increases across property and casualty lines.

Our personal lines business, primarily automobile in Mexico, also continues to have strong growth.

Net premiums earned increased $412 million, or $402 million on a constant-dollar basis, for the three months ended March 31, 2024, reflecting the increase in net premiums written described above.

Combined Ratio

The loss and loss expense ratio decreased for the three months ended September 30, 2023, due to higher favorable prior period development.

The loss and loss expense ratio decreased for the nine months ended September 30, 2023, due to lower catastrophe losses.

The CAY loss ratio excluding catastrophe losses increased for the three and nine months ended September 30, 2023, primarily due to higher losses in personal lines.

The policy acquisition cost ratio decreased for the three and nine months ended September 30, 2023, primarily due to a change in the mix of business, including higher premiums earned from commercial lines that have a lower acquisition cost ratio than consumer lines.

The administrative expense ratio increased for the three months ended September 30, 2023, reflecting the impact from the consolidation of Huatai Group's P&C business effective July 1, 2023.

The combined ratio improved for the three months ended March 31, 2024, primarily reflecting lower catastrophe losses.

The CAY combined ratio excluding catastrophe losses increased, principally related to the consolidation of Huatai.

Global Reinsurance

1 unchanged sentence

Global Reinsurance markets its reinsurance products worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand name and provides a broad range of traditional and non-traditional reinsurance coverage to a diverse array of primary P&C companies.

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-23 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 359 $ 277 29.7 %

4 unchanged sentences

Administrative expenses 9 9 —

Underwriting income 45 (123) NM 178 (58) NM

Underwriting income 68 61 12.3 %

Net investment income 57 49 15.1 %

Other (income) expense — — — (1) 1 NM

Segment income (loss)

$ 92 $ (52) NM $ 323 $ 173 86.7 %

Other (income) expense — (1) 100 %

Segment income $ 125 $ 111 12.3 %

Loss and loss expense ratio:

CAY loss ratio excluding catastrophe losses 45.9 % 49.6 % (3.7) pts 47.2 % 49.8 % (2.6) pts

Catastrophe losses 2.6 % 72.6 % (70.0) pts 1.0 % 26.1 % (25.1) pts

Prior period development (0.1) % (0.1) % — pts (3.9) % 3.5 % (7.4) pts

Loss and loss expense ratio 48.4 % 122.1 % (73.7) pts 44.3 % 79.4 % (35.1) pts

Policy acquisition cost ratio 29.1 % 22.9 % 6.2 pts 27.2 % 25.0 % 2.2 pts

Administrative expense ratio 3.8 % 3.4 % 0.4 pts 3.8 % 3.8 % — pts

Combined ratio 81.3 % 148.4 % (67.1) pts 75.3 % 108.2 % (32.9) pts

NM - not meaningful

Catastrophe Losses and Prior Period Development

Three Months Ended Nine Months Ended

September 30 September 30

CAY loss ratio excluding catastrophe losses 46.0 % 49.0 % (3.0) pts

Catastrophe losses — — — pts

Prior period development 0.3 % (3.3) % 3.6 pts

Loss and loss expense ratio 46.3 % 45.7 % 0.6 pts

Policy acquisition cost ratio 27.5 % 25.6 % 1.9 pts

Administrative expense ratio 3.1 % 3.8 % (0.7) pts

Combined ratio 76.9 % 75.1 % 1.8 pts

Net Catastrophe Losses and Prior Period Development

Three Months Ended

(in millions of U.S dollars) 2024 2023

1 unchanged sentence

Favorable (unfavorable) prior period development $ (1) $ 8

Catastrophe losses through September 30, 2023 and 2022, were primarily from the following events:

Hurricane Idalia.

Hurricane Ian, and storms in Australia and Canada.

Refer to Note 7 in the Consolidated Financial Statements for detail on prior period development.

Net premiums written decreased $4 million for the three months ended September 30, 2023, as continued growth in the portfolio, primarily in property lines, was more than offset by the impact of catastrophe reinstatement premiums recognized in the prior year.

Net premiums written increased $51 million for the nine months ended September 30, 2023 reflecting continued growth in the portfolio, primarily in property lines, partially offset by the impact of catastrophe reinstatement premiums recognized in the prior year.

Net premiums earned decreased $16 million and increased $8 million for the three and nine months ended September 30, 2023, respectively, primarily reflecting the changes in net premiums written described above.

The change in net premiums earned also reflects the impact of catastrophe reinstatement premiums recognized in the prior year, which are fully earned when written.

Net premiums written increased $82 million for the three months ended March 31, 2024, primarily reflecting continued growth, mainly in catastrophe exposed property lines.

Net premiums earned increased $51 million for the three months ended March 31, 2024, primarily reflecting the increase in net premiums written described above.

Combined Ratio

The loss and loss expense ratio decreased for the three and nine months ended September 30, 2023, mainly from lower catastrophe losses.

The decrease in the loss and loss expense ratio for the nine months ended September 30, 2023, also reflects favorable prior period development compared with unfavorable development in the prior year period.

The CAY loss ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2023, primarily from an improvement in market conditions in several lines of business, including property, casualty, and workers' compensation lines.

The policy acquisition cost ratio increased for the three and nine months ended September 30, 2023, primarily due to lower catastrophe reinstatement premiums recognized in the prior year, which have a lower acquisition cost ratio.

The administrative expense ratio increased for the three months ended September 30, 2023, reflecting the impact of lower net premiums earned, as described above.

The loss and loss expense ratio increased for the three months ended March 31, 2024, mainly reflecting unfavorable prior period development compared with favorable development in the prior year.

The CAY loss ratio excluding catastrophe losses

improved for the three months ended March 31, 2024, primarily from a shift in the mix of business towards property lines, which generally has lower loss ratios excluding catastrophe losses.

The policy acquisition cost ratio increased for the three months ended March 31, 2024, primarily due to a shift in the mix of business and the impact of a treaty written in the prior year with a lower acquisition cost ratio.

The administrative expense ratio improved for the three months ended March 31, 2024, reflecting the favorable impact of higher net premiums earned, as described above.

Life Insurance

The Life Insurance segment comprises our international life operations, which commencing in the third quarter of 2022, includes Cigna's A&H and life business in Korea, Taiwan, New Zealand, Hong Kong, and Indonesia, acquired on July 1, 2022.

The Life Insurance segment comprises our international life operations.

Effective July 1, 2023, the Life Insurance segment includes 100 percent of the results of Huatai Group's life and asset management business as required under consolidation accounting.

1 unchanged sentence

The Life Insurance segment also includes Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.

Results for the three and nine months ended September 30, 2022, respectively, are adjusted to reflect the adoption of LDTI.

Refer to Note 1 c).

