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Chubb Limited Reports Impressive Quarterly Results and Growth in Net Premiums Written

Chubb Limited, a prominent leader in the insurance industry, recently disclosed their financial performance for the fourth quarter ending December 31, 2024. The company reported a net income of $2.58 billion, translating to $6.33 per share, alongside core operating income of $2.45 billion or $6.02 per share. This impressive performance highlights a significant rebound in net income compared to the previous year, underscoring Chubb's resilience amidst various market challenges.

In total, the consolidated net premiums written reached $12.1 billion, marking a 6.7% increase in global property and casualty (P&C) insurance alongside a 7.6% rise in life insurance premiums. The P&C combined ratio was notably strong at 85.7%, evidencing efficient cost management and underwriting performance. For the full fiscal year, Chubb boasted a record per-share net income of $22.70 and core operating income of $22.51, both representing solid growth from the previous year. The total consolidated net premiums written for the year were $51.5 billion, reflecting an 8.7% increase from 2023, with the P&C segment growing a remarkable 9.6%.

Chubb's performance in the fourth quarter showcased a remarkable record in underwriting income, achieving $1.58 billion up 3.8%, complemented by a competitive combined ratio of 85.7%. Current accident year underwriting income, excluding catastrophe losses, soared by 20.1% to $1.97 billion, resulting in a record combined ratio of 82.2%.

However, the company also faced challenges, notably pre-tax catastrophe losses totaling $607 million, which included substantial costs attributed to Hurricane Milton. Despite this, Chubb's ability to navigate these adversities signifies their steadfast commitment to assisting affected policyholders with ongoing recovery efforts. The firm estimates the total cost associated with supporting customers and rebuilding from the wildfire disasters at $1.5 billion net pre-tax, anticipating this to impact their results in the first quarter of 2025.

Annual Performance Highlights

On an annual basis, Chubb characterized this year as their best ever, reporting a total net income of $9.27 billion, reflecting a 2.7% increase, and core operating income of $9.20 billion. Adjusted for the one-time tax benefit received in the prior year, the net income and core operating income were enhanced by 16.8% and 11.5%, respectively. The P&C segment continued to excel, contributing $5.85 billion in underwriting income alongside a solid 86.6% combined ratio.

Life insurance performance was equally robust, with net premiums written reaching $6.33 billion, up 15.7% from the previous year, and segment income exceeding $1 billion. This marked an upward trajectory in premium collection, responding effectively to growing consumer interest in life insurance products.

Chubb's investment performance showcased record figures with a pre-tax net investment income of $5.93 billion, reflecting a 20.1% jump over 2023. This, coupled with strong market dynamics, has positioned the company as a formidable player in the global insurance landscape.

Evan G. Greenberg, Chairman and CEO of Chubb, emphasized the company's dedication to supporting policyholders during catastrophic events, highlighting ongoing efforts and resource allocations dedicated to individuals affected by recent disasters. He expressed optimism regarding future growth opportunities, asserting that the overall market conditions favor sustained development across over 80% of the company's global P&C and life insurance segments.

As Chubb enters 2025, the focus remains on leveraging their robust operational results while addressing challenges from catastrophe losses and currency fluctuations. The company maintains confidence in achieving double-digit growth in both operating earnings and earnings per share, driven by their core sectors.

In conclusion, Chubb Limited's impressive financial results and strategic orientation offer a compelling narrative of resilience and growth in the face of adversity, reinforcing their leadership position in the insurance industry as they pave the way for a promising year ahead.