What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-10-30 compared with 2024-07-26 · 242 added, 231 removed, 989 unchanged (32% of the section changed)

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

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and six months ended June 30, 2024.

The following is a discussion of our results of operations, financial condition, and liquidity and capital resources as of and for the three and nine months ended September 30, 2024.

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

18 unchanged sentences

Net Investment Income

Interest Expense

Critical Accounting Estimates

9 unchanged sentences

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:

These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the 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;

19 unchanged sentences

the adequacy of collateral supporting funded high deductible programs;

the amount of dividends received from subsidiaries;

and 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;

1 unchanged sentence

• 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);

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

• 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;

1 unchanged sentence

• loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame;

• 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;

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;

• 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.

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.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates such statements were made.

We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events, or otherwise.

1 unchanged sentence

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.

At September 30, 2024, we had total assets of $251 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $66 billion.

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

3 unchanged sentences

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.

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

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

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

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Consolidated Operating Results – Three and Nine Months Ended September 30, 2024 and 2023

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

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

2024 2023 YTD-24 vs.

Q-23 2024 2023 YTD-24 vs.

Net premiums written $ 13,829 $ 13,104 5.5 % $ 39,410 $ 35,765 10.2 %

Net premiums written - constant dollars (1)

12.3 % 13.2 %

Net premiums earned 13,373 12,674 5.5 % 37,248 33,815 10.2 %

10 unchanged sentences

Amortization of purchased intangibles 81 84 (3.7) % 241 226 6.7 %

Cigna integration expenses 7 15 (55.8) % 14 37 (62.3) %

Integration expenses 7 14 (50.1) % 21 51 (59.0) %

Total expenses 11,855 11,400 4.0 % 33,242 29,829 11.5 %

7 unchanged sentences

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

Financial Highlights for the Three Months Ended September 30, 2024

• Net income attributable to Chubb was $2.3 billion compared with $2.0 billion in the prior year period.

2 unchanged sentences

P&C net premiums written increased 5.4 percent, or 6.1 percent in constant dollars, with commercial insurance up 5.1 percent and consumer insurance up 9.4 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.

Life Insurance segment net premiums written increased 6.8 percent, or 10.6 percent in constant dollars.

• Pre-tax net investment income was a record $1.5 billion compared with $1.3 billion in the prior year period, primarily due to strong operating cash flow at higher reinvestment rates on fixed maturities.

• Consolidated net premiums earned were $13.4 billion, up 5.5 percent, or 6.7 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

percentage points of the P&C combined ratio) and $319 million, respectively, in the prior year period.

• Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $765 million (6.4 percentage points of the P&C combined ratio) and $629 million, respectively, compared with $670 million (6.0 percentage points of the P&C combined ratio) and $544 million, respectively, in the prior year period.

• Total pre-tax and after-tax favorable prior period development were $244 million and $181 million, respectively, compared with $200 million and $116 million, respectively, in the prior year period.

• The P&C combined ratio was 87.7 percent compared with 88.4 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 83.4 percent compared with 84.3 percent in the prior year period.

• Operating cash flow was $4.3 billion compared with $4.7 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.

• Chubb shareholders' equity increased $4.7 billion in the quarter, primarily from net income attributable to Chubb of $2.3 billion and net unrealized gains on our investment portfolio of $3.3 billion, reflecting the mark-to-market impact of lower interest rates on the fixed-income portfolio, partially offset by total capital returned to shareholders of $782 million.

Total capital returned to shareholders comprises share repurchases of $413 million at an average purchase price of $286.18 per share, and dividends of $369 million.

Net Premiums Written Three Months Ended

% Change Six Months Ended

% Change Nine Months Ended

(in millions of U.S.

20 unchanged sentences

(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.

The increase in consolidated net premiums written for the three and nine months ended September 30, 2024, reflects growth across most product lines driven by strong premium retention, including rate and exposure increases, and strong new business.

• 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.

• Financial lines declined due to lower renewal retention, including lower rates, due to a competitive market environment.

• Workers' compensation grew slightly for the nine months ended September 30, 2024, due to new business and retention.