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Net premiums written $ 1,633 $ 1,293 26.3 %

6 unchanged sentences

Net investment income 230 153 50.8 %

Other (income) expense (28) 4 NM (69) (38) 90.3 %

Amortization of purchased intangibles 12 2 NM 18 7 170.6 %

Other (income) expense (40) (15) 155.0 %

Amortization of purchased intangibles 10 4 192.8 %

Segment income $ 268 $ 244 9.8 %

NM - not meaningful

Net premiums written increased $187 million and $1,612 million, or $191 million and $1,631 million on a constant-dollar basis, for the three and nine months ended September 30, 2023, respectively.

For our international life operations, net premiums written increased 19.7 percent for the three months ended September 30, 2023, primarily due to the consolidation of Huatai Group's life business which contributed $149 million or 14.8 percentage points, and growth in Asia and Latin America.

Our international life operations net premiums written increased 101.8 percent

for the nine months ended September 30, 2023, primarily due to the acquisition of Cigna's business in Asia, underlying growth in existing business from Latin America bank distribution channels, and Asia agency and partnership channels.

Net premiums written in our North American Combined Insurance business declined 3.9 percent and 5.5 percent, for the three and nine months ended September 30, 2023, respectively, as growth in the supplemental A&H business was more than offset by the non-renewal of a large program.

Net premiums written increased $340 million, or $374 million on a constant-dollar basis, for the three months ended March 31, 2024.

For our international life operations, net premiums written increased 31.5 percent for the three months ended March 31, 2024, substantially due to the consolidation of Huatai Group's life business which contributed $265.8 million or 25.4 percentage points.

The remaining increase in net premiums written is primarily driven by the underlying growth of existing business in Asia, specifically in Hong Kong, Taiwan, and Southeast Asia, as well as by higher new business in Latin America.

Net premiums written in our North American Combined Insurance business increased 5.5 percent for the three months ended March 31, 2024, due to growth in its worksite benefits business of 20.2 percent, partially offset by the non-renewal of a large program.

The following table presents deposits collected on universal life and investment contracts:

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

1 unchanged sentence

2023 Q-24 vs.

Q-22 2023 2022 C$ 2022 Y-23 vs.

Deposits collected on universal life and investment contracts $ 600 $ 309 $ 301 93.9 % 99.4 %

Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our Consolidated statements of operations in accordance with GAAP.

Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our Consolidated statements of operations in accordance with U.S.

New life deposits are an important component of production, and although they do not significantly affect current period income from operations, they are key to our efforts to grow our business.

Life deposits collected decreased $61 million and $336 million for the three and nine months ended September 30, 2023, respectively, primarily in Taiwan, reflecting challenging market conditions for deposit products due to market volatility and a rapid increase in interest rates.

The decrease in collections was partially offset by deposit growth from the consolidation of Huatai Group.

Life deposits collected increased $291 million for the three months ended March 31, 2024, primarily from the consolidation of Huatai Life business.

Life Insurance segment income

Life Insurance segment income increased $36 million for the three months ended September 30, 2023 reflecting the growth in premiums described above, higher net investment income and higher income from Huatai.

Life Insurance segment income growth of $307 million for the nine months ended September 30, 2023, also reflects the acquisition of Cigna's business in Asia in the third quarter of 2022, and higher net investment income due to a higher invested asset base.

Life Insurance segment income increased $24 million for the three months ended March 31, 2024 reflecting the growth in premiums described above and includes higher-than-expected other income totaling $8 million.

Corporate results primarily include the results of our non-insurance companies, income and expenses not attributable to reportable segments, and loss and loss expenses of asbestos and environmental (A&E) liabilities and certain other non-A&E run-off exposures, including molestation.

Effective July 1, 2023, 100 percent of Huatai Group’s non-insurance operations results, comprising real estate and holding company activity, are included in Corporate.

Results for the three and nine months ended September 30, 2022, are adjusted to reflect the adoption of LDTI.

Refer to Note 1 c).

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

Three Months Ended

March 31 % Change

(in millions of U.S.

dollars, except for percentages) 2024 2023 Q-24 vs.

Q-22 2023 2022 YTD-23 vs.

Losses and loss expenses $ 10 $ 11 (2.9) %

1 unchanged sentence

Underwriting loss 117 108 8.1 %

Net investment income (loss) 14 5 NM 28 (4) NM

Other (income) expense (51) 194 NM (251) 73 NM

Net investment income (loss) (26) 11 NM

Other (income) expense (68) (214) (68.1) %

Amortization of purchased intangibles 42 42 —

Net realized gains (losses) (100) (76) 31.4 %

Market risk benefits gains (losses) (32) 69 NM (154) 85 NM

Market risk benefits gains (losses) 21 (115) NM

Interest expense 178 160 11.3 %

2 unchanged sentences

Net loss (723) (682) 5.7 %

Net loss attributable to noncontrolling interests

(3) — NM (3) — NM

Net income attributable to noncontrolling interests 151 — NM

Net loss attributable to Chubb $ (874) $ (682) 27.9 %

NM - not meaningful

Losses and loss expenses primarily includes unfavorable prior period development for molestation claims and legacy environmental claims.

Administrative expenses increased $7 million and $26 million for the three and nine months ended September 30, 2023, respectively, primarily due to increased spending to support digital growth initiatives.

Cigna integration expenses of $14 million and $51 million for the three and nine months ended September 30, 2023 , respectively, principally comprised legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition.

These expenses are one-time in nature and are not related to the on-going business activities of the segments.

Administrative expenses increased $10 million for the three months ended March 31, 2024, respectively, primarily due to increased spending to support digital growth initiatives.

Cigna integration expenses principally comprised legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition.

These expenses are one-time in nature and are not related to the on-going business activities

of the segments.

The Chief Executive Officer does not manage segment results or allocate resources to segments when considering these costs and they are therefore excluded from our definition of segment income.

4 unchanged sentences

The majority of our investment portfolio is available-for-sale and reported at fair value.

The effect of market movements on our fixed maturities portfolio impacts Net income (through Net realized gains (losses)) when securities are sold, when we write down an asset, or when we record a change to the valuation allowance for expected credit losses.

For a further discussion related to how we assess the valuation allowance for expected credit losses and the related impact on Net income, refer to Note 1 e) to the Consolidated Financial Statements in our 2022 Form 10-K.

Additionally, Net

income is impacted through the reporting of changes in the fair value of public and private equity securities and derivatives, including financial futures, options, and swaps.

The effect of market movements on our fixed maturities available-for-sale portfolio impacts Net income (through Net realized gains (losses)) when securities are sold, when we write down an asset, or when we record a change to the valuation allowance for expected credit losses.

For a further discussion related to how we assess the valuation allowance for expected credit losses and the related impact on Net income, refer to Note 1 f) to the Consolidated Financial Statements in our 2023 Form 10-K.

The effect of market movements on fixed maturities related to consolidated investment products (CIP) in the Huatai portfolio (Fixed maturities - CIP) impact Net realized gains (losses).

Additionally, Net income is impacted through the reporting of changes in the fair value of public and private equity securities and derivatives, including financial futures, options, and swaps.

