Chubb Ltd 10-Q

ITEM 2. 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 six months ended June 30, 2024. All comparisons in this discussion are to the corresponding prior year period unless otherwise indicated. All dollar amounts are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ. Our results of operations and cash flows for any interim period are not necessarily indicative of our results for the full year. This discussion should be read in conjunction with our consolidated financial statements and related notes and our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K). Other Information We routinely post important information for investors on our website (investors.chubb.com). We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Securities and Exchange Commission (SEC) Regulation FD (Fair Disclosure). Accordingly, investors should monitor the Investor Information portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this report. MD&A Index Page Forward-Looking Statements 52 Overview 53 Consolidated Operating Results 54 Segment Operating Results 59 Net Realized and Unrealized Gains (Losses) 69 Effective Income Tax Rate 70 Non-GAAP Reconciliation 70 Amortization of Purchased Intangibles and Other Amortization 76 Net Investment Income 77 Investments 77 Critical Accounting Estimates 81 Unpaid Losses and Loss Expenses 81 Asbestos and Environmental (A&E) 81 Fair Value Measurements 81 Catastrophe Management 82 Global Property Catastrophe Reinsurance Program 83 Capital Resources 84 Liquidity 85 Information Provided In Connection With Outstanding Debt of Subsidiaries 86 51 Table of Contents Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Any written or oral statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. The words “believe,” “anticipate,” “estimate,” “project,” “should,” “plan,” “expect,” “intend,” “hope,” “feel,” “foresee,” “will likely result,” “will continue,” and variations thereof and similar expressions, identify forward-looking statements. These forward-looking statements are subject to certain risks, uncertainties, and other factors that could, should potential events occur, cause actual results to differ materially from such statements. These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the U.S. Securities and Exchange Commission (SEC), include but are not limited to: • actual amount of new and renewal business, premium rates, underwriting margins, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets; the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections, and changes in market conditions that could render our business strategies ineffective or obsolete; • losses arising out of natural or man-made catastrophes; actual loss experience from insured or reinsured events and the timing of claim payments; the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments; • changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance; • uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties; judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms; the effects of data privacy or cyber laws or regulation; global political conditions and possible business disruption or economic contraction that may result from such events; • severity of pandemics and related risks, and their effects on our business operations and claims activity, and any adverse impact to our insureds, brokers, agents, and employees; actual claims may exceed our best estimate of ultimate insurance losses incurred which could change including as a result of, among other things, the impact of legislative or regulatory actions taken in response to a pandemic; • developments in global financial markets, including changes in interest rates, stock markets, and other financial markets; increased government involvement or intervention in the financial services industry; the cost and availability of financing, and foreign currency exchange rate fluctuations; changing rates of inflation; and other general economic and business conditions, including the depth and duration of potential recession; • the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; the amount of dividends received from subsidiaries; • changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale fixed maturity investments before their anticipated recovery; • actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent; • 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 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; share repurchase plans and share cancellations; • loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame; 52 Table of Contents • the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; and • management’s response to these factors and actual events (including, but not limited to, those described above). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events or otherwise. Overview Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies. 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 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. We operate through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. For more information on our segments refer to “Segment Information” under Item 1 in our 2023 Form 10-K. On July 1, 2023, we completed the acquisition of a controlling majority interest of Huatai Group. 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. 53 Table of Contents 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. Q-23 2024 2023 YTD-24 vs. YTD-23 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) 104 (304) NM 3 (381) NM Market risk benefits gains (losses) (29) (7) NM (8) (122) (93.7) % Total revenues 13,835 11,833 16.9 % 26,729 22,890 16.8 % Losses and loss expenses 6,431 5,683 13.2 % 12,158 10,831 12.3 % Policy benefits 1,219 830 46.9 % 2,399 1,627 47.4 % Policy acquisition costs 2,226 2,016 10.4 % 4,433 3,964 11.8 % Administrative expenses 1,094 969 12.9 % 2,164 1,899 14.0 % Interest expense 182 165 10.4 % 360 325 10.8 % Other (income) expense (110) (100) 10.4 % (301) (396) (24.3) % Amortization of purchased intangibles 80 70 15.0 % 160 142 12.9 % Cigna integration expenses 7 15 (55.8) % 14 37 (62.3) % Total expenses 11,129 9,648 15.4 % 21,387 18,429 16.1 % Income before income tax 2,706 2,185 23.8 % 5,342 4,461 19.8 % Income tax expense 490 392 25.2 % 832 776 7.3 % Net income $ 2,216 $ 1,793 23.6 % $ 4,510 $ 3,685 22.4 % 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 % NM - not meaningful (1) On a constant-dollar basis. 