CB - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, please standby. Good day, and welcome to the Chubb Limited Fourth Quarter Year-End 2019 Earnings Conference Call. This conference is being recorded. [Operator Instructions]

For opening remarks and introductions, I would like to turn the call over to Karen Beyer, Senior Vice President, Investor Relations. ahead. go Please

Karen Beyer

good XXXX and Welcome Chubb's to Thank quarter morning, year-end XXst, fourth earnings December you, everyone. conference call.

will and and and actual Our to are subject and today contain may and including which statements, report uncertainties, risks statements market company conditions, performance mix differ growth business pricing results to opportunities, and economic forward-looking relating materially.

on affect website earnings which are Please matters. supplement, at for see financial investors.chubb.com our could release recent and factors more information SEC these on our that filings, available

We GAAP non-GAAP which and will in financial measures, to the release refer today also to related provided reconciliations most measures are press supplement. of direct details earnings comparable our financial and

our this to it's pleasure Now morning. speakers my introduce

Phil your First, we'll your Financial our we team. have Also Greenberg, questions. questions and of management Evan assist by our then are Bancroft, Officer, Chairman you take Chief us followed with to Chief members with several Officer; Executive

I to over will turn call And now the Evan.

Evan Greenberg

Good morning.

the core of marked an by and up improving revenue numbers, year. underwriting more and was XX% quarter As share, is and you globally, to that driven The spreading growth we environment, from per pricing in saw operating the excellent lines quarter $X.XX recorded improved from prior of fourth more by income territories. premium business

underwriting growth were Our five the the lines organic years. environment commercial in best in over

for U.S. man-made catastrophes, and of our quarter including weather-related on agriculture business. We globally also active a experienced impact weather fairly the

operating Core over just billion. income was $X

prior Our up with income was about P&C XX%. published XX.X%, X.X% point P&C combined year, improvement over for ratio quarter the underwriting

catastrophe year-over-year from hand, one the On benefited lower we losses.

share, event by Tornado quarter business. are our affluent the but of our that in X.X was the where significant that total odds, destroyed You from CAT losses half mile market noticed had in Chubb of may Dallas, suburbs what neighborhood that's mile a the at one have

crop insurance $XXX gain saw difficult quarter. compared million hand, shortfalls yield the business, other last our from as you an in of year's $XX attributable we growing from of for underwriting underwriting quarter million an pre-announcement, fourth loss to in the our conditions On reported with

As i.e., crop I business crop temperature The in Chubb 'XX, pointed exposures. with about the risk-reward and out three before, its short is has after After insurance over weather. years a all, been moisture to exceptional favorable and for CAT term. nature, long, year last insurance it's the medium average. 'XX was for And like below by

P&C it year XX.X% XX.X% up And combined was For earnings the billion excludes was ratio, core CATs, with operating To over X%. year. compared the briefly XX.X% outstanding, basis, prior excluding XX.X% an global year, accident recap were of current $X.X a quarter, the year. versus agriculture which on last

X.X%. P&C both P&C The The were and accident underwriting year. ratios P&C prior was year the up down the with underwriting current Global income, combined again income, year from was calendar Global XX.X%. before, year, CATs Ag, excluding flat excellent. simply current accident The excludes up was which and calendar year

and the per and driven XX.X%, about income to interest have period more from income, a up mark for respectively Booking prior and share development. the tangible CATs combination value, will year, value book investment falling by Phil book were rates. of the XX.X% say

in growth ago, the constant growth in moment organic the to rate premium and a And noted revenue in P&C as years. the over Turning revenue was five environment. quarter I dollars strongest excellent. premium

and increase which negative classes X.X% X pricing foreign than grew the rate of point business spreading improve risk impact. exchange, of continued less accelerating to before had and more to quarter-on-quarter with The types. Net environment premiums of

both and X.X%. well X.X%. versus small accounts written X.X% rate about major slight loss about a decline change trend and of as market in of which increased exposure commercial, prices and X%, basis cost middle current includes on North on of America, as Overall, by both commercial a includes specialty, Renewal a price

to continue business and new underwriting meet continues Chubb. to and more standards quality, existing our flight a from We to benefit customers choose

New renewal basis. excellent, was business and on a XX% premium on policy a count the was retention XX% in XX.X% quarter nearly and up

major accounts premiums X% accounts specialty XX.X%, In ag, E&S of and growth grew commercial, XX%. and over growth retail excluding major with wholesale of

In XX%. terms X.X%; up lines, with up for Management increases: XX%. of management, rates liability short-tail were and rate major rates up and up risk XX%; casualty, XX.X%; property increased accounts excess

over Rates were XX%, business rates in up nearly casualty, Bermuda lines, In our third were and quarter's XX%; well Chubb up up Westchester, XX%. our increases. XX%; up XX%; E&S wholesale up business, property, all financial above

financial comp, X%. was middle over was to nearly up U.S. commercial retention market pricing small about comp Middle comp, excluding lines our up about were up it XX%. X%, nearly excluding Renewal Pricing and workers up in was Turning X%. was grew down market market pricing casualty X.X%, Package middle ex. for and business our grew and division, while we was X%, and XX%. comp was almost up rates property, up X%; XX.X%; X.X%. premiums

and the nearly net impacted over our growth, we policy XX.X% XX% year at lines which Retention premiums North was prior on personal America, on X%, Homeowners quarter reinsurance but a remains quarter. XX% negatively up the In strong items, up adjusted were basis. a pricing premium in over business, for in grew additional basis, X.X%.

on in progress closely more who great clients, reshaping risk the making focused portfolio, our the lead are profile. We

business international division operations in negative market growth impact X% written, General premiums up growth with constant our our was Insurance FX distributed remains in X.X XX%, had a the with about globe. up then retail Overseas up almost our percentage Net broadly to strong our London X% across premiums wholesale business, were while and points. dollars for Turning

Europe, nearly Asia and followed Growth up retail was over international respectively, Pac, and growth the and in led and Continental U.K., X% by best X%, up our up by in XX.X% over years, the Latin America many X.X%.

XX%; and up financial casualty, financial XX%; up lines, Rates business London XX%; up up X%; lines, retail our XX%. in in up and were XX%; international up up rates property, our Overall, business were XX%. aviation, property, up XX%; wholesale

Asia-focused and quarter, earnings had a over dollar year. net XX% with from Krump Our Paul Luis to in current market Lupica, of Keogh, a business up and further constant Insurance provide Life on color $XX strong Ortega and XX% the million, trends. contribution prior Juan John premiums, international over quarter including can John up pricing conditions

adequacy was and it year closing, for standards our a quarter achieve to Premium rapidly and meets continued and greater growth a In good accelerate more improving underwriting revenue underwriting business as environment. we price Chubb.

have New the with shape We excellent in started Year momentum. lot of a

on capitalize to a scale organization market as conditions, built Our on such global this. was

craft to and remain excellence. the disciplined our culture of true underwriting We have patiently waited and and

greater capitalizing are on now We opportunity.

for At time, taking increasing of important future our our are execution growth, including the that we earnings revenue our many initiatives, and same not the eye strategic ownership position long-term us for international in our and strategies Huatai Group, we making small lines the our market stake Insurance commercial progress growth growing consumer digital globe. around our operation and are efforts, middle off with

With to over we'll take that, to I'll and back call your Phil, the turn questions. be then

Philip Bancroft

Thank Evan. you,

for completed a the $X.X the Businesses with billion strong positive year. and flow $X.X year and produced We very for investment billion the cash overall quarter position. performance of financial

billion. grew to $XX billion and $X.X over $XXX total and year, assets grew to Our billion invested cash for the capital our

per book and and mentioned addition, XX.X% as were value tangible Evan XX.X%, book In our share respectively.

share from respectively. year, book interest grew and X.X% rates per declining book For value and X.X%, the gains tangible unrealized excluding

returned quarter, to million actions share in million Among the the shareholders, capital-related dividends in million we in and $XXX repurchases. $XXX including $XXX

price we average over in $X.X $XXX.XX of year, share an to the billion share. billion For in returned $X.X repurchases including at shareholders, $X.X billion dividends and per

market December, an five-year at of we $X.X European X.XX%. average and of the rate interest In issued debt in billion XX-year

issued For future produced of corporate maturities the to debt fund certain $XXX euro billion debt and year, of other mature. This that out we $X.X of debt paid have uses. and debt million

Our on X% the annualized operating core return operating was core year tangible our for XX.X%. equity ROE and was

Huatai and December, XX.X% in we approvals Group to certain conditions. stake our other XX.X% transactions, another ownership separate announced previously increased contingent in purchase on to agreed in two and As Insurance

majority ownership. will apply we stake to a when then, accounting to second Until our complete We the equity Huatai we continue hold transaction.

quarter $XXX than equity our quarter slightly income million and year. investment pretax in private guidance for the was due distributions. for lower billion net Adjusted the pretax the previous was The income expected investment to $X.X below

decline are in to for for $XXX million in portfolio. the our investment rate in variability we net run now of of rates income, primarily After-tax range the income number a billion quarterly expect from and impact $XXX there $XXX the million. and factors interest unrealized million that the year, a $X fixed to the While were realized be in gains quarter

or period $XXX $XXX detailed development million Net as quarter after-tax. in $XXX are We were had $XXX pretax, of losses pretax, in announced favorable financial supplement. the for the million quarter million prior further and after-tax, catastrophe previously or million the

related is off to approximately from net principally in years long-tail our million favorable XXXX of XX% from $XX lines. split XX% lines, legacy principally is short-tail asbestos. and remaining development The of accident development run This in prior adverse and $XXX million exposure

year, The full of $XXX XX.X% crop was a higher XX.X%, prior from agriculture or income year compared in the combined in decline with million ratio underwriting losses.

year in results, to as not XXXX we year's developed the do in first this near XXXX. year as the anywhere the of Given XXXX, quarter develop favorably expect crop XXXX

reminder, million last As we $XX first over positive had a development year's quarter. of in

payments favorable the dollar prior quarter. the in million reserves loss decreased was On development reported catastrophe the reflecting insurance constant quarter, impact a net basis, basis, $XXX On paid-to-incurred the crop loss XXX%. statements, and ratio period a in of

the After ratio the noted XX%. items paid-to-incurred above, was adjusting for

million basis. XX% the reported loss was paid-to-incurred above. reserves net year, the noted For increased the was dollar XX% basis, constant On the a adjusted a ratio for year for items and on $XXX

was lower operating the in the our of of although, quarter quarter. the annual there is with effective is rate impact at given range, catastrophe tax losses expected core the in the which for Our range line end XX.X%,

For tax our the effective operating was XX.X%. year, rate core

annual tax our operating in effective expect to XX% XX%. core we of to XXXX, the be For to range continue rate

sorry. call I'll turn Karen, to back I mean, the -

Karen Beyer

at you. take Thank And happy questions. point, to your we'll this be

Operator

Morgan Michael [Operator Instructions] Stanley. begin with with will We Phillips

Michael Phillips

generic question apologize really its on I and get guess, from to, the your of want Evan, then industry. I and to thoughts very pricing advance. to guess, but kind to of is Look, you I will question, reacting in kind the this. It's past, first high-level industry if a the question, listening

You to seem, year those do we strong. prior already much stuff don't your was because have

about which is your more, well. kind here phenomenally you you details of of really answer your the underwriting, And guys account by think how the account question do - so do is and

that And you such give growth, more higher little you even great because the get possibly margin could expansion. the think got bit if you MBS margins. a that just about But much you expansion could growth steer do as cushion up on high-level, worry with how at about thinking a between a - margin you maybe the about trade-off Evan, have you ship really not the

kind So, the you about do that had just think of rest on that? that tug-of-war get want high-level. between growth. Do the pricing you the the you you of a How to want margins

Evan Greenberg

about I it. it Yes, organization that way. think how And about don't thinks an not really underwriting

rates It that we risk question terms what We combined is by together Your a that a prices require be as ratio as to think which of mixes in then all portfolio, return ratio. is, in expressed simplistic. adjusted underwriting business, we quote published average and business. earn then in see an an overall combined in sense, line line you of and adequate the each

P&C can't at, you runs average so And look the that higher as you which than commercial the whole a business, company. in

drive business line by below adequate, now, and that are in business that of are and a dig the of lines lines You are and bit adequate down above - for maybe think we'll adequate there that there cases, some are then or rate. to we continue are

the fundamentally and adequacy when that I question we on I growth. it see hardly a growth of hope in back you. the asking is like a ironic of risk-reward, holding you're this rate XX% we Wherever think helps an on organization little the size. we're And this quarter, backdrop

Michael Phillips

Yes, A on the… Okay. thanks. little than more detail

Evan Greenberg

question. I think a second you had

Michael Phillips

the about think I the thanks. General, up it This here is return it's a throughout nitpicky in ticked I XXXX? more mean, more Overseas of expense question on ratio, your how did. on expense that kind like behind what's to acquisition and to XXXX? 'XX looks it detail bit that Yes, on

Evan Greenberg

a them, ratio lower items runs - to is related. lower partnerships year's and will pretty of it's simple. ratio, pretty business, ratio, of business expense is where that expense ratio, have have one-third the one-third because increase that of one-time from of mix last that, about it's is, mix higher we as is loss year - it of the signature loss About Yes, the product some it's related a to benefited of last it,

businesses, a and third our the the - we've in will making in grow expense And been future and we'll improve. for America certain and ratio Asia to sleeves and grow is Latin growth, into degree to particularly there in investments ameliorate

Operator

from now Piper with Sandler. hear We'll Newsome Paul

Paul Newsome

there there there to I I'm the me where a be with loss that how to wrong, little about And on you seems ask well accelerating. of imagine, D&O, pieces trends maybe tell North if going want casualty, as maybe just liability? that what's high in I trend as, you some might you offsets? be American then big because are pretty mentioned, loss about professional are Could talk the topic a would

Evan Greenberg

shape too that without Yes, No. Yes. give going a the into of bit. detail, just little to much

First of don't agree all, I your last comment. with

it We've see D&O talking how Frequency of a severity that are have overall, and an that's that don't to not it's years story. - is seen classes, that it all that, frequency, individual there. while. about pretty and don't up, sub-classes some a elevated in we've level. was overall. for classes, I increasing but at couple old - mixed it's both been ago. continuing And We together think, There we an steady but that I see it. moved that we've deteriorate classes

casualty, severity we're primary stable. In seeing

deterioration. years. transfer noticed the and particularly haven't risk we've comp, In the severity, the casualty business the we in a transfer risk primary haven't increase We an on of through seen - in 'XX area, 'XX year, comp workers

with loss us that fix helps our are go And see into year, the cost hope back by our the we're And you. reflected cost comfortable we're all we so as loss of inform looking the 'XX data. our And OpEx. constantly the year. trends, updated at we trends way, in forward years I the for and for

Paul Newsome

No, no.

secondly, have good it, you've some able the of this, expect… not make through I people sense. something would then I all will got disruption that is I to and want me I I'm virus, just that a losses, kind to get be tell sure, to should out. I there guess wrong that's that this turmoil a fairly way minimal a think thinking there exposures be I good I there. resulting it the exposure And else be just to Is about might or because makes think, sales about. at but but don't think just Asian and imagine, economic if

Evan Greenberg

past We're informed position, think very this. was how cetera. pandemics And we and/or a and exposure et cover, in pandemics. minimal experienced, chains, perils we're at in supply potential good We SARs think we from underwriting about how our this. run underwriting and on given property the about loss see our we

and a accident very have non-exist China. We health business and small, in almost

this don't impact And going can is from from We the know will or when likely time we and regard. - infection activity. imagine peak. know we tell, see modest in economic true don't everything we slowdown we don't that economic rate But tell to

today. what give on you that's can know so what we based I And

Paul Newsome

fingers Obviously, there. crossed keeping our

much. very you thank So

Operator

Wells the Elyse question. has Greenspan Fargo next with

Elyse Greenspan

Evan, about question, in in you strongest your you first guys seen five remarks years. have talked My growth prepared

going of continued You of lot also painted that picture you through your into XXXX. said a a book price

of do So, how momentum might think in as guess the growth long, year. XXXX, as see you do about sight the how long And line you price terms think we upward a I of have we throughout move you pricing do picking and last? up

Evan Greenberg

Yes.

there's to the I of you I to about a I'm but underwriting much, of only in range, 'XX, You're year. I ran volatility we will the in you admire I'll thing but little tell that business. I mix seasonality the the in be not and not I'm of can't Elyse, - going asking and think is not prognosticate the sense is you mean, this, Look, bunch for growth, balance that me asking. know, I questions some going and if answer think given a no better it, X% 'XX year my always quarter-to-quarter of guarantees

just see never way. in steady it you some So,

endures. I to pricing, it The fundamentals On think, it. speak

picked rational. some environment is it's the reasons see that there environment time, And I the will for it. we are across nothing for is continue momentum I quite and it so of the globe. it slow. will and number And and needs that Industry it's spreading And me classes up, the imagine needs more tells rate in If there see a broadly. is many anything, and

rate then simple. a bail you trends to rate can with And loss The rate And a so cost you're investment needs this. intellectualize income on the over rely math quite in just industry interest low kept People number for is you not to environment and has of hardly because years. out. seem pace

and the there of either out the it discrete reserves classes and and That your the of I is the past there. on are just side it's you. currently that doing is But and or is That your in recognized in and is environment reflected where a loss known loss with is numerator, then other hostile, that it the coin, And organization. understood. and in you in picks more that think you're front something by in come, varies pricing few

Elyse Greenspan

outbound thoughts what January prices heard placed Does reinsurance And the lot the on see expectations. we've - We'll reinsurance degree then a year. program up for in XXXX, market think are had significant program? that throughout and there in of continuing secondly about some a X, your you changing Chubb, going at have I their any in

Evan Greenberg

decision. all of - business by decisions We book I'm around of business treaty-by-treaty that. book that of not is rational a make

make not general about I'm so to going statements that. And any

Elyse Greenspan

Could of terms will the sit about make then within your of past, increased let Huatai. capital, drag have Have you you the on you last your investment In the next question. after couple next stake guys the us that over know ROE. the in us your deals? one you excess And where given

Evan Greenberg

Yes. Go Philip. ahead,

Philip Bancroft

to X% X% ROE. X%. I'm X%, sorry, on to the drag

Evan Greenberg

Oh, it's not X%, it's X.X%.

Philip Bancroft

basis points basis sorry, I'm XX to points. XX

Elyse Greenspan

you Thank much. great. very Okay,

Evan Greenberg

basis said XX we XX to on of ROE. is points drag what Elyse, basis points

Operator

And question with come Yaron our Sachs. next will Goldman from Kinar

Yaron Kinar

that, Evan, about you to option to started had least I said question, response previous years years the deteriorate seen D&O or think two ago. in you'd two at ago

ago, started happened, move year-and-a-half when Why months to there? there of ago, kind Just lag really what was rates six curious months up? four

Evan Greenberg

because the by it or been years year, 'XX And three three two the years we about sure. saw Yes, we've it, was it's ago, years 'XX, 'XX, it, 'XX. way, talking

even longer. sorry, So,

turn circumstance. you you You into of notices. get look, know, get notices - Notices

you - notices get of You get then claim.

You into and cash books flow. large then get and teach those ultimately turning move to those incurs. the of it And they play. both they excess see they have this, the primary who and And play

First, the the earlier which know, experience excess have have which it see have they kind loss. sense turn going cases layer data, a and to into of are it, what - of to

the what it and amount data type claims that loss is law realistic how and nature case? to And a And changing being firm have by they're the made. way, of are understanding They behavior. around the the see that of

pay they it. when an turns they are into who get sense arrive and we the which on And in And at so global are, and position for it incurred if it could early. way. it see and it that education, a late losses. just And There of a others but We it you and a market early tuition all you're we you paid basis. - arrive at get of at that look we're leader a you

Yaron Kinar

not question North America second related, my then Personal. really And

then in the I premiums positive quarters our net growth growth and for premiums think written delta it had four been negative. that this turn between last quarter and adjusted net

dynamic added know that policy understand happened have what But insurance guys understand share just quarter? there. you to reinsurance a to quota trying for that California. trying I Just the - that

Evan Greenberg

transfer at year are had California - sorry, We grew, you're a for and at you maybe this last different the unearned premium on we think bigger - adjust confused X%. year of to placed impact premium. than which published I made last you I for year basis because I'm it of we're a all, we them looking reinsurance, When numbers think first confused. you a

If you understand how that works.

real rate adjusted growth X.X%. And is therefore the

where previous and has also points and by best you a as the of year. is back XX our reasonable there change If portfolio, in terms level quarters, got in premium look retention a are quarter. and on of And and we it we're eliminating rate areas the combination price growth the the exposure way of shape we

Operator

with Zaremski next Credit Suisse question. Mike has the

Mike Zaremski

maybe inflation and sticking talk of know personal other to pricing believe reshaping Yeah, question about on First to in about personal as high digits. I Maybe where costs you've is reshaping? also And in loss you've personal I why you as talk been saying lines you loss don't Thanks. level high-single what have in that quarters, and talked about high that at past seems some your about you the cited portfolio. costs in lines. is and lines and speak the the as reshaping can maybe competitors probably the are it kind of being can that accelerated

Evan Greenberg

Yes, sure.

but some The that all, only of - and that national share a reach, business as costs competitor, don't And have have general homeowners there homeowners. market is the They is market thinking running five-fold. range. time. reach in been we for know X% loss write of We we are who don't business I affluent. you're in just write our of the First in on our

people because a than up, around that claim more and the are conditions about more and of that interruption, homes, and past of end, a concerned is the focused interrupted mold labor, work materials, remediation in are on get interruption, is particularly there there of expensive. living labor their an high shortage homeowners are and cost out Cost very at business expense more is was in extra materials attention. and other there Business

particularly as have and time which the some frequency talked non-weather water-related, about then loss we've issues. of same others in And for contributed

the costs way, much. all the contributing factors to add those trend. are that up, loss I it don't you not ameliorating when So, by main see

Mike Zaremski

the the Does trend. talked of in comment terms could about And trend some I'm state take America. limitations, the Thanks. color North into lastly, of that you on for curious, in changes statutes when reviver So the that. loss statutes? of some account you maybe expense thanks on

Evan Greenberg

everything Yes. we in into It account portfolio. know takes our

I'm So, leaving anything not out.

However, little the in Like And not to. filing information this And of claims. notice is only - I to point. there's at at is going is changes that's judgment statute - there moment be my quite respond a on respond much to reviver while there There activity notices. and very to developing. to this don't

being court figure of Just a take example, structured New for how judge, one way. out York and the consolidated with cases in all to are with who's just these going to forward move

So will which adjudicated the process rules yet by is and determined. the these be be to

So you can't take discovery.

get can't You information.

insurer You is right defendant, and now. can't of that's this. all the do alone the plaintiff the of derivative anything then let a And that

So now, a time, - where is know in it anything it's right our of to where but can period going evolve be estimated over we it's numbers.

Operator

take And Autonomous. Tunis question we'll now a with from Ryan

Ryan Tunis

of is benign improvement the some color we - a I'm How characterize going North give mostly XX us Evan, could just activity? improvement, hoping I think from trying about how commercial, earned and X.X a there? versus trend, year excessive that margin loss a on was standpoint ago, you'd in attritional you just accident XX year was on premium sequentially. point what's America ratio to

Evan Greenberg

go. darn we charge, There reserve recall. And characterize How it would good. you look some did I it? take year I'd you last as characterize will

in And of than a we actions which change had not seen a repeat. regard. underwriting, improvement and rate did is higher the combination recognized So we about earned that. the earned rate of a short-tail is loss about lot that in And frankly think for more loss pick And we've powerful that for take a because that's environment. it, it,

Ryan Tunis

Phil Phil, on - about on But per and that share, think value Huatai book over might To per add for threshold? have the book for more one you we one that share, should either on XX% go tangible if value Evan. the do how consolidation, then impact

Philip Bancroft

ready It's you it, for impact on not an that. Yes. at too this it. evaluate but way continue I'm We're tangible early give point. to We'll to evaluating

Ryan Tunis

I Understood. then, legacy keeping And guess these having. issues on we're

industry and going you with are liability? Chubb, might litigation that the about Insurance as manifest guess the how For I general, how in on opioid an thinking

Evan Greenberg

that think as don't of I And legacy. Yes.

of I story exists. think that mass like current. is other that It's

So got have bodily opioid, loss It's injury loss. We I clear legacy in liabilities. cover make comes property have damage. to insurance that to - we to doesn't linkage that. it you in cover you cover - a when don't see And don't due to - financial

You got approved liability.

you municipalities to got loss, liability pharma because injury society the a damage, That's property And in damage. alleged. financial a resulted are in result as against financial that prove property have overuse and/or right cases of for opioids. brought brought that the what's now, and And and are had bodily big penalty the of

in you've you Then got that Insurance. Well, there's of said making the leap plenty case - to just - got to the regard. I hurdle,

know be things bought and that you going demonstrate you when defenses. other insurance that you to weren't these that didn't aware were to able got on You

in that now and so and we therefore, what that and books lens portfolio estimated and And liability. coverage we through reflected right our as our through our reserves. - exist, records those records and far look at We as our an in see eyes

Ryan Tunis

that follow this insureds one something the understand sort of words, insurance-related or to out be to ultimately resolved, disputes is thing? be - of my difference with guess, this like the to there your sort is that is and wording I policy something going able clients, you're this something would have And other that just is financial, between - a or BI in is type

Evan Greenberg

torture understand business. do spirit insured let's versus you see welcome the both Ryan, get. the of insurance intellectually character what varies the what and do intent. go know they can by You to a) - It and language And and then of we their own

all it's lot, over. so And all the over always

Operator

KBW. We'll now from Meyer Shields hear with

Meyer Shields

from opening growth as in a small Evan, increase. you in whether small there wondering, that was premium quarter's noted I last to your anything there's headwinds exposure was to change? comments significant opposed that

Evan Greenberg

in up No. you said you, exposure. exposure. in have the X.X jumps of doing it exposure in just lot pricing of rate commercial and What that then simplistic an And all when the was the market small I X in negative all way and with gave - change is we That made positive was kind and businesses half the change simply, of what to was it. and exposure which That - is account rolled it And over in was business. America, more up businesses I large the Meyer, North middle up. over - that

There puts that read wouldn't - got it. is so, whatsoever. - general to And it's and into calls in I there is no theme

Meyer Shields

North bigger the America, I was to in admin color September. year-over-year year-to-date than what's then increase could And non-agriculture a it that? seen we've you hoping segment, in was some through driving And add two so expenses

Evan Greenberg

North In which one are America? you looking at

Meyer Shields

Commercial expenses. and personal, the right, admin

Evan Greenberg

I'm sorry.

Meyer Shields

expenses. administrative The

Evan Greenberg

you though? America, Did North say

Meyer Shields

I'm yeah. North America, sorry, America, North Oh, personal. commercial;

Evan Greenberg

America, was There personal. Go ahead, Phil. nothing. North

Philip Bancroft

a couple year. last in pension to were year and prior of There the this related benefits benefited items other that

it And like look this it so an year. increase makes

Evan Greenberg

Pension adjustment expense.

Meyer Shields

Perfect. so Thank you much.

Evan Greenberg

year-by-year. little can around bit It a bounce

before. You it will the rate this year levels don't the year, at it end look know, will versus depend interest of how all on and that

Operator

Brian Our next UBS. from with will question Meredith come

Brian Meredith

and this guys in kind then I'm of Yes, is the not about growth curious, up to just a picking follow share? as kind guys for of thanks. market just North Two pick commercial, as America, is share here what for are time quick or exposure. in well overseas, you the up the you. question right up unit you now market And on Meyer's

Evan Greenberg

number but have share, far but I that, you. don't we we're a the as for trying growth as unit, to numbers up demonstrate think market unit growth, I think picking are Well, unit

Brian Meredith

- got But I Okay. guess… you. But I

Evan Greenberg

we're picking market No, up share. Yes.

Brian Meredith

You're picking up share. market

was North I - said right? would bit exposure. asking, would X.X% guess even You question in little the be So I the pricing that a have thought Meyer higher… guess, America, I

Evan Greenberg

how missing it. define to missing you're No, You're exposure.

Brian Meredith

Okay.

Evan Greenberg

not - growing give exposure insurance are you. growth they it when how that's We companies, to say

mean? growing what and a Do more that we're how determine to That cetera. And goes their payroll. goes clients with That's So premium exposure That's et that by writing receipts, do you you their their then report into pricing their premium. actual - to clients price. they happens that rate own to exposure clients. against into I own X.X% have

Brian Meredith

Absolute… yes. Yes, Right.

Evan Greenberg

- different exposure. we're Chubb than than different very premium growing very its or growing in exposure that's is That's written

Brian Meredith

growth on that then else a second just that? there little a activity of just or Is question. been economic to function read just for globally, curious, has something my A&H And your fairly into Global muted I'm is while. business,

Evan Greenberg

goes growing quite it's along unexciting in grows client, Pac, has well, A&H Latin rate, year where talked growing will of well. very is what Europe that that Siam the that activity pickup. underlying digit. growth steady and earlier growth low lost we an sort good at is as Commercial And single No. the America a It's but Asia we year-on-year. that about rate see you'll and year impacted Bank and the

Operator

[Operator Instructions] David Motemaden from from hear Evercore. We'll now

David Motemaden

and maybe quick one Just Phil. for a Evan numbers

we that spilling the XQ especially protests going civil losses just saw, of that still are on into over $XX unrest in any Chile, is Just the on million, the there? given

Evan Greenberg

minimis. No, we de see, that not

David Motemaden

hardening then, exposed rate is XX% And the saw I to out December environment. around a had business - slides, of you your in just Evan, laid

wondering that Just is what today. percentage

into other spreading it's that lines geographies? other given in Just

Evan Greenberg

up. up That's it's dramatically. - up It's not

have yet. an updated We number the

David Motemaden

wondering like you And applying increased a Huatai investment some why to your increase owned just of your there chose to then license stake, share there guys opposed fully or maybe get peers have? the with as to the

Evan Greenberg

we do. Well,

Chubb want the or have XXX-year to Insurance fully-owned, And We in that's direction, plan more. that a completely invested. go foreign a is if wholly and owned, XXX% you

We have XXX the country. with offices Huatai around

majority all We in own life been that provinces. a - foreigners now insurance. most have allowed company and life have just It's insurance to

life that But fund getting mutual P&C of doing, build so one $X to Good $X.X got Got luck company company license. retail a on from. capability so. to doing billion insurance closing that a that got those. it It's It's billion much or has us it and is help revenue. we build built that gives

And is to both if hot it it you style business foreigner the entering very go to and de novo the environment. as very And China, simply difficult a build done. get regulatory

You it province-by-province. have to do

a at go not not to it's it it works you get level, national China. how in city-by-city. got You And simply

future this recognizing So asset. precious value very in of asset, that a execute if is the well we

David Motemaden

as their Pru headwind? in you CITIC. thinking you you I obviously those And of ownership, had will a terms well And benefits as or just buy over you expertise, just you guess, U.K. with And Board mentioned increase your that have you guys some of control understood. wide in mentioned much up local XXX% guess to the terms up once risk, I how with relationship seats time? has Yes, that of like up of about there. stake? the that number do Do wholly see to having which go any maybe becomes even that,

Evan Greenberg

been you years. No, for I I've business don't. doing And almost know, there XX

which When the that a and know approach give comment. with something - environment my the from next about that's And eyes going majority. have perspective we to I it you perspective there. going with I'm So open to the I'm

influence when now have substantial the clear and very things that will more with to we is have in relatively But you do obviously, control there. happen control, We near-term. control. Right majority clear have

doing anywhere. business And China secondly, like is

have execute around in no lot a way opportunity, opportunity If you risk complicated they of a country are is in It's China in business guarantees. But There territory, simply then every and investor, you and particular and China the you're builder if an people. not sterile some is versus understand of well, that a of a it the dramatic. every is talented that country. them.

tools got to region that have advantages. we've talent recognize we Our our relationships. ability use including to the talent, And source a ability the around have around of world, leadership, we those those country and Chinese, ability it's to and

them. have We of lot a

long-term economy for reward tell the hard potential value potential, it's now, be in is it without largest the what the it's about not the and so again And that given risk, creation. well, it will value make the creation largest and the and world and I'll to And largest not second what. you is the organization. that's long-term this decision that a what It's but

David Motemaden

agree. the it. for Appreciate thoughts. totally Thanks I Yes,

Operator

come like for And time from question. with question more Peters have Looks will Greg James. that one Raymond we

Greg Peters

I me on then had And Thank on dovetails equity tangible it you your you of core made. one you question. in equity include results. operating, results. just guess, you creation I in. core comment include press on If always I look both fitting return sort operating I releases, a just mean, for with equity value earnings this return long-term

process argumentative, assume, behind So, continues that from remind I'm goodwill tangible you acquisitions Chubb other be of the thought to not could and reference? but trying be I to me the valuable.

So just looking for clarification there.

Evan Greenberg

of sheet think Sure, business. your when when balance factor, I I in you am you it is. tangible first a all, constraining risk most are is - -

the only exposure revenue extent your your tangible can grow only pay claims of wherewithal. Can and tangible. You to against

equity accounting, can say extent You only to and make the tangible, has also on look more Tangible related is you tangible is, for it's objective. tangible borrow is creation. factor. only more on return can than versus on the straight the your to my I within book acquisition value of have one the accounting at I'd I When subjective what return more equity, Book, constraining most eye purest.

an company I When assess to And to that hardly in return depends not occurring over to future the stagnant. a to value look a at path is me, time. and right I varies asset a and you you It of Chubb, occur company, over the by and the have on depreciating said it opened such that. goodwill, or on, look equity over The it appreciating I equity, time think creation able at will organization is - a this long-term. it

of the it's created that combination And value because that the goodwill an and ACE Chubb that appreciating asset, goodwill way. you grow that and that, created into most

right And So the we value I and that's how it. how think see think about it's creation. balance we

for the as take question, I thanks So, didn't argumentative. it

Greg Peters

Thanks for fitting me in.

Operator

turn host our remarks. That conclude the to question-and-answer your session. closing I'll call for will back

Karen Beyer

time good you next Thank seeing quarter. again you for look and Thank a this your morning. day. We attention to all you forward and have

Operator

do this conclude may for ladies conference We your gentlemen, your does and you today. participation. you for thank And disconnect. that, now With

Chubb Limited (CB) 5 Feb 202019 Q4 Earnings call transcript