Changes in unrealized appreciation and depreciation on available-for-sale securities, resulting from the revaluation of securities held, changes in cumulative foreign currency translation adjustment, changes in current discount rate on future policy benefits, changes in instrument-specific credit risk on market risk benefits, unrealized postretirement benefit obligations liability adjustment, and cross-currency swaps designated as hedges for accounting purposes are reported as separate components of Accumulated other comprehensive income (loss) in Shareholders’ equity in the Consolidated balance sheets.

The following tables present our net realized and unrealized gains (losses):

Three Months Ended September 30

(As Adjusted)

(in millions of U.S.

Fixed maturities $ (70) $ (2,181) $ (2,251) $ (279) $ (3,045) $ (3,324)

Fixed income and investment derivatives 9 — 9 (198) — (198)

Public equity

Sales (45) — (45) (12) — (12)

Mark-to-market (55) — (55) (68) — (68)

Private equity (less than 3 percent ownership)

Mark-to-market 40 — 40 (42) — (42)

Total investment portfolio (121) (2,181) (2,302) (599) (3,045) (3,644)

Other derivatives (7) — (7) (19) — (19)

Foreign exchange (67) (317) (384) 202 (942) (740)

Current discount rate on future policy benefits — 683 683 — 479 479

Instrument-specific credit risk on market risk benefits — (5) (5) — 8 8

92 48 140 (40) (59) (99)

Net (losses), pre-tax $ (103) $ (1,772) $ (1,875) $ (456) $ (3,559) $ (4,015)

(1) The three months ended September 30, 2023 includes a one-time realized gain of $116 million as a result of the consolidation of Huatai Group.

Nine Months Ended September 30

(As Adjusted)

Three Months Ended March 31

(in millions of U.S.

Fixed maturities $ 49 $ (677) $ (628) $ (180) $ 1,786 $ 1,606

Fixed income and investment derivatives (92) — (92) (232) — (232)

Investment and embedded derivative instruments (43) — (43) (46) — (46)

Public equity

4 unchanged sentences

Total investment portfolio 40 (677) (637) (200) 1,786 1,586

Other derivatives (6) — (6) (9) — (9)

Other derivative instruments (2) — (2) (1) — (1)

Foreign exchange (131) 80 (51) 131 (177) (46)

1 unchanged sentence

Instrument-specific credit risk on market risk benefits — 5 5 — (3) (3)

79 63 142 (114) (35) (149)

Other (8) 31 23 (7) (33) (40)

Net gains (losses), pre-tax $ (101) $ (614) $ (715) $ (77) $ 1,422 $ 1,345

(1) The nine months ended September 30, 2023 Includes a one-time realized gain of $116 million as a result of the consolidation of Huatai Group.

Pre-tax net unrealized losses of $2,181 million and $1,589 million in our investment portfolio for the three and nine months ended September 30, 2023, respectively, were primarily driven by higher interest rates.

Refer to Note 3 a) to the Consolidated Financial Statements.

Pre-tax net realized losses of $484 million for the nine months ended September 30, 2023 mainly comprised losses from sales and impairments of fixed maturities and derivative losses, as well as foreign exchange losses.

Pre-tax net unrealized losses of $677 million in our investment portfolio for the three months ended March 31, 2024, were primarily driven by higher interest rates.

Pre-tax net realized losses of $101 million for the three months ended March 31, 2024 mainly comprised foreign exchange losses.

Effective Income Tax Rate

Our effective tax rate (ETR) reflects a mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between GAAP and local tax laws, and the impact of discrete items.

Our effective tax rate (ETR) reflects a mix of income or losses in jurisdictions with a wide range of tax rates, permanent differences between U.S.

GAAP and local tax laws, and the impact of discrete items.

A change in the geographic mix of earnings could impact our ETR.

For the three and nine months ended September 30, 2023, our ETR was 16.8 percent and 17.2 percent, respectively.

This compares to an ETR of 24.9 percent and 18.7 percent for the three and nine months ended September 30, 2022, respectively.

The ETR for each period was impacted by our mix of earnings among various jurisdictions, most notably related to realized gains/(losses), the impact of the consolidation of Huatai Group, and an increase in the enacted UK tax rate, offset by discrete tax items.

For the three months ended March 31, 2024, our ETR was 13.0 percent compared to 16.9 percent in the prior year period.

The ETR for each period was impacted by our mix of earnings among various jurisdictions and by discrete tax items, including an incremental deferred tax benefit of $55 million related to the Bermuda tax law enacted in December 2023.

Non-GAAP Reconciliation

28 unchanged sentences

Three Months Ended

September 30, 2023

March 31, 2024

(in millions of U.S.

9 unchanged sentences

Expense adjustments - unfavorable (favorable) 8 — 3 — — — 11

PPD reinstatement premiums - unfavorable (favorable) — (1) — — (1) — (2)

PPD, gross of related adjustments - favorable (unfavorable) 56 52 70 89 (1) (9) 257

3 unchanged sentences

Expense adjustments - favorable (unfavorable) (8) — (3) — — — (11)

CAY Policy acquisition costs and administrative expenses, adjusted D $ 956 $ 371 $ 79 $ 1,154 $ 78 $ 98 $ 2,736

Policy acquisition costs and administrative expenses, adjusted D $ 1,008 $ 386 $ 20 $ 1,154 $ 90 $ 107 $ 2,765

Net premiums earned E $ 4,880 $ 1,471 $ 128 $ 3,198 $ 295 $ 9,972

Net premiums earned adjustments on PPD - unfavorable (favorable) — — 39 — — 39

PPD reinstatement premiums - unfavorable (favorable) — (1) — — (1) (2)

Net premiums earned excluding adjustments F $ 4,880 $ 1,471 $ 167 $ 3,198 $ 295 $ 10,011

16 unchanged sentences

Three Months Ended

September 30, 2022

(in millions of U.S.

dollars except for ratios)

Losses and loss expenses/policy benefits A $ 3,036 $ 857 $ 1,444 $ 1,441 $ 311 $ 74 $ 7,163

Catastrophe losses and related adjustments

Catastrophe losses, net of related adjustments (598) (274) (31) (98) (157) — (1,158)

Reinstatement premiums collected (expensed) on catastrophe losses — — — — 55 — 55

Catastrophe losses, gross of related adjustments (598) (274) (31) (98) (212) — (1,213)

PPD and related adjustments

PPD, net of related adjustments - favorable (unfavorable) 166 133 (9) 5 — (73) 222

Net premiums earned adjustments on PPD - unfavorable (favorable) 80 — — — — — 80

Expense adjustments - unfavorable (favorable) (1) — — — — — (1)

PPD, gross of related adjustments - favorable (unfavorable) 245 133 (9) 5 — (73) 301

CAY loss and loss expense ex CATs B $ 2,683 $ 716 $ 1,404 $ 1,348 $ 99 $ 1 $ 6,251

Policy acquisition costs and administrative expenses

Policy acquisition costs and administrative expenses C $ 855 $ 345 $ 71 $ 984 $ 67 $ 91 $ 2,413

