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Item 2. Management’s Discussion and Analysis

2024-07-26 compared with 2024-04-26 · 392 added, 262 removed, 828 unchanged (44% 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 months ended March 31, 2024.

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and six months ended June 30, 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

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

At June 30, 2024, we had total assets of $239 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $61 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 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.

For the three and six months ended June 30, 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 Months Ended March 31, 2024 and 2023

Three Months Ended

March 31 % Change

Consolidated Operating Results – Three and Six Months Ended June 30, 2024 and 2023

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

2024 2023 YTD-24 vs.

Net premiums written $ 13,360 $ 11,951 11.8 % $ 25,581 $ 22,661 12.9 %

Net premiums written - constant dollars (1)

12.3 % 13.2 %

Net premiums earned 12,292 10,999 11.7 % 23,875 21,141 12.9 %

Net investment income 1,468 1,145 28.2 % 2,859 2,252 27.0 %

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

Net realized gains (losses) 104 (304) NM 3 (381) NM

Market risk benefits gains (losses) (29) (7) NM (8) (122) (93.7) %

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Net income $ 2,216 $ 1,793 23.6 % $ 4,510 $ 3,685 22.4 %

Net income attributable to noncontrolling interests 151 — NM

Net income (loss) attributable to noncontrolling interests (14) — NM 137 — NM

Net income attributable to Chubb $ 2,230 $ 1,793 24.3 % $ 4,373 $ 3,685 18.7 %

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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 March 31, 2024

Financial Highlights for the Three Months Ended June 30, 2024

• Net income attributable to Chubb was $2.2 billion compared with $1.8 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.

Net income in the current quarter was driven by strong underwriting results and record net investment income.

• Consolidated net premiums written were $13.4 billion, up 11.8 percent, or 12.3 percent in constant dollars.

P&C net premiums written increased 10.3 percent, or 10.6 percent in constant dollars, with commercial insurance up 8.8 percent and consumer insurance up 15.9 percent.

Life Insurance segment net premiums written increased 24.5 percent, or 27.6 percent in constant dollars, reflecting the impact of the consolidation of Huatai Group on July 1, 2023, and growth in existing business.

• Pre-tax net investment income was a record $1.5 billion compared with $1.1 billion in the prior year period, primarily due to strong operating cash flow at higher reinvestment rates on fixed maturities, and the consolidation of Huatai Group.

• Consolidated net premiums earned were $12.3 billion, up 11.7 percent, or 12.3 percent in constant dollars.

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• The P&C combined ratio was 86.8 percent compared with 85.4 percent in the prior year period.

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

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

The P&C current accident year (CAY) combined ratio excluding catastrophe losses was 83.2 percent compared with 83.3 percent in the prior year period.

• Operating cash flow was $4.1 billion compared with $2.5 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.

• Chubb shareholders' equity increased $503 million in the quarter, primarily from net income attributable to Chubb of $2.2 billion, partially offset by total capital returned to shareholders of $939 million, net unrealized losses of $478 million related to cumulative foreign exchange translation, and net unrealized losses on our investment portfolio of $476 million, reflecting the mark-to-market impact in the fixed-income portfolio.

Total capital returned to shareholders comprises share repurchases of $570 million at an average purchase price of $253.02 per share, and dividends of $369 million.

Net Premiums Written Three Months Ended

% Change Six Months Ended

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Property and other short-tail lines $ 2,715 $ 2,346 15.7 % 16.2 % $ 5,075 $ 4,371 16.1 % 16.3 %

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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 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.

The increase in consolidated net premiums written for the three and six months ended June 30, 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 $445 million, or 3.6 percentage points, and $1,004 million, or 4.2 percentage points, for the three and six months ended June 30, 2024, respectively.

• 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.

• Commercial casualty grew globally due to strong retention, including both rate and exposure increases, and strong new business.

• Financial lines declined due to a competitive market environment and lower retention.

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

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• 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.

• Agriculture declined primarily due to lower commodity prices in the current year.

The decrease in net premiums written for the six months ended June 30, 2024, also reflects a return of premium under the U.S.

government risk-sharing formula related to the 2023 crop year.

• Personal lines grew globally due to new business and renewal retention, as well as increases in both rate and exposure, and the consolidation of Huatai.

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

• Reinsurance lines reflected continued growth, mainly in property lines and a large one-off structured transaction in the three months ended June 30, 2024.

• Life Insurance grew due to the consolidation of Huatai Group, and organic growth in Asia, Latin America, and in Combined Insurance North America.

The consolidation of Huatai Group contributed $219 million, or 17.3 percentage points, and $485 million, or 18.9 percentage points, to growth for the three and six months ended June 30, 2024, respectively.

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 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.

For the three months ended June 30, 2024, net premiums earned increased $1.3 billion, up 11.7 percent, or 12.3 percent in constant dollars.

P&C net premiums earned increased 10.1 percent, or 10.4 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 8.8 percent and 15.1 percent, respectively.

For the six months ended June 30, 2024, net premiums earned increased $2.7 billion, up 12.9 percent, or 13.4 percent in constant dollars.

P&C net premiums earned increased 11.1 percent, or 11.3 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 10.1 percent and 14.6 percent, respectively.

Catastrophe Losses and Prior Period Development

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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

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

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Favorable prior period development $ 192 $ 200 $ 399 $ 396

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

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

Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events:

Severe weather-related events in the U.S.

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.

and internationally, including Rio Grande storms.

Severe weather-related events in the U.S.

and internationally, including New Zealand storms.