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

• Agriculture declined primarily due to lower commodity prices in the current year, partially offset by strong new business and rate in our Agriculture P&C business.

• Personal lines grew globally due to new business and renewal retention, as well as increases in both rate and exposure, in homeowners and excess lines, in addition to growth in auto lines in certain international markets.

Growth for the nine months ended September 30, 2024, also benefited from the consolidation of Huatai.

• Global A&H – P&C grew in Europe and Asia, with Asia partially benefiting from the consolidation of Huatai for the nine months ended September 30, 2024.

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

Growth for the nine months ended September 30, 2024, included a large one-off structured transaction from the second quarter.

• Life Insurance grew primarily due to strong growth in Asia and Combined Insurance North America.

Growth for the nine months ended September 30, 2024, is also due to the consolidation of Huatai Group's life business, which contributed 12.6 percentage points of growth.

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

2 unchanged sentences

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.

For the three months ended September 30, 2024, net premiums earned increased $699 million, up 5.5 percent, or 6.7 percent in constant dollars.

P&C net premiums earned increased 5.4 percent, or 6.3 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 5.5 percent and 8.7 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.

For the nine months ended September 30, 2024, net premiums earned increased $3.4 billion, up 10.2 percent, or 10.9 percent in constant dollars.

P&C net premiums earned increased 9.0 percent, or 9.4 percent in constant dollars, comprising growth in commercial insurance and consumer insurance of 8.3 percent and 12.5 percent, respectively.

10 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 244 $ 200 $ 643 $ 596

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

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

Severe weather-related events in the U.S.

and internationally, including Rio Grande storms.

and internationally, including Hurricane Helene and Rio Grande storms.

Severe weather-related events in the U.S.

and internationally, including New Zealand storms.

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

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

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

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

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

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

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

and internationally, Hawaii wildfires, and New Zealand storms.

Pre-tax net favorable PPD for the three months ended September 30, 2024, was $299 million in our active companies, including adverse development of $59 million in long-tail lines, principally casualty, and favorable development of $358 million in short-tail lines, principally in property and marine.

Our corporate run-off portfolio had adverse development of $55 million, with $47 million related to legacy environmental exposures.

Pre-tax net favorable PPD for the nine months ended September 30, 2024, was $800 million in our active companies, including adverse development of $53 million in long-tail lines, principally in casualty, and favorable development of $853 million in short-tail lines, principally in property and marine.

Our corporate run-off portfolio had adverse development of $157 million, with $60 million related to molestation claims and $47 million related to legacy environmental exposures.

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

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

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

Excluding the adverse development, we had net favorable development of $695 million with $36 million in long-tail lines, principally from accident years 2013 through 2019, and $659 million in short-tail lines, primarily in property, A&H, and surety.

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

5 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30 September 30

2024 2023 2024 2023

7 unchanged sentences

P&C CAY combined ratio excluding catastrophe losses 83.4 % 84.3 % 83.4 % 83.7 %

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.

The P&C combined ratio and the P&C CAY combined ratio excluding catastrophe losses decreased for the three months ended September 30, 2024, reflecting the favorable impact of higher net premiums earned, a higher percentage of net premiums earned from property lines and excess and surplus homeowners, and the contemplation of a higher underwriting gain in MPCI for the current crop year.

These factors were partially offset by price changes not keeping pace with loss trends in financial lines.

The P&C combined ratio also reflects higher catastrophe losses, which were partially offset by higher favorable prior period development.

The P&C combined ratio was relatively flat for the nine months ended September 30, 2024, as the favorable factors mentioned above were substantially offset by higher loss trends in certain casualty lines, price changes not keeping pace with loss trends in financial lines, and higher catastrophe losses.

The P&C CAY combined ratio excluding catastrophe losses decreased for the nine months ended September 30, 2024, reflecting the favorable factors mentioned above.

Policy benefits

4 unchanged sentences

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.

Policy benefits include the results of Huatai Group as of July 1, 2023.

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.

Policy benefits were $1,099 million and $938 million for the three months ended September 30, 2024 and 2023, respectively, and $3,498 million and $2,565 million for the nine months ended September 30, 2024 and 2023, respectively.