Expense adjustments - favorable (unfavorable) 1 — — — — — 1

CAY Policy acquisition costs and administrative expenses, adjusted D $ 856 $ 345 $ 71 $ 984 $ 67 $ 91 $ 2,414

Net premiums earned E $ 4,283 $ 1,334 $ 1,673 $ 2,741 $ 255 $ 10,286

Reinstatement premiums (collected) expensed on catastrophe losses — — — — (55) (55)

Net premiums earned adjustments on PPD - unfavorable (favorable) 80 — — — — 80

Net premiums earned excluding adjustments F $ 4,363 $ 1,334 $ 1,673 $ 2,741 $ 200 $ 10,311

P&C Combined ratio

Loss and loss expense ratio A/E 70.9 % 64.2 % 86.3 % 52.6 % 122.1 % 69.6 %

Policy acquisition cost and administrative expense ratio C/E 20.0 % 25.9 % 4.3 % 35.9 % 26.3 % 23.5 %

P&C Combined ratio 90.9 % 90.1 % 90.6 % 88.5 % 148.4 % 93.1 %

CAY P&C Combined ratio ex CATs

Loss and loss expense ratio, adjusted B/F 61.5 % 53.6 % 84.0 % 49.2 % 49.6 % 60.6 %

Policy acquisition cost and administrative expense ratio, adjusted D/F 19.6 % 25.9 % 4.2 % 35.9 % 33.4 % 23.4 %

CAY P&C Combined ratio ex CATs 81.1 % 79.5 % 88.2 % 85.1 % 83.0 % 84.0 %

Combined ratio

Combined ratio 92.9 %

impact of gains and losses on crop derivatives 0.2 %

P&C Combined ratio 93.1 %

The ratios above are calculated using whole U.S.

Accordingly, calculations using rounded amounts may differ.

Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.

North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global

Reinsurance Corporate Total P&C

Nine Months Ended

September 30, 2023

(in millions of U.S.

dollars except for ratios)

Losses and loss expenses/policy benefits A $ 8,625 $ 2,634 $ 2,003 $ 4,477 $ 319 $ 133 $ 18,191

Catastrophe losses and related adjustments

Catastrophe losses, net of related adjustments (639) (586) (37) (259) (7) — (1,528)

Reinstatement premiums collected (expensed) on catastrophe losses — — — — — — —

Catastrophe losses, gross of related adjustments (639) (586) (37) (259) (7) — (1,528)

PPD and related adjustments

PPD, net of related adjustments - favorable (unfavorable) 302 135 12 253 25 (131) 596

Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — (2) — — — 76

Expense adjustments - unfavorable (favorable) 14 — — — — — 14

PPD reinstatement premiums - unfavorable (favorable) — (2) — — 5 — 3

PPD, gross of related adjustments - favorable (unfavorable) 394 133 10 253 30 (131) 689

CAY loss and loss expense ex CATs B $ 8,380 $ 2,181 $ 1,976 $ 4,471 $ 342 $ 2 $ 17,352

Policy acquisition costs and administrative expenses

Policy acquisition costs and administrative expenses C 2,801 1,083 137 3,185 223 290 7,719

Expense adjustments - favorable (unfavorable) (14) — — — — — (14)

CAY Policy acquisition costs and administrative expenses, adjusted D $ 2,787 $ 1,083 $ 137 $ 3,185 $ 223 $ 290 $ 7,705

Net premiums earned E $ 13,710 $ 4,084 $ 2,334 $ 9,005 $ 720 $ 29,853

Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — (2) — — 76

PPD reinstatement premiums - unfavorable (favorable) — (2) — — 5 3

Net premiums earned excluding adjustments F $ 13,788 $ 4,082 $ 2,332 $ 9,005 $ 725 $ 29,932

P&C Combined ratio

Loss and loss expense ratio A/E 62.9 % 64.5 % 85.8 % 49.7 % 44.3 % 60.9 %

Policy acquisition cost and administrative expense ratio C/E 20.4 % 26.5 % 5.9 % 35.4 % 31.0 % 25.9 %

P&C Combined ratio 83.3 % 91.0 % 91.7 % 85.1 % 75.3 % 86.8 %

CAY P&C Combined ratio ex CATs

Loss and loss expense ratio, adjusted B/F 60.8 % 53.4 % 84.7 % 49.7 % 47.2 % 58.0 %

Policy acquisition cost and administrative expense ratio, adjusted D/F 20.2 % 26.6 % 5.9 % 35.3 % 30.8 % 25.7 %

CAY P&C Combined ratio ex CATs 81.0 % 80.0 % 90.6 % 85.0 % 78.0 % 83.7 %

Combined ratio

Combined ratio 86.8 %

impact of gains and losses on crop derivatives —

P&C Combined ratio 86.8 %

The ratios above are calculated using whole U.S.

Accordingly, calculations using rounded amounts may differ.

Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above.

North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Corporate Total P&C

Nine Months Ended

September 30, 2022

March 31, 2023

(in millions of U.S.

7 unchanged sentences

PPD, net of related adjustments - favorable (unfavorable) 72 (17) — 143 8 (10) 196

Net premiums earned adjustments on PPD - unfavorable (favorable) 83 — 159 — — — 242

Expense adjustments - unfavorable (favorable) 3 — — — — — 3

5 unchanged sentences

Expense adjustments - favorable (unfavorable) (3) — — — — — (3)

CAY Policy acquisition costs and administrative expenses, adjusted D $ 2,511 $ 1,005 $ 116 $ 2,907 $ 205 $ 264 $ 7,008

Policy acquisition costs and administrative expenses, adjusted D $ 905 $ 351 $ 18 $ 993 $ 71 $ 97 $ 2,435

Net premiums earned E $ 4,369 $ 1,320 $ 159 $ 2,786 $ 244 $ 8,878

Reinstatement premiums (collected) expensed on catastrophe losses — — — — (55) (55)

Net premiums earned adjustments on PPD - unfavorable (favorable) 83 — 159 — — 242

PPD reinstatement premiums - unfavorable (favorable) — (1) — — — (1)

17 unchanged sentences

Amortization of purchased intangibles

Amortization expense related to purchased intangibles was $84 million and $226 million for the three and nine months ended September 30, 2023, respectively, compared with $69 million and $211 million for the prior year periods, respectively.

At September 30, 2023, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,577 million.

Refer to Note 7 to the Consolidated Financial Statements for the expected pre-tax amortization expense of purchased intangibles, which are presented gross of noncontrolling interests.

The following table presents, as of September 30, 2023, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the fourth quarter of 2023 and for the next five years:

Amortization expense related to purchased intangibles was $80 million and $72 million for the three months ended March 31, 2024 and 2023, respectively.

At March 31, 2024, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,547 million.