Pre-tax net favorable PPD for the three months ended June 30, 2024, was $285 million in our active companies with 35 percent in long-tail lines, primarily in workers' compensation lines, partially offset by unfavorable development in commercial auto liability, and 65 percent in short-tail lines, primarily in marine and property lines.

Our corporate run-off portfolio had adverse development of $93 million, which included molestation-related claims development of approximately $60 million.

Pre-tax net favorable PPD for the six months ended June 30, 2024, was $501 million in our active companies, principally in short-tail property and marine lines.

Our corporate run-off portfolio had adverse development of $102 million, primarily for molestation-related claims development.

Pre-tax net favorable PPD for the three months ended June 30, 2023, was $200 million, including adverse development of $49 million for molestation-related claims development.

Pre-tax net favorable PPD for the six months ended June 30, 2023, was $396 million, including adverse development of $49 million for molestation claims.

Excluding the adverse development, we had net favorable development of $445 million with 23 percent in long-tail lines, principally from accident years 2011 through 2019, and 77 percent in short-tail lines, primarily in A&H and surety lines.

Refer to the prior period development discussion in Note 8 to the Consolidated Financial Statements for additional information.

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

Three Months Ended

Loss and loss expense ratio

CAY loss ratio excluding catastrophe losses 56.1 % 55.9 %

Catastrophe losses 4.4 % 5.2 %

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

Three Months Ended Six Months Ended

June 30 June 30

2024 2023 2024 2023

Combined ratio:

Loss and loss expense ratio 60.6 % 59.3 % 59.4 % 59.1 %

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P&C Combined ratio 86.8 % 85.4 % 86.4 % 85.8 %

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.

Catastrophe losses (5.4) % (4.1) % (4.9) % (4.6) %

Prior period development 1.8 % 2.0 % 1.9 % 2.2 %

P&C CAY combined ratio excluding catastrophe losses 83.2 % 83.3 % 83.4 % 83.4 %

The P&C combined ratio increased for the three and six months ended June 30, 2024, reflecting higher catastrophe losses and a lower impact from favorable prior period development.

The P&C CAY combined ratio excluding catastrophe losses was relatively flat for the three and six months ended June 30, 2024, primarily reflecting the favorable impact of higher net premiums earned and a higher percentage of net premiums earned from property lines and homeowners.

These factors were substantially offset by higher loss trends in certain casualty lines, price changes not keeping pace with loss trends in financial lines, and increased spending to support growth.

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 months ended March 31, 2024, include the results of Huatai Group.

Policy benefits include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account treatment under U.S.

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

In addition, Policy benefits include the impact on the liabilities from (gains) losses on investment portfolios supporting certain participating policies.

The offsetting movements of these liabilities are recorded in Realized gains (losses) in the Consolidated statements of operations.

Policy benefits for the three and six months ended June 30, 2024, include the results of Huatai Group.

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

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 $1,170 million and $822 million for the three months ended March 31, 2024 and 2023, respectively.

Policy benefits were $1,219 million and $830 million for the three months ended June 30, 2024 and 2023, respectively, and $2,399 million and $1,627 million for the six months ended June 30, 2024 and 2023, respectively.

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

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

Segment Operating Results – Three and Six Months Ended June 30, 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

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 5,501 $ 5,155 6.7 % $ 10,190 $ 9,443 7.9 %

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Segment income $ 1,687 $ 1,526 10.6 % $ 3,195 $ 2,949 8.4 %

Loss and loss expense ratio:

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

Combined ratio:

Loss and loss expense ratio 62.7 % 62.3 % 0.4 pts 63.9 % 62.4 % 1.5 pts

Policy acquisition cost ratio 13.5 % 13.3 % 0.2 pts 13.8 % 13.7 % 0.1 pts

Administrative expense ratio 6.7 % 6.9 % (0.2) pts 6.7 % 6.8 % (0.1) pts

Combined ratio 82.9 % 82.5 % 0.4 pts 84.4 % 82.9 % 1.5 pts

Catastrophe losses (5.2) % (5.0) % (0.2) pts (5.0) % (4.4) % (0.6) pts

Prior period development 3.0 % 3.2 % (0.2) pts 2.0 % 2.4 % (0.4) pts

CAY combined ratio excluding catastrophe losses 80.7 % 80.7 % — 81.4 % 80.9 % 0.5 pts

Net Catastrophe Losses and Prior Period Development Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

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Favorable prior period development $ 144 $ 146 $ 192 $ 218

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

Catastrophe losses through both June 30, 2024 and 2023, were primarily from U.S.

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

Refer to Note 8 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.

Net premiums written increased $346 million, or 6.7 percent, and $747 million, or 7.9 percent, for the three and six months ended June 30, 2024, respectively, 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 and casualty lines, 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 that adversely impacted growth.

Net premiums earned increased $294 million, or 6.4 percent, and $805 million, or 9.0 percent, for the three and six months ended June 30, 2024, respectively, reflecting the growth in net premiums written described above.

Combined Ratio

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.

The combined ratio increased for the three and six months ended June 30, 2024, reflecting higher catastrophe losses and lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses increased for the six months ended June 30, 2024, reflecting higher loss trends in certain casualty lines, which were mostly offset by a higher percentage of net premiums earned from property lines.

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

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 1,776 $ 1,581 12.3 % $ 3,232 $ 2,877 12.3 %

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Net investment income 108 86 25.4 % 210 168 25.0 %

Other (income) expense 1 1 —

Other (income) expense (2) (1) NM (1) — NM

Amortization of purchased intangibles 2 3 (5.3) % 4 5 (5.3) %

Segment income $ 357 $ 234 52.7 % $ 642 $ 394 63.1 %

Loss and loss expense ratio:

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

Combined ratio:

Loss and loss expense ratio 57.9 % 62.4 % (4.5) pts 59.5 % 64.8 % (5.3) pts

Policy acquisition cost ratio 19.8 % 20.4 % (0.6) pts 20.1 % 20.5 % (0.4) pts

Administrative expense ratio 5.8 % 6.1 % (0.3) pts 5.8 % 6.1 % (0.3) pts

Combined ratio 83.5 % 88.9 % (5.4) pts 85.4 % 91.4 % (6.0) pts

Catastrophe losses (9.1) % (10.9) % 1.8 pts (10.3) % (11.4) % 1.1 pts

Prior period development 4.2 % 2.5 % 1.7 pts 3.9 % 0.5 % 3.4 pts

CAY combined ratio excluding catastrophe losses 78.6 % 80.5 % (1.9) pts 79.0 % 80.5 % (1.5) pts

NM - Not meaningful

Net Catastrophe Losses and Prior Period Development

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

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Net catastrophe losses $ 138 $ 147 $ 308 $ 306

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.

Favorable prior period development $ 64 $ 33 $ 116 $ 16

Catastrophe losses through both June 30, 2024 and 2023, were primarily from U.S.

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

Refer to Note 8 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.

Net premiums written increased $195 million, or 12.3 percent, and $355 million, or 12.3 percent, for the three and six months ended June 30, 2024, respectively, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $155 million, or 11.5 percent, and $306 million, or 11.5 percent, for the three and six months ended June 30, 2024, respectively, reflecting the growth in net premiums written described above.

Combined Ratio

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.

The combined ratio improved for the three and six months ended June 30, 2024, reflecting higher favorable prior period development and a lower impact from catastrophe losses.

The CAY combined ratio excluding catastrophe losses improved for the three and six months ended June 30, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, and a higher percentage of net premiums earned from homeowners, partly offset by an increase in excess liability and auto loss trends.

Additionally, the improvement includes lower acquisition expenses due to commission reductions in our auto and excess lines, and a higher percentage of net premiums earned from excess and surplus homeowners lines, which carry a lower acquisition cost.

North America Agricultural Insurance

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(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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 758 $ 767 (1.2) % $ 1,007 $ 1,060 (5.0) %

3 unchanged sentences

Administrative expenses 3 3 — 5 6 (20.1) %

Underwriting income 56 1 NM

Underwriting income 35 88 (59.7) % 91 89 2.2 %

Net investment income 21 14 51.1 % 42 31 37.9 %

1 unchanged sentence

Amortization of purchased intangibles 7 7 — 13 13 —

Segment income $ 71 $ 11 NM

Loss and loss expense ratio:

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

Segment income $ 49 $ 96 (47.8) % $ 120 $ 107 12.7 %

Combined ratio:

Loss and loss expense ratio 86.8 % 79.7 % 7.1 pts 78.6 % 81.5 % (2.9) pts

Policy acquisition cost ratio 7.1 % 5.9 % 1.2 pts 8.7 % 6.6 % 2.1 pts

Administrative expense ratio 0.5 % 0.6 % (0.1) pts 0.6 % 0.7 % (0.1) pts

Combined ratio 94.4 % 86.2 % 8.2 pts 87.9 % 88.8 % (0.9) pts

Catastrophe losses (5.3) % 0.9 % (6.2) pts (4.6) % (2.4) % (2.2) pts

Prior period development — % 0.3 % (0.3) pts 4.2 % 0.3 % 3.9 pts

CAY combined ratio excluding catastrophe losses 89.1 % 87.4 % 1.7 pts 87.5 % 86.7 % 0.8 pts

NM - Not meaningful

Net Catastrophe Losses and Prior Period Development Three Months Ended

Net Catastrophe Losses and Prior Period Development Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

Net catastrophe losses $ 3 $ 24

Net unfavorable (favorable) catastrophe losses $ 33 $ (5) $ 36 $ 19

Favorable prior period development $ — $ 3 $ 28 $ 3

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

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

Catastrophe losses through both June 30, 2024 and 2023, were primarily from U.S.

flooding, hail, tornadoes, and wind events.

Refer to Note 8 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.

Net premiums written decreased $9 million, or 1.2 percent, and $53 million, or 5.0 percent, for the three and six months ended June 30, 2024, primarily due lower commodity prices in the current year.

The decrease in net premiums written for the six months ended June 30, 2024, also reflects a return of premium of $41 million under the U.S.

government risk-sharing formula related to the 2023 crop 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.

Net premiums earned decreased $9 million, or 1.5 percent, and $40 million, or 5.1 percent, for the three and six months ended June 30, 2024, reflecting the factors described above.

Combined 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.

The combined ratio increased for the three months ended June 30, 2024, reflecting higher catastrophe losses and lower favorable prior period development.

The combined ratio improved for the six months ended June 30, 2024, reflecting higher favorable prior period development, partially offset by higher catastrophe losses.

The CAY combined ratio excluding catastrophe losses increased for the three months ended June 30, 2024, primarily due to the unfavorable year-over-year impact of our crop commodity price hedge activity, which produced a loss this quarter versus a gain last year.

The CAY combined ratio excluding catastrophe losses increased for the six months ended June 30, 2024, due to the crop commodity price hedge activity mentioned above.

