Shefi Ben-Hutta
Editor at Coverager
Chubb

Chubb posts record profits but braces for $1.5 billion wildfire hit

Chubb hosted its Q4 2024 earnings call on Jan. 29. The highlights:

Financial Performance

  • EPS: $6.02, exceeding consensus of $5.45 (+10.46% surprise).
  • Revenue: $10.5B, falling short of the consensus of $10.86B (-3.39% surprise).
  • Full-Year 2024 EPS: $22.38 (exceeding consensus of $21.99).
  • Full-Year 2024 Revenue: $45.14B (marginally surpassing consensus of $45.12B).

Key Takeaways

  • Record P&C underwriting income, with a combined ratio of 85.7%.
  • Premium Growth:
    • Global P&C: Up 6.7% (excludes Agriculture).
    • Life Insurance: Up 8.5%.
    • High-Net-Worth Personal Lines: Up 10%, with new business growth of 34%. Recorded an 83.6% combined ratio.

Market & Outlook

  • P&C Pricing Trends: Up 9.9% in North America.
  • Challenges: The California regulatory environment suppresses pricing, leading to exposure reductions.
    • “From a financial perspective, our current estimate of the cost of supporting our customers and helping them recover and rebuild from their catastrophe is $1.5 billion net pretax and is a first-quarter 2025 event.”
  • Growth Strategy: Focus on organic expansion in middle-market, small commercial, and international personal lines.
  • On M&A:
    • “And as for inorganic growth, money is not burning a hole in our pocket. As you know, it’s opportunistic and in support of our organic strategies, and it’s got to be the right thing at the right price. And so we’re always looking.”
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