The following table presents, as of March 31, 2024, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the second through fourth quarters of 2024 and for the next five years:

For the Years Ending December 31

1 unchanged sentence

dollars) Reduction to deferred tax liability associated with intangible assets

Second quarter of 2024 $ 21

Third quarter of 2024 20

Fourth quarter of 2024 20

Amortization of the fair value adjustment on acquired invested assets and assumed long-term debt

The following table presents, as of September 30, 2023, the expected amortization expense of the fair value adjustment on acquired invested assets related to the acquisitions of Huatai Group, Cigna's business in Asia and Chubb Corp, at current foreign currency exchange rates, and the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the fourth quarter of 2023 and for the next five years:

Amortization (expense) benefit of the fair value adjustment on

Amortization of the fair value adjustment on assumed long-term debt

The following table presents, as of March 31, 2024, the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the second through fourth quarters of 2024 and for the next five years:

For the Years Ending December 31

(in millions of U.S.

dollars) Total acquired invested assets (1)

Assumed long-term debt (2)

dollars) Amortization benefit of the fair value adjustment on assumed long-term debt (1)

Second quarter of 2024 $ 5

Third quarter of 2024 5

Fourth quarter of 2024 6

Total $ (38) $ 111

(1) Recorded as an increase (reduction) to Net investment income in the Consolidated statements of operations.

(1) Recorded as a reduction to Interest expense in the Consolidated statements of operations.

The estimate of amortization expense of the fair value adjustment on acquired invested assets could vary based on current market conditions, bond calls, overall duration of the acquired investment portfolio, and foreign exchange.

Net Investment Income

Three Months Ended

September 30 Nine Months Ended

(in millions of U.S.

8 unchanged sentences

Gross investment income (1)

1,362 1,024 3,708 2,825

Investment expenses (47) (45)

2 unchanged sentences

(1) Includes amortization expense related to fair value adjustment of acquired invested assets

$ (9) $ (6) $ (14) $ (36)

Net investment income is influenced by a number of factors including the amounts and timing of inward and outward cash flows, the level of interest rates, and changes in overall asset allocation.

Net investment income increased 34.2 percent and 32.6 percent for the three and nine months ended September 30, 2023, respectively, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai group.

Net investment income increased 25.7 percent for the three months ended March 31, 2024, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai Group.

For private equities where we own less than three percent, investment income is included within Net investment income in the table above.

3 unchanged sentences

Three Months Ended

September 30 Nine Months Ended

(in millions of U.S.

dollars) 2024 2023

Total mark-to-market gain (loss) on private equity, pre-tax $ 90 $ (232) $ 364 $ (52)

Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A/A as rated by the independent investment rating services Standard and Poor’s (S&P)/Moody’s Investors Service (Moody’s) at September 30, 2023.

The portfolio is externally managed by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers.

Huatai's portfolio is predominantly managed internally by Huatai’s asset management companies.

Private equities principally comprises investment funds and limited partnerships.

Total mark-to-market gain on private equity, pre-tax $ 134 $ 257

Interest Expense

Interest expense for the three months ended March 31, 2024, was $178 million comprising $183 million related to fixed expenses on existing debt obligations and variable expenses, and a $5 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition.

The variable expenses relate to fees from the usage of certain facilities, including letters of credit, and interest on held collateral and repurchase agreements.

Based on our existing debt obligations, including the new $1 billion of 5 percent senior notes issued on March 7, 2024, and projected variable expenses, we expect pre-tax interest expense to be approximately $561 million for the remainder of 2024, or $744 million for the full year.

We also expect a $16 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition for the remainder of 2024.

For more information on our debt obligations, refer to Note 11 to the Consolidated Financial Statements herein, and Note 13 to the Consolidated Financial Statements, under Item 8 in our 2023 Form 10-K.

Excluding Huatai, the portfolio is primarily managed externally by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers.

We hold no collateralized debt obligations in our investment portfolio, and we provide no credit default protection.

We have long-standing global credit limits for our entire portfolio across the organization.

Exposures are aggregated, monitored, and actively managed by our Global Credit Committee, comprising senior executives, including our Chief Financial Officer, our Chief Risk Officer, our Chief Investment Officer, and our Treasurer.

Exposures are aggregated, monitored, and actively managed by our Global Credit

Committee, comprising senior executives, including our Chief Financial Officer, our Chief Risk Officer, our Chief Investment Officer, and our Treasurer.

We also have well-established, strict contractual investment rules requiring managers to maintain highly diversified exposures to individual issuers and clos ely monitor investment manager compliance with portfolio guidelines.

The average duration of our fixed income securities was 4.7 years, which excludes Huatai, and 4.5 years at September 30, 2023, and December 31, 2022, respectively.

We exclude Huatai in order to make comparison to prior period meaningful .

We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $5 billion at September 30, 2023.

The following table shows the fair value and cost/amortized cost, net of valuation allowance, of our invested assets:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions of U.S.

2 unchanged sentences

Short-term investments $ 5,107 $ 5,108 $ 4,551 $ 4,551

Fixed maturities - Consolidated investment products 4,408 4,408 3,773 3,773

Fixed maturities available-for-sale 108,289 113,364 106,571 110,972

Fixed maturities held to maturity — — 8,439 8,848

Fixed income securities 117,804 122,880 114,895 119,296

1 unchanged sentence

Private debt held-for-investment 2,733 2,708 2,560 2,553

Private equities 13,362 13,362 12,355 12,355

Other investments 5,583 5,583 1,341 1,341

Private equities and other 16,089 16,089 15,832 15,832

Total investments $ 140,395 $ 145,446 $ 136,742 $ 141,136

The fair value of our total investments increased $16.8 billion during the nine months ended September 30, 2023, primarily due to the consolidation of Huatai, which added $12.7 billion, and investing of operating cash flow, partially offset by unrealized losses, share repurchases, and dividend payments.

On July 1, 2023, our ownership interest in Huatai increased to 69.6 percent and Huatai became a consolidated subsidiary of Chubb.

Consolidation accounting requires including 100 percent of Huatai’s results of operations and financial position within our Consolidated financial statements.

Therefore, at September 30, 2023, total investments included $12.7 billion related to Huatai's investment portfolio, of which $6.5 billion is economically owned by Chubb and $6.2 billion attributable to noncontrolling interests.

The noncontrolling interests comprises both the portion that we do not own of Huatai based on our current ownership percentage, as well as the required consolidation of VIEs where we are the primary beneficiary, which is generally if we hold an economic interest of 10 percent or more.

These VIEs are related to sponsored investment products, principally mutual funds, that are created and managed by Huatai’s asset management companies.

These VIEs totaled $5.4 billion related to investments, of which our economic interest is $1.6 billion, with the remainder related to investors other than Chubb which are reported under Noncontrolling interests.

Refer to Note 3 g) in the Consolidated Financial Statements for further detail on VIEs.

The following table presents the investments included in our Consolidated balance sheet relating to Huatai's investment portfolio at September 30, 2023, which are presented gross of noncontrolling interests required by consolidation accounting.

Also provided below is the portion of Huatai’s investments that is owned by Chubb based on our ownership interest (shown below as attributable to Chubb) as a gauge to measure Chubb’s net economic investment exposure:

September 30, 2023

(in millions of U.S.