The policy acquisition cost ratio increased for the three months ended June 30, 2024, reflecting 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

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 3,334 $ 2,885 15.6 % $ 7,169 $ 6,148 16.6 %

7 unchanged sentences

Net investment income 283 200 41.4 % 550 388 42.0 %

Other (income) expense 5 (9) NM

Other (income) expense 4 (10) NM 9 (19) NM

Amortization of purchased intangibles 20 15 27.1 % 40 33 21.9 %

Segment income $ 653 $ 661 (1.2) % $ 1,413 $ 1,286 9.9 %

Loss and loss expense ratio:

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

Combined ratio:

Loss and loss expense ratio 52.7 % 48.3 % 4.4 pts 50.3 % 48.3 % 2.0 pts

Policy acquisition cost ratio 25.1 % 25.7 % (0.6) pts 25.4 % 25.6 % (0.2) pts

Administrative expense ratio 10.4 % 10.0 % 0.4 pts 10.4 % 10.1 % 0.3 pts

Combined ratio 88.2 % 84.0 % 4.2 pts 86.1 % 84.0 % 2.1 pts

Catastrophe losses (4.7) % (0.9) % (3.8) pts (2.8) % (2.5) % (0.3) pts

Prior period development 1.8 % 2.1 % (0.3) pts 2.3 % 3.6 % (1.3) pts

CAY combined ratio excluding catastrophe losses 85.3 % 85.2 % 0.1 pts 85.6 % 85.1 % 0.5 pts

NM - not meaningful

Net Catastrophe Losses and Prior Period Development

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 61 $ 61 $ 150 $ 204

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.

Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events:

Rio Grande storms, and International weather-related events.

Storms in New Zealand, flooding in Italy, and international weather-related events.

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

Net Premiums Written by Region

Three months ended March 31

Three Months Ended June 30

(in millions of U.S.

8 unchanged sentences

Net premiums written $ 3,334 100 % $ 2,885 100 % $ 2,861 15.6 % 16.6 %

Six Months Ended June 30

(in millions of U.S.

dollars, except for percentages) 2024 2024

% of Total 2023 2023

% of Total C$

2023 Y-24 vs.

Europe, Middle East, and Africa $ 3,278 46 % $ 3,028 49 % $ 3,060 8.3 % 7.1 %

2,338 33 % 1,792 29 % 1,722 30.4 % 35.7 %

Latin America 1,474 20 % 1,274 21 % 1,311 15.7 % 12.5 %

79 1 % 54 1 % 54 48.1 % 48.4 %

Net premiums written $ 7,169 100 % $ 6,148 100 % $ 6,147 16.6 % 16.6 %

(1) 2024 includes the consolidated results of Huatai P&C effective July 1, 2023.

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

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.

Overall, net premiums written increased $449 million and $1,021 million, or $473 million and $1,022 million on a constant dollar basis, for the three and six months ended June 30, 2024, respectively, reflecting growth in commercial lines of 13.3 percent and 12.7 percent, or 13.9 percent and 12.5 percent on a constant-dollar basis, respectively, and growth in consumer lines of 19.1 percent and 23.1 percent, or 20.7 percent and 23.5 percent on a constant-dollar basis, respectively.

Our European division increased for the three and six months ended June 30, 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.

Consumer lines increased primarily due to new business growth in A&H and personal lines.

Asia increased for the three and six months ended June 30, 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 Asia with growth in new business for both A&H and personal lines.

Latin America increased for the three and six months ended June 30, 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 including automobile in Mexico, also continues to have strong growth.

Net premiums earned increased $439 million and $851 million, or $465 million and $867 million on a constant-dollar basis, for the three and six months ended June 30, 2024, respectively, reflecting the increase in net premiums written described above.

Combined Ratio

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.

The combined ratio increased for the three months ended June 30, 2024, primarily reflecting higher catastrophe losses.

The combined ratio increased for the six months ended June 30, 2024, primarily reflecting lower favorable prior period development and higher catastrophe losses.

The CAY combined ratio excluding catastrophe losses increased for the six months ended June 30, 2024, 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

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 411 $ 293 40.3 % $ 770 $ 570 35.1 %

8 unchanged sentences

Segment income $ 151 $ 120 25.7 % $ 276 $ 231 19.3 %

Loss and loss expense ratio:

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

Combined ratio:

Loss and loss expense ratio 45.7 % 38.7 % 7.0 pts 46.0 % 42.3 % 3.7 pts

Policy acquisition cost ratio 23.8 % 27.0 % (3.2) pts 25.5 % 26.3 % (0.8) pts

Administrative expense ratio 3.2 % 3.9 % (0.7) pts 3.1 % 3.8 % (0.7) pts

Combined ratio 72.7 % 69.6 % 3.1 pts 74.6 % 72.4 % 2.2 pts

Catastrophe losses — % (0.4) % 0.4 pts — % (0.2) % 0.2 pts

Prior period development 4.7 % 7.6 % (2.9) pts 2.4 % 5.4 % (3.0) pts

CAY combined ratio excluding catastrophe losses 77.4 % 76.8 % 0.6 pts 77.0 % 77.6 % (0.6) pts

Net Catastrophe Losses and Prior Period Development

Three Months Ended

(in millions of U.S dollars) 2024 2023

Three Months Ended Six Months Ended

June 30 June 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

Catastrophe losses $ — $ 1 $ — $ 1

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

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

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.

Favorable prior period development $ 16 $ 17 $ 15 $ 25

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

Net premiums written increased $118 million and $200 million for the three and six months ended June 30, 2024, respectively, primarily reflecting continued growth driven by strong new business.

The increase in premium was most notably in property and casualty lines, which included a large one-off structured transaction in the current quarter.

This transaction benefited growth by 12.5 and 6.5 percentage points for the three and six months ended June 30, 2024, respectively.

Net premiums earned increased $102 million and $153 million for the three and six months ended June 30, 2024, respectively, reflecting the increase in net premiums written described above, including the large structured transaction, which was fully earned when written.

Combined Ratio

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.

The combined ratio increased for the three and six months ended June 30, 2024, primarily reflecting the impact of lower favorable prior period development, as a percentage of net premiums earned.

The CAY combined ratio excluding catastrophe losses increased for the three months ended June 30, 2024, primarily due to the impact of the large structured transaction, partially offset by growth in property lines, resulting in a lower expected loss ratio.

The CAY combined ratio excluding catastrophe losses improved for the six months ended June 30, 2024, primarily due to favorable market conditions in catastrophe exposed property lines and favorable impact of higher net premiums earned on the administrative expense ratio, partially offset by the impact of the large structured transaction described above.

Life Insurance

3 unchanged sentences

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.

Three Months Ended

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 1,580 $ 1,270 24.5 % $ 3,213 $ 2,563 25.4 %

7 unchanged sentences

Other (income) expense (32) (26) 29.2 % (72) (41) 77.0 %

Amortization of purchased intangibles 10 4 192.8 %

Amortization of purchased intangibles 11 2 NM 21 6 NM

Segment income $ 276 $ 254 8.7 % $ 544 $ 498 9.3 %

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.

NM - not meaningful

Net premiums written increased $310 million and $650 million, or $342 million and $716 million on a constant-dollar basis, for the three and six months ended June 30, 2024, respectively.

For our international life operations, net premiums written increased 27.8 percent and 29.6 percent for the three and six months ended June 30, 2024, substantially due to the consolidation of Huatai Group's life business which contributed $219 million and $485 million or 21.3 and 23.4 percentage points, respectively.

The remaining increase in net premiums written is primarily driven by growth in North and Southeast Asia as well as by higher new business in Latin America.

Net premiums written in our North American Combined Insurance business increased 11.8 percent and 8.6 percent, for the three and six months ended June 30, 2024, respectively, due to growth in its worksite business of 28.7 percent and 24.6 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

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

1 unchanged sentence

2023 Q-24 vs.

Q-23 2024 2023 C$ 2023 Y-24 vs.

Deposits collected on universal life and investment contracts $ 547 $ 400 $ 384 36.8 % 42.5 % $ 1,147 $ 709 $ 685 61.8 % 67.5 %

1 unchanged sentence

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

Life deposits collected increased $147 million and $438 million for the three and six months ended June 30, 2024, respectively, primarily from the consolidation of Huatai Life business.

Life Insurance segment income

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.

Life Insurance segment income increased $22 million and $46 million for the three and six months ended June 30, 2024, reflecting the growth in premiums described above, as well as higher net investment income from fund investments and fixed income yield.

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.

Three Months Ended

March 31 % Change

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

(in millions of U.S.

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

Q-23 2024 2023 YTD-24 vs.

Losses and loss expenses $ 93 $ 61 52.0 % $ 103 $ 72 43.8 %

1 unchanged sentence

Underwriting loss 192 156 23.8 % 309 264 17.4 %

Net investment income (loss) (26) 11 NM

Net investment income (loss) (32) 3 NM (58) 14 NM

Other (income) expense 7 14 (44.4) % (61) (200) (69.6) %

Amortization of purchased intangibles 40 43 (4.4) % 82 85 (4.3) %

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

Net realized gains (losses) 22 (309) NM (78) (385) (79.8) %

Market risk benefits gains (losses) (29) (7) NM (8) (122) (93.7) %

3 unchanged sentences

Net loss $ (957) $ (1,098) (12.5) % $ (1,680) $ (1,780) (5.5) %

Net income attributable to noncontrolling interests 151 — NM

Net income (loss) attributable to noncontrolling interests (14) — NM 137 — NM

Net loss attributable to Chubb $ (943) $ (1,098) (13.9) % $ (1,817) $ (1,780) 2.2 %

NM - not meaningful

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

Administrative expenses increased $4 million and $14 million for the three and six months ended June 30, 2024, respectively, primarily due to increased spending to support growth.

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.

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.

6 unchanged sentences

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).

The effect of market movements on fixed maturities related to consolidated investment products and investments supporting certain participating products in the Huatai portfolio 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.

1 unchanged sentence

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

Three Months Ended March 31

Three Months Ended June 30

(in millions of U.S.

13 unchanged sentences

Net gains (losses), pre-tax $ 104 $ (990) $ (886) $ (304) $ (955) $ (1,259)

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.

Six Months Ended June 30

(in millions of U.S.

Fixed maturities $ 75 $ (1,166) $ (1,091) $ (287) $ 592 $ 305

Investment and embedded derivative instruments (60) — (60) (101) — (101)

Public equity

Sales 11 — 11 (3) — (3)

Mark-to-market 13 — 13 42 — 42

Private equity (less than 3 percent ownership)

Mark-to-market 80 — 80 35 — 35

Total investment portfolio 119 (1,166) (1,047) (314) 592 278

Other derivative instruments (5) — (5) 1 — 1

Foreign exchange (104) (450) (554) (55) 38 (17)

Current discount rate on future policy benefits — — — — (186) (186)

Instrument-specific credit risk on market risk benefits — 10 10 — 8 8

Other (7) 2 (5) (13) 15 2

Net gains (losses), pre-tax $ 3 $ (1,604) $ (1,601) $ (381) $ 467 $ 86

Pre-tax net unrealized losses of $489 million and $1,166 million in our investment portfolio for the three and six months ended June 30, 2024, respectively, were primarily driven by higher interest rates.