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 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 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. • Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $580 million (5.4 percentage points of the P&C combined ratio) and $482 million, respectively, compared with $400 million (4.1 54 Table of Contents percentage points of the P&C combined ratio) and $319 million, respectively, in the prior year period. • Total pre-tax and after-tax favorable prior period development were $192 million and $167 million, respectively, compared with $200 million and $155 million, respectively, in the prior year period. • The P&C combined ratio was 86.8 percent compared with 85.4 percent in the prior year period. 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 $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 $369 million. Net Premiums Written Three Months Ended June 30 % Change Six Months Ended June 30 % Change (in millions of U.S. dollars, except for percentages) 2024 2023 Q-24 vs. Q-23 C$ Q-24 vs. Q-23 2024 2023 YTD-24 vs. YTD-23 C$ YTD-24 vs. YTD-23 Property and other short-tail lines $ 2,715 $ 2,346 15.7 % 16.2 % $ 5,075 $ 4,371 16.1 % 16.3 % Commercial casualty 2,155 2,024 6.5 % 6.6 % 4,365 3,927 11.2 % 11.1 % Financial lines 1,237 1,244 (0.6) % (0.5) % 2,345 2,400 (2.3) % (2.4) % Workers' compensation 559 537 4.1 % 4.1 % 1,188 1,155 2.9 % 2.9 % Commercial multiple peril (1) 428 391 9.7 % 9.7 % 796 731 8.9 % 8.9 % Surety 200 174 14.6 % 13.8 % 384 334 14.9 % 13.4 % Total Commercial P&C lines 7,294 6,716 8.6 % 8.8 % 14,153 12,918 9.6 % 9.5 % Agriculture 758 767 (1.2) % (1.2) % 1,007 1,060 (5.0) % (5.0) % Personal homeowners 1,355 1,174 15.4 % 15.9 % 2,420 2,076 16.6 % 17.0 % Personal automobile 614 460 33.4 % 29.9 % 1,256 887 41.6 % 36.9 % Personal other 520 485 7.3 % 8.6 % 1,085 992 9.4 % 10.2 % Total Personal lines 2,489 2,119 17.5 % 17.4 % 4,761 3,955 20.4 % 19.9 % Global A&H - P&C 828 786 5.2 % 7.8 % 1,677 1,595 5.1 % 6.8 % Reinsurance lines 411 293 40.3 % 40.5 % 770 570 35.1 % 35.2 % Total Property and Casualty lines 11,780 10,681 10.3 % 10.6 % 22,368 20,098 11.3 % 11.3 % Life Insurance 1,580 1,270 24.5 % 27.6 % 3,213 2,563 25.4 % 28.7 % Total consolidated $ 13,360 $ 11,951 11.8 % 12.3 % $ 25,581 $ 22,661 12.9 % 13.2 % (1) Commercial multiple peril represents retail package business (property and general liability). 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. 55 Table of Contents • 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. • 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. • 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 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. 56 Table of Contents Net Premiums Earned Net premiums earned for short-duration contracts, typically P&C contracts, generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. 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 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 We generally define catastrophe loss events consistent with the definition of the Property Claims Service (PCS) for events in the U.S. and Canada. PCS defines a catastrophe as an event that causes damage of $25 million or more in insured losses and affects a significant number of insureds. For events outside of the U.S. 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. PPD includes adjustments relating to either profit commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies. 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Net catastrophe losses $ 580 $ 400 $ 1,015 $ 858 Favorable prior period development $ 192 $ 200 $ 399 $ 396 Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events: • 2024: Severe weather-related events in the U.S. and internationally, including Rio Grande storms. • 2023: 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. 57 Table of Contents P&C Combined Ratio 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 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 % Policy acquisition cost ratio 18.0 % 17.9 % 18.6 % 18.3 % Administrative expense ratio 8.2 % 8.2 % 8.4 % 8.4 % P&C Combined ratio 86.8 % 85.4 % 86.4 % 85.8 % 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 include (gains) losses from fair value changes in separate account liabilities that do not qualify for separate account treatment under U.S. GAAP. 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. 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. 58 Table of Contents Segment Operating Results – Three and Six Months Ended June 30, 2024 and 2023 We operate through six business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. For more information on our segments refer to “Segment Information” under Item 1 in our 2023 Form 10-K. North America Commercial P&C Insurance The North America Commercial P&C Insurance segment comprises operations that provide P&C insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda. 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 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. YTD-23 Net premiums written $ 5,501 $ 5,155 6.7 % $ 10,190 $ 9,443 7.9 % Net premiums earned 4,900 4,606 6.4 % 9,780 8,975 9.0 % Losses and loss expenses 3,074 2,871 7.1 % 6,249 5,600 11.6 % Policy acquisition costs 660 614 7.5 % 1,348 1,227 9.9 % Administrative expenses 327 316 3.6 % 655 611 7.3 % Underwriting income 839 805 4.1 % 1,528 1,537 (0.6) % Net investment income 863 726 19.0 % 1,689 1,424 18.7 % Other (income) expense 15 5 169.1 % 22 12 77.4 % Segment income $ 1,687 $ 1,526 10.6 % $ 3,195 $ 2,949 8.4 % 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. dollars) 2024 2023 2024 2023 Net catastrophe losses $ 252 $ 231 $ 488 $ 393 Favorable prior period development $ 144 $ 146 $ 192 $ 218 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. 59 Table of Contents Premiums 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 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. and Canada. 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. YTD-23 Net premiums written $ 1,776 $ 1,581 12.3 % $ 3,232 $ 2,877 12.3 % Net premiums earned 1,512 1,357 11.5 % 2,983 2,677 11.5 % Losses and loss expenses 876 846 3.5 % 1,775 1,734 2.4 % Policy acquisition costs 299 277 8.0 % 599 549 9.1 % Administrative expenses 88 84 5.5 % 174 163 7.3 % Underwriting income 249 150 66.4 % 435 231 88.5 % Net investment income 108 86 25.4 % 210 168 25.0 % 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 % 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 60 Table of Contents 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 $ 138 $ 147 $ 308 $ 306 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. Premiums 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 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. 61 Table of Contents North America Agricultural Insurance The North America Agricultural Insurance segment comprises our North American based businesses that provide a variety of coverages in the U.S. 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 Agriculture P&C business. 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. YTD-23 Net premiums written $ 758 $ 767 (1.2) % $ 1,007 $ 1,060 (5.0) % Net premiums earned 626 635 (1.5) % 754 794 (5.1) % Losses and loss expenses 543 507 7.2 % 592 647 (8.5) % Policy acquisition costs 45 37 18.3 % 66 52 25.8 % Administrative expenses 3 3 — 5 6 (20.1) % Underwriting income 35 88 (59.7) % 91 89 2.2 % Net investment income 21 14 51.1 % 42 31 37.9 % Other (income) expense — (1) NM — — — Amortization of purchased intangibles 7 7 — 13 13 — 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Net unfavorable (favorable) catastrophe losses $ 33 $ (5) $ 36 $ 19 Favorable prior period development $ — $ 3 $ 28 $ 3 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. Premiums 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. 62 Table of Contents 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 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 Overseas General Insurance segment comprises Chubb International and Chubb Global Markets (CGM). Chubb International comprises our international commercial P&C traditional and specialty lines serving large corporations, middle market and small customers; A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada. CGM, our London-based international commercial P&C excess and surplus lines business, includes Lloyd's of London (Lloyd's) Syndicate 2488. Chubb provides funds at Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb Underwriting Agencies Limited. Effective July 1, 2023, the Overseas General Insurance segment includes 100 percent of the results of Huatai Group's P&C business as required under consolidation accounting. We previously included our share of Huatai results based on our equity method investment within Other (income) expense. 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. YTD-23 Net premiums written $ 3,334 $ 2,885 15.6 % $ 7,169 $ 6,148 16.6 % Net premiums written - constant dollars 16.6 % 16.6 % Net premiums earned 3,347 2,908 15.1 % 6,545 5,694 14.9 % Loss and loss expenses 1,671 1,267 31.9 % 3,097 2,504 23.7 % Policy benefits 92 137 (32.8) % 192 247 (22.3) % Policy acquisition costs 842 746 12.7 % 1,665 1,459 14.1 % Administrative expenses 348 292 19.3 % 679 572 18.9 % Underwriting income 394 466 (15.4) % 912 912 — Net investment income 283 200 41.4 % 550 388 42.0 % 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 % 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 63 Table of Contents 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 Catastrophe losses $ 157 $ 26 $ 183 $ 139 Favorable prior period development $ 61 $ 61 $ 150 $ 204 Catastrophe losses through June 30, 2024 and 2023, were primarily from the following events: • 2024: Rio Grande storms, and International weather-related events. • 2023: 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 June 30 (in millions of U.S. dollars, except for percentages) 2024 2024 % of Total 2023 2023 % of Total C$ 2023 Q-24 vs. Q-23 C$ Q-24 vs. Q-23 Region Europe, Middle East, and Africa $ 1,409 42 % $ 1,307 45 % $ 1,311 7.8 % 7.5 % Asia (1) 1,177 35 % 931 33 % 893 26.5 % 31.7 % Latin America 697 21 % 613 21 % 623 13.7 % 11.9 % Other (2) 51 2 % 34 1 % 34 51.3 % 51.7 % 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. Y-23 C$ Y-24 vs. Y-23 Region Europe, Middle East, and Africa $ 3,278 46 % $ 3,028 49 % $ 3,060 8.3 % 7.1 % Asia (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 % Other (2) 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. Premiums 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 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. 64 Table of Contents 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 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. 65 Table of Contents Global Reinsurance The Global Reinsurance segment represents our reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. 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 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. YTD-23 Net premiums written $ 411 $ 293 40.3 % $ 770 $ 570 35.1 % Net premiums written - constant dollars 40.5 % 35.2 % Net premiums earned 339 237 43.4 % 634 481 31.9 % Losses and loss expenses 155 91 69.3 % 292 203 43.5 % Policy acquisition costs 80 65 26.5 % 161 127 28.2 % Administrative expenses 11 9 17.8 % 20 18 6.8 % Underwriting income 93 72 28.8 % 161 133 21.2 % Net investment income 58 48 21.1 % 115 97 18.1 % Other (income) expense — — — — (1) 100.0 % Segment income $ 151 $ 120 25.7 % $ 276 $ 231 19.3 % 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 Six Months Ended June 30 June 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Catastrophe losses $ — $ 1 $ — $ 1 Favorable prior period development $ 16 $ 17 $ 15 $ 25 Refer to Note 8 to the Consolidated Financial Statements for detail on prior period development. Premiums 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. 66 Table of Contents Combined Ratio 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 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. We previously included our share of Huatai results based on our equity method investment within Other (income) expense. 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 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. YTD-23 Net premiums written $ 1,580 $ 1,270 24.5 % $ 3,213 $ 2,563 25.4 % Net premiums written - constant dollars 27.6 % 28.7 % Net premiums earned 1,568 1,256 24.7 % 3,179 2,520 26.1 % Losses and loss expenses 22 35 (37.1) % 54 67 (19.4) % Policy benefits 1,031 705 46.2 % 2,101 1,417 48.3 % Policy acquisition costs 300 277 8.3 % 594 550 8.0 % Administrative expenses 218 170 27.5 % 425 337 25.7 % Net investment income 258 161 59.5 % 488 314 55.3 % Other (income) expense (32) (26) 29.2 % (72) (41) 77.0 % Amortization of purchased intangibles 11 2 NM 21 6 NM Segment income $ 276 $ 254 8.7 % $ 544 $ 498 9.3 % NM - not meaningful Premiums 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 $485 million or 21.3 and 23.4 percentage points, respectively. The remaining increase in net premiums written is primarily driven by growth in North and Southeast Asia as well as by higher new business in Latin America. Net premiums written in our North American Combined Insurance business increased 11.8 percent and 8.6 percent, for the three and six months ended June 30, 2024, respectively, due to growth in its worksite business of 28.7 percent and 24.6 percent partially offset by the non-renewal of a large program. 67 Table of Contents Deposits The following table presents deposits collected on universal life and investment contracts: Three Months Ended Six Months Ended June 30 % Change June 30 % Change (in millions of U.S. dollars, except for percentages) 2024 2023 C$ 2023 Q-24 vs. Q-23 C$ Q-24 vs. Q-23 2024 2023 C$ 2023 Y-24 vs. Y-23 C$ Y-24 vs. Y-23 Deposits collected on universal life and investment contracts $ 547 $ 400 $ 384 36.8 % 42.5 % $ 1,147 $ 709 $ 685 61.8 % 67.5 % 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. GAAP. 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 $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 $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 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 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. YTD-23 Losses and loss expenses $ 93 $ 61 52.0 % $ 103 $ 72 43.8 % Administrative expenses 99 95 5.0 % 206 192 7.2 % Underwriting loss 192 156 23.8 % 309 264 17.4 % 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) 22 (309) NM (78) (385) (79.8) % Market risk benefits gains (losses) (29) (7) NM (8) (122) (93.7) % Interest expense 182 165 10.4 % 360 325 10.8 % Cigna integration expenses 7 15 (55.8) % 14 37 (62.3) % Income tax expense 490 392 25.2 % 832 776 7.3 % Net loss $ (957) $ (1,098) (12.5) % $ (1,680) $ (1,780) (5.5) % 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 $4 million and $14 million for the three and six months ended June 30, 2024, respectively, primarily due to increased spending to support growth. 68 Table of Contents 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. Refer to the respective sections that follow for a discussion of Net realized gains (losses), Net investment income (loss), Amortization of purchased intangibles, and Income tax expense (benefit). Refer to Notes 11 and 16 to the Consolidated Financial Statements for additional information on Market risk benefits gains (losses) and Other (income) expense, respectively. Net Realized and Unrealized Gains (Losses) We take a long-term view with our investment strategy, and our investment managers manage our investment portfolio to maximize total return within specific guidelines designed to minimize risk. The majority of our investment portfolio is available-for-sale and reported at fair value. 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 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. 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 June 30 2024 2023 (in millions of U.S. dollars) Net Realized Gains (Losses) Net Unrealized Gains (Losses) Net Impact Net Realized Gains (Losses) Net Unrealized Gains (Losses) Net Impact Fixed maturities $ 26 $ (489) $ (463) $ (107) $ (1,194) $ (1,301) Investment and embedded derivative instruments (17) — (17) (55) — (55) Public equity Sales 14 — 14 2 — 2 Mark-to-market 7 — 7 26 — 26 Private equity (less than 3 percent ownership) Mark-to-market 49 — 49 20 — 20 Total investment portfolio 79 (489) (410) (114) (1,194) (1,308) Other derivative instruments (3) — (3) 2 — 2 Foreign exchange 27 (530) (503) (186) 215 29 Current discount rate on future policy benefits — 53 53 — (35) (35) Instrument-specific credit risk on market risk benefits — 5 5 — 11 11 Other 1 (29) (28) (6) 48 42 Net gains (losses), pre-tax $ 104 $ (990) $ (886) $ (304) $ (955) $ (1,259) 69 Table of Contents Six Months Ended June 30 2024 2023 (in millions of U.S. dollars) Net Realized Gains (Losses) Net Unrealized Gains (Losses) Net Impact Net Realized Gains (Losses) Net Unrealized Gains (Losses) Net Impact 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 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 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 In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with GAAP. We provide financial measures, including net premiums written, net premiums earned, and underwriting income on a constant-dollar basis. We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period. P&C performance metrics comprise consolidated operating results (including Corporate) and exclude the operating results of the Life Insurance segment. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s P&C operations which are the most economically similar. We exclude the Life Insurance segment because the results of this business do not always correlate with the results of our P&C operations. 70 Table of Contents P&C combined ratio is the sum of the loss and loss expense ratio, policy acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations. CAY P&C combined ratio excluding catastrophe losses (CATs) excludes CATs and prior period development (PPD) from the P&C combined ratio. 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, 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. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items. This measure is commonly reported among our peer companies and allows for a better comparison. Reinstatement premiums 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. Net premiums earned adjustments within PPD are adjustments to the initial premium earned on retrospectively rated policies based on actual claim experience that develops after the policy period ends. The premium adjustments correlate to the prior period loss development on these same policies and are fully earned in the period the adjustments are recorded. Prior period expense adjustments typically relate to adjustable commission reserves or policyholder dividend reserves based on actual claim experience that develops after the policy period ends. The expense adjustments correlate to the prior period loss development on these same policies. 71 Table of Contents The following tables present the calculation of combined ratio, as reported for each segment to P&C combined ratio, adjusted for CATs and PPD: 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 Three Months Ended June 30, 2024 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 3,074 $ 876 $ 543 $ 1,763 $ 155 $ 93 $ 6,504 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (252) (138) (33) (157) — — (580) Reinstatement premiums collected (expensed) on catastrophe losses — — — — — — — Catastrophe losses, gross of related adjustments (252) (138) (33) (157) — — (580) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 144 64 — 61 16 (93) 192 Net premiums earned adjustments on PPD - unfavorable (favorable) 8 — — — — — 8 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 CAY loss and loss expense ex CATs B $ 2,973 $ 802 $ 510 $ 1,667 $ 172 $ — $ 6,124 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 987 $ 387 $ 48 $ 1,190 $ 91 $ 99 $ 2,802 Expense adjustments - favorable (unfavorable) 1 — — — — — 1 Policy acquisition costs and administrative expenses, adjusted D $ 988 $ 387 $ 48 $ 1,190 $ 91 $ 99 $ 2,803 Denominator Net premiums earned E $ 4,900 $ 1,512 $ 626 $ 3,347 $ 339 $ 10,724 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 P&C Combined ratio Loss and loss expense ratio A/E 62.7 % 57.9 % 86.8 % 52.7 % 45.7 % 60.6 % Policy acquisition cost and administrative expense ratio C/E 20.2 % 25.6 % 7.6 % 35.5 % 27.0 % 26.2 % P&C Combined ratio 82.9 % 83.5 % 94.4 % 88.2 % 72.7 % 86.8 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.6 % 53.0 % 81.5 % 49.8 % 50.4 % 57.1 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.1 % 25.6 % 7.6 % 35.5 % 27.0 % 26.1 % CAY P&C Combined ratio ex CATs 80.7 % 78.6 % 89.1 % 85.3 % 77.4 % 83.2 % Combined ratio Combined ratio 86.8 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.8 % Note: The ratios above are calculated using whole U.S. dollars. 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. 72 Table of Contents 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 Three Months Ended June 30, 2023 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 2,871 $ 846 $ 507 $ 1,404 $ 91 $ 61 $ 5,780 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (231) (147) 5 (26) (1) — (400) Reinstatement premiums collected (expensed) on catastrophe losses — — — — — — — Catastrophe losses, gross of related adjustments (231) (147) 5 (26) (1) — (400) PPD and related adjustments 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 PPD reinstatement premiums - unfavorable (favorable) — — — — 6 — 6 PPD, gross of related adjustments - favorable (unfavorable) 162 33 1 61 23 (60) 220 CAY loss and loss expense ex CATs B $ 2,802 $ 732 $ 513 $ 1,439 $ 113 $ 1 $ 5,600 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 930 $ 361 $ 40 $ 1,038 $ 74 $ 95 $ 2,538 Expense adjustments - favorable (unfavorable) (4) — — — — — (4) Policy acquisition costs and administrative expenses, adjusted D $ 926 $ 361 $ 40 $ 1,038 $ 74 $ 95 $ 2,534 Denominator 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 Net premiums earned excluding adjustments F $ 4,618 $ 1,357 $ 633 $ 2,908 $ 243 $ 9,759 P&C Combined ratio Loss and loss expense ratio A/E 62.3 % 62.4 % 79.7 % 48.3 % 38.7 % 59.3 % Policy acquisition cost and administrative expense ratio C/E 20.2 % 26.5 % 6.5 % 35.7 % 30.9 % 26.1 % P&C Combined ratio 82.5 % 88.9 % 86.2 % 84.0 % 69.6 % 85.4 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.7 % 54.0 % 80.9 % 49.5 % 46.7 % 57.4 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.0 % 26.5 % 6.5 % 35.7 % 30.1 % 25.9 % CAY P&C Combined ratio ex CATs 80.7 % 80.5 % 87.4 % 85.2 % 76.8 % 83.3 % Combined ratio Combined ratio 85.4 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 85.4 % Note: The ratios above are calculated using whole U.S. dollars. 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. 73 Table of Contents 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) Numerator 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 Denominator 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 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.4 % Note: The ratios above are calculated using whole U.S. dollars. 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. 74 Table of Contents 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) Numerator 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 Denominator 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 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 85.8 % Note: The ratios above are calculated using whole U.S. dollars. 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. 75 Table of Contents Amortization of Purchased Intangibles and Other Amortization Amortization of purchased intangibles 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 (in millions of U.S. dollars) Reduction to deferred tax liability associated with intangible assets Third quarter of 2024 $ 21 Fourth quarter of 2024 21 2025 75 2026 70 2027 65 2028 62 2029 53 Total $ 367 Amortization of the fair value adjustment on assumed long-term debt 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 (in millions of U.S. dollars) Amortization benefit of the fair value adjustment on assumed long-term debt (1) Third quarter of 2024 $ 5 Fourth quarter of 2024 6 2025 21 2026 21 2027 21 2028 21 2029 21 Total $ 116 (1) Recorded as a reduction to Interest expense in the Consolidated statements of operations. 76 Table of Contents Net Investment Income Three Months Ended June 30 Six Months Ended June 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Fixed maturities (1) $ 1,367 $ 1,095 $ 2,678 $ 2,157 Short-term investments 41 49 90 87 Other interest income 23 12 38 29 Equity securities 35 6 59 15 Private equities 31 12 47 21 Other investments 22 20 45 37 Gross investment income (1) 1,519 1,194 2,957 2,346 Investment expenses (51) (49) (98) (94) Net investment income (1) $ 1,468 $ 1,145 $ 2,859 $ 2,252 (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 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. For private equities where we own more than three percent, investment income is included within Other (income) expense in the Consolidated statements of operations. Excluded from Net investment income is the mark-to-market movement for private equities, which is recorded within either Other (income) expense or Net realized gains (losses) based on our percentage of ownership. The total mark-to-market movement for private equities excluded from Net investment income was as follows: Three Months Ended June 30 Six Months Ended June 30 (in millions of U.S. dollars) 2024 2023 2024 2023 Total mark-to-market gain on private equity, pre-tax $ 53 $ 17 $ 187 $ 274 Investments 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 June 30, 2024. 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. 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: 77 Table of Contents June 30, 2024 December 31, 2023 (in millions of U.S. dollars) Fair Value Cost/ Amortized Cost, Net Fair Value Cost/ Amortized Cost, Net Short-term investments $ 4,546 $ 4,547 $ 4,551 $ 4,551 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 Fixed income securities 117,790 123,358 114,895 119,296 Equity securities 3,792 3,792 3,455 3,455 Private debt held-for-investment 2,696 2,680 2,560 2,553 Private equities and other 16,474 16,474 15,832 15,832 Total investments $ 140,752 $ 146,304 $ 136,742 $ 141,136 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. 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: June 30, 2024 December 31, 2023 (in millions of U.S. dollars, except for percentages) Fair Value % of Total Fair Value % of Total U.S. Treasury / Agency $ 2,741 2 % $ 3,590 3 % Corporate and asset-backed securities 43,620 37 % 42,830 37 % Mortgage-backed securities 24,614 21 % 22,058 19 % Municipal 1,947 2 % 2,929 3 % Non-U.S. 40,322 34 % 38,937 34 % Short-term investments 4,546 4 % 4,551 4 % Total (1) $ 117,790 100 % $ 114,895 100 % AAA $ 14,087 12 % $ 12,669 11 % AA 34,980 30 % 34,312 30 % A 28,056 24 % 27,674 24 % BBB 21,457 18 % 20,810 18 % BB 10,384 9 % 10,270 9 % B 8,293 7 % 8,580 7 % Other 533 — % 580 1 % Total (1) $ 117,790 100 % $ 114,895 100 % (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. 78 Table of Contents Corporate and asset-backed securities The following table presents our 10 largest global exposures to corporate bonds by fair value at June 30, 2024: (in millions of U.S. dollars) Fair Value Bank of America Corp $ 804 Morgan Stanley 705 JPMorgan Chase & Co 652 Wells Fargo & Co 614 Goldman Sachs Group Inc 561 Citigroup Inc 558 UBS Group AG 412 Verizon Communications Inc 397 AT&T Inc 394 HSBC Holdings Plc 364 Mortgage-backed securities The following table shows the fair value and amortized cost, net of valuation allowance, of our mortgage-backed securities: S&P Credit Rating Fair Value Amortized Cost, Net June 30, 2024 (in millions of U.S. dollars) AAA AA A BBB BB and below Total Total Agency residential mortgage-backed securities (RMBS) $ 9 $ 21,151 $ — $ — $ — $ 21,160 $ 22,986 Non-agency RMBS 1,247 118 70 58 6 1,499 1,563 Commercial mortgage-backed securities 1,682 154 107 12 — 1,955 2,082 Total mortgage-backed securities $ 2,938 $ 21,423 $ 177 $ 70 $ 6 $ 24,614 $ 26,631 Municipal As part of our overall investment strategy, we may invest in states, municipalities, and other political subdivisions fixed maturity securities (Municipal). We apply the same investment selection process described previously to our Municipal investments. The portfolio is highly diversified primarily in state general obligation bonds and essential service revenue bonds including education and utilities (water, power, and sewers). Non-U.S. 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. Investment portfolios are monitored daily to ensure investment manager compliance with portfolio guidelines. Our non-U.S. investment grade fixed income portfolios are currency-matched with the insurance liabilities of our non-U.S. operations. The average credit quality of our non-U.S. fixed income securities is A and 39 percent of our holdings are rated AAA or guaranteed by governments or quasi-government agencies. Within the context of these investment portfolios, our government and corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA—two percent, A—one percent, BBB—0.5 percent of the total portfolio) and are monitored daily via an internal compliance system. We manage our indirect exposure using the same credit rating-based investment approach. Accordingly, we do not believe our indirect exposure is material. 79 Table of Contents The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. government securities at June 30, 2024: (in millions of U.S. dollars) Fair Value Amortized Cost, Net Republic of Korea $ 1,812 $ 1,774 People's Republic of China 1,627 1,567 Canada 911 954 Taiwan 888 909 Federative Republic of Brazil 595 607 United Mexican States 585 612 Kingdom of Thailand 570 564 Commonwealth of Australia 536 614 Province of Ontario 512 538 United Kingdom 436 467 Other Non-U.S. Government Securities 6,525 6,693 Total $ 14,997 $ 15,299 The following table summarizes the fair value and amortized cost, net of valuation allowance, of our non-U.S. fixed income portfolio by country/sovereign for non-U.S. corporate securities at June 30, 2024: (in millions of U.S. dollars) Fair Value Amortized Cost, Net China $ 6,454 $ 6,443 United Kingdom 2,549 2,673 Canada 2,232 2,287 United States (1) 1,753 1,808 France 1,576 1,626 South Korea 1,530 1,507 Australia 1,104 1,165 Japan 816 851 Germany 614 648 Switzerland 523 553 Other Non-U.S. Corporate Securities 6,174 6,432 Total $ 25,325 $ 25,993 (1) The countries that are listed in the non-U.S. corporate fixed income portfolio above represent the ultimate parent company's country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations. Below-investment grade corporate fixed income portfolio Below-investment grade securities have different characteristics than investment grade corporate debt securities. Risk of loss from default by the borrower is greater with below-investment grade securities. Below-investment grade securities are generally unsecured and are often subordinated to other creditors of the issuer. 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 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. We manage high-yield bonds as a distinct and separate asset class from investment grade bonds. The allocation to high-yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B. 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. Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit 80 Table of Contents as a percentage of high-yield allocation. We monitor position limits daily through an internal compliance system. Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio. Critical Accounting Estimates Unpaid losses and loss expenses 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. The following table presents a roll-forward of our unpaid losses and loss expenses: (in millions of U.S. dollars) Gross Losses Reinsurance Recoverable (1) Net Losses Balance at December 31, 2023 $ 80,122 $ 17,884 $ 62,238 Losses and loss expenses incurred 14,422 2,264 12,158 Losses and loss expenses paid (12,080) (2,670) (9,410) Other (including foreign exchange translation) (273) (69) (204) Balance at June 30, 2024 $ 82,191 $ 17,409 $ 64,782 (1) Net of valuation allowance for uncollectible reinsurance. The estimate of the liabilities includes provisions for claims that have been reported but are unpaid at the balance sheet date (case reserves) and for obligations on claims that have been incurred but not reported (IBNR) at the balance sheet date. IBNR may also include provisions to account for the possibility that reported claims may settle for amounts that differ from the established case reserves. Loss reserves also include an estimate of expenses associated with processing and settling unpaid claims (loss expenses). Refer to Note 8 to the Consolidated Financial Statements for a discussion on the changes in the loss reserves. Asbestos and Environmental (A&E) 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. Refer to our 2023 Form 10-K for further information on our A&E exposures. Fair value measurements Accounting guidance defines fair value as the price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants and establishes a three-level valuation hierarchy based on the reliability of the inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1 inputs) and the lowest priority to unobservable data (Level 3 inputs). Level 2 includes inputs, other than quoted prices within Level 1, that are observable for assets or liabilities either directly or indirectly. Refer to Note 4 to the Consolidated Financial Statements for information on our fair value measurements. 81 Table of Contents Catastrophe Management 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 June 30, 2024, and does not represent our expected catastrophe losses for any one year. Modeled Net Probable Maximum Loss (PML) Pre-tax Worldwide (1) U.S. Hurricane (2) California Earthquake (3) Annual Aggregate Annual Aggregate Single Occurrence (in millions of U.S. dollars, except for percentages) Chubb % of Total Chubb Shareholders’ Equity Chubb % of Total Chubb Shareholders’ Equity Chubb % of Total Chubb Shareholders’ Equity 1-in-10 $ 2,796 4.6 % $ 1,573 2.6 % $ 165 0.3 % 1-in-100 $ 5,282 8.7 % $ 3,636 6.0 % $ 1,874 3.1 % 1-in-250 $ 8,180 13.4 % $ 5,718 9.4 % $ 2,157 3.5 % (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. (2) U.S. 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 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. Refer to the Global Property Catastrophe Reinsurance section for more information. These estimates assume that reinsurance recoverable is fully collectible. 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 $3,636 million (or 6.0 percent of total Chubb shareholders’ equity at June 30, 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: • While the use of third-party modeling packages to simulate potential catastrophe losses is prevalent within the insurance industry, the models are reliant upon significant meteorology, seismology, and engineering assumptions to estimate catastrophe losses. In particular, modeled catastrophe events are not always a representation of actual events and ensuing additional loss potential; • There is no universal standard in the preparation of insured data for use in the models, the running of the modeling software, and interpretation of loss output. These loss estimates do not represent our potential maximum exposures and it is highly likely that our actual incurred losses would vary materially from the modeled estimates; • The potential effects of climate change add to modeling complexity; and • Changing climate conditions could impact our exposure to natural catastrophe risks. Published studies by leading government, academic, and professional organizations combined with extensive research by Chubb climate scientists reveal the potential for increases in the frequency and severity of key natural perils such as tropical cyclones, inland flood, and wildfire. To understand the potential impacts on the Chubb portfolio, we have conducted stress tests on our peak exposure zone, namely in the U.S., using parameters outlined by the Intergovernmental Panel on Climate Change (IPCC) Climate Change 2021 report. These parameters consider the impacts of climate change and the resulting climate peril impacts over a timescale relevant to our business. The tests are conducted by adjusting our baseline view of risk for the perils of hurricane, inland flood, and wildfire in the U.S. to reflect increases in frequency and severity across the modeled domains for each of these perils. Based on these tests against the Chubb portfolio we do not expect material impacts to our baseline PMLs from climate change through December 31, 2024. These tests reflect current exposures only and exclude potentially mitigating factors such as changes to building codes, public or private risk mitigation, regulation, and public policy. Refer to Item 7 in our 2023 Form 10-K for more information on man-made and other catastrophes. 82 Table of Contents Global Property Catastrophe Reinsurance Program Chubb’s core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments). We regularly review our reinsurance protection and corresponding property catastrophe exposures. This may or may not lead to the purchase of additional reinsurance prior to a program’s renewal date. 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, 2024, through March 31, 2025. The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis. 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 losses for North American and international operations within the territory through August 31, 2024. Loss Location Layer of Loss Comments Notes United States (excluding Alaska and Hawaii) $0 million – $1.75 billion Losses retained by Chubb (a) United States (excluding Alaska and Hawaii) $1.75 billion – $2.85 billion All natural perils and terrorism (b) United States (excluding Alaska and Hawaii) $2.85 billion – $4.0 billion All natural perils and terrorism (c) United States (excluding Alaska and Hawaii) $4.0 billion – $5.7 billion Named windstorm and earthquake United States (Northeast States Only) $3.5 billion – $4.0 billion Named windstorm and earthquake (d) International (including Alaska and Hawaii) $0 million – $225 million Losses retained by Chubb (a) International (including Alaska and Hawaii) $225 million – $1.325 billion All natural perils and terrorism (b) Alaska, Hawaii, and Canada $1.325 billion – $2.475 billion 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 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. 83 Table of Contents Capital Resources Capital resources consist of funds deployed or available to be deployed to support our business operations. June 30 December 31 (in millions of U.S. dollars, except for ratios) 2024 2023 Short-term debt $ 1,553 $ 1,460 Long-term debt 13,178 13,035 Total financial debt 14,731 14,495 Trust preferred securities 309 308 Total Chubb shareholders’ equity 61,038 59,507 Total capitalization $ 76,078 $ 74,310 Ratio of financial debt to total capitalization 19.4 % 19.5 % Ratio of financial debt plus trust preferred securities to total capitalization 19.8 % 19.9 % Repurchase agreements are excluded from the table above and are disclosed separately from short-term debt in the Consolidated balance sheets. 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. On March 7, 2024, Chubb INA Holdings LLC (Chubb INA) issued $1.0 billion of 5.0 percent senior notes due March 2034. 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. This allows us capital market access for refinancing as well as for unforeseen or opportunistic capital needs. Dividends We have paid dividends each quarter since we became a public company in 1993. Under Swiss law, dividends must be stated in Swiss francs though dividend payments are made by Chubb in U.S. dollars. Refer to Note 13 to the Consolidated Financial Statements for a discussion of our dividend methodology. At our May 2024 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.64 per share, or CHF 3.29 per share, calculated using the USD/CHF exchange rate as published in the Wall Street Journal on May 16, 2024, expected to be paid in four quarterly installments of $0.91 per share after the general meeting by way of a distribution from capital contribution reserves, transferred to free reserves for payment. 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 annual dividend approved in May 2024 represented a $0.20 per share increase ($0.05 per quarter) over the prior year dividend. The following table represents dividends paid per Common Share to shareholders of record on each of the following dates: Shareholders of record as of: Dividends paid as of: December 15, 2023 January 5, 2024 $0.86 (CHF 0.76) March 15, 2024 April 5, 2024 $0.86 (CHF 0.75) June 14, 2024 July 5, 2024 $0.91 (CHF 0.82) 84 Table of Contents Liquidity 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. In addition to cash from operations, routine sales of investments, and financing arrangements, we have agreements with a third-party bank provider which implemented two international multi-currency notional cash pooling programs to enhance cash management efficiency during periods of short-term timing mismatches between expected inflows and outflows of cash by currency. The programs allow us to optimize investment income by avoiding portfolio disruption. 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 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 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. If we cannot obtain adequate capital or sources of credit on favorable terms, on a timely basis, or at all, our business, operating results, and financial condition could be adversely affected. To date, we have not experienced difficulty accessing our credit facility or establishing additional facilities when needed. 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 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 $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. The U.S. 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 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 $1.7 billion and $458 million from its subsidiaries during the six months ended June 30, 2024 and 2023, respectively. Cash Flows 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 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 June 30, 2024, there were $3.1 billion in repurchase agreements outstanding with various maturities over the next twelve months. 85 Table of Contents Both internal and external forces influence our financial condition, results of operations, and cash flows. Claim settlements, premium levels, and investment returns may be impacted by changing rates of inflation and other economic conditions. In many cases, significant periods of time, ranging up to several years or more, may lapse between the occurrence of an insured loss, the reporting of the loss to us, and the settlement of the liability for that loss. Information provided in connection with outstanding debt of subsidiaries 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 LLC, after e limination of investment in any non-guarantor subsidiary: Chubb Limited (Parent Guarantor) Chubb INA Holdings LLC (Subsidiary Issuer) June 30 December 31 June 30 December 31 (in millions of U.S. dollars) 2024 2023 2024 2023 Assets Investments $ — $ — $ 107 $ 103 Cash 51 77 4 3 Due from parent guarantor/subsidiary issuer 54 441 — — Due from subsidiaries that are not issuers or guarantors 515 539 524 571 Other assets 5 12 2,992 2,785 Total assets $ 625 $ 1,069 $ 3,627 $ 3,462 Liabilities Due to parent guarantor/subsidiary issuer $ — $ — $ 54 $ 441 Due to subsidiaries that are not issuers or guarantors 257 263 667 593 Affiliated notional cash pooling programs 154 594 618 455 Short-term debt — — 1,553 1,460 Long-term debt — — 13,178 13,035 Trust preferred securities — — 309 308 Other liabilities 453 657 1,463 1,496 Total liabilities 864 1,514 17,842 17,788 Total equity (239) (445) (14,215) (14,326) Total liabilities and equity $ 625 $ 1,069 $ 3,627 $ 3,462 86 Table of Contents 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: Six Months Ended June 30, 2024 Chubb Limited (Parent Guarantor) Chubb INA Holdings LLC (Subsidiary Issuer) (in millions of U.S. dollars) Net investment income (loss) $ (15) $ (27) Net realized gains (losses) (8) (1) Administrative expenses 60 (9) Interest (income) expense (7) 237 Other (income) expense (22) 28 Income tax expense (benefit) 6 (67) Net loss $ (60) $ (217) Comprehensive loss $ (60) $ (269)