The increase in Policy benefits for the nine months ended September 30, 2024, 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.

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

Segment Operating Results – Three and Nine Months Ended September 30, 2024 and 2023

We operate through six business segments:

4 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

9 unchanged sentences

Other (income) expense 6 6 — 28 18 52.2 %

Amortization of purchased intangibles 2 — NM 2 — NM

Segment income $ 1,615 $ 1,521 6.1 % $ 4,810 $ 4,470 7.6 %

6 unchanged sentences

Prior period development 0.9 % 2.1 % (1.2) pts 1.6 % 2.3 % (0.7) 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

CAY combined ratio excluding catastrophe losses 80.8 % 81.1 % (0.3) pts 81.2 % 81.0 % 0.2 pts

NM - Not meaningful

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

September 30 September 30

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 39 $ 84 $ 231 $ 302

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

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

Catastrophe losses were primarily from flooding in the U.S., hail, tornadoes, wind events, and winter storm losses, including Hurricane Helene in 2024 and Hawaii wildfires in 2023.

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

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.

Net premiums written increased $368 million, or 7.2 percent, and $1,115 million, or 7.7 percent, for the three and nine months ended September 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.

This growth was partially offset by declines in financial lines, reflecting a competitive market environment and lower retention, and planned corrective underwriting actions in Major Accounts primary and excess casualty that adversely impacted growth.

Net premiums earned increased $375 million, or 7.9 percent, and $1,180 million, or 8.6 percent, for the three and nine months ended September 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.

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

The CAY combined ratio excluding catastrophe losses decreased for the three months ended September 30, 2024, reflecting a higher percentage of net premiums earned from property lines.

The improvement was partially offset by price changes not keeping pace with loss trends in financial lines.

The CAY combined ratio excluding catastrophe losses was relatively flat for the nine months ended September 30, 2024, reflecting higher loss trends in certain casualty lines and price changes not keeping pace with loss trends in financial lines, offset by lower loss trends in property lines.

North America Personal P&C Insurance

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

21 unchanged sentences

Net Catastrophe Losses and Prior Period Development

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

2 unchanged sentences

Favorable prior period development $ 189 $ 119 $ 305 $ 135

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

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

Catastrophe losses through both September 30, 2024 and 2023, were primarily from flooding in the U.S., hail, tornadoes, wind events, and winter storm losses, including Hurricane Helene in 2024 and Hawaii wildfires in 2023.

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

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.

Net premiums written increased $152 million, or 10.0 percent, and $507 million, or 11.5 percent, for the three and nine months ended September 30, 2024, respectively, driven by strong new business and retention, including positive rate and exposure increases in all lines.

Net premiums earned increased $170 million, or 12.0 percent, and $476 million, or 11.7 percent, for the three and nine months ended September 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.

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

The CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, primarily reflecting an improvement in homeowners from earned rate and exposure growth, and a higher percentage of net premiums earned from excess and surplus homeowners, which carry a lower loss and expense ratio.

Additionally, the improvement includes lower acquisition expenses due to commission reductions in our auto and excess lines.

The improvement was partly offset by an increase in excess liability loss trends.

North America Agricultural Insurance

2 unchanged sentences

(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

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

8 unchanged sentences

Net investment income 20 12 55.2 % 62 43 43.1 %

Other (income) expense — (1) NM — — —

Other (income) expense 1 — NM 1 — NM

Amortization of purchased intangibles 5 6 (2.4) % 18 19 (2.4) %

9 unchanged sentences

NM - Not meaningful

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

June 30 June 30

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

September 30 September 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

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

Net catastrophe losses $ 29 $ 18 $ 65 $ 37

Favorable prior period development $ 6 $ 9 $ 34 $ 12

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

flooding, hail, tornadoes, and wind events.

Catastrophe losses through both September 30, 2024 and 2023, were primarily from flooding in the U.S., hail, tornadoes, and wind events, including Hurricane Helene in 2024.

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

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

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

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

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

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

Net premiums earned decreased $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.

Net premiums written decreased $142 million, or 9.3 percent, and $195 million, or 7.6 percent, for the three and nine months ended September 30, 2024, primarily due to lower commodity prices in the current year.

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

Net premiums earned decreased $121 million, or 7.9 percent, and $161 million, or 6.9 percent, for the three and nine months ended September 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.

The combined ratio and the CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, which contemplates a higher underwriting gain for the current crop year.

The improvement for the three months ended September 30, 2024, also includes a favorable impact from our crop commodity price hedge activity, which produced a lower loss this year versus the prior year quarter.

Overseas General Insurance

6 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

4 unchanged sentences

Net premiums earned 3,421 3,311 3.3 % 9,966 9,005 10.7 %

Loss and loss expenses 1,671 1,267 31.9 % 3,097 2,504 23.7 %

Losses and loss expenses 1,631 1,635 (0.3) % 4,728 4,139 14.2 %

Policy benefits 120 91 32.9 % 312 338 (7.6) %

6 unchanged sentences

Segment income $ 738 $ 670 10.2 % $ 2,151 $ 1,956 10.0 %

Segment income - constant dollars 12.7 % 11.5 %

Combined ratio:

8 unchanged sentences

Net Catastrophe Losses and Prior Period Development

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

Catastrophe losses $ 157 $ 26 $ 183 $ 139

Net Catastrophe losses $ 103 $ 120 $ 286 $ 259

Favorable prior period development $ 60 $ 49 $ 210 $ 253

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

Rio Grande storms, and International weather-related events.

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

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

Hurricane Helene, Rio Grande storms, and International weather-related events.

Storms in New Zealand 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

Three Months Ended September 30

(in millions of U.S.

8 unchanged sentences

Net premiums written $ 3,367 100 % $ 3,211 100 % $ 3,133 4.9 % 7.5 %

Six Months Ended June 30

Nine Months Ended September 30

(in millions of U.S.

2 unchanged sentences

% of Total C$

2023 Y-24 vs.

2023 YTD-24 vs.

Europe, Middle East, and Africa $ 4,625 44 % $ 4,292 46 % $ 4,318 7.8 % 7.1 %

5 unchanged sentences

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

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.

Overall, net premiums written increased $156 million and $1,177 million, or $234 million and $1,256 million on a constant-dollar basis, for the three and nine months ended September 30, 2024, respectively, reflecting growth in commercial lines of 5.1 percent and 10.2 percent, or 6.7 percent and 10.6 percent on a constant-dollar basis, respectively, and growth in consumer lines of 4.5 percent and 16.4 percent, or 8.5 percent and 18.2 percent on a constant-dollar basis, respectively.

Our European division increased for the three and nine months ended September 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 increased primarily due to new business growth in A&H.

Asia increased for the three and nine months ended September 30, 2024, reflecting 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.

The increase for the nine months ended September 30, 2024, also reflects the consolidation of Huatai Group's P&C business effective July 1, 2023.

Latin America increased for the three and nine months ended September 30, 2024, reflecting growth in commercial lines driven by growth in new business and positive rate increases across property and casualty lines.

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

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

Net premiums earned increased $110 million and $961 million, or $190 million and $1,057 million on a constant-dollar basis, for the three and nine months ended September 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.

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

The combined ratio increased for the nine months ended September 30, 2024, primarily reflecting lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses increased for the nine months ended September 30, 2024, principally related to the consolidation of Huatai.

Global Reinsurance

1 unchanged sentence

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

9 unchanged sentences

Net investment income 64 47 37.9 % 179 144 24.5 %

Other (income) expense — — — — (1) 100.0 %

Other (income) expense — — — — (1) NM

Segment income $ 82 $ 92 (10.1) % $ 358 $ 323 10.9 %

7 unchanged sentences

CAY combined ratio excluding catastrophe losses 75.8 % 78.8 % (3.0) pts 76.6 % 78.0 % (1.4) pts

NM - not meaningful

Net Catastrophe Losses and Prior Period Development

Three Months Ended Six Months Ended

June 30 June 30

Three Months Ended Nine Months Ended

September 30 September 30

(in millions of U.S.

dollars) 2024 2023 2024 2023

Catastrophe losses $ — $ 1 $ — $ 1

Net Catastrophe losses $ 63 $ 6 $ 63 $ 7

Favorable prior period development $ 5 $ — $ 20 $ 25

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

Hurricane Helene and flooding in Canada.

Hurricane Idalia.

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

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

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

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

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

Net premiums written increased $91 million and $291 million for the three and nine months ended September 30, 2024, respectively, primarily reflecting continued growth driven by strong new business.

Growth was most notably in property and casualty lines, partially offset by a decrease in financial and specialty lines.

The increase for the nine months ended September 30, 2024 included a large one-off structured transaction in the second quarter, which benefited growth by 4.4 percentage points.

Net premiums earned increased $77 million and $230 million for the three and nine months ended September 30, 2024, respectively, reflecting the increase in net premiums written described above including the large one-off structured transaction in the second quarter, which was fully earned when written.

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.

The combined ratio increased for the three months ended September 30, 2024, primarily reflecting the impact of higher catastrophe losses, partially offset by the impact of favorable prior period development.

The combined ratio increased for the nine months ended September 30, 2024, primarily reflecting the impact of higher catastrophe losses and the impact of lower favorable prior period development.

The CAY combined ratio excluding catastrophe losses decreased for the three and nine months ended September 30, 2024, primarily due to favorable market conditions in property lines.

The improvement also reflects the favorable impact of higher net premiums earned on the administrative expense ratio.

The improvement for the nine months ended September 30, 2024 was partially offset by the impact of the large structured transaction described above.

Life Insurance

3 unchanged sentences

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

10 unchanged sentences

Other (income) expense (39) (28) 37.4 % (111) (69) 60.5 %

Amortization of purchased intangibles 11 2 NM 21 6 NM

Amortization of purchased intangibles 10 12 (11.1) % 31 18 75.8 %

Segment income $ 284 $ 288 (1.6) % $ 828 $ 786 5.3 %

NM - not meaningful

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

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

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

Net premiums written in our North American Combined Insurance business increased 11.8 percent and 8.6 percent, for the three and six months ended June 30, 2024, respectively, due to growth in its worksite business of 28.7 percent and 24.6 percent partially offset by the non-renewal of a large program.

Segment income - constant dollars 2.3 % 8.5 %

Net premiums written increased $100 million and $750 million, or $149 million and $865 million on a constant-dollar basis, for the three and nine months ended September 30, 2024, respectively.

For our international life operations, net premiums written increased 5.5 percent and 20.8 percent for the three and nine months ended September 30, 2024, primarily due to strong growth in North Asia, notably Hong Kong and Taiwan.

The increase for the nine months ended September 30, 2024, is also due to the consolidation of Huatai Group's life business, which contributed 15.7 percentage points of growth.

Net premiums written in our North American Combined Insurance business increased 14.4 percent and 10.5 percent for the three and nine months ended September 30, 2024, respectively, due to growth in its worksite business of 31.7 percent and 27.0 percent, partially offset by the non-renewal of a large program.

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

5 unchanged sentences

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 deposits collected increased $198 million and $636 million for the three and nine months ended September 30, 2024,

respectively, primarily from Taiwan.

The increase for the nine months ended September 30, 2024 also reflects 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.

Life Insurance segment income decreased $4 million, but increased $6 million on a constant-dollar basis, for the three months ended September 30, 2024, which was impacted by lower favorable loss reserve development related to our Combined Insurance supplemental A&H business and impact of foreign exchange from the Korean Won.

Life Insurance segment income increased $42 million, or $65 million on a constant-dollar basis, for the nine months ended September 30, 2024, reflecting the growth in premiums described above, as well as higher net investment income from higher assets under management and fixed income yield.

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

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

Three Months Ended Six Months Ended

June 30 % Change June 30 % Change

Three Months Ended Nine Months Ended

September 30 % Change September 30 % Change

(in millions of U.S.

7 unchanged sentences

Amortization of purchased intangibles 40 44 (8.5) % 122 129 (5.8) %

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

Net realized gains (losses) 179 (96) NM 101 (481) NM

Market risk benefits gains (losses) (230) (32) NM (238) (154) 53.8 %

Interest expense 192 174 10.9 % 552 499 10.8 %

Cigna integration expenses 7 15 (55.8) % 14 37 (62.3) %

Integration expenses 7 14 (50.1) % 21 51 (59.0) %

Income tax expense 504 413 22.0 % 1,336 1,189 12.4 %

3 unchanged sentences

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.

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

Administrative expenses increased $6 million and $20 million for the three and nine months ended September 30, 2024, respectively, primarily due to increased spending to support growth, including digital growth initiatives.

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.

11 unchanged sentences

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

Three Months Ended June 30

Three Months Ended September 30

(in millions of U.S.

13 unchanged sentences

Net gains (losses), pre-tax $ 198 $ 3,205 $ 3,403 $ (103) $ (1,772) $ (1,875)

Six Months Ended June 30

Nine Months Ended September 30

(in millions of U.S.

13 unchanged sentences

Net gains (losses), pre-tax $ 201 $ 1,601 $ 1,802 $ (484) $ (1,305) $ (1,789)

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.

Pre-tax net unrealized gains of $3,459 million and $2,293 million in our investment portfolio for the three and nine months ended September 30, 2024, respectively, were primarily driven by lower interest rates.

Pre-tax net realized gains of $198 million and $201 million for the three and nine months ended September 30, 2024, respectively, includes $111 million and $186 million, respectively on fixed maturities, comprising mark-to-market gains on Other investments - fixed maturities, partially offset by losses on sales of fixed income securities.

In addition, there were pre-tax net realized gains from mark-to-market gains on public equity securities, partially offset by foreign exchange losses.

Effective Income Tax Rate

2 unchanged sentences

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.

For the three and nine months ended September 30, 2024, our ETR was 16.8 percent and 16.0 percent, respectively, compared to an ETR of 16.8 percent and 17.2 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.

The nine months ended September 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

2 unchanged sentences

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 provide financial measures, including net premiums written, net premiums earned, segment income, 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.

23 unchanged sentences

Three Months Ended

June 30, 2024

September 30, 2024

(in millions of U.S.

9 unchanged sentences

Expense adjustments - unfavorable (favorable) 2 — — — — — 2

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

PPD, gross of related adjustments - favorable (unfavorable) 110 189 6 60 5 (55) 315

5 unchanged sentences

Net premiums earned E $ 5,110 $ 1,577 $ 1,419 $ 3,421 $ 316 $ 11,843

Reinstatement premiums (collected) expensed on catastrophe losses — — — — (4) (4)

Net premiums earned adjustments on PPD - unfavorable (favorable) 69 — — — — 69

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

Net premiums earned excluding adjustments F $ 5,179 $ 1,577 $ 1,419 $ 3,421 $ 312 $ 11,908

16 unchanged sentences

Three Months Ended

June 30, 2023

September 30, 2023

(in millions of U.S.

37 unchanged sentences

Reinsurance Corporate Total P&C

Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2024

(in millions of U.S.

17 unchanged sentences

Net premiums earned E $ 14,890 $ 4,560 $ 2,173 $ 9,966 $ 950 $ 32,539

Reinstatement premiums (collected) expensed on catastrophe losses — — — — (4) (4)

Net premiums earned adjustments on PPD - unfavorable (favorable) 77 — 39 — — 116

18 unchanged sentences

Reinsurance Corporate Total P&C

Six Months Ended

June 30, 2023

Nine Months Ended

September 30, 2023

(in millions of U.S.

37 unchanged sentences

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:

Amortization expense related to purchased intangibles was $81 million and $241 million for the three and nine months ended September 30, 2024, respectively, compared with $84 million and $226 million for the prior year periods, respectively.

At September 30, 2024, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,516 million.

The following table presents, as of September 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 fourth quarter of 2024 and for the next five years:

For the Years Ending December 31

1 unchanged sentence

dollars) Reduction to deferred tax liability associated with intangible assets

Third quarter of 2024 $ 21

Fourth quarter of 2024 $ 21

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:

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

For the Years Ending December 31

1 unchanged sentence

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

Third quarter of 2024 $ 5

Fourth quarter of 2024 $ 6

1 unchanged sentence

Net Investment Income

Three Months Ended

June 30 Six Months Ended

Three Months Ended September 30 Nine Months Ended September 30

(in millions of U.S.

15 unchanged sentences

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.

Net investment income increased 14.7 percent for the three months ended September 30, 2024, primarily due to higher reinvestment rates on fixed maturities.

Net investment income increased 22.5 percent for the nine months ended September 30, 2024, primarily reflecting 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.

2 unchanged sentences

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

Three Months Ended September 30 Nine Months Ended September 30

(in millions of U.S.

1 unchanged sentence

Total mark-to-market gain on private equity, pre-tax $ 170 $ 90 $ 357 $ 364

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.

Interest Expense

Interest expense for the nine months ended September 30, 2024, was $552 million comprising $568 million related to fixed expenses on existing debt obligations and variable expenses, and a $16 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition.

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

Based on projected variable expenses and our existing debt obligations, including the $1.0 billion of 5.00 percent senior notes issued on March 7, 2024, the new $700 million of 4.65 percent senior notes issued on July 31, 2024, and the new $600 million of 5.00 percent senior notes issued on July 31, 2024, we expect pre-tax interest expense to be approximately $200 million for the remainder of 2024, or $768 million for the full year.

We also expect a $5 million benefit related to the amortization of the fair value of debt assumed in the Chubb Corp acquisition for the remainder of 2024.

For more information on our debt obligations, refer to Note 12 to the Consolidated Financial Statements herein, and Note 13 to the Consolidated Financial Statements, under Item 8 in our 2023 Form 10-K.

Excluding Huatai, the portfolio is primarily managed externally by independent, professional

investment managers and is broadly diversified across geographies, sectors, and issuers.

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

3 unchanged sentences

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

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(in millions of U.S.

9 unchanged sentences

Total investments $ 151,254 $ 153,327 $ 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 fair value of our total investments increased $14.5 billion during the nine months ended September 30, 2024, due to the investing of operating cash flow, unrealized gains, and net proceeds from debt issuance.

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 following tables present the fair value of our fixed income securities at September 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

September 30, 2024 December 31, 2023

(in millions of U.S.

17 unchanged sentences

$ 127,545 100 % $ 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.

(1) Includes fixed maturities recorded in Other investments in the Consolidated balance sheets of $5.9 billion and $3.8 billion at September 30, 2024, and December 31, 2023, respectively.

Corporate and asset-backed securities

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

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

(in millions of U.S.

4 unchanged sentences

Wells Fargo & Co 661

Goldman Sachs Group Inc 561

Citigroup Inc 598

UBS Group AG 412

Goldman Sachs Group Inc 597

Verizon Communications Inc 440

UBS Group AG 439

HSBC Holdings Plc 386

3 unchanged sentences

Value Amortized Cost, Net

June 30, 2024

September 30, 2024

(in millions of U.S.

20 unchanged sentences

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

government securities at June 30, 2024:

government securities at September 30, 2024:

(in millions of U.S.

4 unchanged sentences

Taiwan 845 830

Federative Republic of Brazil 595 607

United Mexican States 585 612

Kingdom of Thailand 656 624

United Mexican States 595 607

Federative Republic of Brazil 567 579

Commonwealth of Australia 563 628

Province of Ontario 523 530

United Kingdom 436 467

Socialist Republic of Vietnam 463 351

Other Non-U.S.

3 unchanged sentences

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

corporate securities at June 30, 2024:

corporate securities at September 30, 2024:

(in millions of U.S.

22 unchanged sentences

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.

At September 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 $175 million.

22 unchanged sentences

Other (including foreign exchange translation) (37) (32) (5)

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

Balance at September 30, 2024 $ 84,326 $ 17,631 $ 66,695

(1) Net of valuation allowance for uncollectible reinsurance.

4 unchanged sentences

Asbestos and Environmental (A&E)

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

During the three and nine months ended September 30, 2024, we increased environmental net loss reserves for Brandywine managed operations by $47 million.

A&E reserves are included in Corporate.

8 unchanged sentences

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.

The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at September 30, 2024, and does not represent our expected catastrophe losses for any one year.

Modeled Net Probable Maximum Loss (PML) Pre-tax

17 unchanged sentences

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.

peril regions are based on our in-force portfolio at July 1, 2024, and reflect the September 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.

On August 31, 2024, a $500 million catastrophe treaty covering named windstorms and earthquakes within Northeast States expired and was not renewed.

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

1 unchanged sentence

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).

hurricane events could be in excess of $3,786 million (or 5.8 percent of total Chubb shareholders’ equity at September 30, 2024).

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

23 unchanged sentences

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

12 unchanged sentences

(excluding Alaska and Hawaii) $4.0 billion –

Named windstorm and earthquake

United States

(Northeast States Only) $3.5 billion –

$4.0 billion Named windstorm and earthquake (d)

$5.7 billion Named windstorm and earthquake

International

12 unchanged sentences

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

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

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

Capital Resources

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

June 30 December 31

September 30 December 31

(in millions of U.S.

12 unchanged sentences

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.

On July 31, 2024, Chubb INA issued $700 million of 4.65 percent senior notes due August 2029 and $600 million of 5.00 percent senior notes due March 2034.

Refer to Note 12 to the Consolidated Financial Statements for details about debt issued and debt redeemed.

For the nine months ended September 30, 2024, we repurchased $1.3 billion of Common Shares in a series of open market transactions under the Board of Directors (Board) share repurchase authorization.

At September 30, 2024, there were 16,592,565 Common Shares in treasury with a weighted-average cost of $170.96 per share, and $2.4 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.

On October 3, 2024, we filed a new shelf registration statement which allows us to issue an unlimited amount of certain classes of debt and equity from time to time, replacing the shelf registration statement that was filed in October 2021.

This new shelf registration statement expires in October 2027.

We have paid dividends each quarter since we became a public company in 1993.

10 unchanged sentences

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

September 13, 2024 October 4, 2024 $0.91 (CHF 0.78)

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.

2 unchanged sentences

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.

At September 30, 2024, our usage under these facilities was $887 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.

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

2 unchanged sentences

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.

During the nine months ended September 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.

Chubb Limited received dividends of $1.0 billion and $1.4 billion from its Bermuda subsidiaries during the nine months ended September 30, 2024 and 2023, respectively.

Chubb Limited received cash dividends of nil and $28 million and non-cash dividends of nil and $291 million from Swiss subsidiaries during the nine months ended September 30, 2024 and 2023, respectively.

Chubb Limited also received dividends of $91 million from its other international subsidiary during the nine months ended September 30, 2024.

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

1 unchanged sentence

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.

Chubb Limited received no dividends from Chubb INA during the nine months ended September 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.

Chubb INA received dividends of $1.8 billion and $976 million from its subsidiaries during the nine months ended September 30, 2024 and 2023, respectively.

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

The following is a discussion of our cash flows for the 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.

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

Operating cash flows were $11.6 billion in the nine months ended September 30, 2024, compared to $9.4 billion in the prior year period, primarily due to higher net investment income and net premiums collected, partially offset by higher net losses paid and income taxes paid.

Cash used for investing was $11.4 billion in the nine months ended September 30, 2024, compared to $5.4 billion in the prior year period, an increase of $6.0 billion, which primarily included higher net purchases of fixed maturities and equity securities of $5.5 billion.

Cash used for financing was $0.1 billion in the nine months ended September 30, 2024, compared to $3.3 billion in the prior year period, a decrease of $3.2 billion.

This was primarily due to net proceeds from the issuance of long-term debt, net of repayments of $1.6 billion compared with repayments of $475 million in the prior year, and fewer common shares repurchased of $497 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.

At September 30, 2024, there were $3.0 billion in repurchase agreements outstanding with various maturities over the next nine months.

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

8 unchanged sentences

(Subsidiary Issuer)

June 30 December 31 June 30 December 31

September 30 December 31 September 30 December 31

(in millions of U.S.

18 unchanged sentences

Total liabilities and equity $ 1,386 $ 1,069 $ 3,883 $ 3,462

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

Six Months Ended June 30, 2024 Chubb Limited

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

Nine Months Ended September 30, 2024 Chubb Limited

(Parent Guarantor) Chubb INA Holdings LLC

10 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis