Chubb Limited Q4 2025 Chubb Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Chubb Ltd Earnings Call
2025 earnings call.
Operator: Thank you for standing by. My name is Jayle, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Chubb Limited Q4 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's 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 one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.
Operator: Thank you for standing by. My name is Jayle, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Chubb Limited Q4 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's 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 one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.
All lines have been placed on mute to prevent any background noise. After the speaker's 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,
Speaker #1: to prevent any background noise. All lines have been placed on mute After the speaker's 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 one on your telephone keypad.
If you would like to withdraw your question, simply press star 1 again.
I would now like to turn the conference over to Susan spivac senior, vice president investor relations. You may begin.
Speaker #1: If you would like to withdraw your question, simply...
Susan Spivak: Thank you, and welcome to our December 31, 2025, Fourth Quarter and Year-End 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. See our recent SEC filings, earnings release, and financial supplement, which are all available on our website at investors.chubb.com for more information on factors that could affect these matters. We will also refer today to non-GAAP financial measures, reconciliations of which to the most directly comparable GAAP measures and related details are provided in our earnings press release and financial supplement. Now, I'd like to introduce our speakers. First, we have Evan Greenberg, Chairman and Chief Executive Officer, followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions.
Susan Spivak: Thank you, and welcome to our December 31, 2025, Fourth Quarter and Year-End 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. See our recent SEC filings, earnings release, and financial supplement, which are all available on our website at investors.chubb.com for more information on factors that could affect these matters. We will also refer today to non-GAAP financial measures, reconciliations of which to the most directly comparable GAAP measures and related details are provided in our earnings press release and financial supplement. Now, I'd like to introduce our speakers. First, we have Evan Greenberg, Chairman and Chief Executive Officer, followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions.
Thank you and Welcome to our December 31st 2025 fourth quarter and year end 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. See our recent SEC filings earnings release and financial supplement, which are all available on our website at investors.com chubb.com, for more information on factors that could affect these matters. 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 supplements.
Speaker #2: to introduce our speakers. First, we have Evan Greenberg, Chairman and Chief Executive Officer, followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions.
Now, I'd like to introduce our speaker 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 today, to assist with your questions are several members of our management team and now it's my pleasure to turn the call over to Evans.
Speaker #2: Also with us today to assist with— from our agriculture—
Susan Spivak: Also with us today to assist with your questions are several members of our management team. Now it's my pleasure to turn the call over to Evan.
Susan Spivak: Also with us today to assist with your questions are several members of our management team. Now it's my pleasure to turn the call over to Evan.
Good morning.
We had an outstanding quarter which contributed to another record year.
Evan G. Greenberg: Good morning. We had an outstanding quarter, which contributed to another record year, demonstrating both the resilience and the broadly diversified nature of our company. We delivered excellent full-year results with strong contributions from virtually all of our businesses. We achieved record earnings for both the quarter and the year. For the quarter, very strong double-digit increases in underwriting and life income, along with record investment income, led to core operating income of nearly $3 billion or $7.52 per share, up about 22% and 25%, respectively. Total company net premiums grew almost 9%, with P&C up 7.7% and Life up about 17%. In fact, our company's premium growth this quarter was faster than the average for the full year. In the quarter, our underwriting performance was simply outstanding.
Evan G. Greenberg: Good morning. We had an outstanding quarter, which contributed to another record year, demonstrating both the resilience and the broadly diversified nature of our company. We delivered excellent full-year results with strong contributions from virtually all of our businesses. We achieved record earnings for both the quarter and the year. For the quarter, very strong double-digit increases in underwriting and life income, along with record investment income, led to core operating income of nearly $3 billion or $7.52 per share, up about 22% and 25%, respectively. Total company net premiums grew almost 9%, with P&C up 7.7% and Life up about 17%. In fact, our company's premium growth this quarter was faster than the average for the full year. In the quarter, our underwriting performance was simply outstanding.
Demonstrated, both the resilience and the broadly Diversified nature of our company.
We delivered excellent full year results with strong contributions from virtually all of our businesses.
We achieved record earnings for both the quarter and the year.
For the quarter, very strong, double digit increases in underwriting, and life income.
Along with record investment income led to core operating income of nearly 3 billion dollars or 752 per share.
Up about 22 and 25% respectively.
Total Company, Net premiums grew almost 9% with PNC up, 7.7 and life up about 17%.
In fact, our companies published growth. This quarter was faster than the average for the full year.
In the quarter, our underwriting performance was simply outstanding PNC underwriting income was 2.2 billion up 40% with a record low combined ratio of 81.2%.
Evan G. Greenberg: P&C underwriting income was $2.2 billion, up 40%, with a record low combined ratio of 81.2%. Our published underwriting results were supported, of course, by low CATs and prior period reserve development, but importantly, very strong current accident year performance from our businesses across the board, including from our agriculture division, where we are the number one crop insurer in America. Agriculture's outstanding results benefited the quarter's underlying current accident year combined ratio of 80.4, which was nearly 2 points better than prior year and a record low. Importantly, however, excluding agriculture, the global P&C current accident year combined ratio, reflecting the strength of our businesses from around the globe, was 80.9%, almost a full point better than prior year, and again, a record result. We had an outstanding quarter on the investment side of our business.
Evan G. Greenberg: P&C underwriting income was $2.2 billion, up 40%, with a record low combined ratio of 81.2%. Our published underwriting results were supported, of course, by low CATs and prior period reserve development, but importantly, very strong current accident year performance from our businesses across the board, including from our agriculture division, where we are the number one crop insurer in America. Agriculture's outstanding results benefited the quarter's underlying current accident year combined ratio of 80.4, which was nearly 2 points better than prior year and a record low. Importantly, however, excluding agriculture, the global P&C current accident year combined ratio, reflecting the strength of our businesses from around the globe, was 80.9%, almost a full point better than prior year, and again, a record result. We had an outstanding quarter on the investment side of our business.
Our published underwriting results were supported, of course, by low cuts and prior period Reserve development.
Speaker #3: published underwriting results were supported of course by low-cuts and prior period reserve development. But importantly, very strong current accident year performance, from our businesses across the board.
But importantly, very strong current accident year performance from our businesses across the board, including from our agriculture division, Where We Are The Number 1 crop insurer in America.
agriculture's outstanding results benefited, the quarters underlying current accident year, combined ratio of 80.4
But importantly, very strong current accident year performance from our businesses across the board, including from our agriculture division, Where We Are The Number 1 crop insurer in America.
Which was nearly 2 points better than prior year and a record low.
importantly, however, excluding agriculture
the global PNC current accident year combined ratio,
Agriculture is outstanding—results benefited. The quarter’s underlying current accident year combined ratio of 80.4 was nearly 2 points better than the prior year and a record low.
importantly, however, excluding agriculture, the global PNC, current accident year combined ratio,
Reflecting the strength of our businesses from around the globe, with 80.9%. Almost a full point better than prior year. And again a record result.
And we had an outstanding quarter on the investment side of our business.
Reflecting the strength of our businesses from around. The globe was 80.9%. Almost a full point better than prior year. And again, a record result.
we generated record adjustment, net investment income of 1.8 billion up 7.3%
Evan G. Greenberg: We generated record adjusted net investment income of $1.8 billion, up 7.3%. Our fixed income portfolio yield is 5.1, and our current new money rate averages slightly above that. Our invested asset now stands at $169 billion, up from $151 billion a year ago. The more important time frame to me to discuss, though, is the full year, and what a year we had! We printed record operating income just shy of $10 billion or $24.79 per share, up about 9% and 11%, respectively, over prior. For perspective, over the past 3 and 5 years, core operating income has grown 55% and over 200%. All three major sources of income for our company produced record results last year.
Evan G. Greenberg: We generated record adjusted net investment income of $1.8 billion, up 7.3%. Our fixed income portfolio yield is 5.1, and our current new money rate averages slightly above that. Our invested asset now stands at $169 billion, up from $151 billion a year ago. The more important time frame to me to discuss, though, is the full year, and what a year we had! We printed record operating income just shy of $10 billion or $24.79 per share, up about 9% and 11%, respectively, over prior. For perspective, over the past 3 and 5 years, core operating income has grown 55% and over 200%. All three major sources of income for our company produced record results last year.
And we had an outstanding quarter on the investment side of our business.
Our fixed income portfolio, yield is 5.1 and our current new money rate, averages slightly above that.
Our invested asset now, stands at 169 billion up from 151 billion a year ago.
We generated record adjustment. Net investment income of $1.8 billion, up 7.3%. Our fixed income portfolio yield is 5.1%, and our current new money rate averages slightly above that.
Our invested asset now, stands at 169 billion up from 151 billion a year ago.
The more important time frame to me to discuss, though, is the full year. And what a year we had we printed record operating income, just shy of 10 billion dollars or 24.79 per share up about 9% and 11% respectively over prior.
The more important time frame to me to discuss, though, is the full year. And what a year we had—we printed record operating income, just shy of $10 billion, or $24.79 per share, up about 9% and 11%, respectively, over prior.
Core, operating income has grown 55% and over 200%.
For perspective, over the past 3 and 5 years, core operating income has grown 55% and over 200%.
Evan G. Greenberg: P&C underwriting income of $6.5 billion was up 11.6%, with a record low combined ratio for the year of 85.7. Adjusted net investment income rose 9% to almost $7 billion, and life insurance income of $1.2 billion was up over 13%.... Our record underwriting results and earnings were achieved in spite of full-year cat losses that were, in fact, higher than prior year, substantially driven by the California wildfires in Q1. Though US and worldwide hurricane and typhoon seasons were unusually light this year, annual industry cat losses still approached $129 billion. By its nature, cat exposure is volatile. Frequency and severity of losses are alive and well. Fire, flood, cyclonic, and earthquake are all perils that contributed to industry cat losses.
Evan G. Greenberg: P&C underwriting income of $6.5 billion was up 11.6%, with a record low combined ratio for the year of 85.7. Adjusted net investment income rose 9% to almost $7 billion, and life insurance income of $1.2 billion was up over 13%.... Our record underwriting results and earnings were achieved in spite of full-year cat losses that were, in fact, higher than prior year, substantially driven by the California wildfires in Q1. Though US and worldwide hurricane and typhoon seasons were unusually light this year, annual industry cat losses still approached $129 billion. By its nature, cat exposure is volatile. Frequency and severity of losses are alive and well. Fire, flood, cyclonic, and earthquake are all perils that contributed to industry cat losses.
All three major sources of income for our company produced record results last year.
All 3, major sources of income for our company, produce record results last year, PNC underwriting, income of 6.5 billion was up 11.6% with a record low combined ratio for the year of 85.7 adjusted. Net investment income, Rose, 9% to almost 7 billion and life. Insurance income of. 1.2 billion was up over 13%.
Our record under writing results in earnings were achieved in spite of full year, cat losses that were in fact higher than prior year.
PNC underwriting, income of 6.5 billion was up 11.6% with a record low combined ratio for the year of 85.7 adjusted. Net investment income, Rose, 9% to almost 7 billion and life. Insurance income of. 1.2 billion was up over 13%.
Substantially driven by the California wildfires in the first quarter.
Our record underwriting results in earnings were achieved in spite of a full year. Cat losses that were in fact higher than prior year.
Though, us and worldwide. Hurricane and typhoon seasons were unusually light this year.
Substantially driven by the California wildfires in the first quarter.
Annual industry cat losses still approached 129 billion.
By its nature. Cat. Exposure is volatile.
Frequency and severity of losses are alive and well.
Annual industry cat losses still approached 129 billion.
By its nature. Cat. Exposure is volatile.
Fire flood, cyclonic, and earthquake, are all perils that contributed to Industry. Cat losses.
Frequency and severity of losses are alive and well.
For the year, we do grew total company premiums over 6 and a half percent.
With PNC up about 5 and a half and life up over 15.
Evan G. Greenberg: For the year, we grew total company premiums over 6.5%, with P&C up about 5.5% and life up over 15%. Per share tangible book value, our most important measure of wealth creation, grew 25.7% last year. Peter's going to have more to say about financial items. Again, our results for both the quarter and the year, top and bottom line, put a point on the broad-based, diversified nature of the company by geography, by product, by commercial and consumer customer segment, and distribution channel. It speaks to how well we are positioned, both relatively and in absolute terms. Turning to growth pricing in the rate environment. P&C premium revenue again grew over 7.5% in the quarter, with consumer up almost 12% and commercial up over 6%.
Evan G. Greenberg: For the year, we grew total company premiums over 6.5%, with P&C up about 5.5% and life up over 15%. Per share tangible book value, our most important measure of wealth creation, grew 25.7% last year. Peter's going to have more to say about financial items. Again, our results for both the quarter and the year, top and bottom line, put a point on the broad-based, diversified nature of the company by geography, by product, by commercial and consumer customer segment, and distribution channel. It speaks to how well we are positioned, both relatively and in absolute terms. Turning to growth pricing in the rate environment. P&C premium revenue again grew over 7.5% in the quarter, with consumer up almost 12% and commercial up over 6%.
Fire flood, cyclonic, and earthquake are all perils the contributed to Industry cat losses.
Per share tangible Book, value our most important measure of wealth, creation, grew 25.7%, last year.
For the year, we do grew total company premiums over 6 and a half percent with PNC up about 5 and a half and life up over 15.
Peter's going to have more to say about financial items.
Per share tangible Book, value our most important measure of wealth, creation, grew 25.7%, last year.
Peter's going to have more to say about financial items.
Again our results for both the quarter and the year, top and bottom line put a point on the broad-based Diversified nature of the company by geography by product.
By commercial and consumer customer segments and distribution Channel.
It speaks to how well we are positioned both relatively and an absolute terms.
Turning to growth pricing in the rate environment.
Crucified nature of the company by geography by product by commercial and consumer customer segments and distribution Channel.
It speaks to how well we are positioned both relatively and an absolute terms.
Turning to growth pricing in the rate environment.
PNC, premium Revenue again, grew over 7 and a half percent. In the quarter with consumer up, almost 12% and Commercial up over 6%.
Evan G. Greenberg: Our international P&C and US agriculture business had a particularly strong growth quarter, with premiums up nearly 11% and over 45%, respectively. But we also had strong growth from our US personal lines business and our commercial US middle market and E&S businesses. In terms of the commercial P&C underwriting environment in the Q4, as I said the last few quarters, the market globally is in transition and growing incrementally more competitive quarter by quarter, particularly large account property admitted in E&S and upper middle market. Casualty pricing, overall, large account, E&S, and middle market continues to firm in the areas that require rate, and in those that don't, price increases have slowed. Financial lines remain soft, with some signs of firming in discrete classes.
Evan G. Greenberg: Our international P&C and US agriculture business had a particularly strong growth quarter, with premiums up nearly 11% and over 45%, respectively. But we also had strong growth from our US personal lines business and our commercial US middle market and E&S businesses. In terms of the commercial P&C underwriting environment in the Q4, as I said the last few quarters, the market globally is in transition and growing incrementally more competitive quarter by quarter, particularly large account property admitted in E&S and upper middle market. Casualty pricing, overall, large account, E&S, and middle market continues to firm in the areas that require rate, and in those that don't, price increases have slowed. Financial lines remain soft, with some signs of firming in discrete classes.
PNC premium Revenue again, grew over 7.5% in the quarter with consumer up, almost 12% and Commercial up over 6%.
Our International PNC and US agriculture business had a particularly strong growth quarter with premiums up nearly 11% and over 45% respectively.
But we also had strong growth from our us, personal lines business, and our commercial us Middle Market and ens businesses.
Our international P&C and U.S. agriculture business had a particularly strong growth quarter, with premiums up nearly 11% and over 45%, respectively.
But we also had strong growth from our U.S. personal lines business, and our commercial U.S. Middle Market and E&S businesses.
In terms of the commercial PNC underwriting environment in the fourth quarter, as I said, the last few quarters. The market globally is transition is in transition and growing incrementally, more competitive quarter by quarter.
Particularly large account property admitted in the NS and upper middle Market.
In terms of the commercial PNC underwriting environment in the fourth quarter, as I said, the last few quarters. The market globally is transition is in transition and growing incrementally, more competitive quarter by quarter.
Particularly large account property admitted in the ens, an upper middle Market.
Casualty pricing, overall large account, ens and Middle Market continues to firm in the areas that require rate. And in those that don't price increases of slowed,
Financial lines, remain soft with some signs of firming Indiscreet classes.
Casualty pricing, overall large account, ens and Middle Market continues to firm in the areas that require rate.
And in those that don't price increases have slowed.
When you give you some more color on the fourth quarter by division and I'm going to begin with our International PNC business.
Evan G. Greenberg: Let me give you some more color on the Q4 by division, and I'm going to begin with our international P&C business. Premiums in overseas general were up 10.8%, or over 8% in constant dollar, a very good result. Premiums in our global retail, which operates in 53 countries and which is 90% of our overseas general division, were up 12.5%, with consumer premiums, both ANH and personal lines, up 18.7%, and commercial lines up almost 7.5%. Latin America grew 14.7%, with consumer up almost 18% and commercial up 10.5%. Asia grew 13%, with consumer up 25% and commercial flat, and Europe grew over 7%.
Evan G. Greenberg: Let me give you some more color on the Q4 by division, and I'm going to begin with our international P&C business. Premiums in overseas general were up 10.8%, or over 8% in constant dollar, a very good result. Premiums in our global retail, which operates in 53 countries and which is 90% of our overseas general division, were up 12.5%, with consumer premiums, both ANH and personal lines, up 18.7%, and commercial lines up almost 7.5%. Latin America grew 14.7%, with consumer up almost 18% and commercial up 10.5%. Asia grew 13%, with consumer up 25% and commercial flat, and Europe grew over 7%.
Financial lines, remain soft with some signs of firming Indiscreet classes.
Premiums and overseas General were up, 10.8%.
For over 8%. In constant dollar, a very good result.
Going to give you some more color on the fourth quarter by division and I'm going to begin with our International PNC business.
Premiums in Overseas General were up 10.8%.
Or over 8% in constant dollar, a very good result.
Premiums in our Global retail, which operates in 53 countries and which is 90% of our overseas General division. We're up 12.5%.
With consumer premiums, both ANH and personal lines up 18.7.
And Commercial lines up almost 7 and a half percent.
Premiums in our Global retail, which operates in 53 countries and which is 90% of our overseas General division, we're up 12 and a half percent.
With consumer premiums, both A&H and personal lines were up 18.7%.
And Commercial lines up almost 7 and a half percent.
Latin America, grew 14.7 with consumer up, almost 18 and Commercial up, 10 and a half. Asia, grew 13% with consumer up. 25% and Commercial flat, and Europe. Grew over 7%.
Evan G. Greenberg: In our international retail commercial business, PNC rates were down 3.6%, and financial lines rates were down almost 9%. Loss costs remained steady. Premiums in our London wholesale business, which is 10% of our international PNC, were down about 1%, given more competitive London open market conditions, basically across the board, property, marine, aviation, and professional lines. Turning to North America, total PNC premiums were up over 6.5%. Agriculture, again, was up over 45%, predominantly due to the profit-sharing formula with the government. Excluding agriculture, premiums were up 4.7%, including more than 6% in personal lines and 4.3% in commercial, which is made up of middle market, small, E&S, and large account divisions.
Evan G. Greenberg: In our international retail commercial business, PNC rates were down 3.6%, and financial lines rates were down almost 9%. Loss costs remained steady. Premiums in our London wholesale business, which is 10% of our international PNC, were down about 1%, given more competitive London open market conditions, basically across the board, property, marine, aviation, and professional lines. Turning to North America, total PNC premiums were up over 6.5%. Agriculture, again, was up over 45%, predominantly due to the profit-sharing formula with the government. Excluding agriculture, premiums were up 4.7%, including more than 6% in personal lines and 4.3% in commercial, which is made up of middle market, small, E&S, and large account divisions.
Latin America grew 14.7%, with Consumer up almost 18% and Commercial up 10 and a half. Asia grew 13%, with Consumer up 25% and Commercial flat, and Europe grew over 7%.
And our International retail Commercial Business. PNC rates were down 3.6% and financial lines rates were down. Almost 9% loss costs, remain steady.
Down about 1%.
And our International retail Commercial Business. PNC rates were down 3.6% and financial lines rates were down. Almost 9% loss costs, remain steady.
Given more competitive London, open market conditions, basically across the board property Marine, Aviation and professional lines.
Premiums in our London, wholesale business, which is 10% of our International PNC. We're down about 1%
Turning to North America. Total PNC premiums were up over 6 and a half percent.
Given more competitive. London, open market conditions, basically a cross the board property Marine Aviation and professional lines.
Turning to North America. Total PNC premiums were up over 6 and a half percent agriculture again was up over 45, Predators due to the profit sharing formula with the government.
Including agriculture, premiums were up 4.7%.
Agriculture again was up over 45, Predators due to the profit sharing formula. With the government. Excluding agriculture premiums were up 4.7% including more than 6% in personal lines and 4.3 in commercial, which is made up of Middle Market, small ens and large account divisions.
Evan G. Greenberg: Breaking US commercial growth down further, premiums in middle market and small commercial grew over 6%, with P&C up 7.5% and financial lines up 1.5%. New business for middle market and small was strong, up more than 17% versus prior year. Premiums in major accounts and specialty grew 3%, with major or large account business up 0.5%, and Westchester, our E&S company, up over 7.5%. Major account, and for that matter, Westchester growth, was impacted by property, obviously, and in major, we wrote fewer one-off LPT transactions than we did prior year. Commercial pricing for property and casualty, excluding thin lines and comp, was up 4.3, with rates up 2.5% and exposure change of 1.8....
Evan G. Greenberg: Breaking US commercial growth down further, premiums in middle market and small commercial grew over 6%, with P&C up 7.5% and financial lines up 1.5%. New business for middle market and small was strong, up more than 17% versus prior year. Premiums in major accounts and specialty grew 3%, with major or large account business up 0.5%, and Westchester, our E&S company, up over 7.5%. Major account, and for that matter, Westchester growth, was impacted by property, obviously, and in major, we wrote fewer one-off LPT transactions than we did prior year. Commercial pricing for property and casualty, excluding thin lines and comp, was up 4.3, with rates up 2.5% and exposure change of 1.8....
Including more than 6% in personal lines and 4.3% in commercial, which is made up of Middle Market, Small E&S, and Large Account divisions.
Breaking us commercial growth down further, premiums in Middle Market, and small commercial grew over 6% with PNC up, 7 and a half, and financial lines up 1 and a half.
New business for Middle Market and small with strong up more than 17% versus prior year.
Breaking us commercial growth down further, premiums in Middle Market, and small commercial grew over 6% with PNC up, 7 and a half, and financial lines up 1 and a half.
Premiums in major accounts and Specialty grew deep, 3%.
With major or large account business up a half a percent.
New business for Middle Market and small with strong up more than 17% versus prior year.
And Westchester are in US, company up over 7 and a half percent.
Premiums and major accounts and Specialty grew, 3%.
With major or large account business up a half a percent.
And West Chester. Our Ian us company up over 7 and a half percent.
Major account. And for that matter, Westchester growth was impacted by property. Obviously and in major, we wrote fewer 1 off lpt transactions than we did prior year.
Major account. And for that matter, Westchester growth was impacted by property. Obviously and in major, we wrote fewer 1 off lpt transactions than we did prior year.
Commercial pricing for Property and Casualty excluding fin lines. And comp was up, 4.3, with rates up 2, and a half percent and exposure, change of 1.8.
Property pricing was down 1 and a half percent with rates down 46, partially offset by exposure of 33.
Evan G. Greenberg: Property pricing was down 1.5%, with rates down 4.6%, partially offset by exposure of 3.3%. Going a step further, property pricing was down over 13.5% in large account business and E&S, and was up 3.7% in middle market and small commercial. Casualty pricing in North America was up 8.5%, with rates up 7.6% and exposure up 0.8%. Financial lines pricing was down 1.5%, and comp middle market pricing was down just under 1%. Large account risk management pricing was up 6.5%. In North America commercial, again, there was no change to our selected loss cost trends. Premiums in North America high net worth personal lines grew over 6%, and homeowners' pricing was up over 8.5%.
Evan G. Greenberg: Property pricing was down 1.5%, with rates down 4.6%, partially offset by exposure of 3.3%. Going a step further, property pricing was down over 13.5% in large account business and E&S, and was up 3.7% in middle market and small commercial. Casualty pricing in North America was up 8.5%, with rates up 7.6% and exposure up 0.8%. Financial lines pricing was down 1.5%, and comp middle market pricing was down just under 1%. Large account risk management pricing was up 6.5%. In North America commercial, again, there was no change to our selected loss cost trends. Premiums in North America high net worth personal lines grew over 6%, and homeowners' pricing was up over 8.5%.
Commercial pricing for Property and Casualty excluding fin lines. And comp was up, 4.3, with rates up 2, and a half percent and exposure, change of 1.8.
Going a step further property. Pricing was down over 13.5% in large account business and ens.
Julie, officer by exposure of 33.
Going a step further property. Pricing was down over 13.5% in large account business and ens.
And it was up 3.7 in Middle Market and small commercial casualty. Pricing in North America was up 8 and a half percent with rates up 766 and exposure up 0.8.
And it was up 3.7 in Middle Market and small commercial.
Financial lines pricing was down 1 and a half percent and comp middle market pricing was down just under a percent.
Casualty pricing in North America was up, 8, 1.5% with rates up 76 and exposure up 08.
Large account risk, management pricing was up 6.5%.
Financial lines pricing was down 1 and a half percent and comp middle market pricing was down just under a percent.
In North America commercial again. There was no change to our selected loss cost trends.
Large account risk management pricing was up 6.5%.
Premiums in North America, High net worth personal lines, grew over 6%.
And homeowners pricing was up over 8 and a half.
In North America commercial again. There was no change to our selected loss cost trends.
Premiums in North America, High net worth personal lines, grew over 6%.
In our International life insurance business, which is fundamentally Asia premiums were up almost 18% in constant dollar.
Evan G. Greenberg: In our international life insurance business, which is fundamentally Asia, premiums were up almost 18% in constant dollar. In North America, premiums in Chubb Worksite Benefits business were up over 16.5%. Our life division produced $322 million of pre-tax income in the quarter, up just shy of 20%. So in summary, we had a great quarter and a great year, which again speaks to the broadly diversified and global nature of our company. We have many sources of opportunity on both the liability and asset side of the balance sheet. At the same time, we are continuing to invest to improve our competitive profile.
Evan G. Greenberg: In our international life insurance business, which is fundamentally Asia, premiums were up almost 18% in constant dollar. In North America, premiums in Chubb Worksite Benefits business were up over 16.5%. Our life division produced $322 million of pre-tax income in the quarter, up just shy of 20%. So in summary, we had a great quarter and a great year, which again speaks to the broadly diversified and global nature of our company. We have many sources of opportunity on both the liability and asset side of the balance sheet. At the same time, we are continuing to invest to improve our competitive profile.
And homeowners pricing was up over 8 and a half.
And in North America premiums in Chubb, work site benefits business were up over. 16.5%
In our International life insurance business, which is fundamentally Asia premiums were up almost 18% in constant dollar.
Our life division, produced 322 million of pre-tax income in the quarter up, just shy of 20%.
And in North America, premiums in Chubb's worksite benefits business were up over 16.5%.
Our life division, produced 322 million of pre-tax income in the quarter up, just shy of 20%.
Opportunity on both the liability and asset side of the balance sheet. At the same time, we are continuing to invest to improve our competitive profile.
While early, we're off to a good start in 26 and we're confident in our ability to generate for the year.
Evan G. Greenberg: While early, we're off to a good start in 2026, and we're confident in our ability to generate, for the year, strong growth in operating earnings and double-digit growth in EPS and tangible book value through the three sources of income, P&C underwriting, investment income, and life, though cats and FX aside. I'll turn the call over to Peter, and then we can come back and take your questions.
Evan G. Greenberg: While early, we're off to a good start in 2026, and we're confident in our ability to generate, for the year, strong growth in operating earnings and double-digit growth in EPS and tangible book value through the three sources of income, P&C underwriting, investment income, and life, though cats and FX aside. I'll turn the call over to Peter, and then we can come back and take your questions.
So in summary, we had a great quarter, and a great year which again, speaks to the broadly, Diversified and Global nature of our company. We have many sources of opportunity on both the liability and asset side of the balance sheet. At the same time, we are continuing to invest to improve our competitive profile.
While early, we're off to a good start in 26 and we're confident in our ability to generate for the year.
Strong growth and operating earnings and double-digit growth in EPs and tangible Book value through the 3 sources of income PNC underwriting, investment income. And life, though. Cats and FX aside, I'll turn the call over to Peter and then we're going to come back and take your questions.
Good morning.
Peter Enns: Good morning. As you heard from Evan, we concluded the year with an outstanding quarter that produced full-year earnings records and all-time highs on our balance sheets, including cash and invested assets exceeding $171 billion and book value of nearly $74 billion. Our exceptional results were supported by $4.2 billion of adjusted operating cash flows in the quarter and $13.9 billion for the year. We returned $1.5 billion of capital to shareholders, which contributed to a total of $4.9 billion for the year, or about half of our core operating income, including $3.4 billion in share repurchases at an average price of $282.57 per share, and $1.5 billion in dividends.
Strong growth and operating earnings and double-digit growth in EPs and tangible Book value through the 3 sources of income PNC underwriting, investment income. And life, though. Cats and FX aside, I'll turn the call over to Peter and then we're going to come back and take your questions.
Peter Enns: Good morning. As you heard from Evan, we concluded the year with an outstanding quarter that produced full-year earnings records and all-time highs on our balance sheets, including cash and invested assets exceeding $171 billion and book value of nearly $74 billion. Our exceptional results were supported by $4.2 billion of adjusted operating cash flows in the quarter and $13.9 billion for the year. We returned $1.5 billion of capital to shareholders, which contributed to a total of $4.9 billion for the year, or about half of our core operating income, including $3.4 billion in share repurchases at an average price of $282.57 per share, and $1.5 billion in dividends.
Uh, good morning.
As you heard from Evan, we concluded the year with an outstanding quarter, that produced full year. Earnings records and all-time highs on our balance sheet, including cash and invested assets exceeding, 171 billion,
And Book value of nearly 74 billion.
As you heard from Evan, we concluded the year with an outstanding quarter that produced full-year earnings records and all-time highs on our balance sheet, including cash and invested assets exceeding $171 billion.
Our exceptional results were supported by 4.2 billion of adjusted operating cash flows in the quarter and 13.9 billion for the year.
And Book value of nearly 74 billion.
We returned 1.5 billion of capital to shareholders which contributed to a total of 4.9 billion for the year or about half of our core operating income.
Our exceptional results were supported by 4.2 billion of adjusted operating cash flows in the quarter and 13.9 billion for the year.
Including 3.4 billion in share repurchases at an average price of 28257 per share and 1.5 billion in dividends.
We returned 1.5 billion of capital to shareholders which contributed to a total of 4.9 billion for the year or about half of our core operating income.
Peter Enns: Book and tangible book value per share, excluding AOCI, grew 3.4% and 4.8%, respectively, for the quarter, and 11% and 15.5%, respectively, for the year. Our core operating return on tangible equity and core operating ROE in the quarter were 23.5% and 15.9%. Pre-tax catastrophe losses were $365 million for the quarter, principally from weather-related events, split 55% US and 45% international, and $2.9 billion for the year versus $2.4 billion in the prior year. Pre-tax prior period development in the quarter in our active companies was favorable $430 million, split 64% short tail lines and 36% long tail lines.
Peter Enns: Book and tangible book value per share, excluding AOCI, grew 3.4% and 4.8%, respectively, for the quarter, and 11% and 15.5%, respectively, for the year. Our core operating return on tangible equity and core operating ROE in the quarter were 23.5% and 15.9%. Pre-tax catastrophe losses were $365 million for the quarter, principally from weather-related events, split 55% US and 45% international, and $2.9 billion for the year versus $2.4 billion in the prior year. Pre-tax prior period development in the quarter in our active companies was favorable $430 million, split 64% short tail lines and 36% long tail lines.
Including $3.4 billion in share repurchases at an average price of $282.57 per share and $1.5 billion in dividends.
Book and tangible book value per share. Excluding aoci grew 3.4% and 4.8% respectively for the quarter and 11 and 15.5% respectively for the year.
Our core operating return on tangible equity, and core operating, how are we in the quarter? We're 23.5% and 15.9%.
Book and tangible book value per share. Excluding aoci grew 3.4% and 4.8% respectively for the quarter and 11 and 15.5 for percent respectively, for the year.
our core operating return on tangible, equity, and core operating, are we in the quarter or 23.5% and 15.9%
Pre-tax catastrophe. Losses were 365 million for the quarter principally from weather related events, split, 55% us and 45% International.
And 2.9 billion for the year versus 2.4 billion in the prior year.
Pre-tax catastrophe. Losses were 365 million for the quarter principally from weather related events, split, 55% us and 45% International.
And 2.9 billion for the year versus 2.4 billion in the prior year.