Noncontrolling Interests

Attributable to Chubb

Short-term investments

$ 1,015 $ 491 $ 524

Fixed maturities available for sale

2,748 696 2,052

Private debt held-for-investment

2,401 656 1,745

Equity securities

2,286 1,329 957

Private equities

Other investments

4,187 3,031 1,156

Total $ 12,670 $ 6,218 $ 6,452

Huatai’s investment portfolio comprised investments of predominantly investment grade fixed maturities, private debt, and mutual funds that hold principally fixed income securities.

Private debt are investments with stated interest rates and maturity dates with fixed or determinable payments.

Mutual funds, for which a Huatai entity holds an economic interest of less than 10 percent, are recorded within equities securities on the Consolidated balance sheets and comprised principally of holdings in

fixed maturities.

Other investments principally comprised fixed income securities that are managed by Huatai’s asset management companies and are carried at fair value with changes in fair value recorded through the Consolidated statements of operations.

The average credit quality of Huatai’s fixed income portfolio is rated A.

The following tables present the fair value of our fixed income securities at September 30, 2023, and December 31, 2022.

The fair value of our total investments increased $3.7 billion during the three months ended March 31, 2024, due to the investing of operating cash flow, partially offset by unrealized losses.

The valuation of our fixed income portfolio is impacted by changes in interest rates.

We estimate that a 100 basis point (bps) increase in rates would reduce the valuation of our portfolio by approximately $5.9 billion at March 31, 2024.

The following tables present the fair value of our fixed income securities at March 31, 2024, and December 31, 2023.

The first table lists investments according to type and second according to S&P credit rating:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(in millions of U.S.

8 unchanged sentences

Short-term investments 5,107 4 % 4,551 4 %

Total $ 109,157 100 % $ 98,619 100 %

$ 117,804 100 % $ 114,895 100 %

AAA $ 14,289 12 % $ 12,669 11 %

5 unchanged sentences

Other 659 1 % 580 1 %

Total $ 109,157 100 % $ 98,619 100 %

$ 117,804 100 % $ 114,895 100 %

(1) Includes fixed maturities related to consolidated investment products recorded in Other investments in the Consolidated balance sheets of $4.4 billion and $3.8 billion at March 31, 2024, and December 31, 2023, respectively.

Corporate and asset-backed securities

The following table presents our 10 largest global exposures to corporate bonds by fair value at September 30, 2023:

The following table presents our 10 largest global exposures to corporate bonds by fair value at March 31, 2024:

(in millions of U.S.

2 unchanged sentences

Morgan Stanley 724

JP Morgan Chase & Co 647

JPMorgan Chase & Co 664

Wells Fargo & Co 597

4 unchanged sentences

Verizon Communications Inc 396

Comcast Corp 352

Mortgage-backed securities

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Value Amortized Cost, Net

September 30, 2023

March 31, 2024

(in millions of U.S.

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The portfolio is highly diversified primarily in state general obligation bonds and essential service revenue bonds including education and utilities (water, power, and sewers).

Our exposure to the euro results primarily from Chubb European Group SE which is headquartered in France and offers a broad range of coverages throughout the European Union, Central, and Eastern Europe.

Chubb primarily invests in Euro denominated investments to support its local currency insurance obligations and required capital levels.

Chubb’s local currency investment portfolios have strict contractual investment guidelines requiring managers to maintain a high quality and diversified portfolio to both sector and individual issuers.

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fixed income portfolio by country/sovereign for non-U.S.

government securities at September 30, 2023:

government securities at March 31, 2024:

(in millions of U.S.

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United Mexican States 611 635

Province of Ontario 534 587

Kingdom of Thailand 587 563

Socialist Republic of Vietnam 482 364

Commonwealth of Australia 553 616

Province of Ontario 510 538

Socialist Republic of Vietnam 474 358

Other Non-U.S.

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fixed income portfolio by country/sovereign for non-U.S.

corporate securities at September 30, 2023:

corporate securities at March 31, 2024:

(in millions of U.S.

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Canada 2,249 2,298

South Korea 1,422 1,475

United States (1)

South Korea 1,572 1,562

France 1,567 1,609

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corporations.

The tables above include Huatai invested assets which are required to be reported at 100 percent within our Consolidated balance sheets.

However, our economic exposure is limited to our ownership interest.

Below-investment grade corporate fixed income portfolio

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Also, issuers of below-investment grade securities usually have higher levels of debt and are more sensitive to adverse economic conditions, such as recession or increasing interest rates, than investment grade issuers.

At September 30, 2023, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 15 percent of our fixed income portfolio.

At March 31, 2024, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 15 percent of our fixed income portfolio.

Our below-investment grade and non-rated portfolio includes over 1,600 issuers, with the greatest single exposure being $164 million.

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Our high-yield managers have a conservative approach to credit selection and very low historical default experience.

Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit as a percentage of high-yield allocation.

Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit

as a percentage of high-yield allocation.

We monitor position limits daily through an internal compliance system.

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Unpaid losses and loss expenses

As an insurance and reinsurance company, we are required by applicable laws and regulations and GAAP to establish loss and loss expense reserves for the estimated unpaid portion of the ultimate liability for losses and loss expenses under the terms of our policies and agreements with our insured and reinsured customers.

As an insurance and reinsurance company, we are required by applicable laws and regulations and U.S.

GAAP to establish loss and loss expense reserves for the estimated unpaid portion of the ultimate liability for losses and loss expenses under the terms of our policies and agreements with our insured and reinsured customers.

With the exception of certain structured settlements, for which the timing and amount of future claim payments are reliably determinable, and certain reserves for unsettled claims, our loss reserves are not discounted for the time value of money.

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Other (including foreign exchange translation) 39 4 35

Balance at September 30, 2023 $ 79,705 $ 17,808 $ 61,897

Balance at March 31, 2024 $ 80,341 $ 17,163 $ 63,178

(1) Net of valuation allowance for uncollectible reinsurance.

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Refer to Note 7 to the Consolidated Financial Statements for a discussion on the changes in the loss reserves.

Future policy benefits

Effective January 1, 2023, Chubb adopted the long-duration targeted improvement (LDTI) U.S.

GAAP accounting guidance which affects the recognition, measurement, presentation, and disclosure requirements for long-duration contracts.

For a discussion of our critical accounting estimates, refer to Item 7 in our 2022 Form 10-K.

Asbestos and Environmental (A&E)

During the three months and nine months ended September 30, 2023, we increased environmental net loss reserves for Brandywine managed operations by $50 million.

There was no significant A&E reserve activity during the three months ended March 31, 2024.

A&E reserves are included in Corporate.

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Catastrophe Management

We actively monitor and manage our catastrophe risk accumulation around the world from natural perils, including setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance, to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies, and policyholders, and to provide shareholders with an appropriate risk-adjusted return.

We actively monitor and manage our catastrophe risk accumulation around the world from natural perils, which includes setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies, and policyholders, and to provide shareholders with an appropriate risk-adjusted return.

Chubb uses internal and external data together with sophisticated, analytical catastrophe loss and risk modeling techniques to ensure an appropriate understanding of risk, including diversification and correlation effects, across different product lines and territories.

