Q2 2024 Chubb Ltd Earnings Call
Good morning, my name is Eric and I will be your conference operator today.
Operator: At this time, I would like to welcome everyone to the Chubb Ltd Second Quarter 2024 conference call. All lines have been placed on mute to prevent any background noise.
Speaker Change: At this time, I would like to welcome everyone to the Chubb Ltd. 2nd Quarter 2024 conference call. All lines have been placed on mute to prevent any background noise.
Operator: After the speakers have finished their remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Karen Beyer, Senior Vice President, Investor Relations. Please go ahead.
Speaker Change: After this presentation marks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad.
Speaker Change: If you would like to withdraw your question, press star 1 again. Thank you.
Karen L. Beyer: I would now like to turn the call over to Karen Beyer, Senior Vice President, Investor Relations. Please go ahead.
Karen L. Beyer: Thank you. And good morning, everyone. Welcome to our June 30, 2024, second quarter earnings conference call. Our report today will contain forward-looking statements, including statements relating to company performance, pricing, and business mix. Growth Opportunities and Economic and Market Conditions, which are subject to risks and uncertainties, and actual results may differ materially. Please see our recent SEC filings, earnings release, and financial supplement, which are available on our website at investors.chubb.com, for more information on factors that could affect these matters.
Karen L. Beyer: Thank you and good morning everyone. Welcome to our June 30, 2024 second quarter earnings conference call. Our report today will contain forward-looking statements, including statements relating to company performance, pricing, and business mix.
Karen L. Beyer: Growth Opportunities and Economic and Market Conditions, which are subject to risks and uncertainties and actual results may differ materially.
Karen L. Beyer: Please see our recent SEC filings, earnings release, and financial supplement, which are available on our website at investors.chubb.com for more information on factors that could affect these matters.
Karen L. Beyer: We will also refer today to non-GAAP financial measures, reconciliations of which to the most direct comparable GAAP measures and related details are provided in our earnings press release and financial supplement. Now I'd like to introduce our management team. First, we have Evan Greenberg, Chairman and Chief Executive Officer, followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions. Also with us to assist with your questions are several members of our management team. And now it's my pleasure to turn the call over to Evan. Good morning.
Karen L. Beyer: We will also refer today to non-GAAP financial measures, reconciliations of which to the most direct comparable GAAP measures and related details are provided in our earnings press release and financial supplement.
Speaker Change: Now I'd like to introduce our speakers.
Evan G. Greenberg: First we have Evan Greenberg, Chairman and Chief Executive Officer.
Phil Bancroft: our Chief Financial Officer. Then we'll take your questions. Also with us to assist with your questions are several members of our management team.
Phil Bancroft: And now it's my pleasure to turn the call over to Evan.
Evan G. Greenberg: As you saw from the numbers, we had another great quarter. Do score operating EPS of 538, up 9.3% Premium Revenue. Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES www.verbalink.com, North America PNC, International PNC.
Evan G. Greenberg: Good morning.
Evan G. Greenberg: As you saw from the numbers, we had another great quarter.
Evan G. Greenberg: We produce core operating EPS of 538.
Speaker Change: Up 9.3%. Premium revenue growth reflects strong results in our businesses around the world.
Speaker Change: North America PNC, International PNC, and Life Insurance.
Evan G. Greenberg: [inaudible] This demonstrates the broad-based, diversified strength of our company. Our underwriting results were simply excellent. We published a combined ratio of 86.8, and we grew investment income by 25%. Life segment income was up 8.7%, with international life up double digits. Our operating income for the quarter was $2.2 billion, bringing year-to-date operating earnings to $4.4 billion, up 13.5%, and a record six-month result. PNC's underwriting income in the quarter of $1.4 billion was essentially flat as a result of higher cap losses globally.
Speaker Change: demonstrates the broad-based diversified strength of our company.
Speaker Change: Our underwriting results were simply excellent. We published a combined ratio of 86.8. We grew investment income more than 25%.
Speaker Change: The life segment income was up 8.7% with international life up double digit.
Speaker Change: Poor operating income for the quarter was $2.2 billion, bringing year-to-date operating earnings to $4.4 billion, up 13.5%, and a record six-month result.
PNC: PNC underwriting income in the quarter of $1.4 billion was essentially flat as a result of higher cat losses globally.
Evan G. Greenberg: As you know, it was an active quarter for the industry. Our losses of $580 million compared with $400 million the previous year, and they were in line with our modeled expectations, while last year's second quarter losses were light.
PNC: As you know, it was an active quarter for the industry.
Speaker Change: Our losses of $580 million compared with $400 million prior year.
Speaker Change: And they were in line with our modeled expectations, while last year's second quarter losses were light.
Evan G. Greenberg: On an ex-CAT current accident year basis, underwriting income of $1.8 billion was up over 11%, with a combined ratio of 83.2. Both were record underwriting results. Investment income topped $1.5 billion, up nearly 26%, and a record as well. As of June 30th, our reinvestment rate is averaging 5.9%, and our fixed income portfolio yield is 4.9 versus 4.5% a year ago. Our liquidity is very strong, and investment income will continue to grow as we reinvest cash flows at higher rates. Our invested assets now stand at $141 billion, and we expect them to continue growing. The life segment income of $276 million was right in line with our plan.
Speaker Change: On an ex-CAT current accident year basis, underwriting income of $1.8 billion was up over 11%, with a combined ratio of 83.2. Both were record underwriting results.
Unknown Attendee: Investment income, hopped 1.5 billion, up nearly 26% and a record as well. A June 30th, our reinvestment rate is averaging 5.9%, and our fixed income portfolio yield is 4.9% versus 4.5% a year ago. Our liquidity is very strong, and investment income will continue to grow, as we reinvest cash in the flows at higher rates. Our invested asset now stands at 141 billion, and we expect it to continue growing.
Speaker Change: The investment income topped $1.5 billion, up nearly 26%, and a record as well.
Speaker Change: At June 30th, our reinvestment rate is averaging 5.9% and our fixed income portfolio yield is 4.9.
Speaker Change: versus four and a half percent a year ago.
Speaker Change: Our liquidity is very strong and investment income will continue to grow as we reinvest cash flows at higher rates.
Speaker Change: Our invested asset now stands at $141 billion and we expect it to continue growing.
Unknown Attendee: Life segment income of 276 million was right in line with our plan. Our annualized core operating ROI for the quarter was 13.3, with the return on tangible equity of over 21%.
Speaker Change: Life segment income of $276 million was right in line with our plan.
Evan G. Greenberg: Our annualized core operating ROE for the quarter was 13.3, with a return on tangible equity of over 21%. Peter will have more to say about financial items. Turning to other matters, growth, pricing, and the rate environment, consolidated net premiums for the company increased 11.8% in the quarter, or $12.3 in constant dollars.
Speaker Change: Our annualized core operating ROE for the quarter was 13.3, with a return on tangible equity of over 21%.
Unknown Attendee: Peter will have more to say about financial items. Learning to other matters, growth, pricing, and the rate environment, consolidated net premiums for the company increased 11.8% of the quarter, we're $12.3 in constant dollars.
Speaker Change: Peter will have more to say about financial items.
Peter: Turning to other matters, growth, pricing, and the rate environment.
Peter: Consolidated net premiums for the company increased 11.8% in the quarter, or $12.3 in constant dollars.
Evan G. Greenberg: We are a large, diversified, global insurer, and our growth this quarter is again a reflection of who we are. Growth was broad-based, geographically, by product and customer segment, both commercial and consumer, from North America commercial to North America consumer, international commercial, Asia, Europe, and Latin America to international consumer, particularly Asia and Latin America. In terms of the commercial PNC rate environment, overall conditions remain favorable in both property, which is naturally more competitive, and casualty, which is firming in those classes that require rates. Lost cost inflation remains steady within what we have contemplated in our pricing and our reserving.
Unknown Attendee: We are a large diversified global insurer, and our growth this quarter is again a reflection of who we are. Growth was broad-based geographically by product and customer segment, both commercial and consumer, from North America, commercial, and North America, consumer, international, commercial, Asia, Europe, and Latin America, to international, consumer, particularly Asian, Latin America. In terms of the commercial P&C rate environment, overall conditions remain favorable in both property, which is naturally more competitive, and casualty, which is firming in those classes that require rate. Lost cost inflation remains steady, of within what we have contemplated in our pricing and our reserving.
Peter: We are a large, diversified, global insurer, and our growth this quarter is again a reflection of who we are.
Speaker Change: Growth was broad-based, geographically, by product and customer segment, both commercial and consumer.
Speaker Change: From North America commercial to North America consumer, international commercial, Asia, Europe , and Latin America, to international consumer, particularly Asia and Latin America.
Speaker Change: In terms of the commercial PNC rate environment,
Speaker Change: Overall conditions remain favorable in both property, which is naturally more competitive.
Speaker Change: and Casualty which is firming in those classes that require rape.
Speaker Change: Loss-cost inflation remains steady within what we have contemplated in our pricing and our reserving.
Evan G. Greenberg: Property has become more competitive as more capital is entering. Our book is well priced, and terms and conditions remain steady. Casualty is firming in the areas that need rates. We see this trending casualty enduring. I'm going to give you some more color by division.
Unknown Attendee: Property has become more competitive as more capital has entered. Our book is well priced in terms and conditions remain steady. Casualty is firming in the areas that need rate, and we see this trending casualty enduring, and I'm going to give you some more dollars by division. So let's start with North America, premiums excluding agriculture, rupee percent, and consisted of 12.3 percent growth in personal lines, and 6.7 percent growth in commercial, with all P&C lines, including cop, a 8.7 percent, and financial lines down about 3%. We wrote over 1.3 billion of new business, which is a record, and our renewal retention on a policy count basis was 90%.
Speaker Change: Property has become more competitive as more capital is entered.
Speaker Change: Our book is well priced and terms and conditions remain steady.
Speaker Change: Casualty is firming in the areas that need rape and we see this trend in casualty enduring.