Peter Enns: Our corporate runoff portfolio had adverse development of $162 million, primarily related to our asbestos review, which is completed each Q4. Our paid to incurred ratio for the quarter and year was 105% and 91%, respectively. Excluding cats, PPD and agriculture, our paid to incurred ratio for the quarter and year was 94% and 88%. Turning to investments, our A-rated portfolio increased about $2.7 billion from the prior quarter and $18.1 billion from the prior year. The increase for the quarter and full year reflects strong operating cash flow and positive marks to market, while the year also includes favorable FX, partially offset by shareholder distributions.
Peter Enns: Our corporate runoff portfolio had adverse development of $162 million, primarily related to our asbestos review, which is completed each Q4. Our paid to incurred ratio for the quarter and year was 105% and 91%, respectively. Excluding cats, PPD and agriculture, our paid to incurred ratio for the quarter and year was 94% and 88%. Turning to investments, our A-rated portfolio increased about $2.7 billion from the prior quarter and $18.1 billion from the prior year. The increase for the quarter and full year reflects strong operating cash flow and positive marks to market, while the year also includes favorable FX, partially offset by shareholder distributions.
Free tax prior, period development in the quarter, and our active companies was favorable, 430 million dollars, split 6, 64%, short tail lines and 36% longtail lines. Our corporate runoff portfolio had adverse development of 162 million, to primarily related to our asbestos review, which is completed. Each fourth quarter, our paid to incurred ratio for the quarter and year was 105 and 91% respectively, excluding cats.
Pre-tax prior period development in the quarter. In our insurance companies, it was favorable $430 million, split 64% short-tail lines and 36% long-tail lines. Our corporate runoff portfolio had adverse development of $162 million, primarily related to our asbestos review, which is completed each fourth quarter.
BD and agriculture are paid to incurred ratio for the quarter and year was 94 and 88 percent.
Our paid to incurred ratio for the quarter and year was 105% and 91% respectively, excluding cats, PPD, and agriculture are paid to incurred ratio for the quarter and year was 94 and 88%.
Turning to Investments are a-rated portfolio. Increased about 2.7 billion from the prior quarter and 18.1 billion from the prior year. The increase for the quarter. And full year, reflects strong operating cash flow and positive marks to Market. While the year also includes favorable FX, partially offset by shareholder, distributions.
Turning to Investments are a-rated portfolio. Increased about 2.7 billion from the prior quarter and 18.1 billion from the prior year.
Adjusted net investment income of 1.81 billion was at the top end of our previously, guided range primarily due to strong growth and in the invested asset base.
Peter Enns: Adjusted net investment income of $1.81 billion was at the top end of our previously guided range, primarily due to strong growth and in the invested asset base. For the year, adjusted net investment income grew 9% to $6.9 billion, which included approximately $6 billion or 9% growth from our public fixed income portfolio and $940 million or 8.5% growth from our private investments. We expect adjusted net investment income in Q1 2026 to be between $1.81 and $1.84 billion. Our core operating effective tax rate was 18.7% for the quarter and 19.4% for the year, which was slightly below our previously guided range.
Peter Enns: Adjusted net investment income of $1.81 billion was at the top end of our previously guided range, primarily due to strong growth and in the invested asset base. For the year, adjusted net investment income grew 9% to $6.9 billion, which included approximately $6 billion or 9% growth from our public fixed income portfolio and $940 million or 8.5% growth from our private investments. We expect adjusted net investment income in Q1 2026 to be between $1.81 and $1.84 billion. Our core operating effective tax rate was 18.7% for the quarter and 19.4% for the year, which was slightly below our previously guided range.
The increase for the quarter and full year reflects strong operating cash flow and positive marks to market, while the year also includes favorable FX, partially offset by shareholder distributions.
The net investment income of $1.81 billion was at the top end of our previously guided range, primarily due to strong growth in the invested asset base.
For the year, adjusted net investment income, grew 9% to 6.9 billion, which included approximately 6 billion or 9% growth. From our public fixed income portfolio and 940 million or 8.5% growth from our private Investments.
For the year, adjusted net investment income grew 9% to $6.9 billion, which included approximately $6 billion, or 9% growth, from our public fixed income portfolio and $940 million, or 8.5% growth, from our private investments.
We expect adjusted net investment income in the first quarter of 2026 to be between 1.81 to 1.84 billion. Our core operating effective tax rate was 18.7 for the quarter and 19.4% for the year which was slightly below our previously guided range.
We expect adjusted net investment income in the first quarter of 2026 to be between 1.81 to 1.84 billion.
Peter Enns: We expect our annual core operating effective tax rate for 2026 to be in the range of 19.5% to 20%. I'll now turn the call back over to Susan.
Peter Enns: We expect our annual core operating effective tax rate for 2026 to be in the range of 19.5% to 20%. I'll now turn the call back over to Susan.
Our core operating effective tax rate was 18.7 for the quarter and 19.4% for the year, which was slightly below our previously guided range.
We expect our annual core operating effective tax rate for 2026 to be in the range of 19.5 to 20%. I'll now turn the call back over to Susan. Thank you, Peter, at this point we're happy to take your questions.
Operator. Um, please queue up the questions.
Evan G. Greenberg: Thank you, Peter. At this point, we're happy to take your questions. Operator, please queue up the questions.
Susan Spivak: Thank you, Peter. At this point, we're happy to take your questions. Operator, please queue up the questions.
Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit yourself to one question and one follow-up. Your first question comes from the line of Brian Meredith of UBS. Your line is open.
Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit yourself to one question and one follow-up. Your first question comes from the line of Brian Meredith of UBS. Your line is open.
We expect our annual core operating effective tax rate for 2026 to be in the range of 19 and 1.5 to 20%. I'll now turn the call back over to Susan. Thank you Peter, at this point we're happy to take your questions, operator. Um, please queue up the questions.
If you would like to withdraw your question, simply press star 1 again.
Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.
If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.
If you would like to withdraw your questions, simply press star 1 again.
And we do request for today's session that you please let me yourself to 1 question and 1 follow-up.
Your first question comes from the line of Brian Meredith of UBS. Your line is open.
If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. And we do request for today's session that you please let me yourself to 1 question and 1 follow-up.
Brian Meredith: Yeah, thank you. Evan, first question, just looking at the, US commercial lines, North American commercial lines business. You know, your, your underlying margins have been incredibly consistent, and excellent results over the last several years. I'm just wondering, given the current pricing environment, do you think you can sustain those here in 2026?
Brian Meredith: Yeah, thank you. Evan, first question, just looking at the, US commercial lines, North American commercial lines business. You know, your, your underlying margins have been incredibly consistent, and excellent results over the last several years. I'm just wondering, given the current pricing environment, do you think you can sustain those here in 2026?
Your first question comes from the line of Brian Meredith of UBS. Your line is open.
Staying those here in 2026?
Yeah, thank you. Um, Evan first question, just looking at the um us commercial on North American Commercial lines business. You know your your underlying margins have been incredibly consistent um and excellent results over the last several years. I'm just wondering given the current pricing environment
Morning, Brian. Um, you know, I don't give forward guidance as you know and, um,
Do you think you can sustain those here in 2026?
Evan G. Greenberg: Morning, Brian. You know, I don't give forward guidance, as you know. On one hand, you have, you know, clearly lines of business where price is not keeping pace with loss cost. You know, the math naturally works in one direction. On the other hand, we have a very broad business, and mix of business changes mitigate on the other side. I'm very comfortable with the combined ratios we are publishing, and I do not prognosticate the future, but I do have confidence in underwriting income for this company, growth in underwriting income contributing to that growth in EPS.
Evan G. Greenberg: Morning, Brian. You know, I don't give forward guidance, as you know. On one hand, you have, you know, clearly lines of business where price is not keeping pace with loss cost. You know, the math naturally works in one direction. On the other hand, we have a very broad business, and mix of business changes mitigate on the other side. I'm very comfortable with the combined ratios we are publishing, and I do not prognosticate the future, but I do have confidence in underwriting income for this company, growth in underwriting income contributing to that growth in EPS.
um, on 1 hand, you have, you know, clearly lines of business where
Um, price is not keeping Pace with loss cost.
Morning, Brian. Um, you know, I don't give a fuk guidance as you know, and, um,
Um, on one hand, you have, you know, clearly lines of business where—
Um, price is not keeping Pace with loss costs.
And um, you know, the math.
And, um, you know, the math naturally Works. Um, in 1 Direction, on the other hand, um, we have a very broad business and mix of business changes. Um, mitigate on the other side, um,
I'm very comfortable with the combined. Ratios, we are publishing and I do not printostat.
Naturally Works. Um, in 1 Direction, on the other hand, um, we have a very broad business and mix of business changes. Um, mitigate on the other side, um,
I'm very comfortable with the combined. Ratios, we are publishing and I do not print ocate the future.
Um but I do have confidence um and underwriting income. Um for this company growth and underwriting income, contributing to that growth in eps.
Great, thanks. And then maybe let's
Um but I do have confidence um in underwriting income. Um for this company growth and underwriting income contributing to that growth in eps.
Brian Meredith: Great, thanks.
Brian Meredith: Great, thanks.
Evan G. Greenberg: And strong-
Evan G. Greenberg: And strong-
Brian Meredith: That's terrific. And then maybe pivot over to the personal lines business. You know, once again, terrific combined ratios. You know, there's been some press and some regulators talking about excess profit laws and implementing them. I'm just curious your thoughts on that and potential implications for, you know, Chubb and its profitability in that business.
Great, thanks. And maybe let's
Brian Meredith: That's terrific. And then maybe pivot over to the personal lines business. You know, once again, terrific combined ratios. You know, there's been some press and some regulators talking about excess profit laws and implementing them. I'm just curious your thoughts on that and potential implications for, you know, Chubb and its profitability in that business.
That's terrific and and then maybe pivot over to the personal lines business. Um, you know, once again, terrific, um, combined ratios, you know, there's been some, um, press and some Regulators talking about excess profit laws and implementing them. Um, I'm just curious your thoughts on that and potential implications for, you know, Chubb. And, and this profitability and that business
yeah, look if you measure our personal lines business in the United States over, you know any reasonable period of time
That's terrific and and then maybe pivot over to the personalized business. Um, you know, once again, terrific combined ratios, you know, there's been some, um, press and some Regulators talking about excess profit laws and implementing them. Um, I'm just curious your thoughts on that and potential implications for, you know, Chubb. And, and this profitability and that business
Evan G. Greenberg: Yeah. Look, if you measure our personal lines business in the United States over, you know, any reasonable period of time, 3, 5, 10 years, it classically runs in the high 80s to, you know, up into the low 90s, combined ratios. Given and it bounces around, given the nature of catastrophe losses, in particular. I'm very mindful and more than mindful, sympathetic about the issue of affordability in the United States. But I would be careful when politicians think about that issue of affordability, pointing to insurance as a culprit. We intermediate money. We don't print money. For Chubb, loss costs in homeowners are rising around 7.5 to 8% at the moment. Liability, on one hand, is a strong contributor to that, and we know liability costs in the US overall are rising.
Evan G. Greenberg: Yeah. Look, if you measure our personal lines business in the United States over, you know, any reasonable period of time, 3, 5, 10 years, it classically runs in the high 80s to, you know, up into the low 90s, combined ratios. Given and it bounces around, given the nature of catastrophe losses, in particular. I'm very mindful and more than mindful, sympathetic about the issue of affordability in the United States. But I would be careful when politicians think about that issue of affordability, pointing to insurance as a culprit. We intermediate money. We don't print money. For Chubb, loss costs in homeowners are rising around 7.5 to 8% at the moment. Liability, on one hand, is a strong contributor to that, and we know liability costs in the US overall are rising.
3 5, 10 years.
Our personal lines business in the United States is over.
You know, any reasonable period of time.
It classically runs in the high 80s to you know up into the low 90s um combined ratios.
3 5, 10 years.
um, given and it bounces around given the nature of of catastrophe losses in particular,
um,
it classically runs in the high 80s to you know, up into the low 90s um combined ratios um given and it bounces around given the nature of of catastrophe losses in particular,
um,
I'm very Mindful and and more than mindful sympathetic about the issue of affordability in the United States. And um
um, but I would be careful in in when
when politicians think about that.
I'm very Mindful and and more than mindful sympathetic about the issue of affordability in the United States. And um
Issue of affordability, um, pointing to insurance as a culprit.
um, but I would be careful in in when
Um,
we intermediate money. We don't.
when politicians think about that.
Print money.
Issue of affordability, um, pointing to insurance as a culprit.
for job loss costs in homeowners arising
Um,
we intermediate money. We don't.
Print money.
for job loss costs in homeowners arising
Around 7 and a half to 8% at the moment. Liability on 1. Hand is a strong contributor to that and we know liability costs in the US overall are rising inflation for liability is roughly 9% 7% to 9.
Evan G. Greenberg: Inflation for liability is roughly 9%, 7% to 9%. And that's multiples of CPI. That's a problem with litigation. That's not an insurance company problem. Secondly, and I think more important to homeowners, a large part of pricing is catastrophes, and those are measured over an extended period. As you know, you could have a two-year period where you have huge outsized cats, and you lose money in that state. On the other hand, you could have a quiet period, and it looks like you made money. You measure it over an extended period. And for homeowners, admitted homeowners in particular, prices are filed, and they get approved based upon technical actuarial. So I would be careful of politicizing the affordability question as you point to homeowners insurance, or it's going to create, ultimately, an availability problem, and that'll exacerbate affordability.
Evan G. Greenberg: Inflation for liability is roughly 9%, 7% to 9%. And that's multiples of CPI. That's a problem with litigation. That's not an insurance company problem. Secondly, and I think more important to homeowners, a large part of pricing is catastrophes, and those are measured over an extended period. As you know, you could have a two-year period where you have huge outsized cats, and you lose money in that state. On the other hand, you could have a quiet period, and it looks like you made money. You measure it over an extended period. And for homeowners, admitted homeowners in particular, prices are filed, and they get approved based upon technical actuarial. So I would be careful of politicizing the affordability question as you point to homeowners insurance, or it's going to create, ultimately, an availability problem, and that'll exacerbate affordability.
And that's multiples of CPI.
Around 7 and a half to 8% at the moment. Liability on 1. Hand is a strong contributor to that and we know liability costs in the US overall are rising inflation for liability is roughly 9% 7% to 9.
That's a that's a problem with litigation. That's not an insurance company problem.
And that's multiples of CPI.
Secondly and I think more important to homeowners a large price. Part of pricing is catastrophes.
Secondly, and I think more important to homeowners.
A large price part of pricing is catastrophes.
And those are measured over an extended period. As you know, you could have a 2 year period, where you have huge, outsized cats and, and you lose money in that state. Um, on the other hand, you could have a quiet period, and it looks like you made money, you measure it over an extended period.
And for homeowners, it admitted homeowners in particular, prices are filed and you they get approved based upon technical Actuarial.
And those are measured over an extended period. As you know, you could have a 2-year period where you have huge, outsized cats and, and you lose money in that state. Um, on the other hand, you could have a quiet period, and it looks like you made money, you measure it over an extended period. And for homeowners, it admitted homeowners in particular, prices are filed.
And you they get approved based upon technical Actuarial.
So I would be careful of. Politicizing the affordability question, that is your point to homeowners insurance, or it's going to create ultimately, unavailability problem and that'll exacerbate affordability.
Thank you.
You're welcome.
So I would be careful of. Politicizing the affordability question, that is your point to homeowners insurance, or it's going to create ultimately, unavailability problem, and that will exacerbate affordability.
Your next question comes from the line of Bob. Hang of Morgan Stanley. Your line is open.
Brian Meredith: Thank you.
Brian Meredith: Thank you.
Thank you.
Uh, I'm a
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
You're welcome.
Operator: Your next question comes from the line of Bob Huang of Morgan Stanley. Your line is open.
Operator: Your next question comes from the line of Bob Huang of Morgan Stanley. Your line is open.
Doctor for overseas business. So I'd like to ask a question on that, um, clearly
Jian Huang: Hi, good morning. I'm a sucker for overseas business, so I'd like to ask a question on that. Clearly, the growth in Latin America and in Asia are very strong. And in Latin America, Mexico has been consistently called out, as a very much a favorable environment. Maybe can you give us a little bit of color outside of Mexico, in Latin America, in terms of, what is the opportunity there and what is the growth momentum there?
Bob Huang: Hi, good morning. I'm a sucker for overseas business, so I'd like to ask a question on that. Clearly, the growth in Latin America and in Asia are very strong. And in Latin America, Mexico has been consistently called out, as a very much a favorable environment. Maybe can you give us a little bit of color outside of Mexico, in Latin America, in terms of, what is the opportunity there and what is the growth momentum there?
Your next question comes from the line of Bob Hang of Morgan Stanley. Your line is open. Hi, uh, good morning. Uh, I'm a sucker for overseas business, so I'd like to ask a question on that. Um, clearly
The growth in Latin America and in Asia are very strong in Latin America. Uh, Mexico has been consistently called out uh, as a very much a a a favorable environment maybe. Can you give us a little bit of color outside of Mexico in Latin America? In terms of uh what is the opportunity there? And what is the growth of momentum there?
Than in our commercial businesses.
The growth in Latin America and in Asia are very strong and in Latin America. Uh Mexico has been consistently called out uh as a very much a a a favorable environment maybe. Can you give us a little bit of color outside of Mexico in Latin America in terms of uh what is the opportunity there? And what is the growth of momentum there?
Evan G. Greenberg: Yeah. It's more in our consumer than in our commercial businesses. You know, we have a, as I'm sure you know, Banco de Chile, largest bank in Chile, is our long-term partner for distribution of consumer-based insurances, as an example. Nubank is our partner in Brazil for digitally distributed insurance, consumer insurance. In Ecuador, we are partners with Banco de Guayaquil, one of the biggest banks in Ecuador, for distribution of the consumer insurances. You get the picture. And in Argentina, we have actually a very good business growing in both consumer and commercial. While commercial is good in Mexico and Brazil, to a degree in Chile and Colombia, it's the consumer businesses with multiple distributions, A&H, specialty personal lines, and automobile on both a direct-to-consumer, through bank and other distribution, digitally based direct-to-consumer, and broker and agent-driven.
Evan G. Greenberg: Yeah. It's more in our consumer than in our commercial businesses. You know, we have a, as I'm sure you know, Banco de Chile, largest bank in Chile, is our long-term partner for distribution of consumer-based insurances, as an example. Nubank is our partner in Brazil for digitally distributed insurance, consumer insurance. In Ecuador, we are partners with Banco de Guayaquil, one of the biggest banks in Ecuador, for distribution of the consumer insurances. You get the picture. And in Argentina, we have actually a very good business growing in both consumer and commercial. While commercial is good in Mexico and Brazil, to a degree in Chile and Colombia, it's the consumer businesses with multiple distributions, A&H, specialty personal lines, and automobile on both a direct-to-consumer, through bank and other distribution, digitally based direct-to-consumer, and broker and agent-driven.
Yeah, it's more in our consumer than in our commercial businesses.
you know, we have a um as as I'm sure, you know venco de Chile largest bank in Chile is our long-term partner
You know, we have, um—as I'm sure you know—Banco de Chile, the largest bank in Chile, is our long-term partner.
For distribution of consumer-based Insurance is. As an example, new bank is our partner in Brazil for digitally distributed Insurance Consumer Insurance.
For distribution of consumer-based Insurance is as an example, new bank is our partner in Brazil for digitally distributed Insurance Consumer Insurance. Um, in Ecuador, we are partners with bankco to Wild K 1 of the biggest banks in
In Ecuador, for distribution of the consumer insurance is
Um, you get the picture and in Argentino, we have actually a very good business growing in both consumer and Commercial. While commercial is good in Mexico and Brazil to a degree in Chile and Colombia. It's the consumer businesses with multiple distribution.
Um, in Ecuador, we are partners with bankco to Wild K 1 of the biggest banks. In, in Ecuador, for distribution of the Consumer Insurance is, um, you get the picture and in Argentino, we have actually a very good business growing in both consumer and Commercial. While commercial is good in Mexico and Brazil to a degree in Chile and Colombia. It's the consumer businesses with multiple distributions A&H, um, specialty personal lines, um, and automobile on, on both a direct to Consumer, um, through bank and other distribution digitally based direct to Consumer on broker and agent driven, um, our Mexico business, predominantly is
Evan G. Greenberg: Our Mexico business predominantly is agent-driven growth. Though we are the exclusive distribution partner long term of Banamex, and with the sale of Banamex right now from Citigroup to local Mexican management, I expect that's going to be another growth opportunity. So it's very broad-based. It's across a variety of countries, and we've been at it for years.
Evan G. Greenberg: Our Mexico business predominantly is agent-driven growth. Though we are the exclusive distribution partner long term of Banamex, and with the sale of Banamex right now from Citigroup to local Mexican management, I expect that's going to be another growth opportunity. So it's very broad-based. It's across a variety of countries, and we've been at it for years.
Is Agent driven growth, though? We are, we are the exclusive Insurance partner long-term of banax.
Ions a ANH, um, specialty personal lines. Um, an automobile on on both a direct to Consumer, um, through bank and other distribution digitally based direct to Consumer on broker and agent driven. Um, our Mexico business predominantly is, um, is Agent driven growth, though? We are, we are the exclusive Insurance partner, long term of banamex.
And with the sale of banamex right now, from by City Group to, um, local Mexican, uh, management. Um, I expect that's going to be another growth opportunity, so it's very broad-based. It's a cross a variety of countries and we've been at it for years.
Really appreciate that. Sounds like a lot of opportunities with without a worry about pricing. Uh, maybe the second point at the state
overseas.
And with the sale of banamex right now from PI City Group to, um, local Mexican, um, management. Um, I expect that's going to be another growth opportunity. So it's very broad-based. It's across a variety of countries and we've been at it for years.
Jian Huang: Really appreciate that. Sounds like a lot of opportunities without us worrying about pricing. Maybe the second point, staying on overseas, Asia business, clearly another area of excitement. But can you maybe give us a little bit of the competitive dynamics there, right? You made an acquisition there this year. Just curious about how we should think about an area where everyone is excited about it, and clearly everyone wants a piece of that pie, so to speak.
Bob Huang: Really appreciate that. Sounds like a lot of opportunities without us worrying about pricing. Maybe the second point, staying on overseas, Asia business, clearly another area of excitement. But can you maybe give us a little bit of the competitive dynamics there, right? You made an acquisition there this year. Just curious about how we should think about an area where everyone is excited about it, and clearly everyone wants a piece of that pie, so to speak.
Um, Asia business clearly another, uh, area of excitement. Um, but can you maybe give us a little bit of of the the competitive Dynamics there, right? You, you, you made an acquisition there this year. Um, just curious about how we should think about an area where everyone is excited about it. And clearly everyone wants a piece of that pie so to speak.
Yeah. Um,
first, I want to just, you know, so,
Evan G. Greenberg: Yeah. First, I want to just, you know, so we stay grounded in reality. When you think about Asia, when you think about Latin America, Asia dwarfs Latin America in its size and scale and the opportunity. Both regions, though, are developing market and mature market regions, and they have that signature about them, so a certain volatility to economic and political growth. It's many, many countries in Asia, small micro markets, and large markets. But there is a certain volatility in any period, one period to another, that can occur. The trend line for both regions is up, and Asia in particular. Growth this quarter in Asia, as you saw, came fundamentally from consumer lines. Commercial lines was flat.
Evan G. Greenberg: Yeah. First, I want to just, you know, so we stay grounded in reality. When you think about Asia, when you think about Latin America, Asia dwarfs Latin America in its size and scale and the opportunity. Both regions, though, are developing market and mature market regions, and they have that signature about them, so a certain volatility to economic and political growth. It's many, many countries in Asia, small micro markets, and large markets. But there is a certain volatility in any period, one period to another, that can occur. The trend line for both regions is up, and Asia in particular. Growth this quarter in Asia, as you saw, came fundamentally from consumer lines. Commercial lines was flat.
Really appreciate that. Sounds like a lot of opportunities without us worrying about pricing. Uh, maybe the second Point staying on overseas. Um, Asia business. Clearly another, uh, area of excitement. Um, but can you maybe give us a little bit of of the the competitive Dynamics there, right? You, you, you made an acquisition there this year. Um, just curious about how we should think about an area where everyone is excited about it. And clearly everyone wants a piece of that pie so to speak.
We we we stay grounded in reality when you think about Asia.
Yeah. Um,
First, I want to just, you know, so,
When you think about Latin America Asia um dwarfs Latin America and its size and scale and the opportunity.
We we we stay grounded in reality when you think about Asia.
Both regions though are developing Market.
Unmature Market regions.
When you think about Latin America Asia um dwarfs Latin America and its size and scale and the opportunity.
Both regions, though, are developing markets.
And mature Market regions.
And, um, they have that signature about them. So a certain volatility to economic and political growth, it's many, many countries in Asia, small micro markets and large markets.
And but there is a certain volatility um in any period 1 period to another that can occur.
Micro markets and large markets.
The trend line.
And but there is a certain volatility um in any period 1 period to another that can occur.
The trend line.
For both regions is is up um and Asia in particular growth, this quarter in Asia. Um, as you saw came
Fundamentally from um, consumer lines. Commercial lines was flat.
For both regions is is up um and Asia in particular growth, this quarter in Asia. Um, as you saw came
Evan G. Greenberg: That's mostly the large account business, Australia, Singapore-based, Hong Kong, a little bit, where the environment is more competitive. Our growth is in small and middle market, commercial, and in consumer lines, both agency and digitally and direct-to-consumer oriented. Market by market, it is very hard to compete in that business for anybody to just come in and want a piece of that pie. It's a lot of countries. Every culture is different. They're economically different. They're small markets, many of them like Southeast Asia, but they add up in aggregate to be a big region. It's hard work, and you have to establish yourself not with one office and two or three underwriters. You've got to have broad capability distributed through the country to be able to mine the opportunity of small and mid-market, commercial, and consumer.
Evan G. Greenberg: That's mostly the large account business, Australia, Singapore-based, Hong Kong, a little bit, where the environment is more competitive. Our growth is in small and middle market, commercial, and in consumer lines, both agency and digitally and direct-to-consumer oriented. Market by market, it is very hard to compete in that business for anybody to just come in and want a piece of that pie. It's a lot of countries. Every culture is different. They're economically different. They're small markets, many of them like Southeast Asia, but they add up in aggregate to be a big region. It's hard work, and you have to establish yourself not with one office and two or three underwriters. You've got to have broad capability distributed through the country to be able to mine the opportunity of small and mid-market, commercial, and consumer.
Fundamentally, from consumer lines, commercial lines was flat.
Um, that's mostly the large account business. Um, Australia, Singapore, base. Um, Hong Kong a little bit where the environment more competitive.
Um, that's mostly the large account business. Um, Australia, singapore-based, um, Hong Kong a little bit where the environment more competitive.
Um, our growth is in small and Middle Market. Commercial and in consumer lines, both agency and digitally and direct to Consumer oriented Market by market. It is very hard to compete in that business for anybody to just come in and want a piece of that pie, it's a lot of countries. Every culture is different, their economically different, their small markets, many of them like southeast Asia, but they add up in aggregate to be a big region. It's hard work. And you have to establish yourself not with
Um, our growth is in small and Middle Market. Commercial and in consumer lines, both agency and digitally and direct to Consumer oriented Market by market. It is very hard to compete in that business for any money to just come in and want a piece of that pie, it's a lot of countries. Every culture is different, their economically different, their small markets, many of them like southeast Asia, but they add up in aggregate to be a big region. It's hard work. And you have to establish yourself not with 1 office and 2 or 3 under writers. You've got to have broad capability, distributed through the country, to be able to mine, the opportunity of small and mid-market Commercial.
Evan G. Greenberg: So it's years of hard yards to build local franchises in those operations. And then on top of it, the ability to bring your technology and bring your data and your insights to bear from what you have in the scale around the globe to help your competitive profile in those markets, that is another dimension. And, that's what we're hard at work at, and it shows results. And, I'm bullish on the long-term opportunity, any one period of time notwithstanding.
Evan G. Greenberg: So it's years of hard yards to build local franchises in those operations. And then on top of it, the ability to bring your technology and bring your data and your insights to bear from what you have in the scale around the globe to help your competitive profile in those markets, that is another dimension. And, that's what we're hard at work at, and it shows results. And, I'm bullish on the long-term opportunity, any one period of time notwithstanding.
So it's years of hard yards to build, local franchises, and those operations. And then on top of it, the ability to bring your technology.
With 1 office and 2 or 3 under writers, you've got to have broad capability, distributed through the country, to be able to mine, the opportunity of small and mid-market Commercial and consumer. So it's years of hard yards to build, local franchises, and those operations. And then on top of it, the ability to bring your technology.
And bring your data and your insights to bear from what you have in the scale around the globe to help your competitive profile. In those markets. That is another dimension. And um, that's what we're hard at work at and it shows results and um and I'm bullish on the long term opportunity. Any 1 period of time notwithstanding
Got it. I really appreciate the caller. Thank you very much.
You're welcome.
Your next question.
And bring your data and your insights to bear from what you have in the scale around the globe to help your competitive profile in those markets. That is another dimension. And, um, that's what we're hard at work at, and it shows results. And, um, I'm bullish on the long-term opportunity—any one period of time notwithstanding.
Jian Huang: Got it. Really appreciate the color. Thank you very much.
Bob Huang: Got it. Really appreciate the color. Thank you very much.
Mine of David. Mante Madden of evercore, isi. Your line is open.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
Got it. I really appreciate the caller. Thank you very much. You're welcome.
Operator: Your next question comes from the line of David Motemaden of Evercore ISI. Your line is open.
Operator: Your next question comes from the line of David Motemaden of Evercore ISI. Your line is open.
Your next question.
David Mandanda Madden of Evercore ISI, your line is open.
David Motemaden: Hey, thanks. Good morning, Evan. Maybe just a follow-up on just on the overseas general insurance business and the consumer lines growth there has been robust, and it looks like that's continued over the last 3 quarters. Sounds like you feel good about the opportunity and sustaining that. I guess, could you help us think through how that manifests through margins? Because it feels like that's margin accretive, at least over the last few quarters. But I know there are some moving pieces there with the consumer business, higher expense ratio, lower loss ratio. So I'm hoping you can help me think through that.
David Motemaden: Hey, thanks. Good morning, Evan. Maybe just a follow-up on just on the overseas general insurance business and the consumer lines growth there has been robust, and it looks like that's continued over the last 3 quarters. Sounds like you feel good about the opportunity and sustaining that. I guess, could you help us think through how that manifests through margins? Because it feels like that's margin accretive, at least over the last few quarters. But I know there are some moving pieces there with the consumer business, higher expense ratio, lower loss ratio. So I'm hoping you can help me think through that.
Hey, thanks, good morning, Evan. Uh, maybe just a follow-up on, uh, just on the overseas General Insurance business. And the, the consumer lines growth there has been robust and it looks like that's continued over the last 3 quarters.
um sounds like you you you you feel good about the opportunity and and sustaining that I guess
Hey, thanks, good morning, Evan. Uh, maybe just a follow-up on, uh, just on the overseas General Insurance business. And the, the consumer lines growth there has been robust and it looks like that's continued over the last 3 quarters.
Um, sounds like you feel good about the opportunity and sustaining that, I guess.
Did you help us? Think through how that manifests through margins? Because it feels like, that's margin creative. At least over the last few quarters, um, but I know there are some moving pieces there with the consumer business higher, uh, higher expense ratio, lower loss ratio. So, I'm hoping you can help me think through that.
to um,
Evan G. Greenberg: Yeah, I can't help you too much. We each have our hell, and you're left with that one. We don't break out the margin by business. We don't break out overseas general consumer versus commercial margins. What I'm going to help you with is simply this: our A&H, it breaks down between A&H, and auto, and homeowners, and specialty personal lines. Each has their own signature. And by the way, depending on the distribution channel, whether I'm doing it digitally or in a bank direct response, telemarketing, or doing it through agency brokerage, they have their own signature of acquisition cost and loss ratio. They're reasonably steady businesses. Auto, not as steady, obviously, as A&H is.
Evan G. Greenberg: Yeah, I can't help you too much. We each have our hell, and you're left with that one. We don't break out the margin by business. We don't break out overseas general consumer versus commercial margins. What I'm going to help you with is simply this: our A&H, it breaks down between A&H, and auto, and homeowners, and specialty personal lines. Each has their own signature. And by the way, depending on the distribution channel, whether I'm doing it digitally or in a bank direct response, telemarketing, or doing it through agency brokerage, they have their own signature of acquisition cost and loss ratio. They're reasonably steady businesses. Auto, not as steady, obviously, as A&H is.
Did you help us? Think through how that manifests through margins? Because it feels like that's margin or creative at least over the last few quarters. Um, but I know, there are some moving pieces there with the consumer business higher, uh, higher expense ratio, lower loss ratio. So, I'm hoping you can help me think through that.
Yeah, um I I can't help you too much that um you're left to your own.
to um,
Leech up our health and you're left with that 1. Um we don't break out the the margin by business. We don't break out overseas General consumer versus commercial um margins um what I'm going to help you with is simply this
um,
our ANH, it breaks down between a and H.
and,
Reach up our health and you're left with that 1. Um we don't break out the the margin by business. We don't break out overseas General consumer versus commercial um margins um what I'm going to help you with is simply this
Auto and homeowners and Specialty personal lines.
um,
Each has their own signature.
our ANH it breaks down between A&H.
and,
Auto and homeowners on specialty personal lines.
Each has their own signature.
And by the way, depending on the distribution Channel, whether I'm doing a digitally or in a bank direct response telemarketing, we're doing it through agency brokerage. They have their own signature of acquisition costs on loss ratio. Um, they're reasonably steady businesses Auto, not a study, obviously, is a NHS. Our A&H is is a, a large business, um,
And by the way, depending on the distribution channel—whether I'm doing it digitally, or in a bank direct response, telemarketing, we're doing it through agency brokerage—they have their own signature of acquisition costs on loss ratio. They're reasonably steady businesses. Auto, not as steady, obviously.
Evan G. Greenberg: Our A&H is a large business that a lot of the risk is on the direct marketing side, and we have built a capability over many years. We're the number one when we say we're the number one direct marketer in Asia, that's predominantly A&H business over non-life and life, and it produces a reasonably steady and decent underwriting margin. Beyond that, I'm confident in our mix of business overall, between large accounts, middle and small, and our consumer businesses internationally, that our margins are, how do I want to say it? They are, they are not predictable because it's the risk business, but they are decent, as you see, and we feel confident in them.
Evan G. Greenberg: Our A&H is a large business that a lot of the risk is on the direct marketing side, and we have built a capability over many years. We're the number one when we say we're the number one direct marketer in Asia, that's predominantly A&H business over non-life and life, and it produces a reasonably steady and decent underwriting margin. Beyond that, I'm confident in our mix of business overall, between large accounts, middle and small, and our consumer businesses internationally, that our margins are, how do I want to say it? They are, they are not predictable because it's the risk business, but they are decent, as you see, and we feel confident in them.
that is that a lot of the risk is on the direct marketing side, and we have built
Jose NHS, ra NHS is a, a large business. Um, that is that a lot of the risk is on the direct marketing side and we have built
A capability over many years where the number 1 when we say we're the number 1 direct marketer in Asia, that's predominantly, A&H, business over non-life on life and it produces a reasonably steady and decent underwriting margin, um, beyond that. Um, I'm confident in our mix of business, overall between large account, middle and small.
and our consumer businesses internationally that our margins are um,
Larger. Um, beyond that, um, I'm confident in our mix of business, overall between large accounts middle and small
Um, how do I want to say it? They are.
Um,
they are not predictable because it's the risk business.
and our consumer businesses internationally that our margins are um,
Um, how do I want to say it? They are.
But they are, they are decent as you see and we feel confident in them.
Um, they are not predictable because it's the risk business.
But they are, they are decent as you see and we feel confident in them.
Got it. Thanks. I appreciate that. And then, um, maybe just, I know you wanted more but, you know, uh, I I I we just don't break it down that way.
David Motemaden: Got it. Thanks, I appreciate that. And then, maybe just-
David Motemaden: Got it. Thanks, I appreciate that. And then, maybe just-
Evan G. Greenberg: I know you wanted more, but you know, we just don't break it down that way.
Evan G. Greenberg: I know you wanted more, but you know, we just don't break it down that way.
I had to try. Um I know you did uh but uh I I guess just maybe a bigger picture question. Um.
Got it. Thanks. I appreciate that. And then, um, maybe just, I know you wanted more but, you know, I I I we just don't break it down that way.
David Motemaden: I had to try.
David Motemaden: I had to try.
Evan G. Greenberg: I know you did.
Evan G. Greenberg: I know you did.
You know, the December presentation showed.
David Motemaden: But I guess just maybe a bigger picture question. You know, the December presentation showed about 150 basis points of combined ratio improvement from the digital transformation over the next 3 to 4 years. And I'm not asking for formal guidance here, but could you just share how you're thinking about the key drivers and execution priorities to deliver on that improvement, even as the competition in some of the markets you operate in intensifies?
David Motemaden: But I guess just maybe a bigger picture question. You know, the December presentation showed about 150 basis points of combined ratio improvement from the digital transformation over the next 3 to 4 years. And I'm not asking for formal guidance here, but could you just share how you're thinking about the key drivers and execution priorities to deliver on that improvement, even as the competition in some of the markets you operate in intensifies?
I had to try. Um I know you did uh but uh I I guess just maybe a bigger picture question. Um.
About 150 basis points of combined ratio improvement from the digital transformation, over the next 3 to 4 years, um, and I'm I'm not asking for formal guidance here.
You know, the December presentation showed.
But um could you just share how you're thinking about the key drivers and execution priorities to deliver on that Improvement even as the competition and some of the markets uh you operate in intensifies?
Yeah, most of it.
Is on the expense side.
About 150 basis points of combined ratio improvement from the digital transformation, over the next 3 to 4 years, um, and I'm I'm not asking for formal guidance here. But um, could you just share how you're thinking about the key drivers and execution priorities to deliver on that Improvement? Even as the competition and some of the markets uh you operate in intensifies?
It is um, in both.
Evan G. Greenberg: Yeah. Most of it is on the expense side. It is in both OpEx and in cost of claims. It is, there is some that is, but it is much more minority, that is projected in loss ratio. But we're fact-based people, and so, as we see more, know more, that we can measure mathematically, we gain more confidence in that portion, in the insight. And it is business by business, division by division. It's predominantly North America, UK, Europe, and our larger markets of Asia and in Latin America. It is covering right now, we're focused in particular on nine or 10 very discrete projects that all the businesses are lined up on, the business leaders, our technical team around technology, data, AI, analytics, and our operations.
Evan G. Greenberg: Yeah. Most of it is on the expense side. It is in both OpEx and in cost of claims. It is, there is some that is, but it is much more minority, that is projected in loss ratio. But we're fact-based people, and so, as we see more, know more, that we can measure mathematically, we gain more confidence in that portion, in the insight. And it is business by business, division by division. It's predominantly North America, UK, Europe, and our larger markets of Asia and in Latin America. It is covering right now, we're focused in particular on nine or 10 very discrete projects that all the businesses are lined up on, the business leaders, our technical team around technology, data, AI, analytics, and our operations.
Yeah, most of it.
Um, um, Opex.
Is on the expense side.
And in cost of claims.
It is um, in both.
PS.
Um, um, Opex.
And in cost of claims.
That is but it is more much more minority that is projected in loss ratio.
It is. Um, there is some
um, but we're fact-based people and so um, as
That is, but it is much more minority than is projected in loss ratio.
Um, but we're fact-based people, and so, um, as
We see more no more that we can measure mathematically. Um, we gain more confidence in that portion in the insight.
Um,
And it is business by business division, by division.
We see more no more that we can measure mathematically. Um, we gain more confidence in that portion in the insight.
It's predominantly North America.
Um,
UK Europe.
Um, and our larger markets.
And it is business by business division, by division.
Of.
Asia.
It's predominantly North America.
And in Latin America.
UK Europe.
It is covering.
Um, right now.
um, and our larger markets of
Asia.
And in Latin America.
It is covering.
Um, right now.
um we're focused in particular on 9 or 10, very discreet projects that all the businesses are lined up on the Business Leaders
um we're focused in particular on 9 or 10, very discreet projects that all the businesses are lined up on the Business Leaders
Our technical, um, Team around technology data, AI analytics and our operations.
Our technical.
Evan G. Greenberg: We work it with those who are fully dedicated, along with the disciplines and the business leaders, to transformation and bringing it all together in how we transform a business in the nine discrete projects across a variety of geographies. There you go, and it will continue to evolve.
Evan G. Greenberg: We work it with those who are fully dedicated, along with the disciplines and the business leaders, to transformation and bringing it all together in how we transform a business in the nine discrete projects across a variety of geographies. There you go, and it will continue to evolve.
Um, team around technology, data, AI analytics, and our operations.
And we work it with those who were fully dedicated along with the disciplines and the Business Leaders to transformation and bringing it all together. In how we transform a business in the 9, dispatch a variety of geographies.
There you go. And it will continue to evolve.
Awesome. Thank you.
And we work it with those who are fully dedicated along with the disciplines and the Business Leaders to transfer information and bringing it all together. In how we transform a business in the 9 disregard projects across a variety of geographies.
Your next question. Customer line of great Peters of Raymond James. Your line is open.
There you go. And it will continue to evolve.
David Motemaden: Awesome. Thank you.
David Motemaden: Awesome. Thank you.
Good morning. Um,
Awesome. Thank you.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
Operator: Your next question comes from the line of Greg Peters of Raymond James. Your line is open.
Operator: Your next question comes from the line of Greg Peters of Raymond James. Your line is open.
Your next question comes from Land of Greg Peters of Raymond James, your line is open.
Greg Peters: Good morning. So, I'm gonna have two follow-up questions, one to the overseas operations. I guess, I'm gonna ask a question around foreign exchange, and I realize this is probably gonna spill over into geopolitical considerations as it relates to the growth of your operations. But I'm looking... I've been watching the last several weeks, you know, the yen, you know, go down relative to the US dollar, and it, and I understand you're matching your assets and liabilities in the same currency. But, you know, running a global enterprise, I'm just curious how you look at foreign exchange volatility... as it relates to, you know, what you're managing in enterprise risk?
Greg Peters: Good morning. So, I'm gonna have two follow-up questions, one to the overseas operations. I guess, I'm gonna ask a question around foreign exchange, and I realize this is probably gonna spill over into geopolitical considerations as it relates to the growth of your operations. But I'm looking... I've been watching the last several weeks, you know, the yen, you know, go down relative to the US dollar, and it, and I understand you're matching your assets and liabilities in the same currency. But, you know, running a global enterprise, I'm just curious how you look at foreign exchange volatility... as it relates to, you know, what you're managing in enterprise risk?
So um I I'm going to have 2 follow-up questions 1 um to the um the the overseas operations.
Uh, good morning. Um
so um I I'm going to have 2 follow-up questions 1 um to the um
Um, I guess I'm going to ask a question around foreign exchange and I realize this is probably going to spill over into.
the the overseas operations.
Geopolitical considerations as it relates to the growth of your operations but I'm looking. I've been watching the last several weeks. You know, the yen.
Um, I guess I'm going to ask a question around foreign exchange, and I realize this is probably going to spill over into geopolitical considerations as it relates to the growth of your operations, but I'm looking—you know, I've been watching the last several weeks, you know, the yen.
Um, you know, go down relative to the US dollar and it it and I understand you're matching your your assets and liabilities in the same currency. But
Um you know, running a global Enterprise. I'm just curious how you look at foreign exchange volatility.
Yeah, as it relates to you know, what you're managing your Enterprise risk.
Yeah. Um,
Um, you know, go down relative to the US dollar, and it—it, and I understand you're matching your assets and liabilities in the same currency. But, um, you know, running a global enterprise, I'm just curious how you look at foreign exchange volatility.
we do not have hedge revenue or income.
yeah, as it relates to you know what you're managing in Enterprise risk,
Evan G. Greenberg: Yeah. We do not hedge revenue or income. The only time we really hedge is remittances, around remittances when they're large. Our assets and liabilities are matched in currency, so they move together. Foreign exchange, if the US dollar weakens relatively, that's a tailwind to us, in terms of growth, and it obviously helps income in any business generating income. And then if the dollar strengthens, which has been its longer-term trend, over a long period, we pay that price. And you can see it because we're transparent about it, of what are we in Constant Dollar in terms of growth versus published. And so, you know, Greg, that is what it is. Right now, the prognostication is more towards the dollar, you know, at the moment, the dollar weakening, as you look forward.
Evan G. Greenberg: Yeah. We do not hedge revenue or income. The only time we really hedge is remittances, around remittances when they're large. Our assets and liabilities are matched in currency, so they move together. Foreign exchange, if the US dollar weakens relatively, that's a tailwind to us, in terms of growth, and it obviously helps income in any business generating income. And then if the dollar strengthens, which has been its longer-term trend, over a long period, we pay that price. And you can see it because we're transparent about it, of what are we in Constant Dollar in terms of growth versus published. And so, you know, Greg, that is what it is. Right now, the prognostication is more towards the dollar, you know, at the moment, the dollar weakening, as you look forward.
Yeah.
Um,
Um, the only time we really had is remittances around remittances when they're large.
we do not have hedge revenue or income.
Um, our assets and liabilities are matched in currency, so they move together.
Maintenances when they're large.
Um, that's a Tailwind to us.
Um, our assets and liabilities are matched in currency, so they move together.
Um, in terms of growth and it obviously helps income in any business, generating income.
Um, foreign exchange—if the US dollar weakens relatively,
Um,
Um, that's a tailwind to us.
Um, in terms of growth and it obviously helps income in any business, generating income.
Um,
and then if the dollar strengthens which has been its longer term Trend over a long period, we pay that price. Um and you can see it because we're transparent about it of. What are we in constant Dollar in terms of growth versus versus um published
Um and so you know, Greg that that that is what it is. Um,
And then if the dollar strengthens which has been its longer term Trend over a long period, we pay that price. Um and you can see it because we're transparent about it of. What are we in constant Dollar in terms of growth versus versus versus um, published
Um, right now the prognostication is more towards the dollar.
Um and so, you know, Greg that that that is what it is. Um um right now the prognostication is more towards the dollar
You know, at the moment, the dollar weakening, um, as you look forward. Um, but you know what? That sentiment bounces around and changes.
Based upon Financial conditions.
Evan G. Greenberg: But you know what? That sentiment bounces around and changes based upon financial conditions, economic, and, as you said, geopolitical.
Evan G. Greenberg: But you know what? That sentiment bounces around and changes based upon financial conditions, economic, and, as you said, geopolitical.
um, economic and, um, and as you said, geopolitical,
You know, at the moment, the dollar weakening, um, as you look forward. Um, but you know what? That sentiment bounces around and changes.
Based upon Financial conditions.
Um, economic and, um, and as you said, geopolitical,
Greg Peters: Okay. And then I wanted to follow up on-
Greg Peters: Okay. And then I wanted to follow up on-
Okay. Um, and then I wanted to follow up on and by the way, that's why that is why I say that when we talk about
Evan G. Greenberg: And by the way, that's why, that is why I say that when we talk about any projection about Chubb future income or EPS growth, I do say cats and FX aside. We're in the risk business, it's not like we can control anything, but we have better control over most things and, and can forecast. I can't forecast cats, I can't forecast FX, and I don't have control over them. And it doesn't speak to the intrinsic-
Evan G. Greenberg: And by the way, that's why, that is why I say that when we talk about any projection about Chubb future income or EPS growth, I do say cats and FX aside. We're in the risk business, it's not like we can control anything, but we have better control over most things and, and can forecast. I can't forecast cats, I can't forecast FX, and I don't have control over them. And it doesn't speak to the intrinsic-
um, any projection about
okay. Um, and then I wanted to follow up on and by the way, that's why that is why
Chubb. Future income or EPS growth.
I say that when we talk about,
um, any projection about
I do say cats and FX aside, um, we're in the risk business, it's not like we can control
Chubb. Future income or EPS growth.
I do say cats and FX aside, um, we're in the risk business, it's not like we can control
But we have better control over most things and, and can forecast, I can't forecast. Cats, I can't forecast FX and I don't have control over them.
And it doesn't speak the intrinsic and it doesn't speak to the intrinsic strength.
Of the business.
Anything, but we have better control over most things and, and can forecast, I can't forecast. Cats, I can't forecast FX and I don't have control over them.
Greg Peters: I think-
Greg Peters: I think-
Evan G. Greenberg: It doesn't speak to the intrinsic strength of the business.
Evan G. Greenberg: It doesn't speak to the intrinsic strength of the business.
And it doesn't speak to the intrinsic—and it doesn't speak to the intrinsic strength.
Of the business.
Got it. I think you said in your the quote was macro conditions notwithstanding when you talked about your, your outlook for a growth.
Um, sure.
Greg Peters: Got it. I think you've said in your... the quote was, "Macro conditions notwithstanding," when you talked about your, your outlook for growth.
Greg Peters: Got it. I think you've said in your... the quote was, "Macro conditions notwithstanding," when you talked about your, your outlook for growth.
I said it broadly.
Evan G. Greenberg: Yes, sir. I said it broadly.
Evan G. Greenberg: Yes, sir. I said it broadly.
Got it. I think you said in your the quote was macro conditions notwithstanding when you talked about your, your outlook for a growth.
Correct. Um, can I can I go back to the other comments around? Um,
Sir.
Greg Peters: Correct. Can I go back to the other comments around agentic AI and digital infrastructure? I guess I want to come at it from a different angle. You know, the large brokers are talking about the build-out of this infrastructure as being a big opportunity. I think Marsh used 2000 to 3000 data centers being built over the next couple of years. So I guess I wanted to approach it from a couple different angles. You know, how do you see that evolving and Chubb's participation in that? I guess there's also an investment opportunity, too, that Chubb might be looking at.
I said it broadly.
Greg Peters: Correct. Can I go back to the other comments around agentic AI and digital infrastructure? I guess I want to come at it from a different angle. You know, the large brokers are talking about the build-out of this infrastructure as being a big opportunity. I think Marsh used 2000 to 3000 data centers being built over the next couple of years. So I guess I wanted to approach it from a couple different angles. You know, how do you see that evolving and Chubb's participation in that? I guess there's also an investment opportunity, too, that Chubb might be looking at.
Authentic, Ai and digital infrastructure. And I guess I want to come at it from a different angle. Um,
Correct. Um, can I—can I go back to the other comments around—um,
you know, the the large Brokers are talking about, um,
The, the buildout of this infrastructure is being a big opportunity.
Um, I think March used 2000 to 3,000 data centers being built.
Agentic AI and digital infrastructure. And I guess I want to come at it from a different angle. You know, the large brokers are talking about, um,
The the build out of this infrastructure is being a big opportunity.
Um, I think Marsh used 2,000 to 3,000 data centers being built.
Over the next couple of years. Um, and uh, so I guess so, I guess I wanted to approach it from a couple different angles, you know, how do you see that evolving and Subs participation in that and I guess there's also an investment opportunity too, that some might be looking at. So I'm I'm just looking for how you're looking at the different touch points of this emerging.
Greg Peters: So I'm just looking for how you're looking at the different touch points of this emerging trend and how it's going to impact your organization.
Greg Peters: So I'm just looking for how you're looking at the different touch points of this emerging trend and how it's going to impact your organization.
Um Trend and and how it's going to impact your organization.
Yeah, you know on the insurance side we're we're all over it. Um um we've been writing
Data centers. Um,
Evan G. Greenberg: Yeah, you know, on the insurance side, we're all over it. We've been writing data centers, and, globally, this is a global opportunity. And our capabilities are extremely broad. We're in a rare group, when it comes to capability. Builders Risk, operations in terms of property, and we write the primary property. We do the engineering, we have large capacity, we put at it, and others take shares behind us, generally. We can do that on a global basis. Marine and all of the related exposures around that, surety, liability, professional liability, when it comes to design of data centers. We are one of the few that writes insurance around the broad variety of exposures globally, that those who are constructing data centers confront.
Evan G. Greenberg: Yeah, you know, on the insurance side, we're all over it. We've been writing data centers, and, globally, this is a global opportunity. And our capabilities are extremely broad. We're in a rare group, when it comes to capability. Builders Risk, operations in terms of property, and we write the primary property. We do the engineering, we have large capacity, we put at it, and others take shares behind us, generally. We can do that on a global basis. Marine and all of the related exposures around that, surety, liability, professional liability, when it comes to design of data centers. We are one of the few that writes insurance around the broad variety of exposures globally, that those who are constructing data centers confront.
Over the next couple years. Um, and uh, so I guess so, I guess I wanted to approach it from a couple different angles, you know, how do you see that evolving and Subs participation in that and I guess there's also an investment opportunity too, that some might be looking at. So I'm I'm just looking for how you're looking at the different touch points of this emerging, um, Trend in in how it's going to impact your organization.
and we globally. This is a global opportunity.
and um,
and we're our capabilities are extremely broad, we're in a rare group.
Yeah, you know, on the insurance side we're we're all over it. Um, um, we've been writing data centers, um, and we globally, this is a global opportunity.
and um,
Uh, when it comes to capability, um, Builders risk.
Um, operations, in terms of property.
And our capabilities are extremely broad. We're in a rare group.
Um, and we write the primary property. We do the engineering
Uh, when it comes to capability, um, Builder's Risk.
We have large capacity, we put at it.
Um, operations, in terms of property.
Um, and others. Take shares behind us generally.
Um, and we write the primary property. We do the engineering
Um, we can do that on a global basis.
We have large capacity, we put at it.
Um, and others take shares behind us generally.
um, marine and all of the related exposures around that shity
Um, we can do that on a global basis.
um, marine and all of the related exposures around that shity
Liability professional lives, um, when it comes to design of of data centers. Um, we are 1 of the few that writes
Liability professional lives, um, when it comes to design of of data centers. Um, we are 1 of the few that writes
That writes Insurance around the broad. Variety of exposures globally that those who are constructing data centers confront.
Um, we have
Evan G. Greenberg: We have recently, obviously, with all of the investment that is going into this. Oh, and by the way, on the utility and energy side, we are a major writer, and no one is building a major data center without the energy and utility dimension of this, and we can seamlessly transition to that in coverage as well. With all the investment that is going in, in our, inside our organization, we have doubled down on how we are structured to bring all of the coverages, the services, and engineering, the teams together to approach this globally. We're an important, we're an important factor when Aon and Marsh and other major brokers are engaged in the creation and putting together and placement of data centers. The one thing I would say about this right now, there's a lot of projects announced.
That writes Insurance around the broad. Variety of exposures globally that those who are constructing data centers confront.
Evan G. Greenberg: We have recently, obviously, with all of the investment that is going into this. Oh, and by the way, on the utility and energy side, we are a major writer, and no one is building a major data center without the energy and utility dimension of this, and we can seamlessly transition to that in coverage as well. With all the investment that is going in, in our, inside our organization, we have doubled down on how we are structured to bring all of the coverages, the services, and engineering, the teams together to approach this globally. We're an important, we're an important factor when Aon and Marsh and other major brokers are engaged in the creation and putting together and placement of data centers. The one thing I would say about this right now, there's a lot of projects announced.
Um, we have
Recently um obviously with all of the um investment that is going into this. Oh and by the way, on the utility and energy side, we are a major writer. And no 1 is building a major data center without the the energy and utility dimension of this.
And we can seamlessly um, transition to that in coverage as well.
This. Oh and by the way on the utility and energy side, we are a major writer. And no 1 is building a major data center without the the energy and utility dimension of this.
And we can seamlessly um, transition to that in coverage as well.
Um, with all the investment that is going in, um, in our, in inside our organization, we have doubled down on how we are structured to bring all of the coverages, the services and Engineering the teams together to approach this globally, we're an important. Um, we're an important factor when aeon and Marsh and other major Brokers are engaged in the creation and putting together in placement of data centers.
the, the 1 thing I would say about this right now, there's a lot of projects announced
um,
Um, with all the investment that is going in, um, inside our organization, we have doubled down on how we are structured to bring all of the coverages, the services, and engineering, the teams, together to approach this globally. We're an important, um, we're an important factor when Aon and Marsh and other major brokers are engaged in the creation and putting together and placement of data centers.
The.
Their how much of this actually gets built and over? What period of time?
Evan G. Greenberg: There, how much of this actually gets built and over what period of time remains a question. There are headwinds. There's headwinds around availability, and affordability of energy to power data centers, and that is a rising and growing problem. How fast does that get addressed? And for each data center, it's a different answer, depending on where they're located. There's more pushback on where data centers will be built. There is the question of labor, and is there, is labor available for the construction of data center? Supply and the supply chains and the cost of supply are questions that hang out there. So there's a lot announced. We're all focused on it, but I'd be careful not to be overly breathless about this.
The one thing I would say about this right now: there's a lot of projects announced.
Evan G. Greenberg: There, how much of this actually gets built and over what period of time remains a question. There are headwinds. There's headwinds around availability, and affordability of energy to power data centers, and that is a rising and growing problem. How fast does that get addressed? And for each data center, it's a different answer, depending on where they're located. There's more pushback on where data centers will be built. There is the question of labor, and is there, is labor available for the construction of data center? Supply and the supply chains and the cost of supply are questions that hang out there. So there's a lot announced. We're all focused on it, but I'd be careful not to be overly breathless about this.
um,
Remains a question.
How much of this actually gets built and over? What period of time?
Remains a question.
Their headwinds, there's headwinds around availability, um, and affordability of energy to power data centers.
And that is a rising and growing problem. How fast does that get addressed?
And for each data center, it's a different answer depending on where they're located.
On where data centers will be built.
There are headwinds, there's headwinds around availability, um, and affordability of energy to power data centers, and that is a rising and growing problem. How fast does that get addressed?
Um,
there is the question of Labor.
And for each data center, it's a different answer depending on where they're located.
There's more push back on where data centers will be built.
And is, there is labor available for the construction of data center.
Um,
Supply.
there is the question of Labor.
And is there labor available for the construction of data center supply?
And the supply chains and the cost of Supply are questions that hang out there. So there's a lot announced we're all focused on it, but I'd be careful not to be overly breathless about this.
On the question, on the invested asset side.
You know.
And the supply chains and the cost of supply are questions that hang out there. So there’s a lot announced, we’re all focused on it, but I’d be careful not to be overly breathless about this.
Evan G. Greenberg: On the question on the invested asset side, you know, this is a great technology that we are creating for economic and mankind purposes in so many great ways. There is $ trillions being poured in. I have no doubt that some of it is gonna produce good returns, some is gonna produce more anemic returns, and some may not prove to be money good, both on the technology development side and on the infrastructure to support the technology, i.e., data centers, et cetera. As an investor, we are thoughtful and very cautious around this. I think there'll be a second act down the road that may be a very interesting investment opportunity, and I'll leave it at that.
Evan G. Greenberg: On the question on the invested asset side, you know, this is a great technology that we are creating for economic and mankind purposes in so many great ways. There is $ trillions being poured in. I have no doubt that some of it is gonna produce good returns, some is gonna produce more anemic returns, and some may not prove to be money good, both on the technology development side and on the infrastructure to support the technology, i.e., data centers, et cetera. As an investor, we are thoughtful and very cautious around this. I think there'll be a second act down the road that may be a very interesting investment opportunity, and I'll leave it at that.
On the question, on the invested asset side.
You know.
Some of this is a great technology that we are creating for economic and and Mankind purposes in so many. Great ways.
There is trillions of dollars being poured in.
Um, I have no doubt.
Some of this is a great technology that we are creating for economic and and Mankind purposes in so many. Great ways.
That some of it is going to produce good returns.
There is trillions of dollars being poured in.
Um, I have no doubt.
some is going to produce more anemic returns and some may not prove to be
Um, money good.
That some of it is going to produce good returns.
Both on the technology development side.
some is going to produce more anemic returns and some may not prove to be
um, money good.
And on the infrastructure to support the technology. IE data centers, Etc.
As an investor.
Both on the technology development side.
We are thoughtful and very cautious around this. Um, I think there'll be a second act.
And on the infrastructure to support the technology. IE data centers, Etc.
As an investor.
I'm down the road that may be a very interesting investment opportunity and I'll leave it at that.
We are thoughtful and very cautious around this. Um, I think there'll be a second act.
Thanks for the detail.
Your next question comes from the line of Ryan Tunis of kto Fitzgerald. Your line is open.
I'm down the road. That may be a very interesting investment opportunity, and I'll leave it at that.
Andrew Kligerman: Thanks for the detail.
Greg Peters: Thanks for the detail.
Thanks for the detail.
Operator: Your next question comes from the line of Ryan Tunis of Cantor Fitzgerald. Your line is open.
Operator: Your next question comes from the line of Ryan Tunis of Cantor Fitzgerald. Your line is open.
Hey, thanks. Good morning. Um, so I guess just to follow up on, on that question from Greg.
uh,
Your next question comes from the line of Ryan Tunis of KBW Fitzgerald. Your line is open.
Ryan Tunis: Hey, thanks. Good morning. So Evan, I guess just to follow up on, on that question from Greg, you know, GDP growth has been... I'm just trying to think about how economic growth maps to growth, if you're looking for, you know, insurance growth opportunities. And obviously, a lot of the GDP growth we've seen has sort of come from this AI infrastructure build-out. As someone looking for growth opportunities in pr- in P&C, are you agnostic as to, as to where the growth comes from? Or, would you actually prefer the, the GDP growth to be coming from, you know, more traditional means, such as, you know, growth and employment?
Ryan Tunis: Hey, thanks. Good morning. So Evan, I guess just to follow up on, on that question from Greg, you know, GDP growth has been... I'm just trying to think about how economic growth maps to growth, if you're looking for, you know, insurance growth opportunities. And obviously, a lot of the GDP growth we've seen has sort of come from this AI infrastructure build-out. As someone looking for growth opportunities in pr- in P&C, are you agnostic as to, as to where the growth comes from? Or, would you actually prefer the, the GDP growth to be coming from, you know, more traditional means, such as, you know, growth and employment?
Hey, thanks. Good morning. Um, so I guess just to follow up on that question from Greg.
You know, GDP growth has been. I'm just trying to think about how economic growth maps to growth. Um if you're looking for, you know,
uh,
Insurance growth opportunities and obviously,
A lot of the GDP growth we've seen is sort of come from this AI infrastructure build out.
You know, GDP growth has been. I'm just trying to think about how economic growth maps to growth. Um if you're looking for, you know,
Insurance growth opportunities and obviously,
um, as someone looking for growth opportunities, and and PNC are you agnostic, as to, as to where the growth comes from, or
A lot of the GDP growth we've seen is sort of come from this AI infrastructure build out.
um,
Um, as someone looking for growth opportunities in PNC, are you agnostic as to where the growth comes from? Or—
Is, would you actually prefer the the GDP growth to be coming from? You know, more traditional means such as, you know,
um,
Growth and employment.
Right.
Um, when GDP growth.
Would you actually prefer the GDP growth to be coming from more traditional means, such as, you know,
Um, if it's overly concentrated.
Growth and employment.
Evan G. Greenberg: Ryan, when GDP growth, if it's overly concentrated, it is more vulnerable. It is more, it is potentially more volatile. Broader-based growth, by definition, is more stable, and it creates more broad-based prosperity that impacts both commercial and consumer. So just as a businessman, as a citizen, I would say that to you. When it comes to Chubb growing, if we can earn an adequate risk-adjusted return on the growth, I'll take it wherever it's coming from. That's why we're pursuing opportunities in multiple directions.
Evan G. Greenberg: Ryan, when GDP growth, if it's overly concentrated, it is more vulnerable. It is more, it is potentially more volatile. Broader-based growth, by definition, is more stable, and it creates more broad-based prosperity that impacts both commercial and consumer. So just as a businessman, as a citizen, I would say that to you. When it comes to Chubb growing, if we can earn an adequate risk-adjusted return on the growth, I'll take it wherever it's coming from. That's why we're pursuing opportunities in multiple directions.
Ryan.
It is more vulnerable. It is more. Um,
um, when gep growth
Um, if it's overly concentrated.
It is potentially more volatile broader based growth.
Um, by definition is more stable.
It is more vulnerable. It is more. Um,
Um, and it creates more broad-based prosperity.
That impacts both commercial and consumer.
It is potentially more volatile; broader-based growth, by definition, is more stable.
Um,
so just as a businessman, as a citizen,
I would say that to you.
Both commercial and consumer.
Um,
When it comes to job growing.
So just as a businessman, as a citizen, I would say that to you.
when it comes to chub growing
if we can earn an adequate risk adjusted return on the growth, I'll take it wherever it's coming from, that's why we're
If we can earn.
We're pursuing opportunities in in multiple directions.
an adequate risk adjusted return on the growth, I'll take it wherever it's coming from, that's why we're
We're pursuing opportunities in in multiple directions.
Ryan Tunis: Gotcha. And then just to follow up, not looking for guidance, but the acquisition and expense ratio in North America Commercial, it's kind of been upticking, I think, because of mix in our middle market. Is that a trend that, you know, we should continue to see, or do you feel like these levels are sort of steady state?
Ryan Tunis: Gotcha. And then just to follow up, not looking for guidance, but the acquisition and expense ratio in North America Commercial, it's kind of been upticking, I think, because of mix in our middle market. Is that a trend that, you know, we should continue to see, or do you feel like these levels are sort of steady state?
Gotcha. Um and then just to follow up not looking for guidance. But uh the acquisition expense ratio in North, America commercial, um it's kind of an uptick I think because of mixing or Middle Market, it is that a trend that you know we should continue to see or do you feel like these levels are
Steady state.
Be careful with it in the in the quarter.
Evan G. Greenberg: Be careful with it. In the quarter, a part of it is because, and an important part, is because we wrote less one-off transactions this year, in Q4. You know, LPT business, which type business, loss portfolio transfer, which has a very low acquisition ratio to it, classically, a little higher loss ratio. And that impacts it, and that bounces around quarter to quarter. You also have in North America Commercial, the yes, middle and small growing faster than major, so that mix shift impacts it on one hand, but the relative size of each varies a little bit quarter to quarter. So you got to... You know, it's not just a straight line that way, but that trend and that direction, yes, is clear.
Evan G. Greenberg: Be careful with it. In the quarter, a part of it is because, and an important part, is because we wrote less one-off transactions this year, in Q4. You know, LPT business, which type business, loss portfolio transfer, which has a very low acquisition ratio to it, classically, a little higher loss ratio. And that impacts it, and that bounces around quarter to quarter. You also have in North America Commercial, the yes, middle and small growing faster than major, so that mix shift impacts it on one hand, but the relative size of each varies a little bit quarter to quarter. So you got to... You know, it's not just a straight line that way, but that trend and that direction, yes, is clear.
Gotcha um and then just to follow up not looking for guidance. But uh the acquisition expense ratio in North, America commercial, um it's kind of an uptick I think because of mixing or Middle Market it is that a trend that you know we should continue to see or do you feel like these levels are sort of steady state?
Um a part of it is because on an important part is because we wrote Les 1 off transactions, this year.
Um,
in in the fourth quarter, you know, lpt business which
type business loss, portfolio transfer which
Be careful with it in the in the quarter. Um a part of it is because on an important part is because we wrote Les 1 off transactions this year.
um,
Has a very low acquisition ratio to it. Um classically a little higher loss ratio.
um,
In the fourth quarter, you know, LPT business, which type—business laws, portfolio transfer, which—
Has a very low acquisition ratio to it. Um classically a little higher loss ratio.
um,
Evan G. Greenberg: And then E&S has been growing faster than major, and that is, you know, by its nature, its wholesale business has a higher acquisition ratio.
Evan G. Greenberg: And then E&S has been growing faster than major, and that is, you know, by its nature, its wholesale business has a higher acquisition ratio.
On, but the relative size of each varies a little bit quarter to quarter. So you got to, you know, it's not just a straight line that way, but that Trend and that direction, yes is clear and then ens, um, has been growing faster than major and that is, uh, you know, by its nature. It's wholesale business, has a higher acquisition ratio
That's helpful, thanks.
You're welcome.
And that impacts it and that bounces around quarter to quarter. Um, you also have an in North America commercial the yes middle and small growing faster than major, so that makes shift impacts it on 1 hand, but the relative size of each varies a little bit quarter to quarter. So you got to you know, it's not just a straight line that way but that Trend and that direction, yes is clear and then ens, um, has been growing faster than major and that is, you know, by its nature. It's wholesale business has a higher acquisition ratio
Phil Bancroft: That's helpful. Thanks, Ed.
Ryan Tunis: That's helpful. Thanks, Ed.
Your next question comes from the line of Matthew. Hyman of City research, your line is open.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
That's helpful, thanks.
You're welcome.
Operator: Your next question comes from the line of Matthew Hymerman of Citi Research. Your line is open.
Operator: Your next question comes from the line of Matthew Hymerman of Citi Research. Your line is open.
Your next question comes from the line of Matthew. Hyman of City research, your line is open.
Matthew Hymerman: Good morning, everybody. First question would be: you had this comment with respect to more favorable January 1 conditions relevant to expectations. I was curious what you meant by that, whether that was from a growth standpoint, from a pricing standpoint, geopolitical factors, just to better understand what you meant.
Matthew Heimermann: Good morning, everybody. First question would be: you had this comment with respect to more favorable January 1 conditions relevant to expectations. I was curious what you meant by that, whether that was from a growth standpoint, from a pricing standpoint, geopolitical factors, just to better understand what you meant.
Good morning everybody. Um, the first question would be, you have this comment with respect to more favorable January, 1 conditions for all decks vacations. I just I was curious what you meant by that, whether that was uh from a growth standpoint from a pricing standpoint, and geopolitical factors just um just to
just would like to better understand what you meant.
Yeah, it wasn't geopolitical. Um,
um,
Good morning everybody. Um, first question, would be you have this comment with respect to more favorable January, 1 conditions for all decks vacations. I just, I was curious what you meant by that, whether that was uh from a growth standpoint from a pricing standpoint geopolitical factors just um just to
Evan G. Greenberg: Yeah. It wasn't geopolitical. 1 January. And don't overread it. 1 January is an important date for certain businesses, particularly large account business. It's a very important date in Europe and the UK. Very large percentage of the business, particularly it's large account-oriented, is on the continent and in the UK, 1 January. And so between the US, Europe, and the UK in particular, the large account business, it did better than we had imagined ourselves. It had a relatively good start because it did better than we had imagined ourselves. That's all. So it was a statement of confidence for that business, that we're off to a good start.
Evan G. Greenberg: Yeah. It wasn't geopolitical. 1 January. And don't overread it. 1 January is an important date for certain businesses, particularly large account business. It's a very important date in Europe and the UK. Very large percentage of the business, particularly it's large account-oriented, is on the continent and in the UK, 1 January. And so between the US, Europe, and the UK in particular, the large account business, it did better than we had imagined ourselves. It had a relatively good start because it did better than we had imagined ourselves. That's all. So it was a statement of confidence for that business, that we're off to a good start.
January 1 and and don't overread it.
Just would like to better understand what you meant.
Yeah, it wasn't geopolitical. Um,
um,
January, 1 is an important date for certain businesses, particularly large account business.
January 1, and don't overread it.
Um, it's a very important date.
Um,
in Europe in the UK.
January, 1 is an important date for certain businesses, particularly large account business.
Um, it's a very important date.
Um,
in Europe and the UK.
Um, very large percentage of the business, particularly its large account oriented, um, is, um, in in on the continent and then the UK January 1, um, and so between the US and Europe and the UK in particular, um, the large account business. Um, it did, it did better than we, it had a relatively good start because it did better than we had imagined ourselves. Um, that's all
Um, very large percentage of the business, particularly this large account oriented, um, is, um, in—in—on the continent and then the UK January 1. Um, and so, between the US and Europe, and the UK in particular, um, the large account business, um, it did—it did,
Um, so it said it was a it was a statement of confidence for that business that we're off to a good start.
Better than we, it had a relatively good start because it did better than we had imagined ourselves. Um that's all
Um, so it said it was a it was a statement of confidence for that business that we're off to a good start.
Matthew Hymerman: Appreciate it. I guess, with respect to— One, I appreciate that you actually gave some targets on the investments you're making on the digital side. So, so thank you for that. I would be curious, though, when you think about the pace at which you're moving on that, how constrained are you at all, if at all, by other stakeholders, constituents, whether they be distributors, customers, or service or technology providers?
Matthew Heimermann: Appreciate it. I guess, with respect to— One, I appreciate that you actually gave some targets on the investments you're making on the digital side. So, so thank you for that. I would be curious, though, when you think about the pace at which you're moving on that, how constrained are you at all, if at all, by other stakeholders, constituents, whether they be distributors, customers, or service or technology providers?
I appreciate it. I guess with respect to 1, I appreciate that. You actually gave some Targets on the Investments you're making on the digital side. Um, so so thank you for that. I would be curious though when you think about the pace at which you're moving on that. How how constrained are you at all? If at all by other stakeholders constituents, whether they be distribute Distributors, uh, customers or service, or technology providers
Yeah.
Um,
and,
and by the way,
When we did this.
Evan G. Greenberg: Yeah. And, and by the way, when we did this, just that I want everyone to understand, when I came out in December at the investor dinner to talk about this and to put this out, it's because I'm talking more long term and about intrinsic value creation and competitive profile of the company. This is not gonna become something that – and it's a long term, and I put it out there on multiple years. So it's not something that is gonna start working its way into worksheets, where I'm gonna start giving quarterly updates of this or this or this. It's missing the whole point. And from time to time, I will give updates that, that provide a broader insight, when someone is thinking about investing in Chubb, who is long-term investing.
Evan G. Greenberg: Yeah. And, and by the way, when we did this, just that I want everyone to understand, when I came out in December at the investor dinner to talk about this and to put this out, it's because I'm talking more long term and about intrinsic value creation and competitive profile of the company. This is not gonna become something that – and it's a long term, and I put it out there on multiple years. So it's not something that is gonna start working its way into worksheets, where I'm gonna start giving quarterly updates of this or this or this. It's missing the whole point. And from time to time, I will give updates that, that provide a broader insight, when someone is thinking about investing in Chubb, who is long-term investing.
Uh, I appreciate it. I guess with respect to 1, I appreciate that. You actually gave some Targets on the Investments you're making on the digital side. Um, so so thank you for that. I would be curious that when you think about the pace that which you're moving on that, how constrained are you at all? If at all by other stakeholders constituents, whether they be distribute Distributors, uh, customers or service, or technology providers
Yeah.
Just they don't want everyone to understand.
Um,
and,
When?
and, and by the way,
When we did this just they don't want everyone. Everyone understand.
I came out in December at the investor dinner to talk about this and to put this out,
When?
it's because I'm talking more long term.
I came out in December at the investor dinner to talk about this and to put this up,
And about intrinsic value creation and competitive profile of the company.
About intrinsic value creation.
This is not going to become something that and it's a long term and I put it out there on multiple years.
And competitive profile of the company.
This is not going to become something that and it's a long term and I put it out there on multiple years.
So it's not something that is going to start working its way into worksheets, or I'm going to start giving quarterly updates of this or this or this, it's missing the whole point. Um and from time to time I will give updates that.
Um, that provide a broader Insight. Um, when someone is thinking about investing in job,
So it's not something that is going to start working its way into worksheets where I'm going to start giving quarterly updates of this or this or this, it's missing the whole point. Um and from time to time I will give updates that.
Um, who is long-term investing?
Um,
and to answer your question,
Um, that provides a broader insight, um, when someone is thinking about investing in Chubb.
the only place.
where,
Evan G. Greenberg: To answer your question, the only place where a distribution partner constrains our ability to implement or to grow is really in our digital business, with digital partners, where how fast, given all of their priorities for growing their basic business, will they pay attention in connectivity, data, analytics, et cetera, and make available for us to be able to do what we do well, and that is interest and distribute through their, their pipeline to customers. That's the only place of significance that comes to mind.
um, who is long-term investing?
Um,
Evan G. Greenberg: To answer your question, the only place where a distribution partner constrains our ability to implement or to grow is really in our digital business, with digital partners, where how fast, given all of their priorities for growing their basic business, will they pay attention in connectivity, data, analytics, et cetera, and make available for us to be able to do what we do well, and that is interest and distribute through their, their pipeline to customers. That's the only place of significance that comes to mind.
and to answer your question,
the only place.
where,
A distribution partner, um, constrains our ability to implement or to grow.
Is really in our digital business with digital partners.
A distribution partner, um, constrains our ability to implement or to grow.
Where how fast given all of their priorities for growing their basic business.
Is really in our digital business with digital partners.
Where, how fast, given all of their priorities for growing their basic business.
Um, will, they pay attention in connectivity data, analytics, Etc. Um, and make available for us to, um, be able to do what we do. Well, and that is, um, interest and distribute through their their pipeline to customers.
That's the only.
Significance. That comes to mind.
Um, will, they pay attention in connectivity data, analytics, Etc. Um, and make available for us to, um, be able to do what we do. Well, and that is, um, interest and distribute through their their pipeline to customers.
I appreciate it and thank you for that perspective.
You're welcome.
That's the only.
Place of significance that comes to mind.
Matthew Hymerman: I appreciate it, and thank you for that perspective.
Matthew Heimermann: I appreciate it, and thank you for that perspective.
Your next question comes from line of Tracy, bengui of wolf research, your line is open.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
Thank you. Good morning.
I appreciate it and thank you for that perspective. You're welcome.
Operator: Your next question comes from the line of Tracy Benguigui of Wolfe Research. Your line is open.
Operator: Your next question comes from the line of Tracy Benguigui of Wolfe Research. Your line is open.
Your next question comes from line of Tracy, bengui of wolf research, your line is open.
Tracy Benguigui: Thank you. Good morning. On asset allocation, you're targeting to raise privates from 12% of your investments to 15% over the medium term. I recognize that Schedule BA type of assets, at least for the private equity piece, consumes a lot of risk-based capital. Are you expecting to make that up with diversification credit, like, as you grow your life business? Should I think about those two pieces moving together?
Tracy Benguigui: Thank you. Good morning. On asset allocation, you're targeting to raise privates from 12% of your investments to 15% over the medium term. I recognize that Schedule BA type of assets, at least for the private equity piece, consumes a lot of risk-based capital. Are you expecting to make that up with diversification credit, like, as you grow your life business? Should I think about those two pieces moving together?
Thank you. Good morning.
On asset allocation, you're targeting to raise private from 12% of your Investments, to 15% over the medium term. I I recognize that schedule ba type of assets, at least, for the private Equity piece consumes, a lot of risk based Capital. Um, are you expecting to make that up with diversification? Credit? Like, as you grow your life business, should I think about those 2 pieces moving together?
Evan G. Greenberg: No. Go ahead, Peter. That, that's a worksheet question I think we ought to take offline, but I'm gonna let Peter-
Evan G. Greenberg: No. Go ahead, Peter. That, that's a worksheet question I think we ought to take offline, but I'm gonna let Peter-
Phil Bancroft: Not specific to life. There is an allocation of PE that goes into life, in particular, the Asian markets, but it's relatively modest to the overall footprint and what we intend to grow.
Peter Enns: Not specific to life. There is an allocation of PE that goes into life, in particular, the Asian markets, but it's relatively modest to the overall footprint and what we intend to grow.
No. Go ahead Peter that that's a worksheet question. I think we ought to take offline but I'm going to let Peter not specific to life. There is an allocation of PE that goes into life into a particular, the Asian markets, but it's relatively modest to the overall footprint and what we intend to grow.
Evan G. Greenberg: They’re not. We did not look at them together in diversification. And by the way, we’re very mindful, both on a statutory and an S&P basis, how much capital each class of alternative draws, and we have made statements about how it will be and is accretive to our ROE now and will be as we go forward.
No, go ahead. Peter, that's a worksheet question. I think we ought to take offline but I'm going to let Peter not specific to life. There is an allocation of PE that goes into life into in particular, the Asian markets, but it's relatively modest to the overall footprint and what we intend to grow.
Peter Enns: They’re not. We did not look at them together in diversification. And by the way, we’re very mindful, both on a statutory and an S&P basis, how much capital each class of alternative draws, and we have made statements about how it will be and is accretive to our ROE now and will be as we go forward.
But they're not.
They're they're not we did not. Um, look at them together. And in in, in diversification and by the way, we're very mindful both on a statutory and an S&P basis. Um, how much Capital each class of alternative drawers. And we have made statements about how it will be and is a creative to our row. We now
Will be as we go forward.
We did not, um, look at them together and in, in, in diversification, and by the way, we're very mindful, both on a statutory and an S&P basis, um, how much capital each class of alternative draws. And we have made statements about how it will be, and is accretive to our ROE. We now will be, as we go forward.
John Lupica: Okay. I love seeing actual quantified metrics with respect to your AI digital agenda. So my question is actually more on the cultural side. I kind of think of insurance tends to be a tribal culture. What is the reception from your underwriting and claims folks with respect to reinventing how they do business, like the transformation piece?
Tracy Benguigui: Okay. I love seeing actual quantified metrics with respect to your AI digital agenda. So my question is actually more on the cultural side. I kind of think of insurance tends to be a tribal culture. What is the reception from your underwriting and claims folks with respect to reinventing how they do business, like the transformation piece?
Okay.
Okay. Um, I love seeing uh, actual Quantified metrics with respect to your AI digital agenda. So my question is actually more on the cultural side. Uh, I kind of think of assurance tends to be a tribal culture. Uh, what is the reception from your underwriting and claims folks with respect to Reinventing how they do business, like the transformation piece?
Yeah, it's very interesting. Um, Tracy the the comment.
Tribal. Um,
Um, I love seeing uh, actual Quantified metrics with respect to your AI digital agenda. So my question is actually more on the cultural side. Uh, I kind of think of as insurance tends to be a tribal culture. Uh, what is the reception from your underwriting and claims books with respect to Reinventing how they do business, like the transformation piece?
Evan G. Greenberg: Yeah, it's very interesting, Tracy, the comment tribal. I think of every business in any industry, every company that is a good company and is well run, a hallmark of it is its culture. Culture is norms of behavior that all hold in common that they consider important, and that forms culture. When I look at Chubb, part of our culture is an ability and a willingness to adapt, to change, to be earnest. It's a meritocracy where you're rewarded for what you achieve. We're a highly disciplined organization. The things we intend to do are measurable. It's an organization and behavior that is about accountability, and that we take individual accountability. It's not about some committee.
Peter Enns: Yeah, it's very interesting, Tracy, the comment tribal. I think of every business in any industry, every company that is a good company and is well run, a hallmark of it is its culture. Culture is norms of behavior that all hold in common that they consider important, and that forms culture. When I look at Chubb, part of our culture is an ability and a willingness to adapt, to change, to be earnest. It's a meritocracy where you're rewarded for what you achieve. We're a highly disciplined organization. The things we intend to do are measurable. It's an organization and behavior that is about accountability, and that we take individual accountability. It's not about some committee.
um, I think of
Yeah, it's very interesting. Um, Tracy, the comment.
every business in any industry every company.
That.
Tribal. Um,
um,
Is.
um, I think of
every business in any industry every company.
Is a good company and is well-run. A Hallmark of. It is its culture
That.
um,
Is.
And um and culture is Norms of behavior.
Is a good company and is well-run. A Hallmark of. It is its culture
That all hold in common, that they that they consider important.
Um,
And um and culture is Norms of behavior.
and that forms culture.
And when I look at Chubb, part of our culture,
That all hold in common, that they that they consider important.
Um,
Is an ability and a willingness to adapt.
Change.
and that forms culture.
Um,
to be earnest.
And when I look at Chubb, part of our culture,
It's a meritocracy where
Is an ability and a willingness to adapt.
Change.
Um, your your your rewarded for what? You achieve
Um, to be earnest.
Um, or a highly disciplined organization.
it's a meritocracy where
The things we intend to do, are measurable.
Um, you’re rewarded for what you achieve.
It's in order to behavior that is about accountability.
Um, or a highly disciplined organization.
The things we intend to do, are measurable.
And um, and that we take individual accountability. It's not about some committee.
Behavior that is about accountability.
Um, and and when I add all that together, um, and it's a respectful culture.
um,
Evan G. Greenberg: When I add all that together, and it's a respectful culture. We respect each other. It's not management respecting employees. We're all employees. We're all colleagues. And so when we have plans and they are understood and explained and we work through them, the vast majority in this organization work hard towards achieving it with an open mind, and we support each other. It is, for many employees, the transformation, and we didn't invent this, the digital transformation society is going through and how it's gonna impact businesses and economics. Chubb has a great opportunity to be a leader and to be highly relevant, but all of us have to adapt, all of us have to learn skills, all of us have to be flexible.
And um, and that we take individual accountability. It's not about some committee.
we respect each other.
Peter Enns: When I add all that together, and it's a respectful culture. We respect each other. It's not management respecting employees. We're all employees. We're all colleagues. And so when we have plans and they are understood and explained and we work through them, the vast majority in this organization work hard towards achieving it with an open mind, and we support each other. It is, for many employees, the transformation, and we didn't invent this, the digital transformation society is going through and how it's gonna impact businesses and economics. Chubb has a great opportunity to be a leader and to be highly relevant, but all of us have to adapt, all of us have to learn skills, all of us have to be flexible.
Um, it's not management. Respecting employees. We're all employees.
Um, and when I add all that together, um, it's a respectful culture.
um,
Um we're we're we're all colleagues.
we respect each other.
and so, when we have plans,
And they are understood.
Um, it's not management. It's about respecting employees. We're all employees.
And explained and we work through them.
Um, we're—we're all colleagues.
And so, when we have plans,
The vast majority in this organization.
And they are understood.
And explained, and we work through them.
Work hard towards achieving it with an open mind and we support each other.
Um,
The vast majority in this organization.
It is for many employees. Um, the transformation
Work hard towards achieving it with an open mind, and we support each other.
Um, it is for many employees, um, the transformation.
um, and we didn't invent this, the digital transformation Society is going through and how it's going to impact businesses and economic
Um, Chubb has a great opportunity to be a leader and to be highly relevant.
But all of us have to adapt.
All of us have to learn skills. All of us have to be flexible.
Um, and we didn't invent this. The digital transformation society is going through and how it's going to impact businesses and the economy—um, Chubb has a great opportunity to be a leader and to be highly relevant.
Evan G. Greenberg: And the majority, I have so much confidence in my colleagues. The vast majority around the globe will put themselves into this. And that is a large part of what gives me confidence.
But all of us have to adapt. All of us have to learn skills. All of us have to be flexible.
Peter Enns: And the majority, I have so much confidence in my colleagues. The vast majority around the globe will put themselves into this. And that is a large part of what gives me confidence.
Um and the majority, I have so much confidence in my colleagues. Um the vast majority around the globe will put themselves into this.
Um and the majority, I have so much confidence in my colleagues. Um the vast majority around the globe will put themselves into this.
Thank you.
You're welcome.
And, um, and, um, that is a large part of what gives me confidence.
Your next question comes from the line of Andrew clicker of TD Kellen. Your line is open.
John Lupica: Thank you.
Tracy Benguigui: Thank you.
Thank you.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
Operator: Your next question comes from the line of Andrew Kligerman of TD Cowen. Your line is open.
Operator: Your next question comes from the line of Andrew Kligerman of TD Cowen. Your line is open.
Andrew Kligerman: Good morning. Evan, your commentary around financial lines and workers' comp pricing trends didn't sound that compelling. So it was interesting to me that Financial Lines net written premium was up 5.4%. Workers' comp was up 3.6%. You know, an acceleration from the prior quarters. So I'm wondering, you know, what you might be seeing there. Do you think this trend can continue where Chubb is growing in those lines?
Andrew Kligerman: Good morning. Evan, your commentary around financial lines and workers' comp pricing trends didn't sound that compelling. So it was interesting to me that Financial Lines net written premium was up 5.4%. Workers' comp was up 3.6%. You know, an acceleration from the prior quarters. So I'm wondering, you know, what you might be seeing there. Do you think this trend can continue where Chubb is growing in those lines?
Your next question comes from the line of Andrew clicker, FTD, Kellen. Your line is open.
Good morning. Um Evan your commentary around uh Financial uh lines and workers comp pricing Trends. Didn't sound that compelling. So it was interesting to me.
That Financial lines. Net written premium was up 5.4% workers comp was up.
Good morning. Um Evan your commentary around uh Financial uh lines and workers comp pricing Trends. Didn't sound that compelling. So it was interesting to me.
That financial lines net written premium was up 5.4%. Workers comp was up.
3.6%, um, you know, an acceleration from the prior quarters. So I'm, I'm wondering, uh, you know what, you might be seeing their, do you, do you think this trend can continue where Chubb is is growing in those lines?
Well, first of all, bounces around quarter to quarter, um, um but I'm going to, I'm going to turn it over to John Keogh day after that question.
Evan G. Greenberg: Well, first of all, it bounces around quarter to quarter. But I'm gonna turn it over to John Keogh to answer that question.
Evan G. Greenberg: Well, first of all, it bounces around quarter to quarter. But I'm gonna turn it over to John Keogh to answer that question.
3.6%, um, you know, an acceleration from the prior quarters. So I'm, I'm wondering, uh, you know what, you might be seeing their, do you, do you think this trend can continue where Chubb is is growing in those lines?
1. Why why don't we talk about the financial lines? Number this 1 that I observe I think you understand.
Well, first of all, it bounces around quarter to quarter, um, um, but I'm going to—I'm going to turn it over to John Keogh to answer that question.
John Lupica: Andrew, why don't we talk about the financial lines number? This one, which that I observe, I think you understand, is... One, that's a global number, so, you know, we're offering financial lines in a number of markets around the globe, some of which are growing, some of which are shrinking. Financial lines also includes everything from public D&O to D&O for private companies, not-for-profits. It includes all sorts of professional lines for different trade groups and industries. It's employment practices, it's fiduciary coverages, it's fidelity coverages, it's cyber coverages. So in that number you're seeing, I think, speaks to the diversity of, of our business and financial lines. And there is areas there where we're purposely growing that business because we think we're getting paid adequately for that particular product in that particular market.
John Keogh: Andrew, why don't we talk about the financial lines number? This one, which that I observe, I think you understand, is... One, that's a global number, so, you know, we're offering financial lines in a number of markets around the globe, some of which are growing, some of which are shrinking. Financial lines also includes everything from public D&O to D&O for private companies, not-for-profits. It includes all sorts of professional lines for different trade groups and industries. It's employment practices, it's fiduciary coverages, it's fidelity coverages, it's cyber coverages. So in that number you're seeing, I think, speaks to the diversity of, of our business and financial lines. And there is areas there where we're purposely growing that business because we think we're getting paid adequately for that particular product in that particular market.
Andrew why don't we talk about the financialized number? This 1 that I observe I think you understand.
Is well, that's a global number. So, you know, we're offering Financial lines and a number of markets around the globe, some of which are growing um some of which are shrinking. Um, Financial lines also includes everything from public Veno.
To dino for private companies, not for profits.
Is well, that's a global number. So you know, we're offering Financial lines and a number of markets around the globe. Some of which are growing um some of which are shrinking
Um, Financial Lines also includes everything from public D&O.
To D&O for private companies, not-for-profits.
It includes all sorts of professional lines for different trade groups and industries its Employment Practices. Its fiduciary coverages is Fidelity coverages, it's cyber coverages.
Um, so in that number you're seeing, I think speaks to the diversity of of our business and financial lines.
It includes all sorts of professional lines for different trade groups and industries. It's employment practices, it's fiduciary coverages, it's fidelity coverages, it's cyber coverages.
Um, so in that number you're seeing, I think, speaks to the diversity.
and the areas where there, where we're purposely throwing that business because we think we're getting paid adequately for that particular product, and that particular Market,
Of our business and financial lines.
John Lupica: There are other places, unfortunately, where we're shrinking, where a product in a particular market around the globe does not meet our requirements. That number is an aggregation of the diversity of those businesses. To your question, in terms of trend, the one thing we did see in the fourth quarter in Financial Lines is some green shoots in terms of some areas that do need rate. I'd call out, particularly in North America, we saw for the first time in many quarters, a slight rate increase on our Public D&O book. We saw in Transaction Liability pricing, terms, and conditions a lot more rational in the fourth quarter than we've seen in the last couple of years. Then Employment Practices in the US, we're pushing rate across the board 'cause it needs it in that book of business.
John Keogh: There are other places, unfortunately, where we're shrinking, where a product in a particular market around the globe does not meet our requirements. That number is an aggregation of the diversity of those businesses. To your question, in terms of trend, the one thing we did see in the fourth quarter in Financial Lines is some green shoots in terms of some areas that do need rate. I'd call out, particularly in North America, we saw for the first time in many quarters, a slight rate increase on our Public D&O book. We saw in Transaction Liability pricing, terms, and conditions a lot more rational in the fourth quarter than we've seen in the last couple of years. Then Employment Practices in the US, we're pushing rate across the board 'cause it needs it in that book of business.
And there are — is there where we're purposely throwing that business, because we think we're getting paid adequately for that particular product, and that particular market,
And the other places, unfortunately, where we're shrinking, we're a product in a particular market around. The globe is not meeting our requirements, so that number is an aggregation of of the diversity of those businesses.
So your question in terms of trend, the 1 thing, we did see in the fourth quarter, in financial lines,
And the other places, unfortunately, where we're shrinking, we're a product in a particular market around. The globe is not meeting our requirements, so that number is an aggregation of of the diversity of those businesses.
Is some green shoots in terms of some areas that do need rate.
And I, I'd call out particularly in North America. We saw for the first time in many quarters, um, a slight rate increase on our public dno book.
To your question. In terms of Trends, the 1 thing we did see in the fourth quarter in financial lines is some green shoots in terms of some areas that do need rate.
And I, I'd call out particularly in North America. We saw for the first time in many quarters, um, a slight rate increase on our public Dino book,
Um we saw in transaction, liability pricing terms and conditions um a lot more rational in the fourth quarter than we've seen in the last couple of years.
And then Employment Practices. In the US, we were pushing right across the board because it needs it in that book of business.
We saw, in transaction liability pricing terms and conditions, a lot more rational in the fourth quarter than we've seen in the last couple of years.
In workers comp it was predominantly in Middle Market and small commercial that that had a very good quarter.
Evan G. Greenberg: ...In workers' comp, it was predominantly in middle market and small commercial that had a very good quarter. I'm comfortable because we don't write. We're not a broad-based writer of all industries, all classes, and comp. We've been, and our signature for many years is, we're selective within the industries and the states within which we write. This quarter was, in particular, a strong quarter. I don't believe it sets a trend. It was a bit opportunistic, but it was very good.
Evan G. Greenberg: ...In workers' comp, it was predominantly in middle market and small commercial that had a very good quarter. I'm comfortable because we don't write. We're not a broad-based writer of all industries, all classes, and comp. We've been, and our signature for many years is, we're selective within the industries and the states within which we write. This quarter was, in particular, a strong quarter. I don't believe it sets a trend. It was a bit opportunistic, but it was very good.
And then, Employment Practices. In the U.S., we were pushing right across the board because it needs it in that book of business.
In workers comp it was predominantly in Middle Market and small commercial that that had a very good quarter.
Um, I'm comfortable because we don't write, we're not the, a broad-based writer of all Industries. All classes income. We're, we're, we've been and our signature for many years is, we're selective within the industries and the states within which we write this quarter was in particular, a strong quarter. Um, I don't believe it's such a trend. Um, it was it was a bit opportunistic, but it was very good.
Quarter was in particular a strong quarter. Um I don't believe it's such a trend. Um it was it was a bit opportunistic but it was very good.
Andrew Kligerman: Got it. Thank you for that. And then just shifting over to the another outstanding prior period development, favorable $268 million. Curious about the casualty piece, commercial, auto, excess liability. How did that develop? And maybe a little color on accident years, if you could.
Andrew Kligerman: Got it. Thank you for that. And then just shifting over to the another outstanding prior period development, favorable $268 million. Curious about the casualty piece, commercial, auto, excess liability. How did that develop? And maybe a little color on accident years, if you could.
Got it and then thank you for that. And then just shifting over to the uh, another outstanding prior period development favorable, 268 million, curious about the casualty piece Commercial Auto excess liability. Um, how did that uh develop and and maybe a little color on accident years if you could?
Evan G. Greenberg: Yeah, we don't break down that way, as you know. The prior period reserve development in long-tail lines came from the portfolios that we studied in the quarter. Every quarter, we study a different cohort of portfolios for annual deep dive review. We look provisionally every quarter at all portfolios and, but we in particular react to those, and especially long-tail business, where it's part of a quarterly review. So long tail, in the cohorts we reviewed this quarter, they produced a favorable outcome as far as I'm concerned.
Evan G. Greenberg: Yeah, we don't break down that way, as you know. The prior period reserve development in long-tail lines came from the portfolios that we studied in the quarter. Every quarter, we study a different cohort of portfolios for annual deep dive review. We look provisionally every quarter at all portfolios and, but we in particular react to those, and especially long-tail business, where it's part of a quarterly review. So long tail, in the cohorts we reviewed this quarter, they produced a favorable outcome as far as I'm concerned.
Got it and then thank you for that. And then just shifting over to the uh, another outstanding prior period development favorable, 268 million, curious about the casualty piece Commercial Auto excess liability. Um, how did that uh develop and and maybe a little color on accident years if you could?
Yeah. We're not gonna we don't break down that way as you know and and the prior period Reserve development and longtail lines came from
the portfolios that we study in the quarter. Every quarter, we study a different cohort of portfolios for annual, Deep dive review. We look
Yeah we're not going to we don't break down that way as you know and and the prior period Reserve development and longtail lines came from the portfolios that we study in the quarter. Every quarter, we study a different
cohort of portfolios for annual, Deep dive review. We look
We look provisionally every quarter at all portfolios. And, um, but we we in particular react to those and especially longtail business where, um, it's part of a quarterly review and so long tail in the cohorts, we reviewed this quarter, they produced a favorable outcome.
As far as on the government.
Thanks very much.
You're welcome.
We look provisionally every quarter at all portfolios. And, um, but we we in particular react to those and especially longtail business where, um, it's part of a quarterly review and so long tail in the cohorts, we reviewed this quarter, they produced a favorable outcome.
Andrew Kligerman: Thanks very much.
Andrew Kligerman: Thanks very much.
That's as far as I'm looking.
Evan G. Greenberg: You're welcome.
Evan G. Greenberg: You're welcome.
And that's all the time we have for our Q&A session. I'll not turn to conference back, over to Susan, spivac for closing remarks.
Thanks very much.
You're welcome.
Operator: That's all the time we have for our Q&A session. I will now turn the conference back over to Susan Spivak for closing remarks.
Operator: That's all the time we have for our Q&A session. I will now turn the conference back over to Susan Spivak for closing remarks.
Do you want to take your call enjoy the day and thank you again?
Susan Spivak: Thank you, everyone, for joining us today. If you have any follow-up questions, we will be around to take your calls. Enjoy the day, and thank you again.
Susan Spivak: Thank you, everyone, for joining us today. If you have any follow-up questions, we will be around to take your calls. Enjoy the day, and thank you again.
And that's all the time we have for our Q&A session, I will now turn the conference back over to Susan, spivac for closing remarks.
Thank you, everyone, for joining us today. If you have any follow-up questions, we will be around to take your call. Enjoy the day, and thank you again.
Operator: This concludes today's conference call. You may now disconnect.
Operator: This concludes today's conference call. You may now disconnect.
You may now disconnect
this concludes today's conference call, you may now disconnect