Effective Income Tax Rate

2 unchanged sentences

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

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.

For the three and six months ended June 30, 2024, our ETR was 18.1 percent and 15.6 percent, respectively, compared to an ETR of 17.9 percent and 17.4 percent, respectively, in the prior year.

The ETR for each period was impacted by our mix of earnings among various jurisdictions and by discrete tax items.

The six months ended June 30, 2024 included an incremental deferred tax benefit of $55 million in the first quarter related to the Bermuda tax law enacted in December 2023.

Non-GAAP Reconciliation

14 unchanged sentences

We exclude CATs as they are not predictable as to timing and amount and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance.

The combined ratio numerator is adjusted to exclude CATs, net premiums earned adjustments on PPD, prior period expense adjustments and reinstatement premiums on PPD, and the denomi nator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on CATs and PPD.

The combined ratio numerator is adjusted to exclude CATs, PPD, and expense adjustments on PPD, and the denominator is adjusted to exclude net premiums earned adjustments on PPD and reinstatement premiums on CATs and PPD.

In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net premiums earned when calculating the ratios.

11 unchanged sentences

Three Months Ended

March 31, 2024

June 30, 2024

(in millions of U.S.

9 unchanged sentences

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

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

PPD, gross of related adjustments - favorable (unfavorable) 151 64 — 61 17 (93) 200

6 unchanged sentences

Net premiums earned adjustments on PPD - unfavorable (favorable) 8 — — — 8

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

Net premiums earned excluding adjustments F $ 4,908 $ 1,512 $ 626 $ 3,347 $ 340 $ 10,733

16 unchanged sentences

Three Months Ended

March 31, 2023

June 30, 2023

(in millions of U.S.

7 unchanged sentences

PPD, net of related adjustments - favorable (unfavorable) 146 33 3 61 17 (60) 200

Net premiums earned adjustments on PPD - unfavorable (favorable) 12 — (2) — — — 10

Expense adjustments - unfavorable (favorable) 4 — — — — — 4

7 unchanged sentences

Net premiums earned E $ 4,606 $ 1,357 $ 635 $ 2,908 $ 237 $ 9,743

Net premiums earned adjustments on PPD - unfavorable (favorable) 12 — (2) — — 10

PPD reinstatement premiums - unfavorable (favorable) — — — — 6 6

15 unchanged sentences

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

Six Months Ended

June 30, 2024

(in millions of U.S.

dollars except for ratios)

Losses and loss expenses/policy benefits A $ 6,249 $ 1,775 $ 592 $ 3,289 $ 292 $ 103 $ 12,300

Catastrophe losses and related adjustments

Catastrophe losses, net of related adjustments (488) (308) (36) (183) — — (1,015)

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

Catastrophe losses, gross of related adjustments (488) (308) (36) (183) — — (1,015)

PPD and related adjustments

PPD, net of related adjustments - favorable (unfavorable) 192 116 28 150 15 (102) 399

Net premiums earned adjustments on PPD - unfavorable (favorable) 8 — 39 — — — 47

Expense adjustments - unfavorable (favorable) 7 — 3 — — — 10

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

PPD, gross of related adjustments - favorable (unfavorable) 207 116 70 150 16 (102) 457

CAY loss and loss expense ex CATs B $ 5,968 $ 1,583 $ 626 $ 3,256 $ 308 $ 1 $ 11,742

Policy acquisition costs and administrative expenses

Policy acquisition costs and administrative expenses C $ 2,003 $ 773 $ 71 $ 2,344 $ 181 $ 206 $ 5,578

Expense adjustments - favorable (unfavorable) (7) — (3) — — — (10)

Policy acquisition costs and administrative expenses, adjusted D $ 1,996 $ 773 $ 68 $ 2,344 $ 181 $ 206 $ 5,568

Net premiums earned E $ 9,780 $ 2,983 $ 754 $ 6,545 $ 634 $ 20,696

Net premiums earned adjustments on PPD - unfavorable (favorable) 8 — 39 — — 47

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

Net premiums earned excluding adjustments F $ 9,788 $ 2,983 $ 793 $ 6,545 $ 635 $ 20,744

P&C Combined ratio

Loss and loss expense ratio A/E 63.9 % 59.5 % 78.6 % 50.3 % 46.0 % 59.4 %

Policy acquisition cost and administrative expense ratio C/E 20.5 % 25.9 % 9.3 % 35.8 % 28.6 % 27.0 %

P&C Combined ratio 84.4 % 85.4 % 87.9 % 86.1 % 74.6 % 86.4 %

CAY P&C Combined ratio ex CATs

Loss and loss expense ratio, adjusted B/F 61.0 % 53.1 % 79.0 % 49.7 % 48.3 % 56.6 %

Policy acquisition cost and administrative expense ratio, adjusted D/F 20.4 % 25.9 % 8.5 % 35.9 % 28.7 % 26.8 %

CAY P&C Combined ratio ex CATs 81.4 % 79.0 % 87.5 % 85.6 % 77.0 % 83.4 %

Combined ratio

Combined ratio 86.4 %

impact of gains and losses on crop derivatives —

P&C Combined ratio 86.4 %

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

Six Months Ended

June 30, 2023

(in millions of U.S.

dollars except for ratios)

Losses and loss expenses/policy benefits A $ 5,600 $ 1,734 $ 647 $ 2,751 $ 203 $ 72 $ 11,007

Catastrophe losses and related adjustments

Catastrophe losses, net of related adjustments (393) (306) (19) (139) (1) — (858)

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

Catastrophe losses, gross of related adjustments (393) (306) (19) (139) (1) — (858)

PPD and related adjustments

PPD, net of related adjustments - favorable (unfavorable) 218 16 3 204 25 (70) 396

Net premiums earned adjustments on PPD - unfavorable (favorable) 12 — (2) — — — 10

Expense adjustments - unfavorable (favorable) 7 — — — — — 7

PPD reinstatement premiums - unfavorable (favorable) — (1) — — 6 — 5

PPD, gross of related adjustments - favorable (unfavorable) 237 15 1 204 31 (70) 418

CAY loss and loss expense ex CATs B $ 5,444 $ 1,443 $ 629 $ 2,816 $ 233 $ 2 $ 10,567

Policy acquisition costs and administrative expenses

Policy acquisition costs and administrative expenses C $ 1,838 $ 712 $ 58 $ 2,031 $ 145 $ 192 $ 4,976

Expense adjustments - favorable (unfavorable) (7) — — — — — (7)

Policy acquisition costs and administrative expenses, adjusted D $ 1,831 $ 712 $ 58 $ 2,031 $ 145 $ 192 $ 4,969

Net premiums earned E $ 8,975 $ 2,677 $ 794 $ 5,694 $ 481 $ 18,621

Net premiums earned adjustments on PPD - unfavorable (favorable) 12 — (2) — — 10

PPD reinstatement premiums - unfavorable (favorable) — (1) — — 6 5

Net premiums earned excluding adjustments F $ 8,987 $ 2,676 — $ 792 $ 5,694 $ 487 $ 18,636

P&C Combined ratio

Loss and loss expense ratio A/E 62.4 % 64.8 % 81.5 % 48.3 % 42.3 % 59.1 %

Policy acquisition cost and administrative expense ratio C/E 20.5 % 26.6 % 7.3 % 35.7 % 30.1 % 26.7 %

P&C Combined ratio 82.9 % 91.4 % 88.8 % 84.0 % 72.4 % 85.8 %

CAY P&C Combined ratio ex CATs

Loss and loss expense ratio, adjusted B/F 60.6 % 53.9 % 79.4 % 49.5 % 47.8 % 56.7 %

Policy acquisition cost and administrative expense ratio, adjusted D/F 20.3 % 26.6 % 7.3 % 35.6 % 29.8 % 26.7 %

CAY P&C Combined ratio ex CATs 80.9 % 80.5 % 86.7 % 85.1 % 77.6 % 83.4 %

Combined ratio

Combined ratio 85.8 %

impact of gains and losses on crop derivatives —

P&C Combined ratio 85.8 %

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.

Amortization of Purchased Intangibles and Other Amortization

Amortization of purchased intangibles

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:

Amortization expense related to purchased intangibles was $80 million and $160 million for the three and six months ended June 30, 2024, respectively, compared with $70 million and $142 million for the prior year periods, respectively.

At June 30, 2024, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,524 million.

The following table presents, as of June 30, 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 third through fourth quarters of 2024 and for the next five years:

For the Years Ending December 31

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dollars) Reduction to deferred tax liability associated with intangible assets

Second quarter of 2024 $ 21

Third quarter of 2024 $ 21

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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:

The following table presents, as of June 30, 2024, the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the third through fourth quarters of 2024 and for the next five years:

For the Years Ending December 31

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

Second quarter of 2024 $ 5

Third quarter of 2024 $ 5

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Three Months Ended

June 30 Six Months Ended

(in millions of U.S.

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Gross investment income (1)

1,519 1,194 2,957 2,346

Investment expenses (51) (49) (98) (94)

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

$ (4) $ (3) $ (9) $ (5)

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 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.

Net investment income increased 28.2 percent and 27.0 percent for the three and six months ended June 30, 2024, respectively, 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.

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Three Months Ended

June 30 Six Months Ended

(in millions of U.S.

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Total mark-to-market gain on private equity, pre-tax $ 53 $ 17 $ 187 $ 274

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.

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 March 31, 2024.

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

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions of U.S.

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Short-term investments $ 4,546 $ 4,547 $ 4,551 $ 4,551

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

Other investments - Fixed maturities 5,404 5,404 3,773 3,773

Fixed maturities available-for-sale 107,840 113,407 106,571 110,972

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Total investments $ 140,752 $ 146,304 $ 136,742 $ 141,136

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 fair value of our total investments increased $4.0 billion during the six months ended June 30, 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 following tables present the fair value of our fixed income securities at June 30, 2024, and December 31, 2023.

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions of U.S.

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$ 117,790 100 % $ 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.

(1) Includes fixed maturities recorded in Other investments in the Consolidated balance sheets of $5.4 billion and $3.8 billion at June 30, 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 March 31, 2024:

The following table presents our 10 largest global exposures to corporate bonds by fair value at June 30, 2024:

(in millions of U.S.

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Wells Fargo & Co 614

Citigroup Inc 556

Goldman Sachs Group Inc 561

Citigroup Inc 558

UBS Group AG 412

HSBC Holdings Plc 399

Verizon Communications Inc 397

HSBC Holdings Plc 364

Mortgage-backed securities

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Value Amortized Cost, Net

March 31, 2024

June 30, 2024

(in millions of U.S.

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

government securities at March 31, 2024:

government securities at June 30, 2024:

(in millions of U.S.

2 unchanged sentences

People's Republic of China 1,627 1,567

Taiwan 985 969

Canada 911 954

Taiwan 888 909

Federative Republic of Brazil 595 607

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Province of Ontario 512 538

Socialist Republic of Vietnam 474 358

United Kingdom 436 467

Other Non-U.S.

3 unchanged sentences

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

corporate securities at March 31, 2024:

corporate securities at June 30, 2024:

(in millions of U.S.

4 unchanged sentences

United States (1)

South Korea 1,572 1,562

France 1,576 1,626

South Korea 1,530 1,507

Australia 1,104 1,165

1 unchanged sentence

Germany 614 648

Netherlands 586 612

Switzerland 523 553

Other Non-U.S.

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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 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.

At June 30, 2024, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 14 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 $167 million.

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Our minimum rating for initial purchase is BB/B.

Sixteen external investment managers are responsible for high-yield security selection and portfolio construction.

Fifteen external investment managers are responsible for high-yield security selection and portfolio construction.

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

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Other (including foreign exchange translation) (273) (69) (204)

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

Balance at June 30, 2024 $ 82,191 $ 17,409 $ 64,782

(1) Net of valuation allowance for uncollectible reinsurance.

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Asbestos and Environmental (A&E)

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

There was no significant A&E reserve activity during the three and six months ended June 30, 2024.

A&E reserves are included in Corporate.

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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 March 31, 2024, 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 June 30, 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 $ 8,180 13.4 % $ 5,718 9.4 % $ 2,157 3.5 %

(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.

hurricane losses include losses from wind, storm-surge, and related precipitation-induced flooding.

(3) California earthquakes include the fire-following sub-peril.

(1) Worldwide aggregate includes modeled losses arising from tropical cyclones, convective storms, earthquakes, wildfires, and inland floods, and excludes "non-modeled" perils such as man-made and other catastrophe risks including pandemic.

hurricane modeled losses include losses from wind, storm-surge, and related precipitation-induced flooding.

(3) California earthquake modeled losses include the fire-following sub-peril.

The PML for worldwide and key U.S.

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.

peril regions are based on our in-force portfolio at April 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.

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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 $3,501 million (or 5.8 percent of total Chubb shareholders’ equity at March 31, 2024).

hurricane events could be in excess of $3,636 million (or 6.0 percent of total Chubb shareholders’ equity at June 30, 2024).

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

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

March 31 December 31

June 30 December 31

(in millions of U.S.

11 unchanged sentences

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.

Chubb INA's $700 million of 3.35 percent senior notes due May 2024 was paid upon maturity.

For the six months ended June 30, 2024, we repurchased $886 million of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorization.

At June 30, 2024, there were 15,552,491 Common Shares in treasury with a weighted-average cost of $159.49 per share, and $2.8 billion in share repurchase authorization remained.

For the period July 1, 2024, through July 25, 2024, we repurchased 175,465 Common Shares for a total of $45 million in a series of open market transactions under the share repurchase authorization.

At July 25, 2024, $2.8 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 2025 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 2024 represented a $0.20 per share increase ($0.05 per quarter) over the prior year dividend.

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

June 14, 2024 July 5, 2024 $0.91 (CHF 0.82)

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

At June 30, 2024, our usage under these facilities was $903 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 March 31, 2024.

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

During the six months ended June 30, 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 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.

Chubb Limited received dividends of $700 million and $925 million from its Bermuda subsidiaries during the six months ended June 30, 2024 and 2023, respectively.

Chubb Limited also received dividends of $91 million from its other international subsidiary during the six months ended June 30, 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).

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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 three months ended March 31, 2024 and 2023.

Chubb Limited received no dividends from Chubb INA during the six months ended June 30, 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 no dividends from its subsidiaries during the three months ended March 31, 2024 and 2023.

Chubb INA received $1.7 billion and $458 million from its subsidiaries during the six months ended June 30, 2024 and 2023, respectively.

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 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.

The following is a discussion of our cash flows for the six months ended June 30, 2024 and 2023.

Operating cash flows were $7.3 billion in the six months ended June 30, 2024, compared to $4.8 billion in the prior year period, primarily due to higher net premiums collected, net investment income, and the impact of the Huatai consolidation.

Cash used for investing was $6.1 billion in the six months ended June 30, 2024, compared to $2.3 billion in the prior year period, an increase of $3.8 billion, which primarily included higher net purchases of fixed maturities and equity securities of $3.6 billion.

Cash used for financing was $1.2 billion in the six months ended June 30, 2024, compared to $2.3 billion in the prior year period, a decrease in cash used for financing of $1.1 billion.

This was primarily due to net proceeds from the issuance of long-term debt, net of repayments of $296 million compared with repayments of $475 million in the prior year and fewer common shares repurchased of $211 million.

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

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

At June 30, 2024, there were $3.1 billion in repurchase agreements outstanding with various maturities over the next twelve months.

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

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(Subsidiary Issuer)

March 31 December 31 March 31 December 31

June 30 December 31 June 30 December 31

(in millions of U.S.

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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

Six Months Ended June 30, 2024 Chubb Limited

(Parent Guarantor) Chubb INA Holdings LLC

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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