Evan G. Greenberg: So let's start with North America, where premiums excluding agriculture were up 8%, consisted of 12.3% growth in personal lines and 6.7% growth in commercial, with all PNC lines, including comp, up 8.7% and financial lines down about 3%. We wrote over 1.3 billion of new business, which is a record, and our renewal retention on a policy count basis was 90%.
Speaker Change: And I'm going to give you some more color by division.
Speaker Change: So, let's start with North America. Premiums excluding agriculture were up 8% and consisted of 12.3% growth in personal lines . . .
Speaker Change: and 6.7% growth in commercial.
Speaker Change: with all PNC lines including comp up 8.7% and financial lines down about 3%.
Speaker Change: We wrote over 1.3 billion of new business, which is a record, and our renewal retention on a policy count basis was 90%.
Unknown Attendee: Both speak to the reasonably disciplined ton of the market, and our excellent operating performance. Premiums in our major accounts and specialty division increased 6.5 percent. with PNC up about eight, and financial lines down to 1.5%.
Evan G. Greenberg: Both speak to the reasonably disciplined tone of the market and are excellent operating performers. Premiums in our Major Accounts and Specialty Division increased 6.5%. PNC up about eight and financial lines down two and a half percent. Our E&S business grew about eight and a half percent. Premiums in our middle market division increased about 7.5%, with P&C lines up almost 11% and financial lines down four and a half. Again, the underwriting environment in North America is generally favorable and rational, financial minds aside.
Speaker Change: Both speak to the reasonably disciplined tone of the market and are excellent operating performance.
Speaker Change: Premiums in our Major Accounts and Specialty Division increased 6.5%.
Speaker Change: with PNC up about 8% and financial lines down 2.5%.
Unknown Attendee: Ariane S. Business grew about eight and a half for such. Premiums in our middle market division increased about 7.5%, with PNC lines up almost 11%. And financial lines down 4.5%. Again, the underwriting environment in North America is generally favorable and rational. Financial lines aside, PNC pricing, excluding financial lines and comp, was up 8.3%. With rates up 5.5% and exposure change of 2.7%. Financial lines pricing was down 3.2. With rates down about 3.5% and exposure up 0.3%. And workers comp, which includes both primary and large account risk management comp, pricing was up 4.2%. With rates up 1.6%, and exposure up 2.6.
Speaker Change: Our E&S business grew about 8.5%.
Speaker Change: Premiums in our middle market division increased about seven and a half with P&C lines up almost 11% and financial lines down four and a half percent.
Speaker Change: Again, the underwriting environment in North America is generally favorable and rational, financial minds aside.
Evan G. Greenberg: PNC pricing, excluding financial lines and comp, was up 8.3%, with rates up 5.5% and an exposure change of 2.7%. Financial lines pricing was down 3.2, rates were down about 3.5%, and exposure was up 0.3%. Workers' Comp, which includes both primary and large account risk management comps. Pricing was up 4.2%, with rates up 1.6%, and Exposure Up 2.0. Breaking down PNC pricing further, property pricing was up 5.3, with rates up about 1.1 and exposure change of 4.2. Large accounts shared and layered in ENS property pricing was flat to down, while in the middle market, rates continued to rise about 7%.
Speaker Change: PNC pricing, excluding financial lines and comp, was up 8.3%.
Speaker Change: with rates up 5.5% and exposure change of 2.7%.
Speaker Change: Financial lines pricing was down 3.2.
Speaker Change: with rates down about 3.5% and exposure up 0.3%.
Speaker Change: and Workers' Comp, which includes both primary and large account risk management comp.
Speaker Change: Pricing was up 4.2% with rates up 1.6%
Unknown Attendee: And breaking down PNC pricing further, property pricing was up 5.3%. With rates up about 1.1, and exposure change of 4.2, large account shared and layered, and DNS property pricing was flat to down. While in the middle market, rates continued to rise about 7%. We are big and all 3, and again, all 3 are priced adequately. Casualty pricing in North America was up 11.7%. With rates up 9.9, and exposure up 1.6%. Lost costs in North America remain stable in line and in line with what we contemplate in our loss specs. Lost costs for PNC, excluding financial lines in comp, are trending at 7.3%.
Speaker Change: and exposure up 2.6.
Speaker Change: And breaking down PNC pricing further, property pricing was up 5.3.
Speaker Change: With rates up about 1.1 and exposure change of 4.2.
Speaker Change: Large accounts shared and layered in ENS property pricing was flat to down, while in the middle market rates continued to rise about 7%.
Evan G. Greenberg: We are big, and all three, and again, all three are priced out. Casualty pricing in North America was up 11.7%, with rates up 9.9 and exposure up 1.6. However, lost costs in North America remain stable, in line, and in line with what we contemplate in our loss pact.
Speaker Change: We are big and all three, and again, all three are priced adequately.
Speaker Change: Casualty pricing in North America was up 11.7 percent.
Speaker Change: With rates up 9.9 and exposure up 1.6.
Speaker Change: Loss costs in North America remain stable and in line with what we contemplate in our loss specs.
Evan G. Greenberg: Lost costs for PNC, excluding financial lines and comp, are trending at 7.3%, with short tail classes up 5.3 and casualty excluding comp at 8.6, and our first dollar work comp book at 4.6 percent. As I said, when it comes to financial lines, the underwriting environment in a number of classes is simply not safe.
Speaker Change: Lost costs for PNC, excluding financial lines and comp, are trending at 7.3%.
Unknown Attendee: With short-tailed classes up 5.3, and casualty excluding comp at 8.6%. We are trending our first dollar work comp book at 4.6%. As I said, when it comes to financial lines, the underwriting environment, and the number of classes, it is simply not smart. We are trading growth for reasonable underwriting margin. We are trending financial lines lost costs at just over 5%.
Speaker Change: With short tail classes up 5.3 and casualty excluding comp at 8.6.
Speaker Change: We are trending our first dollar work comp book at 4.6 percent.
Speaker Change: As I said, when it comes to financial lines, the underwriting environment in a number of classes is simply not smart.
Evan G. Greenberg: We are trading growth for a reasonable underwriting margin. We are trending financial lines loss costs at just over 5%. On the consumer side of North America, our high net worth personal lines business had another outstanding year with premium growth of over 12%, including new business growth of 30%. Premium growth for our True High Net Worth segments, the group that seeks our brand for the differentiated coverage and service we are known for, grew 17%.
Speaker Change: We are trading growth for a reasonable underwriting margin.
Speaker Change: We are trending financial lines loss costs at just over five percent.
Unknown Attendee: On the consumer side of North America, our high net worth person lines business had another outstanding quarter. With premium growth of over 12%. Including due business growth of 30%. Premium growth for our true high net worth segments. The group that seeks our brand for the differentiated coverage and service we are known for. We are 17%. These numbers are really impressive. When you consider our high net worth person lines division, it is almost $7 billion. Our homeowners pricing was up 14.6 in the quarter, while the lost cost trend remains steady, a ten and a half percent.
Speaker Change: On the consumer side of North America, our high net worth personal lines business had another outstanding quarter.
Speaker Change: With premium growth of over 12%, including new business growth of 30%.
Speaker Change: Premium growth for our true high net worth segments, the group that seeks our brand for the differentiated coverage and service we are known for, grew 17%.
Evan G. Greenberg: These numbers are really impressive when you consider our high net worth First in Lines division is almost a $7 billion business. Our homeowner's pricing was up 14.6 percent in the quarter, while the loss cost trend remains steady at ten and a half percent.
Speaker Change: These numbers are really impressive when you consider our high net worth personal lines division is almost a seven billion dollar business.
Speaker Change: Our homeowner's pricing was up 14.6% in the quarter, while the loss cost trend remained steady at 10.5%.
Evan G. Greenberg: Turning to our international general insurance operation, net premiums were up over 16.5% in constant dollars. Our international commercial business grew nearly 14%, while consumer was up almost 21. Asia-Pacific led the way with premiums up 36%, and excluding China's contribution, premiums were up over 9%. Latin America had a strong quarter, premiums up about 12%, and Europe Retail grew over 9% with a continent of 11.
Unknown Attendee: Turning to our international general insurance operations, net premiums were up over 16 and a half percent in the constant dollar. Our international commercial business grew nearly 14 percent, while consumer was up almost 29. Asia Pacific led the way with premiums up 36 percent; excluding China's contribution, premiums were up over 9 percent. Latin America had a strong border with premiums up about 12 percent, and Europe retail grew over 9 percent with the continent of 11. 41 percent of our overseas general division's premium is consumer, but they NIH and personal lines, and it's growing at a good club.
Speaker Change: Turning to our international general insurance operations, net premiums were up over 16.5% in constant dollar.
Speaker Change: Our international commercial business grew nearly 14%.
Speaker Change: Well, consumer was up almost 21.
Speaker Change: Asia-Pacific led the way with premiums up 36%.
Speaker Change: And excluding China's contribution, premiums were up over 9%.
Speaker Change: Latin America had a strong border.
Speaker Change: with premiums up about 12%.
Speaker Change: and Europe Retail grew over 9% with the continent of 11.
Evan G. Greenberg: 41% of our overseas general divisions' premium is consumer, with ANH and Personal Lines. It's growing at a good clip. In the quarter, premiums in our international A&H business were up over 10.5%, led by Asia, Pacific, and Europe.
Speaker Change: 41% of our Overseas General Division's premium is consumer, both A&H and personal lines.
Unknown Attendee: In the quarter, premiums in our international A and H business were up over 10 and a half percent, led by Asia Pacific and Europe. Our international personal lines business, I don't know other acts on the quarter, with growth of 32 percent, led by Asia-Pac and Latin America. We continued to achieve positive rate to exposure across our international commercial portfolio, with retail property and casualty lines pricing up 6.1 and financial lines pricing down 4.1. Plus cost inflation across our international retail commercial portfolio is trending at 5.8, with PNC lines trending 6.1 and financial lines trending 4.8.
Speaker Change: And it's growing at a good clip.
Speaker Change: In the quarter, premiums in our international A&H business were up over 10.5%, led by Asia, Pacific and Europe .
Evan G. Greenberg: Our international personal lines had another excellent quarter with growth of 32%. Led by Asia Pac and Latin America, they continue to achieve positive rates to exposure across our international commercial portfolio, retail property and casualty lines pricing up 6.1, The Financial Line's pricing down 4 points. Lost cost inflation across our international retail commercial portfolio is trending at 5.8.
Speaker Change: Our international personal lines business.
Speaker Change: I don't know another excellent quarter.
Speaker Change: with growth of 32%.
Speaker Change: led by Asia Pak and Latin America.
Speaker Change: We continue to achieve positive rate to exposure across our international commercial portfolio.
Speaker Change: With retail, property and casualty lines pricing up $6.1.
Speaker Change: and Financial Lines Pricing down 4.1.
Speaker Change: Lost cost inflation across our international retail commercial portfolio is trending at 5.8.
Evan G. Greenberg: PNC Lines Trending 6-1, The Financial Line's Trending Foray. In our international life insurance business, which is fundamentally Asia, premiums were up 31.7 in constant dollars. Scooting China, life premiums were up almost 10%. Depending on the country, growth was driven by tied agency, brokerage, bank assurance, and direct marketing distribution channels. International life earnings grew over 15% in the quarter, constant dollars.
Speaker Change: with PNC lines trending 6-1 and financial lines trending 4-8.
Unknown Attendee: In our international life insurance business, which is fundamentally Asia, premiums were up 31.7% and constant dollar, excluding China, like premiums were up almost 10 percent. trending on the country growth was driven by tide agency, brokerage, bank assurance, and direct marketing distribution channels. International life earnings grew over 15 percent in the quarter, and constant dollar.
Speaker Change: In our international life insurance business, which is fundamentally Asia, premiums were up 31.7 in constant dollar.
Speaker Change: Excluding China, life premiums were up almost 10%.
Speaker Change: Depending on the country, growth was driven by tied agency, brokerage, bank assurance, and direct marketing distribution channels.
Speaker Change: International life earnings grew over 15% in the quarter in constant dollar.
Evan G. Greenberg: Lastly, Global Re had a strong quarter, with premium growth exceeding 40% and a combined ratio of 72.7%. Growth was property-driven, both risk and cap. And in the quarter, we wrote more one-off structured transactions, which contributed to our growth. In summary, as you can see, we had a great quarter and again our results reflect the strength, the breadth, and the depth globally of the company. We are confident in our ability to continue growing our operating earnings at a superior rate.
Unknown Attendee: Lastly, Global re had a strong quarter, with premium growth exceeding 40 percent and a combined ratio of 72.7. Growth was property driven, both risking cat, and in the quarter we wrote more one-off structured transactions, which contributed to our growth.
Speaker Change: Lastly, Global Re had a strong quarter with premium growth exceeding 40% and a combined ratio of 72.7.
Speaker Change: Growth was property-driven, both risk and cap, and in the quarter we wrote more one-off structured transactions which contributed to our growth.
Unknown Attendee: In summary, as you could see, we had a great quarter, and again our results reflect the strength, the breadth, and the depth globally of the company. We are confident in our ability to continue growing our operating earnings at a superior rate through PNC revenue growth and underwriting margins, investment income, and life income.
Speaker Change: In summary, as you can see, we had a great quarter and again our results reflect the strength, the breadth and the depth globally of the company.
Speaker Change: We are confident in our ability to continue growing our operating earnings at a superior rate.
Peter C. Enns: PNC Revenue Growth and Underwriting Margin, Investment Income and Life Income, turn the call over to Peter, and we're going to come back and take your questions. Good morning.
Speaker Change: through PNC Revenue Growth and Underwriting Margins.
Peter Enns: We're going to turn the call over to Peter, and we're going to come back and take your questions. Good morning. As you know, our balance sheet and overall financial position are very strong and just got stronger, benefiting from our first half result.
Speaker Change: Investment Income and Life Income
Speaker Change: I'm going to turn the call over to Peter.
Peter C. Enns: As you know, our balance sheet and overall financial position are very strong and just got stronger, benefiting from our first half results. Our underwriting and investment results continue to generate substantial capital and significant positive cash flow. Our book value reached over $61 billion, or $151 per share, and adjusted operating cash flow for the quarter and through six months were $3.6 and a record $7.2 billion, respectively.
Peter: And we're going to come back and take your questions.
Peter: Good morning. As you know, our balance sheet and overall financial position are very strong and just got stronger, benefiting from our first half results.
Peter: Our underwriting and investment results continue to generate substantial capital and significant positive cash flow.
Peter: Our book value reached over $61 billion, or $151 per share, and adjusted operating cash flow for the quarter and through six months were $3.6 and a record $7.2 billion respectively.
Peter C. Enns: We returned $939 million of capital to shareholders this quarter, including $570 million in share repurchases. $369,000,000 in dividends. $1.6 billion in total through six months; book and book value per share, excluding AOTI, increased 2.6 and 3.1 percent, respectively, for the quarter and 4.9 and 6.1 percent, respectively, year-to-date, benefiting from core operating income partially offset by capital return to shareholders noted earlier. In addition, we closed on two small acquisitions this quarter, Healthy Paws, a pet insurance business, and Catalyst Aviation, which together diluted tangible book value by about $300 million.
Peter: We returned $939 million of capital to shareholders this quarter, including $570 million in share repurchases and $369 million in dividends.
Peter: and $1.6 billion in total through six months.
Peter: Book and tangible book value per share, excluding AOCI, increased 2.6% and 3.1% respectively for the quarter, and 4.9% and 6.1% respectively year-to-date, benefiting from core operating income partially offset by capital return to shareholders noted earlier.
Peter: In addition, we closed on two small acquisitions this quarter, Healthy Paws, a pet insurance business, and Catalyst Aviation, which together diluted tangible book value by about $300 million.
Peter C. Enns: For operating ROE and return on tangible equity, 13.3% and 21.1%, respectively, for the quarter and 13.6% and a record 21.6%, respectively, year to date. Turning to investments, our A-rated portfolio produced adjusted net investment income of $1.56 billion, which included approximately $30 million of higher-than-normal income from private equity and other areas. We expect our quarterly adjusted net investment income to average approximately $1.57 to $1.63 billion for the remainder of the year. Regarding underwriting results, the quarter included free tax catastrophe losses of $580 million, which were principally from weather-related events.
Peter: For operating ROE and return on tangible equity were 13.3% and 21.1% respectively for the quarter and 13.6% and a record 21.6% respectively year to date.
Peter: Turning to investments, our A-rated portfolio produced adjusted net investment income of $1.56 billion, which included approximately $30 million of higher-than-normal income from private equity and other areas.
Peter: We expect our quarterly adjusted net investment income to average approximately $1.57 to $1.63 billion for the remainder of the year.
Peter: Regarding underwriting results, the quarter included free tax catastrophe losses of $580 million, which were principally from weather-related events.
Peter C. Enns: 75% in the U.S. and 25% internationally. Prior period development in the quarter in our active companies was a positive $285 million pre-tax, with $144 million in North America Commercial, $64 million in North America Personal, $61 million in Overseas General, and $16 million in Global Revenue. The $285 million was split 35% long tail lines, predominantly in North America Commercial, and 65% and short tail lights. Our corporate runoff portfolio had adverse development of $93 million, mostly coming from MOLA station-related claims development. The paid to incurred ratio for the quarter was 71% and 77% year to date. Our core effective tax rate was 18.8% for the quarter, which is within our guided range.
Peter: with 75% in the U.S. and 25% internationally.
Peter: Prior period development in the quarter in our active companies was a positive $285 million pre-tax.
Peter: with $144 million in North America commercial, $64 million in North America personal, $61 million in overseas general, and $16 million in global retail. The $285 million was split 35% long tail lines, predominantly in North America commercial.
Peter: and 65% in short tail lights.
Peter: Our corporate runoff portfolio had adverse development of $93 million, mostly coming from MOLA station-related claims development.
Peter: Our pay-to-incurred ratio for the quarter was 71% and 77% year-to-date.
Karen: Our core effective tax rate was 18.8% for the quarter, which is within our guided range. We continue to expect our core effective tax rate to be within 18.75% to 19.25% for the remainder of this year. I'll now turn the call back over to Karen.
Karen L. Beyer: We continue to expect our core effective tax rate to be within 18.75% to 19.25% for the remainder of this year. I'll now turn the call back over to Karen. Thank you. We'll be happy to take your questions. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of Michael Zaremski at BMO Capital Markets. Please go ahead. Hey Craig.
Karen: Thank you. We'll be happy to take your questions.
Speaker Change: At this time, I would like to remind everyone, in order to ask a question, press star then the number 1 on your telephone keypad.
Speaker Change: Your first question comes from the line of Michael Zaremski at BMO Capital Markets.
Speaker Change: Please go ahead.
Evan G. Greenberg: Good morning. You know, most of the focus, as you know, and you gave good commentary, Evan, as you usually do on loss-cost trends. I'm trying my best to use the live transcript to true up some of the quarter over quarters, but I believe you made commentary about the loss cost trend in North America specifically being, I think you said it was excluding comp in the 8th and I believe last quarter it was in the 7th, so just curious, you know, is the lost cost trend changing a bit in terms of the trend line? No, there wasn't a change in loss cost, and frankly, it was 7-3, as I said for PNC lines.
Michael David Zaremski: Hey Craig, good morning.
Speaker Change: You know, most of the focus, as you know, and you gave good commentary, Evan, as you usually do on lost cost trends.
Speaker Change: I'm trying my best to use the live transcript to true up some of the quote-unquote-ers, but I believe you made commentary about loss, cost trend in North America specifically being
Speaker Change: stable and kind of in line with your with your with your expectations but I think you you said there was a it was a excluding comp in the eights and I believe last quarter was in the sevens so just curious you know is this lost cost trend changing a bit uh um in terms of the trend line
Speaker Change: No, there wasn't a change of.
Speaker Change: Lost costs and frankly it was 7-3.
Evan G. Greenberg: Excluding financial lines and comp, I think that's the way to look at it, and the eighth was pricing. [inaudible] Pricing exceeded lost costs. Would you say, um... Got it okay, thanks for the clarification, so just sticking with that, and I guess this will just be my follow-up. There are a number of indices out there which kind of show that pricing in certain parts of the marketplace, you know, even ex financial lines are, are, you know, sub 6, sub 5%.
Speaker Change: is what I said for PNC lines.
Speaker Change: which excludes financial lines and comp. I think that's the way to look at it. And the eighth was pricing.
Speaker Change: was up 8-3. Pricing exceeded loss costs at the NC lines.
Evan G. Greenberg: Would you say that, you know, I know, you've talked about not accepting all business that's not priced adequately, but would you say that Chubb's kind of in a doing that more so today in terms of kind of saying no to more business than it usually does in order to kind of make sure you're keeping pricing above the loss cost trend, whereas maybe others don't appear to be doing that when we see their trend lines on their loss ratio Well, I think I understand what you just said. Let me let me ask you something. We wrote. That's a wrap. We grew, and our PNC business gave commissions up. Unknown Attendee, The market overall.
Speaker Change: Would you say...
Speaker Change: Thanks for the clarification, so just sticking with that, this will just be my follow-up, there's a number of indices out there which kind of show that
Speaker Change: in certain parts of the marketplace, even ex-financial lines are sub-6, sub-5%. Would you say that, I know you've talked about not...
Speaker Change: I'm doing that more so today in terms of kind of saying no to more business than it usually does in order to kind of make sure you're keeping pricing above loss cost trend, whereas maybe others don't appear to be doing that when we see their trend lines on their loss ratios.
Speaker Change: Well, I think I understood what you just said.
Speaker Change: Let me answer this one.
Speaker Change: We wrote.
Speaker Change: 1.3 billion of new visits.
Speaker Change: That's a record.
Speaker Change: We group.
Speaker Change: and our PNC business.
Speaker Change: Eight percent or so.
Speaker Change: We gave comps separately
Speaker Change: gave financial lines.
Speaker Change: The market overall.
Evan G. Greenberg: Those numbers, as I said, I'm repeating. Speak to the tone of the market, which is, overall, quite good. Published Combined Ratio, 86.8, with higher cap.
Speaker Change: Those numbers, as I said, I'm repeating myself.
Speaker Change: Speak to the tone of the market, which is overall quite good.
Speaker Change: We published a combined ratio of 86.8 with higher caps.
Evan G. Greenberg: 83-2 current accident, Combined Ratio, I'm hardly wringing my ham, are resourced, and have outstanding underwriting software. Pricing, in the market, is reasonably rational. Financial lines aside, good areas, and we're only writing business where we can earn an underwriting profit. And in all classes, we strive to earn an underwriting profit that reflects, Transcribed by https://otter.ai, in some classes. They're well priced. I'm getting raped. That equals the loss cost, brilliant. In some classes,
Speaker Change: and 83-2 current accident year.
Speaker Change: Combined ratio.
Speaker Change: I'm hardly wringing my hands.
Speaker Change: Our results.
Speaker Change: are outstanding underwriting results.
Speaker Change: The pricing...
Speaker Change: in the market.
Speaker Change: is reasonably rational.
Speaker Change: Financial lines aside...
Speaker Change: Good. Areas, and we're only writing business.
Speaker Change: where we can earn an underwriting profit.
Speaker Change: And in all classes, we strive to earn an underwriting profit that reflects
Speaker Change: A good return on capital that we're deploying against that line of business.
Speaker Change: In some classes,
Speaker Change: They're well prized.
Speaker Change: I'm getting rate that equals loss cost.
Evan G. Greenberg: There's pricing below loss cost because the margins are so deceiving, and other classes, and their casualty related. We're righting the business because we're getting rate while in excess of loss cost. As those lines approach, they're erratic.
Speaker Change: Brilliant.
Speaker Change: In some classes,
Speaker Change: There's pricing below loss cost.
Speaker Change: because the margins are so decent.
Speaker Change: and in other classes.
Speaker Change: and they're casualty related.
Speaker Change: We're righting the business because we're getting rate while in excess of loss cost.
Evan G. Greenberg: I hope that answers your question. And if you look at something like financial lines, there is a glaring example hiding in plain sight that demonstrates we are shrinking. When we can't earn an adequate return, which is what we have done consistently for 20 years.
Speaker Change: As those lines approach their radiculacy.
Speaker Change: I hope that answers your question.
Speaker Change: Okay, it does. Appreciate it.
Speaker Change: And if you look at something like financial lines, there is a glaring example hiding in plain sight that demonstrates we are shrinking.
Speaker Change: When we can't earn an adequate return, which is what we have done consistently for 20 years.
Operator: And the next question comes... Your next question comes from the line of Paul Newsome with Piper Sandler. Please go ahead. Good morning, Paul.
Speaker Change: And the next question comes...
Speaker Change: Your next question comes from the line of Paul Newsome with Highbridge-Stanley.
Speaker Change: Please go ahead.
Jon Paul Newsome: Morning, Paul.
Jon Paul Newsome: [inaudible]
Operator: [inaudible] Your next question comes from the line of Brian Meredith with UBS. Please go ahead. Thank you. Evan, I'm just curious.
Speaker Change: Your next question comes from the line of Brian Meredith with UBS.
Evan G. Greenberg: Hey, good morning. Given the good pricing you're still seeing on CASLI lines right now, I'm just a little surprised that we aren't seeing more growth in that area from y'all. And actually, if you just look at your pricing versus where the kind of premium growth was, it almost looks like you're shrinking a little bit on an absolute unit basis. Maybe correct me if there's something else going on that I'm just not seeing. No, no, we're growing. Unicount is growing well, and I don't know why you don't have anything that reflects that. Go sing "Casualty."
Speaker Change: Please go ahead.
Brian Robert Meredith: Thank you, Evan. I'm just curious.
Brian Robert Meredith: Hey, good morning. Given the good pricing you're still seeing in CASLI lines right now, it's just a little surprised that we aren't seeing more growth in that area from y'all.
Speaker Change: And actually, if you just look at your pricing versus where the kind of premium growth was, it almost looks like you're shrinking a little bit on an absolute unit basis. Maybe correct me if there's something else going on that I'm just not seeing in the numbers.
Speaker Change: No, no, we're growing property.
Speaker Change: Unicount grew well, and I don't know why you don't have anything that reflects Unicount.
Evan G. Greenberg: I can't see a number of Paulas. And you're talking property, right? No, no, no, no, no, no, no, no, no. My apologies. I said casualty. I'm just looking at your commercial property. Oh, gosh. I apologize. No casualty is growing.
Speaker Change: You can't see number of policies.
Speaker Change: And you're talking property, right? No, no, no, no. I apologize. I said casualty. I'm just looking at your commercial casualty. Oh, gosh. I apologize.
Evan G. Greenberg: And it's growing, you know, in the areas that we think we should be growing. And then we have some areas, remember, in large accounts where we have been restructuring, in troubled classes, and increasing retentions. And we have accounts we've gotten off of or who have left us because of changes in terms and all of that. It was worth about $50 million in the quarter. But not all rung its strings.
Speaker Change: No casualty is growing and it's growing you know in the areas that we think we should be growing and then we have some areas remember in large account where we have been restructuring
Speaker Change: in troubled classes.
Speaker Change: and increasing retentions and we have accounts we've gotten off of or who've left us because of change of terms and all of that. It was worth about 50 million in the quarter.
Evan G. Greenberg: You know, it's particularly auto liability related. But other than that, certain classes grew, some stayed flat, but overall, the casualty was up. And then just a second question, and I appreciate all the color on the loss trend and stuff, but given some of the uncertainty that others in the industry are talking about on what's going on in the social inflation environment, are y'all kind of thinking about maybe or are adding some additional IBNR to perhaps loss picks and stuff, or are we not at that point right now? You know, that's a... strange way of framing it for me. You're either raising your loss, Peck. I'd be in orrery.
Speaker Change: And that'll rung its string, you know, it's particularly auto liability related. But other than that, you know, certain classes grew, some stayed flat, but overall casualty was high.
Speaker Change: I appreciate all the color on the loss trend and stuff, but given some of the uncertainty that others in the industry are talking about on what's going on in the social inflation environment.
Speaker Change: Are y'all kind of thinking about maybe or are adding some additional IB&R to perhaps loss picks and stuff or are we not at that point of this right now?
Speaker Change: You know, that's a...
Speaker Change: Strange way of framing for me.
Speaker Change: You're either raising your loss peck
Evan G. Greenberg: So I'd be an R in casualty, you know, generally you're, If it's a more recent year, it's all IBM R. If it's case, if it's due to case reserve in recent years, hang on to your hat. And if you're, you know, whereas on older, older years, you could be raising your loss peck based on the actual incurred claim. So, to me, it's just another way of saying, are you raising your lost pet?
Speaker Change: which is IBM Orange.
Speaker Change: So I'd be an R in casualty, you know, generally, you're, you're.
Speaker Change: You know, if it's on a more recent year, it's all I've been on.
Speaker Change: Um...
Speaker Change: If it's case, if it's due to case reserve on recent years, then...
Speaker Change: You know, hang on to your hat.
Speaker Change: And if you're, you know, whereas on older, older years, you could be raising your loss pick based on actual incurred claim.
Speaker Change: So, to me, it's just simply another way of saying, are you raising your loss pecs?
Evan G. Greenberg: In more recent years, we already have raised our lost PECs. It's already been baked into our business as we've gone along. And we've raised our loss cost trends, and we take rate against loss cost, and on a written basis, and then to earn through, we pick up we've been picking higher loss ratios over the last few years. And that's just steady. We haven't adjusted our loss pick this year.
Speaker Change: On more recent years, we already have raised our lost PECs.
Speaker Change: It's already been baked into our business as we've gone along and we've raised our loss cost trends and we take rate against loss cost.
Speaker Change: and on a written basis and then to earn through we pick up we've been picking higher
Speaker Change: Loss ratios over the last few years.
Speaker Change: And that's just steady. We haven't adjusted our loss picks this year.
Evan G. Greenberg: ,,, What we see in the loss-cost trends, the loss-cost trends, as I said, remain steady with what we have contemplated. Now, as you do reserve studies. There are individual classes where, you know, if you're taking a reserve charge, you're taking a reserve charge because that, by its nature, means you're raising three loss pecs, which includes IBNR, on a cohort of years. Or it may be that you're raising it just because of development you see in older years.
Speaker Change: for what we see in loss-cost trends. The loss-cost trends, as I said, remain steady with what we have contemplated.
Speaker Change: Now, as you do reserve studies,
Speaker Change: There are individual classes where, you know, if you're taking a reserve charge,
Speaker Change: You're taking a reserve charge because that, by its nature, means you're raising
Speaker Change: The Wall Specs, which includes IBM R.
Evan G. Greenberg: It may be that you see that flowing through to change your view in more recent years, in which case you raise them, but that's study by study. I hope that answers your question.
Speaker Change: On a cohort of years, it may be that you're raising it just because of development you see on older years. It may be that you see that flowing through to change your view in more recent years, in which case you raise them, but that's study by study.
Speaker Change: I hope that answers your question. Yeah, it was very helpful. Thank you.
Evan G. Greenberg: Thank you. You're welcome. Your next question comes from the line of Bob Huang with Morgan Stanley. All right, good morning. Yeah, morning. I just want to shift gears a little bit to personal matters.
Speaker Change: You're welcome.
Speaker Change: Your next question comes from the line of Bob Hwang with Morgan Stanley .
Evan G. Greenberg: You grew and pretty incredible 42% premiums here today. Can you maybe talk about the driver of this growth in North America personal and also, how should we think about just the growth trajectory of this line going forward? Understand, obviously, homeowner auto is going to be very different, but just curious about your thoughts going forward.
Bob Hwang: All right, good morning.
Bob Hwang: Morning. I just want to shift gears a little bit to personal lines.
Bob Hwang: You grew a pretty incredible 42% premium here today.
Bob Hwang: Can you maybe talk about the driver of this growth in North America personally and also
Speaker Change: How should we think about just the growth trajectory of this line going forward? I understand, obviously, homeowner auto is going to be very different, but just curious your thoughts going forward.
Evan G. Greenberg: Did you know we did not grow North America personal lines 42% year to day, but we've grown it double-digit here today? So just.
Speaker Change: Did you, we did not grow North America personal lines 42%.
Speaker Change: weird day, bye!
Speaker Change: You know, we've grown it double-digit here today.
Evan G. Greenberg: So we level set between each other, the line is growing at a very healthy rate. And look, there's a combination of reasons, it's broad-based growth. We're not growing simply in, you know, okay, cat-exposed, stressed areas.
Speaker Change: And so, just, um...
Speaker Change: You know, so we level set between each other, the line is growing at a very healthy rate.
Speaker Change: And look, it's for, there's a combination of reasons. It's broad-based growth. We're not growing simply in, you know, okay, cat exposed, stressed areas.
Evan G. Greenberg: We're growing, our high net worth customers have homes, and so that would, of course, have Unknown Attendee, Charles Peters, Yaron Kinar, Karen Beyer, Evan Greenberg, John Lupica, Taylor Scott, David Motemaden, Elyse Greenspan, Michael Zaremski, Ryan Tunis, Michael Ward, Peter Enns, Unknown Attendee across the United States. We're getting an improved And we've worked on it for years now; our ability to price the business is far more sophisticated and is bi-parallel pricing. It's very sophisticated.
Speaker Change: We're growing where high net worth customers have homes, and so that would of course have a strong cat exposed element to it, but we're growing at a broad variety of geographies.
Speaker Change: Across the United States, we're getting improved rate to exposure, our pricing, and we've worked on it for years now, our ability to price the business.
Speaker Change: is far more sophisticated and our bi-parallel pricing
Evan G. Greenberg: The services we provide and the richness of the coverage. If you are a customer whose profile meets our product, we're who you want because the richness of the coverage and the way we administer it, that's what our brand is well known for. And there is a real increase in demand for Chubb. We are not the cheap guys on the street. And in fact, there are many who I personally will tell, if you're looking for a cheaper price, let me give you the names of three other insurance companies.
Speaker Change: is very sophisticated.
Speaker Change: The services we provide and the richness of the coverage if you are a customer whose profile meets our product.
Speaker Change: We're who you want, because the richness of the coverage and the way we administer it, that's what our brand is well known about. And there is a real increase in demand for Chubb. We are not the cheap guys on the street.
Speaker Change: And in fact, there are many who, I personally will tell them, if you're looking for a cheaper price, let me give you the name of three other insurance companies.
Evan G. Greenberg: But no, they want Chubb, and the renewal retention rate and the growth in new business, it's very gratifying in that way. And we're improving our service. I'm constantly improving our services and the way we communicate with our customers. And that is still in front of us. We can continue improving this and improve the competitive profile of the product area. So, and then, yes, in CAD-exposed areas, we're getting well paid for the business we're writing.
Speaker Change: But no, they want Chubb, and the renewal retention rate and the growth in new business, it's very gratifying that way, and we're improving our services.
Speaker Change: I'm constantly improving our services and the way we communicate with our customers.
Speaker Change: And that is in front of us. We can continue improving this and improve which is the competitive profile of the product area.
Speaker Change: And then, yes, in CAD-exposed areas, we're getting well-paid for the business we're writing. I don't mind saying we're reshaping and have been shaping in CAD-exposed areas.
Evan G. Greenberg: I don't mind saying we're reshaping and have been shaping, in CAD-exposed areas, to a healthier portfolio in terms of the quality of risk and whether they're just giving us cat business, or they're giving us a broad base of business beyond cat exposure, and we're shaping that portfolio and getting priced reasonably for it. And we're purchasing enough protection to protect the balance sheet as we grow accumulations. So all in all, you know, our personal lines business is in very good health. Great, thank you. Yeah, the 42% personal auto. I misspoke there.
Speaker Change: to a healthier portfolio.
Speaker Change: In terms of the quality of risk.
Speaker Change: And whether they're just giving us cat business or they're giving us a broad-based...
Speaker Change: of Business Beyond Cod Exposure.
Speaker Change: And we're shaping that portfolio and getting priced reasonably for it, and we're purchasing enough protection.
Speaker Change: to protect the balance sheet as we grow accumulations. So all in all, you know, our personal lines business is in a very healthy place.
Evan G. Greenberg: So the second question is, in the press release you talked about, you're seeing a broad set of opportunities in accident health and personal lives across the globe, right? Can you maybe expand on where you think that opportunity resides? It feels like your European business is doing well, and your Asian business is doing well. Is this the globe you are referring to more broadly speaking, or is it more Southeast Asia and South Asia? Can you maybe give us a little bit more details there, is it more organic, inorganic things of that nature? Okay, so let's take Accent and Health.
Speaker Change: Great, thank you. Yeah, the 42% personal auto, I misspoke there. So the second question is, in the press release, you talked about you're seeing a broad set of opportunities in accident health and personal lives across the globe, right? Can you maybe expand on...
Speaker Change: where you think that opportunity resides? It feels like your European business is doing well, your Asia business is doing well.
Speaker Change: Globes, are you referring to more broadly speaking or is it more Southeast Asia, South Asia? Can you maybe give us a little bit more details there? Is it more organic, inorganic things of that nature?
Speaker Change: Love the question.
Speaker Change: Thank you.
Evan G. Greenberg: The Combined Insurance Company in North America, which I'm going to start talking about more soon, but we've been a little quieter about it. It is growing at double digits. It is a worksite voluntary benefits business, and it is growing at a very healthy double-digit clip, and that is our traditional accident and health. We're growing for small account companies and middle and large account companies, one through brokerage, one through age. Our accident and health business in Asia-Pacific has grown because we're the largest direct marketers of insurance in Asia, for sure, and maybe the world.
Speaker Change: Okay, so let's take Accent and Health.
Speaker Change: The Combined Insurance Company in North America.
Speaker Change: which I'm going to start talking about more soon, but...
Speaker Change: We've been a little quieter about it.
Speaker Change: It is growing at double digits. It is a worksite, voluntary, benefits business.
Speaker Change: And it is growing at a very healthy double-digit clip, and that is our traditional accident and health. We're growing it for small account companies and middle and large account companies, one through brokerage, one through agency.
Speaker Change: Our accident and health business in Asia-Pacific has grown because we're the largest direct marketers of insurance.
Evan G. Greenberg: It's over a $4.5 billion portfolio. And our direct-marketed A&H business... growing in Korea, growing through Southeast Asia is an excellent contributor are digital distributed consumer lines. ANH and personal lines with over 200 digital platforms from the grabs of Southeast Asia to the new banks of Latin America for in what we call embedded or in-path selling for accident and health and simple consumer products, drink householders, drink term life insurance, think device coverage for protecting devices is growing out of that. That's our digital business growing at a very healthy double-digit clip, travel insurance in Asia growing well, in Europe, employer, employee, and direct marketed I could go on and on, but that's a flavor of how it's maybe giving you a sense granularly of how it is across the globe.
Speaker Change: In Asia, for sure, and maybe the world, it's over a $4.5 billion portfolio. And our direct market at A&H business
Speaker Change: Growing in Korea, growing through Southeast Asia is an excellent contributor. Our digital distributed consumer lines business
Speaker Change: A&H and Personal Lines with over 200 digital platforms.
Speaker Change: from the grabs of Southeast Asia to the new banks.
Speaker Change: of Latin America for what we call embedded or in-path selling.
Speaker Change: for Accident and Health and Simple Consumer Products.
Speaker Change: Thrink Householders, Thrink Term Life Insurance
Speaker Change: Think device coverage for protecting devices.
Speaker Change: is growing out of that's our digital business.
Speaker Change: growing at a very healthy double-digit clip, travel insurance in Asia growing well, in Europe employer-employee and direct marketed A&H growing very well.
Speaker Change: I could go on and on, but that's a flavor of how it's maybe giving you a sense granularly of how it is across the globe.
Evan G. Greenberg: I really appreciate that. So I think we'll look forward to more commentary down the road about this. Thank you. You got it.
Speaker Change: I really appreciate that, so I think we'll look forward to more commentaries down the road about this.
Operator: Thanks for the question. Your next question comes from the line of David Motemaden with Evercore ISI. Please go ahead. Good morning, David. Good morning, Evan.
Speaker Change: You got it. Thanks for the questions.
Speaker Change: Your next question comes from the line of David Motemaden with Evercore ISI.
Speaker Change: Please go ahead.
David Kenneth Motemaden: I had a follow-up just on North America... PNC, Longtail, XComp, Lostrend. It sounds like that increased about a point sequentially. Just wondering what you saw in the quarter. No, it did not.
Speaker Change: Good morning, David.
David Kenneth Motemaden: Good morning, Evan.
David Kenneth Motemaden: I had a follow-up just on the North America...
Speaker Change: PNC, Longtail, X-Comp, Ruthoron, Lostrend. It sounds like...
Speaker Change: That increased about a point sequentially. Just wondering what you saw in the quarter. No, it did not.
Evan G. Greenberg: It didn't do... Go ahead, Paul. Unknown Attendee, casualty number, which was 8.6% in comparison. That's the state of home cash.
Speaker Change: [inaudible]
Speaker Change: Go ahead, Paul. I think last quarter we had given a casualty number which was...
Jon Paul Newsome: in 8.6%.
Evan G. Greenberg: The number you just cited, E&C, X Financial Lines, and X Purpose Coffee, didn't change.
Speaker Change: Comparison, um, that's a stand-alone casualty number. The number you just cited was PNC, uh, ex-Financial Lines and ex-Burkman's Company. It didn't change.
Evan G. Greenberg: Did you hear that explanation to help you, David? Yeah, yeah, I did. It was a little faint, but I think I got most of it.
Speaker Change: Bye. Bye.
Speaker Change: Did you hear that explanation?
Speaker Change: to help you.
Speaker Change: David
Speaker Change: Yeah, yeah, I did. It was a little faint, but I think I got most of it.
Evan G. Greenberg: Let's repeat it. The numbers didn't change sequentially. It might have been a different mix or a different combination of product lines. The 7-3 that we cited was total ex-financial lines and ex-workers' compensation, which is, which we think is, You know, the purest way for you to hear casualty. You have day jobs.
Speaker Change: The numbers didn't change sequentially. It might have been a different mix or a different combination of product lines.
Speaker Change: You know, the 7-3 that we cited was total ex-financial lines and ex-workers' compensation.
Speaker Change: which is which we think is is you know the purest way for you to hear casualty
Evan G. Greenberg: And then we gave casualties separate. And the casualty separately hasn't changed, no. I mean, I'm looking at my chief actuary because I'm scratching my head. We haven't, we haven't changed.
Speaker Change: [inaudible]
Speaker Change: You have a proper day, Coach.
Speaker Change: And then we gave casualties separately.
Speaker Change: And the casualty separately hasn't changed, no.
Speaker Change: I mean, I'm looking at my chief actuary because I'm scratching my head. We haven't changed it.
Evan G. Greenberg: Got it. Okay, that's helpful clarification. On that front, I guess, you know, we've obviously heard a lot of noise this quarter from just across the industry on more recent accident year casualty reserves. Uh, It doesn't sound like there's been any big shifts in the claims environment just based on what you guys have done. But I'm wondering if you might just give some of your observations in terms of.
Speaker Change: Got it. Okay. That's helpful clarification on that front. I guess, you know, we've obviously heard a lot of noise this quarter.
Speaker Change: You know from just across the industry on more recent accident year casualty reserves
Speaker Change: um
Speaker Change: It doesn't sound like there's been any big shifts in the claims environment just based on what you guys have done, but I'm wondering if you might just give some of your observations in terms of...
Evan G. Greenberg: You know how we should be thinking about just, you know, the loss environment as The claims environment sort of normalizes following COVID. Yeah, look, um... Let me, um, observe this way, too, on the loss side. We have been talking for many... For years now, about... inflation in the casualty. [inaudible] I won't go into all the reasons, but the litigation.
Speaker Change: You know, how we should be thinking about just, you know, the loss environment as the, you know, claims environment sort of normalizes following COVID.
Speaker Change: Yeah, look, um...
Speaker Change: Let me observe this way to you.
Speaker Change: on the loss side of it.
Speaker Change: We have been talking for many orders.
Speaker Change: for years now.
Speaker Change: about
Speaker Change: The Inflation
Speaker Change: in the casualty.
Speaker Change: Loss, Cost, and Farm.
Speaker Change: I won't go into all the reasons, but the litigation.
Evan G. Greenberg: We have talked about. And we have talked about some of the areas, which are excess casualty related, auto liability. That's just not new noise or new facts. That's been for a long time we've been talking. We've talked about how inflation in that area has accelerated over a period of time. We talked about how the courts. closed down, and how you had to be careful in not taking the head fake and continuing to trend up. We've talked about how companies have managed, and some have been quicker. Some have been slower. Unrecognized Developed. Though Everyone is in the boat, struggling to stay on top of it.
Speaker Change: We have talked about
Speaker Change: The reasons?
Speaker Change: And we have talked about some of the areas.
Speaker Change: Whether it is excess casualty related, auto liability related.
Speaker Change: That's just not new noise.
Speaker Change: or New Facts. That's been for a long time we've been talking.
Speaker Change: We've talked about how
Speaker Change: Inflation in that area has accelerated over a period of time.
Speaker Change: We talked about how the court system
Speaker Change: was closed down.
Speaker Change: and how you had to be careful.
Speaker Change: in not taking the head fake and continuing to trend up.
Speaker Change: We've talked about how companies have managed this.
Speaker Change: And some have been quicker.
Speaker Change: Some have been slower.
Speaker Change: to recognize DEVELOP.
Speaker Change: Though everyone is in the boat.
Speaker Change: I'm struggling to stay on top of it.
Speaker Change: Some have reacted more quickly.
Evan G. Greenberg: Some have reacted more quickly, and their recognition and reserves and loss pecs and others. So again, everyone. Thank you for joining us today. I hope you have a great day. I hope you have a great day, and talked about how re-insurance is the latest, and those who may not have, I'm as good a data set, or be as activists and intrusive in how they use data and interpret it for management information. All of that rolls together to make the suit.
Speaker Change: and their recognition and reserves and lost pecs and others.
Speaker Change: So again, everyone.
Speaker Change: struggles to stay on top. We've talked about how re-insurers
Speaker Change: are the latest to the party.
Speaker Change: and those who may not have
Speaker Change: As good a data set
Speaker Change: or be as activists and intrusive in how they use data.
Speaker Change: and interpret it for management information.
Speaker Change: All of that.
Evan G. Greenberg: Everyone is obsessed about cash at this moment, and I understand. I say it that way because, when it comes to Chubb, we have almost 65 billion losses, very broad. We study them all on an annual basis, and we watch them all on a monthly and quarterly basis. There's always something developing. Well, something not developing as well as you imagine. It's never a precise sign.
Speaker Change: Rolls together.
Speaker Change: to make the soup.
Speaker Change: Everyone is obsessed about, at this moment, about casualty.
Speaker Change: and I understand it.
Speaker Change: I say it that way, because when it comes to Chubb,
Speaker Change #100: We have almost 65 billion of loss reserves.
Speaker Change #100: Very broad-based.
Speaker Change #100: We study them all on an annual basis and we watch them all on a monthly and quarterly basis.
Speaker Change #100: There's always something developing. Well.
Speaker Change #100: and something not developing as well as you imagine. It's never a precise science.
Evan G. Greenberg: On balance, our reserves are as strong, and frankly, we said this in December, and I can tell you as of June 30th, our loss reserves are stronger than they were in December, in aggregate, when we look at that. And that is with staying on top of the positive development of casualty, i.e. comp and other areas, and the negative development that is occurring in auto liability and access and umbrella, etc. David, I hope that's the last thing I can say on the subject. I really appreciate it. Thanks, Evan.
Speaker Change #100: On balance, our reserves are as strong, and frankly, we said this in December , and I can tell you as of June 30th, our loss reserve.
Speaker Change #100: are stronger than they were in December in aggregate when we look at them today.
Speaker Change #100: And that is with staying on top of the positive development in casualty.
Speaker Change #100: i.e. comp and other areas and the negative development that is occurring in auto liability and access and umbrella, etc.
Speaker Change #100: David, I hope that's as much as I can say on the subject.
David Kenneth Motemaden: I really appreciate it. Thanks, Evan.
Operator: Your next question comes from the line of Yaron Kinar with Jefferies. Please go ahead. Thank you. Good morning.
David Kenneth Motemaden: You got it.
Speaker Change #101: Your next question comes from the line of Yaron Kinar with Jefferies.
Yaron Joseph Kinar: I want to maybe take a broader view here, specifically on North America commercial. So I think you've been running at a low 80s underlying combined mid 80s reported in recent years, including year to date. That's a whopping improvement relative to where it's been historically right, five to 10 points better, I think.
Speaker Change #102: Please go ahead.
Yaron Joseph Kinar: Thank you. Good morning. I want to maybe take a broader view here, specifically on North America commercial. So I think you've been running at a low 80s, underlying combined mid-80s reported in recent years, including year-to-date. That's a whopping improvement relative to where it's been historically, right? Five to ten points better, I think.
Evan G. Greenberg: So how do you think about the balance of protecting these margins and risk-adjusted returns on the one hand and pursuing growth on the other in the context of maybe elevated market uncertainty but these terrific margins? Let's see. I think it, (inaudible) I have a pretty healthy clip when you look at it.
Speaker Change #104: So, how do you think about the balance of protecting these margins and risk-adjusted returns on the one hand and pursuing growth on the other in the context of maybe elevated market uncertainty, but these terrific margins?
Speaker Change #104: Well.
Speaker Change #105: Let's see.
Speaker Change #106: I think it speaks for itself.
Speaker Change #107: We grew.
Evan G. Greenberg: Middle market PNC business grew at 11%. E&S, through an 8.7 R, large account business, a little slower. The financial lines shrank.
Speaker Change #108: I had a pretty healthy clip when you look at it.
Speaker Change #109: The middle market PNC business grew at 11%.
Speaker Change #109: are
Speaker Change #110: E&S Business, Root 8.7
Speaker Change #110: are
Speaker Change #110: Large account business, brutal, slower clip.
Evan G. Greenberg: Well, the PNC Group. I've gone through this before. ,,,,,,,,, Chief, risk-adjusted return from Everything We Can Tell. [inaudible] Contemplate Achieving. We're growing that business as fast as we can. Where it's not achieving it, we're striving to achieve it, where we can't, earn an underwriting profit we're shrinking, where it's adequate. We're growing as fast as we can. And we have the capital. Depth of the balance sheet.
Speaker Change #110: Our financial lines shrank.
Speaker Change #110: Well, PNC Group.
Speaker Change #110: I've gone through
Speaker Change #110: that we're REACH.
Speaker Change #110: Achieve
Speaker Change #111: A risk-adjusted return.
Speaker Change #111: from everything we can tell.
Speaker Change #111: that we contemplate achieving.
Speaker Change #111: We're growing that business as fast as we can.
Speaker Change #111: Where it's not achieving it, we're striving to achieve it.
Speaker Change #111: where we can't.
Speaker Change #111: Earn an underwriting profit? We're shrinking.
Speaker Change #111: Where it's adequate.
Speaker Change #111: We're growing as fast as we can.
Speaker Change #111: And we have the capital.
Evan G. Greenberg: And an appetite, knowledge, and geographic reach, and the distribution, brand, and the underwriting capability to grow in those areas where we want to grow. And there are times we'll trade rates for growth. There are times we'll trade growth for rain.
Speaker Change #111: Depth of Balance Sheet.
Speaker Change #111: At an appetite for knowledge and geographic reach and the distribution, brand and underwriting capability
Speaker Change #111: Two.
Speaker Change #111: grow in those areas.
Speaker Change #111: where we want to grow.
Speaker Change #111: And there are times we'll trade rate for growth.
Evan G. Greenberg: We're doing both. When it comes to the current accident year combined ratio, you know, I've said before, and I've written... It's very interesting about the industry's current action at your combined ratio, XCAT, property is a much larger part, and everybody is more cat-lover because of the changes in the insurance market. The Rates and Terms.
Speaker Change #111: There are times we'll trade growth for rates.
Speaker Change #111: We're doing both.
Speaker Change #111: And when it comes to the current accident, your combined ratio,
Speaker Change #111: You know, I've said before, and I've written this.
Speaker Change #111: It's very interesting about the industry's current X in a year combined ratio, X-cat.
Speaker Change #111: Property is a much larger part and a growing, everybody is more cat-lovered because of the changes in the insurance market.
Evan G. Greenberg: We take the cat's floss out of the numerator. But in the denominator, we leave all the premium that naturally drives down a current accident year combined ratio in the mix of business, all else being equal. So it's, I look, that's a part, part and partial, of the Publish Combined Ratio, which is the primary number that everyone should know, and the current action here to look through volatility is a secondary indicator. And that's how I think it works.
Speaker Change #111: The Rates and Terms.
Speaker Change #111: and
Speaker Change #112: We take the cat floss out of the numerator.
Speaker Change #112: But in the denominator, we leave all the premium. That naturally drives down a current accident year combined ratio.
Speaker Change #113: In mix of business, all else being equal.
Speaker Change #113: So it's...
Speaker Change #114: I look, that's a part, part and partial.
Speaker Change #114: of the Published Combined Ratio.
Speaker Change #114: which is the primary number that everyone should look at.
Speaker Change #114: And the current action here to look through volatility is a secondary indicator.
Evan G. Greenberg: And I think what we published of an 86-8, which has higher GATT losses, prior quarter prior year's quarter because volatility and property are simply outstanding. I hope that answers your question. This is a company. Big Appetite.
Speaker Change #114: And that's how I think about it.
Speaker Change #114: And I think what we published of an 86-8 which has higher GATT losses.
Speaker Change #114: and prior quarter, prior year's quarter because volatility and property is simply an outstanding number.
Speaker Change #114: I hope that answers your question. This is a company with a big appetite.
Speaker Change #114: and uh, but an appetite and an ambition to grow when
Evan G. Greenberg: [inaudible] We can earn a reasonable. Got it. And maybe to follow. Sorry, go ahead. So maybe to follow up on that, so in lines where you are getting rates in excess of trend, is it reasonable to think of an acceleration of growth in those, of premium growth in those lines? So essentially, policies enforce increasing or accelerating manufacturer pay?
Speaker Change #114: We can earn a reasonable return.
Speaker Change #115: Got it. And maybe to follow, sorry, go ahead.
Speaker Change #116: So maybe to follow up on that, so in lines where you are getting rate in excess of trend, is it reasonable to think of an acceleration of growth in those, of premium growth in those lines? So essentially policies in force increasing or accelerating at a factor base?
Evan G. Greenberg: There is We've met you can't see it. And we're not going to disclose anything like that. But it is apparent to us. Again, we wrote 1.3 billion of new business, a record, and we had a renewal retention rate policy cap of 90%.
Speaker Change #117: There is. We've met. You can't see it. We're not going to disclose anything like that. But it is apparent to us. Again, we wrote 1.3 billion of new business.
Speaker Change #118: A record.
Speaker Change #118: and we had a renewal retention rate policy cap of 90%.
Evan G. Greenberg: I rest my case. Thank you. You're welcome.
Speaker Change #119: I rest my case.
Speaker Change #120: Thank you.
Operator: Your next question comes from the line of Mike Ward with Citi. Please go ahead. Thank you. Good morning. I was wondering about the prior period development. I don't think this has been asked, but I was hoping you could maybe break down the 144 million in North America commercial.
Speaker Change #121: You're welcome.
Speaker Change #121: Your next question comes from the line of Mike Ward with Citi.
Evan G. Greenberg: Just sort of curious, you know, if there were any notable movements within that, including long tail casualty versus Workers' Comp. Sure. We studied large account comp this quarter, and we studied auto liability across the organization, large, medium, small, all added together. Other Casualty Lines, that were studied a variety of GL.
Frank: Please go ahead.
Michael Augustus Ward: Thank you, good morning. I just, I was wondering on the...
Michael Augustus Ward: Prior period development. I don't think this has been asked, but I was hoping you could maybe
Michael Augustus Ward: Breakdown the, I think it was 144 million in North America commercial, just sort of curious, you know, if there were any notable movements within that, including long-tail casualty versus workers' comps.
Speaker Change #124: Yeah, sure.
Speaker Change #125: We studied large account comp this quarter and we studied auto liability
Speaker Change #126: across the organization.
Speaker Change #127: large, medium, small, all added together. Among other casualty lines
Evan G. Greenberg: General Live. Pomp produced about 287 million records, and the auto liability studies produced about $116 million, charge and not. And that was the major. Okay, that's really helpful. Thank you, Evan. Um, and then maybe maybe kind of on a similar theme, but I saw some media reporting on an executive that you hired specifically to handle inflated jury verdicts. Just wondering if you could, and on that role, and I expect the industry to actually say, Yes, he's not going to handle inflated jury verdicts. That sounds like I hired somebody out of the Mafia. I don't know any other way except with a mask and a gun.
Speaker Change #127: that were studied, a variety of GL, General Liability Related.
Speaker Change #128: Pomp produced about 287 million releases.
Speaker Change #128: and the auto liability studies produced about a hundred and sixteen million.
Speaker Change #128: of charge and not concentrated in any one year.
Speaker Change #128: Spread out.
Speaker Change #128: And that was the major pieces.
Speaker Change #128: Okay, that's really helpful. Thank you, Evan.
Speaker Change #129: And then maybe, maybe kind of on a similar theme, but I saw some media sort of reporting on an executive that you hired specifically to handle inflated jury verdicts. Just wondering if you could.
Speaker Change #129: And on that, that role and how you expect the industry to actually
Speaker Change #130: That sounds like I hired somebody out of the Mafia.
Speaker Change #131: Because I don't know any other way except with a mask and a gun. But what we're focused on is the litigation environment.
Evan G. Greenberg: What we're focused on is the litigation environment. What we can do, help galvanize and lead efforts among Corporate America's resources, impact the litigation environment is going to be impacted through the political arena. Regulatory, You gotta get. Laws change. And it's a state by state when you get down to the critical issues, whether you're talking mass torque, where you're talking individual large awards, or you're talking litigation funding.
Speaker Change #131: and what we can do
Speaker Change #131: to help galvanize and lead efforts among corporate America.
Speaker Change #131: to pool
Speaker Change #132: Our influence and our resources.
Speaker Change #132: to impact the litigation environment.
Speaker Change #132: which is going to be impacted.
Speaker Change #132: through the political arena.
Speaker Change #132: and the regulatory arena. You got to get.
Speaker Change #132: Some laws changed.
Speaker Change #132: and it's a state-by-state when you get down to the
Speaker Change #132: critical issues whether you're talking mass, tort
Speaker Change #132: or you're talking individual large awards
Speaker Change #132: or you're talking litigation funding.
Evan G. Greenberg: I don't. So we're, we're rough, going to double down on focusing on that to work with corporate America, that is, waking up and becoming more energized. And I will, in the future, I'm sure, have more to say about it than right now. Your next question comes from the line of Gregory Peters with Raymond James. Please go ahead. Good morning, everyone.
Speaker Change #132: any of that and so we're
Speaker Change #132: You're welcome.
Speaker Change #132: going to double down on focusing on that to work with corporate America.
Speaker Change #133: Waking up and becoming more energized.
Speaker Change #133: And I will in the future, I'm sure, have more to say about it than right now.
Speaker Change #133: Thank you.
Speaker Change #133: You're welcome.
Speaker Change #133: Your next question comes from the line of Gregory Peters with Raymond James.
Gregory Peters: So you started to touch upon this in the last question, but I wanted to step back for the last 90 days. It seems like there's, Unknown Attendee, Charles Peters, Yaron Kinar, Ryan Tunis, Michael Zaremski, Ryan Tunis. I'm curious, Evan, if you could just step back, give us a snapshot of what's going on behind the curtain. Sure. Behind the curtain.
Speaker Change #136: Please go ahead.
Gregory Peters: Good morning everyone. It was started to touch upon this in the last question, but I wanted to step back. In the last 90 days, it seems like there's been
Gregory Peters: A flurry of announcements from the company on management changes and promotions, and I'm curious, Evan, if you could just step back, give us a snapshot of what's going on behind the curtain.
Speaker Change #135: Thank you all for joining us. Thank you.
Evan G. Greenberg: Thank you. Unknown Attendee, What an energizing thing for this organization. We have a very well-oiled, effective succession management, and key employee process. We've been engaged in for At my level, it involves [inaudible] people who were promoted, and the change of responsibility is a reflection of that succession management process. This was, These changes were planned over 18 months ago. The individual. John Keogh, and Weird Plants.
Speaker Change #137: New Curtin. What an energizing thing for this organization.
Evan: We have a very well
Evan: Effective
Evan: Succession Management
Evan: and key employee process.
Evan: We've been engaged in for...
Evan: Over 18 years.
Evan: At my level, it involves
Evan: Keeping our eye on about 500 people across the company.
Evan: The people who were promoted.
Evan: and The Change of Responsibilities.
Evan: is a reflection.
Evan: of that succession management process.
Speaker Change #139: This was These Changes.
Speaker Change #139: were planned.
Speaker Change #139: over 18 months ago.
Speaker Change #140: The individuals
Speaker Change #140: John Tiawand.
Evan G. Greenberg: John Lupa, we had planned, as individuals who've had a long history with the company. Bureau of our culture. They have the talent.
Speaker Change #141: and we had planned it. John Lupica knew it.
Speaker Change #141: and we had planned for it. It's very orderly.
Speaker Change #141: It was individuals who've had
Speaker Change #141: Long history with the company.
Evan G. Greenberg: Capability to do more. Company. You know, to state the obvious. Look at the size and scale of it; it's growing. Therefore, the structure has to adapt, and Talon, that you put in place, has to reflect The Opportunity Set and all of the dynamics around management of the organization that you need to address all at once.
Speaker Change #141: They're of our culture. They have the talent, the capability to do more.
Speaker Change #141: Company
Speaker Change #141: You know, to state the obvious.
Speaker Change #141: Look at the size and scale of it. It's growing.
Speaker Change #141: Therefore, the structure has to adapt.
Speaker Change #141: and the talent.
Speaker Change #141: that you put in place has to reflect
Speaker Change #141: The opportunity set
Speaker Change #141: and all of the dynamics around management of the organization.
Evan G. Greenberg: We have bigger strategic issues that have to do with opportunity, and we just talked about litigation. Massive structural things in front of us that Chubb is a leader, has a responsibility and an opportunity to participate in. And we need leadership that can address that while the day-to-day of our business and managing the day-to-day of our business grows more complicated, is more diverse, and so.
Speaker Change #141: that you need to address all at once.
Speaker Change #142: We have bigger strategic issues.
Speaker Change #142: that have to do with opportunities.
Speaker Change #142: And we just talked about litigation.
Speaker Change #142: These massive structural things in front of us.
Speaker Change #142: Chubb is a leader.
Speaker Change #142: as it has a responsibility and an opportunity.
Speaker Change #142: Participate in.
Speaker Change #142: And we need leadership.
Speaker Change #142: [inaudible]
Speaker Change #142: address that while the day-to-day of our business
Speaker Change #142: and Managing the Day-to-Day of Our Business.
Speaker Change #142: [inaudible]
Speaker Change #142: grows more complicated.
Evan G. Greenberg: You know, part of my job is to reflect on all of that and to use the Succession process we have that produces a deep, well-diversified bench of talent to match up against all of that, and that's What It Reflects. And you know what's so great? Everyone. Who was on that?
Speaker Change #142: and it's more diverse.
Speaker Change #142: And so, you know, part of my job is to reflect on all of that and to use the
Speaker Change #142: [inaudible]
Speaker Change #142: process we have that produces a deep
Speaker Change #142: Well, diversified bench of talent to match up against all of that.
Speaker Change #142: And that's what it reflects. And you know what's so great is everyone who was on those announcements know each other well.
Gregory Peters: Those announcements know each other well, have been together well for a long time, and it just, you know, it means the team just gets stronger. Great. I'm going to, for my follow-up question, get out of the North American commercial. Liability, Reserve, Sandbox, and jump into agriculture. I think you dug all the sand out of that box. I'm like, you know, I'm done, but go ahead. I'm still known for my patience. You handled yourself very well, so congratulations on that.
Speaker Change #142: have been together well for a long time, and it just, you know, it means the team just gets stronger.
Speaker Change #143: Great. I'm going to, for my follow-up question, get out of the North American Commercial Liability Reserve sandbox and jump into the agricultural business.
Speaker Change #144: I was watching, I think I, I think you dug all the sand out of that box. I'm like, you know, I'm done. But go ahead. I figured it's.
Speaker Change #145: I'm still known for my patience. You handled yourself very well, so congratulations on that.
Evan G. Greenberg: I checked the spot rate of a bushel of corn. Looks like it's down, what, some 30% year over year. So not that that's an arbiter of the outlook for your agricultural business, but maybe you could give us an update on how this year looks to be shaping up. Obviously, I know the harvest... Unknown Attendee, Charles Peters, Yaron Kinar, Ryan Tunis, Michael Ward, Peter Enns, Unknown. I'm going to be very careful because I'm not going to jinx myself in the middle of the game, but where we have a concentration of exposure.
Speaker Change #146: I checked the spot rate of a bushel of corn, looks like it's down, what, some 30% year over year.
Speaker Change #147: Not that that's an arbiter of the outlook for your agricultural business, but maybe you could give us an update on how this year looks to be shaping up. Obviously, I know the harvest seasons.
Speaker Change #148: Still emerging, but any color there would be helpful.
Speaker Change #149: I'm going to be very careful because I'm not going to jinx myself in the middle of the game.
Speaker Change #150: But where we have concentration of exposure?
Evan G. Greenberg: It is a very good growing season, particularly for corn and soybeans. You know. We have a well-diversified book. We're heavier, and we've always been west of the Mississippi, but in a very broad swath of geography. Midwest, Upper Midwest, etc. The growing conditions are very good, as you can see.
Speaker Change #151: It is a very good growing season so far.
Speaker Change #151: particularly for corn and soybean.
Speaker Change #151: You know, we have a well-diversified book.
Speaker Change #151: We're heavier, and we've always been, west of the Mississippi.
Speaker Change #151: but in a very broad swath of geography.
Speaker Change #152: Midwest, Upper Midwest.
Speaker Change #152: in particular and
Evan G. Greenberg: You know, spot markets at this moment, and it just, You know, it's not something to do. This is a class I'm obsessed about or look at really because it reflects what people are imagining. It's a speculative class. And they're imagining what the, you know, what the government is going to say about growing and they're all out there looking at the years of corn on the, I'm counting the years on stocks right now, and that's what's driving the price at the moment.
Speaker Change #152: The growing conditions are very good. When you see...
Speaker Change #152: You know spot markets at this moment, and it just
Speaker Change #152: You know, it's not something to obsess about or look at, really, because...
Speaker Change #153: It reflects what people were imagining. It's a speculative class.
Speaker Change #153: And they're imagining what the, you know, what is, what's the government going to say about growing and they're all out there looking at the years of corn on the...
Speaker Change #154: You know, the count in the year is on stocks right now and that's what's driving, you know, price at the moment. We'll see how it pans out, but right now it's shaping up well.
Evan G. Greenberg: We'll see how it pans out, but right now, it's shaping up. Got it. Thanks for the answer. John, you wanted to. [inaudible] A good spot for us right now, you know, which was within a lot of the deductible, you know, frankly, if your pen is a little outside the deductible averages, but, you know, look, who knows, we'll see.
Speaker Change #155: Got it. Thanks for the answers.
Speaker Change #155: John , you wanted to say something about base price? Yeah, you noted a spot price below last year, but I think the more important number is what the base price was, and it's only off 10% from base price, which is...
Unknown Attendee: which is a good spot for us right now, which was in, within a lot of the deductible. you know, frankly, if your pan is a little outside deductible, average, but, you know, look who knows, we'll see.
Speaker Change #156: You know, which was in within a lot of the deductible, you know, frankly if you can is a little outside deductible averages. But, you know, look, who knows? We'll see.
Unknown Attendee: Thank you.
Karen L. Beyer: I'll now turn the call back over to Karen Beyer for her closing remarks. Please go ahead. Thank you everyone for joining us today. If you have any follow-up questions, we'll be around to take your calls. Enjoy the day. Thank you. Ladies and gentlemen, this concludes today's call. Thank you all for joining, and you may now disconnect. Please wait; the conference will begin shortly.
Karen Beyer: I'll now turn the call back over to Karen Beyer for closing remarks. Please go ahead. Thanks everyone for joining us today. If you have any follow-up questions, we'll be around to take your calls. Enjoy the day. Thank you.
Speaker Change #157: Thank you.
Speaker Change #157: I'll now turn the call back over to Karen Beyer for closing remarks. Please go ahead.
Karen L. Beyer: Thanks everyone for joining us today. If you have any follow-up questions, we'll be around to take your calls. Enjoy the day. Thank you.
Unknown Attendee: Ladies and gentlemen, this concludes today's call. Thank you all for joining, and you may now disconnect. Please wait.
Speaker Change #158: Ladies and gentlemen, this concludes today's call.
Speaker Change #159: Thank you all for joining and you may now disconnect.
Unknown Attendee: The conference will begin shortly.
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