The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at September 30, 2023, and does not represent our expected catastrophe losses for any one year.

The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at March 31, 2024, and does not represent our expected catastrophe losses for any one year.

Modeled Net Probable Maximum Loss (PML) Pre-tax

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1-in-250 $ 8,052 13.3 % $ 5,567 9.2 % $ 2,098 3.5 %

(1) Worldwide aggregate is comprised of losses arising from tropical cyclones, convective storms, earthquakes, U.S.

(1) Worldwide aggregate comprises losses arising from tropical cyclones, convective storms, earthquakes, U.S.

wildfires, and floods in the U.S., Canada, and Europe, and excludes "non-modeled" perils such as man-made and other catastrophe risks including pandemic.

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The PML for worldwide and key U.S.

peril regions are based on our in-force portfolio at July 1, 2023, and reflect the September 1, 2023, reinsurance program, as well as inuring reinsurance protection coverage.

This includes a $500 million excess of loss program for named windstorms and earthquakes within Northeast states, purchased and effective September 1, 2023.

peril regions are based on our in-force portfolio at January 1, 2024, and reflect the April 1, 2024, reinsurance program, as well as inuring reinsurance protection coverage.

As of April 1, 2024, we increased retention in North America by $500 million and increased limits by $1.7 billion.

Refer to the Global Property Catastrophe Reinsurance section for more information.

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According to the model, for the 1-in-100 return period scenario, there is a one percent chance that our pre-tax annual aggregate losses incurred in any year from U.S.

hurricane events could be in excess of $3,238 million (or 6.2 percent of total Chubb shareholders’ equity at September 30, 2023).

Effective December 31, 2022, our worldwide PMLs include losses from floods in Canada and Europe.

Additionally, U.S.

hurricane PMLs include losses from hurricane related precipitation-induced flooding.

hurricane events could be in excess of $3,501 million (or 5.8 percent of total Chubb shareholders’ equity at March 31, 2024).

Effective March 31, 2024, our worldwide and U.S.

Hurricane PMLs reflect the latest North Atlantic hurricane vulnerability model.

The above estimates of Chubb’s loss profile are inherently uncertain for many reasons, including the following:

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In addition, prior to each renewal date, we consider how much, if any, coverage we intend to buy and we may make material changes to the current structure in light of various factors, including modeled PML assessment at various return periods, reinsurance pricing, our risk tolerance and exposures, and various other structuring considerations.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2023, through March 31, 2024, with no material changes in coverage from the expiring program.

Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2024, through March 31, 2025.

The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis.

In addition, Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2023, through March 31, 2024, with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.

Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2024, through March 31, 2025, with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.

Effective September 1, 2023, Chubb purchased an additional layer of per occurrence coverage for named windstorms and earthquakes within Northeast states.

Coverage is provided for North American and international operations losses within the territory through August 31, 2024.

Coverage is provided for losses for North American and international operations within the territory through August 31, 2024.

Loss Location Layer of Loss Comments Notes

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(excluding Alaska and Hawaii) $0 million –

$1.75 billion

Losses retained by Chubb (a)

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(excluding Alaska and Hawaii) $2.85 billion –

$2.35 billion

All natural perils and terrorism (c)

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(excluding Alaska and Hawaii) $4.0 billion –

All natural perils and terrorism (d)

Named windstorm and earthquake

United States

(Northeast States Only) $3.5 billion –

$4.0 billion Named windstorm and earthquake (e)

$4.0 billion Named windstorm and earthquake (d)

International

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(including Alaska and Hawaii) $225 million –

All natural perils and terrorism (c)

$1.325 billion

All natural perils and terrorism (b)

Alaska, Hawaii, and Canada $1.325 billion –

$2.475 billion

All natural perils and terrorism (d)

All natural perils and terrorism (c)

(a) Ultimate retention will depend upon the nature of the loss and the interplay between the underlying per risk programs and certain other catastrophe programs purchased by individual business units.

These other catastrophe programs have the potential to reduce our effective retention below the stated levels.

(b) These coverages are partially placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(d) These coverages are both part of the same Third layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(e) Northeast states are defined as Virginia to Maine.

This coverage is fully placed with Reinsurers.

(b) These coverages are both part of the same First layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.

(c) These coverages are both part of the same Second layer within the Global Property C atastrophe Reinsurance Program and are fully placed with Reinsurers.

(d) Northeast states are defined as Virginia to Maine.

This coverage is fully placed with Reinsurers and inures to the benefit of the United States (excluding Alaska and Hawaii) layer.

Capital Resources

Capital resources consist of funds deployed or available to be deployed to support our business operations.

September 30 December 31

March 31 December 31

(in millions of U.S.

dollars, except for ratios) As Adjusted

dollars, except for ratios) 2024 2023

Short-term debt $ 2,265 $ 1,460

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The repurchase agreements are collateralized borrowings where we maintain the right and ability to redeem the collateral on short notice, unlike short-term debt which comprises the current maturities of our long-term debt instruments.

For the nine months ended September 30, 2023, we repurchased $1.8 billion of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorizations.

At September 30, 2023, there were 23,467,247 Common Shares in treasury with a weighted-average cost of $159.69 per share, and $4.4 billion in share repurchase authorization remained.

On March 7, 2024, Chubb INA Holdings LLC (Chubb INA) issued $1.0 billion of 5.0 percent senior notes due March 2034.

Refer to Note 11 to the Consolidated Financial Statements for additional details about the debt issued.

For the three months ended March 31, 2024, we repurchased $316 million of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorization.

At March 31, 2024, there were 25,418,520 Common Shares in treasury with a weighted-average cost of $175.50 per share, and $3.4 billion in share repurchase authorization remained.

For the period April 1, 2024, through April 25, 2024, we repurchased 250,000 Common Shares for a total of $62 million in a series of open market transactions under the share repurchase authorization.

At April 25, 2024, $3.3 billion in share repurchase authorization remained.

We generally maintain the ability to issue certain classes of debt and equity securities via a Securities and Exchange Commission (SEC) shelf registration statement which is renewed every three years.

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The Board determines the record and payment dates at which the annual dividend may be paid until the date of the 2024 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion.

The four quarterly installments each of $0.86 per share were distributed by the Board as expected.

The annual dividend approved in May 2023 represented a $0.12 per share increase ($0.03 per quarter) over the prior year dividend.

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March 15, 2024 April 5, 2024 $0.86 (CHF 0.75)

June 16, 2023 July 7, 2023 $0.86 (CHF 0.77)

September 15, 2023 October 6, 2023 $0.86 (CHF 0.75)

We anticipate that positive cash flows from operations (underwriting activities and investment income) should be sufficient to cover cash outflows under most loss scenarios for the near term.

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Should the need arise, we generally have access to capital markets and to credit facilities with letter of credit capacity of $4.0 billion, $3.0 billion of which can be used for revolving credit.

At September 30, 2023, our usage under these facilities was $1.0 billion in letters of credit.

At March 31, 2024, our usage under these facilities was $958 million in letters of credit.

Our access to credit under these facilities is dependent on the ability of the banks that are a party to the facilities to meet their funding commitments.

The facilities require that we maintain certain financial covenants, all of which we met at September 30, 2023.

The facilities require that we maintain certain financial covenants, all of which we met at March 31, 2024.

Should the existing credit providers on these facilities experience financial difficulty, we may be required to replace credit sources, possibly in a difficult market.

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The payment of dividends or other statutorily permissible distributions from our operating companies are subject to the laws and regulations applicable to each jurisdiction, as well as the need to maintain capital levels adequate to support the insurance and reinsurance operations, including financial strength ratings issued by independent rating agencies.

During the nine months ended September 30, 2023, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows.

During the three months ended March 31, 2024, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows.

We assess which subsidiaries to draw dividends from based on a number of factors.

Considerations such as regulatory and legal restrictions as well as the subsidiary’s financial condition are paramount to the dividend decision.

Chubb Limited received dividends of $1.4 billion and $6.8 billion from its Bermuda subsidiaries during the nine months ended September 30, 2023 and 2022, respectively.

Chubb Limited received cash dividends of $28 million and $32 million and non-cash dividends of $291 million and $348 million from Swiss subsidiaries during the nine months ended September 30, 2023 and 2022, respectively.

insurance subsidiaries of Chubb INA Holdings Inc.

(Chubb INA) may pay dividends, without prior regulatory approval, subject to restrictions set out in state law of the subsidiary’s domicile (or, if applicable, commercial domicile).

Chubb Limited received dividends of nil and $225 million from its Bermuda subsidiaries during the three months ended March 31, 2024 and 2023, respectively.

Chubb Limited also received dividends of $91 million from its other international subsidiary during the three months ended March 31, 2024.

insurance subsidiaries of Chubb INA may pay dividends, without prior regulatory approval, subject to restrictions set out in state law of the subsidiary’s domicile (or, if applicable, commercial domicile).

Chubb INA’s international subsidiaries are also subject to insurance laws and regulations particular to the countries in which the subsidiaries operate.

These laws and regulations sometimes include restrictions that limit the amount of dividends payable without prior approval of regulatory insurance authorities.

Chubb Limited received no dividends from Chubb INA during the nine months ended September 30, 2023 and 2022.

Chubb Limited received no dividends from Chubb INA during the three months ended March 31, 2024 and 2023.

Debt issued by Chubb INA is serviced by statutorily permissible distributions by Chubb INA’s insurance subsidiaries to Chubb INA as well as other group resources.

Chubb INA received $976 million and $1.8 billion from its subsidiaries during the nine months ended September 30, 2023 and 2022, respectively.

Chubb INA received no dividends from its subsidiaries during the three months ended March 31, 2024 and 2023.

Our sources of liquidity include cash from operations, routine sales of investments, and financing arrangements.

The following is a discussion of our cash flows for the nine months ended September 30, 2023 and 2022.

Operating cash flows were $9.4 billion in the nine months ended September 30, 2023, compared to $8.6 billion in the prior year period, primarily due to higher net investment income and net premiums collected, partially offset by higher net losses paid and income taxes paid.

Cash used for investing was $5.4 billion in the nine months ended September 30, 2023, compared to $5.2 billion in the prior year period, an increase of $0.2 billion.

Cash used for investing in the current period primarily included higher net purchases of fixed maturities and equity securities of $6.6 billion.

This increase was partially offset by a decrease in cash used for the acquisition of subsidiaries of $5.3 billion and a decrease in private equity contributions, net of distributions of $1.2 billion.

Cash used for financing was $3.3 billion in the nine months ended September 30, 2023, compared to $2.7 billion in the prior year period.

The increase of $0.6 billion used for financing included net repayments of $1.1 billion from repurchase agreements and $475 million from long-term debt, partially offset by lower common shares repurchased of $935 million.

The following is a discussion of our cash flows for the three months ended March 31, 2024 and 2023.

Operating cash flows were $3.2 billion in the three months ended March 31, 2024, compared to $2.3 billion in the prior year period, primarily due to higher net premiums collected and net investment income, and the impact of the Huatai consolidation.

This was partially offset by net purchases of consolidated investment products from Huatai's asset management companies of $404 million.

Cash used for investing was $3.7 billion in the three months ended March 31, 2024, compared to $570 million in the prior year period, an increase of $3.2 billion, which primarily included higher net purchases of fixed maturities and equity securities of $2.8 billion.

Cash from (used) for financing was $562 million in the three months ended March 31, 2024, compared to $(1.4) billion in the prior year period, an increase in cash from financing of $2.0 billion.

This was primarily due to net proceeds from the issuance of long-term debt of $1.0 billion compared with repayments of $0.5 billion in the prior year.

We use repurchase agreements as a low-cost funding alternative.

At September 30, 2023, there were $2.6 billion in repurchase agreements outstanding with various maturities over the next eight months.

At March 31, 2024, there were $3.0 billion in repurchase agreements outstanding with various maturities over the next two months.

Both internal and external forces influence our financial condition, results of operations, and cash flows.

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Information provided in connection with outstanding debt of subsidiaries

Chubb INA Holdings Inc.

(Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor).

Chubb INA Holdings LLC (Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor).

The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer.

The following table presents the condensed balance sheets of Chubb Limited and Chubb INA Holdings Inc., after elimination of investment in any non-guarantor subsidiary:

The following table presents the condensed balance sheets of Chubb Limited and Chubb INA Holdings LLC, after e limination of investment in any non-guarantor subsidiary:

Chubb Limited

(Parent Guarantor) Chubb INA Holdings Inc.

(Parent Guarantor) Chubb INA Holdings LLC

(Subsidiary Issuer)

September 30 December 31 September 30 December 31

March 31 December 31 March 31 December 31

(in millions of U.S.

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Total liabilities 1,139 1,514 19,138 17,788

Total shareholders’ equity (1,311) 147 (15,840) (16,271)

Total liabilities and shareholders’ equity $ 1,848 $ 1,849 $ 4,290 $ 3,427

The following table presents the condensed statements of operations and comprehensive income of Chubb Limited and Chubb INA Holdings Inc., excluding equity in earnings from non-guarantor subsidiaries:

Nine Months Ended September 30, 2023 Chubb Limited

(Parent Guarantor) Chubb INA Holdings Inc.

Total equity (500) (445) (15,037) (14,326)

Total liabilities and equity $ 639 $ 1,069 $ 4,101 $ 3,462

The following table presents the condensed statements of operations and comprehensive income of Chubb Limited and Chubb INA Holdings LLC, excluding equity in earnings from non-guarantor subsidiaries:

Three Months Ended March 31, 2024 Chubb Limited

(Parent Guarantor) Chubb INA Holdings LLC

(Subsidiary Issuer)

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Other (income) expense (12) 41

Cigna integration expenses — 3

Income tax expense (benefit) 1 (33)

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis