CB - Earnings call transcript Q3 2024

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Operator

Thank you for standing by, and welcome to the Chubb Limited Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Karen Beyer, Senior Vice President, Investor Relations.

You may begin.

Karen Beyer

Thank you, and welcome, everyone, to our September 30, 2024 third quarter earnings conference call.

Our report today will contain forward-looking statements, including statements relating to company performance, pricing and business mix, growth opportunities and economic and market conditions, which are subject to risks and uncertainties and actual results may differ materially. affect SEC on release for our on that recent which financial more our factors available are website could see filings, and earnings supplement, information Please matters. these at investors.chubb.com

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

introduce to like our I'd speakers. Now

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

And now to over it's call my to the turn Evan. pleasure

Evan G. Greenberg

Good morning.

investment capitalizing for international and billion, Insurance currently with and income underwriting, from operating of operating and strong on was at really in our businesses. Core delivered quarter over for the or Earnings XX.X%, you've once growth premium to which income, grew strong and growth: of P&C record year income, result. XX.X% nature earnings the strong X.X% quarter the leading with life income agriculture, in XX.X%. reflected the we're revenue, levels income respectively. P&C opportunities intrinsic operating again which constant and excludes As are up view way another up double-digit with net sources The and clearer growth Life company America EPS North the dollars and Global diversified XX.X%. to and around X $X.X the X.X%, investment we our core world is seen, P&C a of great each both had growth P&C underwriting P&C, broad contributions

billion, income XX.X%, natural severe catastrophes, ratio XX.X, activity. quarter was convective other up quarter industry an storm hurricanes, globally with combined active of P&C of underwriting published fires, floods, and terms the for the tornadoes over in for despite Our $X.X

up $X underwriting produced On measure secondary XX.X%, ratio of of an we of year accident current combined income underwriting, with XX.X%. billion, ex-cat record a basis, a

current For basis. the income underwriting and accident year produced a published have year, we record on both

As being allocation who a an are. managers of risk-adjusted record the asset invested we returns. risk, It's asset We're underwriters. with ourselves also on in of we and business excellent company pride long-term world-class

at Our asset it consequence as and stands our now of to $XXX basic will billion, invested a continue business of insurance. grow

the net For topped adjusted quarter, income billion, XX.X%. $X.X up investment

In portfolio is rates. year yield Our of broad-based ago, money versus Fed new health the approach of inflation given and income take a one pattern U.S. the current the reasonably fixed reads X.X%. past likely headlines, and to the X.X our X.X rate when is cautious the lowering our judgment, averaging economy a will

future and continued federal the deficit, believe rates our rate. our confident size that yield. the to in Given too curve and reinvestment of will we is that support steepen, remain our simply will will the portfolio We to overall ability yield at reinvest our flows accrete which to growth unsustainable, cash continue

on And $X target pace Life our Insurance our the division ahead it's $XXX well we of generally year. while billion policy refrain plan. you guidance, to million income of segment income was to for of are from know exceed life

say Our a equity will with items. XX.X%, intangible the of annualized ROE about on more XX.X. quarter operating core return have for Peter to was financial

in life America Asia Europe, North growth customer and geographically, favorably. quarter, by rate premiums of with agriculture, combined or excludes Turning premiums was XX.X% broad-based Again, X.X% America, X.X% dollar, and segment. global, net international X.X%. up commercial and premiums, again to XX% increased the North which constant Latin grew contributed Life with P&C growth America. and X.X% in pricing up Global in and constant all product consumer XX% dollar, in environment. the in

previous the environment, is ahead incrementally market rate those which both we inflation reserving. certain property, of our of terms are casualty, pricing in within which and the is have steady remains what firmer. Pricing favorable P&C In cost for in more conditions commercial and areas, incrementally were contemplated in with competitive quarter. Loss of Overall trends both loss remains costs. consistent and

become has segments, more fact pricing in property Property over was middle while the market and competitive in account large quarter. up prior EMS

are of segments large We in market. all the X

steady. terms is and property well Our book priced and conditions remain

is casualty we As rate, in see casualty areas with quarter, in need our price and casualty up enduring. over were this prior rate the prior trend that and firming quarter. Overall,

our give personal of color little consisted more were reasonably division. business, renewal more over excellent and up versus both market, Chubb, a up up the lines our about than new prior growth is down Premiums, of year. and America. power $X.X in tone Let the to the with performance. X%. agriculture, P&C disciplined We count XX% on X.X% me a financial rate XX.X%. retention policy X.X% nearly operating wrote of billion you lines in Insurance XX% speak North and XX% excluding And by Beginning commercial, of basis Again, with and

increased X%. specialty, major P&C business grew E&S our and major specialty financial up with XX%, Within related casualty lines. X.X% X.X%, both Premiums contributions and lines in division our and in property strong accounts with for down over

Pricing is lines financial P&C the rational increased generally and middle with underwriting America market our and X% under workers' from pricing second environment Premium division aside. in up North with and for excluding down just of lines property and again, rates X.X%, change comp, financial favorable financial Again, quarter. XX.X% X.X%, was in and with exposure X.X%. up both X%, up casualty, rates and up lines

X.X%. rates with primary was up X.X%, large X.X% pricing which both management, X.X%. down risk In up X.X%, workers' with and exposure rates was up pricing down account and comp, includes about lines Financial

pricing of Property up exposure with XX.X%, was well America and and in North further. was rate with up of pricing XX.X% cost in excess P&C down X.X% pricing Casualty Breaking of X.X% X.X%. loss X.X%. rates change exposure up

last agriculture, in wrote lower premiums and to what line change, commodity gained farmers where increased are were contemplate charge year we stable, again, premiums prices market primarily share we prices insuring remained we the farmers. and leader, more no due used more the fields, with year. market In price than Our down in in are policies, we cost Commodity and loss to [indiscernible]. prior loss North America, though from our

crop our this underwriting importantly, everything excellent. good up more quarter to very underwriting a were 'XX Far shaping results now, is And know year. from be we

with differentiated for our and coverage Premium segments, including seeks that net On worth the was of known exceeding for, of the had growth worth America, lines true personal XX%, net we're consumer North quarter new growth high outstanding business another group service XX%. side growth our business for premium XX.X%. the our brand high

Our and XX.X% steady. loss cost ahead pricing trend, in up homeowners was remained the which quarter of

it decent quarter. was X.X% X.X%, were Turning in to general our operations, or Net constant dollars. up international a premiums insurance

Our international X.X%, commercial up was business grew X.X%. while consumer

premiums grew grew the over Europe X.X%, up the led X%, with X.X%. X.X%. while Pacific up way Latin content with over Europe of America Asia

Premiums year, at over our with dollar. adjusting down premium lines up international of in X.X% the retail in XX%. down lines quarter onetime lines underlying XX%, third internationally, for a constant received business, It financial commercial XX% P&C and growth financial lines benefit X.X%. were in P&C almost was is last we P&C were worth noting,

lines our exposure and retail positive pricing rate commercial X.X%. P&C to pricing up with portfolio, international down lines across to continue achieve financial We X.X%

in business in constant dollars. Premiums wholesale grew X% about international our

is those As growing for classic due competitive, I Generally is broker simply in prosperity me frankly, will time is London a few underperform London underwriters what manage know endure over likely this and market how many more speaking, except is underwriter course, have wholesale movie times. seen who and typical, behavior. trade. for the underwriting London won't exhibiting and real to

of quarter. which International life Asia in Again, included Latin had cat of loss And earnings fundamentally Asia, strong XX%. over global were life America. constant personal an grew our dollar. in deposits had more business and international constant reinsurance up a a quarter, Our by in XX% which led Premiums Pacific with quarter. is dollar. international We up the had XX.X, in lines business combined growth a were our premiums business, about about excellent and X% insurance ratio XX.X%, quarter active

So earnings and a we that's And news. having had another a record summary, lot in of year. excellent quarter

risk a our ability we EPS revenue continue operating and growth very to growing earnings margins, in income. rate, and our feature, in underwriting natural confident While and the income are investment is we're volatility life and P&C at business a superior

going I'm we're going to and turn and the call over to come to your questions. take Peter, then back

Peter Enns

morning. Good

cats, quarter record and As elevated of $XX.X we through had for and flow Evan, despite you $X.X billion, billion level operating the X generated quarter industry-wide cash months another strong adjusted of that a heard have just respectively. from an

and billion quarter the in our billion. nearly financial highs Our $XX $XXX invested of results ending strengthened book overall assets further with value all-time of position,

under million On million of euro-denominated debt issued general million be The an weighted of of $XXX cost used debt repayment a X-year $XXX XX-year at for purposes, debt July in including of due $XXX proceeds X%. of attractive will December. corporate we XX, and average

X.X% including $XXX in and and in share to quarter, shareholders Book shareholders. and increased the offset for by income, X.X% core from share, capital returned per We $XXX book capital tangible $XXX X value total quarter, dividends, X.X%, this in and XX.X%, year-to-date, respectively, to operating benefiting million returned billion and million the AOCI, of repurchases and million $X.X excluding partially through months. respectively,

equity was a record XX.X% and respectively, ROE tangible Core operating XX.X%, year-to-date. return and on

investments. to Turning

net adjusted $XX income investment private billion, produced approximately million of portfolio $X.XX equity. included higher-than-normal A-rated of Our from income which

of the Regarding and from Hurricane of XX% Helene was catastrophe related balance the split included and million, quarter in which U.S. losses the XX% pretax $XXX principally to million weather-related events underwriting results, $XXX internationally.

million our with in of in development of from $XX the million period primarily Prior from casualty. general and $XXX $XXX a property, pretax, primarily unfavorable lines, companies was which lines, active short-tail development development million favorable quarter was long-tail favorable in in

related. portfolio $XX development Our had corporate million, environmental liability runoff adverse primarily of

and was paid-to-incurred ratio the quarter for the XX%. Our year

which below guided the recorded Our XX.X% the in tax for previously was our benefits of certain well as tax shifts range, as rate core to income discrete mix the in quarter, quarter. due is effective

with fourth our between XX.XX%. and XX% now rate tax expect core and quarter full We year between to XX% effective be XX.XX%, the

on to earnings fourth tax the the at XXXX January. as our expect part provide end quarter rate We guidance of of

turn Karen. over now call I'll the back to

Karen Beyer

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

Operator

question first Bob the Your Huang from line Instructions] [Operator Stanley. Morgan from of comes

Jian Huang

on the America First question is commercial. North

before, really ex comp workers' business. right, you this we incredible if to the over pricing like And said you financial margin think strong few continue quarters. ex lines, be last I very in -- had

this should here? Just forward? ex we growth, in pricing workers' to the given from accelerate the should growth we going business financial expect comp how and about think growth ex lines, Or

Evan G. Greenberg

Yes.

forward we all, you guidance, don't as of -- First don't I give know.

way. to specific So that a answer in I'm not going

we the new You [indiscernible]. of see amount business

You see our retention rate.

risk, of pricing how And in created structure market. see underwriters You underwriter's it, All market. we're Risk and you structure aren't a equal. we're an healthy in selection, matter.

So for business. we compete

And I'm And business some that. more it of grow continue to longer-term at areas as become Chubb's I'll I property. of trends, a at time. at over forward when forward confident when have to I above trend look look to naturally, speaking leave look competitive, period ability I

Jian Huang

Great.

of the the the I be competition. that an case, lot it Does elsewhere? growth have commentary, driven the and Second question international does imply that in in potentially forward that a is is If on saying like upcoming could you're in that international Apologies the going impact misinterpreted is by sounded your on more if growth London area? but there will what election that business. advance be Asia

Evan G. Greenberg

is our not of all, about London overwhelming business XX%. wholesale of international proportionately It's our is first the business. Well, part

perspective. so international. America, retail that put is XX% our Latin grew Europe in X.X%. X.X%, global And grew

the grew Xs. Asia, in

vast it's So that territory.

well, is call big to -- U.K. that's my thought classic see business. then that the London then which referring wholesale grows you and business a U.K. retail, because then that to is start market And to London classic And where competition have which to just would you was the I And out comment the of comes placed. London get behavior London. the market what I is itself

linked you election election the I'm and election, how it the not outcome. sure The to

me. You'd does you? enlighten have that to But help

Jian Huang

U.K. the appreciate Really there. does. it think comments I no, No,

Evan G. Greenberg

feel about growth got good You our I it. capabilities. international

Operator

comes from Meredith line Brian of next Our Financial. the from question UBS

Brian Meredith

in curious, into renewals, the and the just the on as the we've side? it, And reins lines we Evan, primary elevated, cat your hurricane losses right expectations call go given now? and what both you seeing X/X activity property what's seen are

Evan G. Greenberg

Yes.

in the in the at which is when vast commercial, side, market, primary industry, is North of the small the you move in On needs pricing insurance really remains the loss. majority firm, in And overall middle -- America business to and continues that up. market and prices activity, hurricane it's price, continue active it go direction. both to the and modeled, And SCS nonmodeled look

more whether related, coming it's they aberrant relative to the But -- account large remain I where it particularly or you the is at is but more business again, good call is entered levels, robust behavior London rate E&S and shared priced, When down, competition. more out there that's well pressure. capital is because there almost And there's though in market, to are get layered, a it's that's remains that else. market. Rates everybody and particular,

Brian Meredith

development? second my $XX was And it, it then it little adverse that auto? GL, years Peter, a break And of, Great. question, What's mentioned down there driving development from? was commercial What was in casualty maybe you call America. general that North of million coming accident some more,

Evan G. Greenberg

areas. so were to of of in of classes result. there that of in -- The -- it the It puts really XX excess have in casualty was a in casualty view it then U.S. general quarter particular, produced third that And do it. was number clearer were that it results. And quarter a a you lot and XX a was that the there in was calls were And was, negative casualty the had long-tail -- we look, studies negative positive There years. Yes. the

the of kind charge, not So that is up what it's added all a one North in And which bag. to a mixed modest. all was reserve casualty America It's direction.

Operator

from from the David comes ISI. Evercore question of next Our line Motemaden

David Motemaden

reworking. in some quarters, America you think had that were several over guys troubled last I guys classes called Evan, the commercial you out North

was 'XX. the where drag casualty last managing XQ course it aside I at should some million you from a commercial sort continued quarter. we see of of this that was some largely $XX that . Is also there think of in those behind book the acceleration just lines? know normal I in point,

Evan G. Greenberg

we year, to most we continue first. first really so we little X began it, or million and had quarter, before of -- have XX-or-so quarter in have fourth will and of that into it another began finish. have last a in we part the fourth we We We bit go a quarter it another about quarter, this into

remember, combination related dollar a premiums grand and don't that And areas is just due of some the a that But and write, to excess significant. not it's we of it's we of a attachment comments. in scheme to course, lot a how who -- whether terms just get then, And is the of business it are getting we of not the But others points, total moves it's This helped change lot eliminate swapping. large account rate to ameliorate. it.

helps that maybe So you with it.

David Motemaden

helpful. That's

Evan G. Greenberg

that. you a premiums We look mean I America. XX-some-odd of our about billion net North billion is Personal just of the lines broad let's business, perspective. at $X When write keep of nature in

#X So writer. agricultural middle all the major commercial, account player, rest massive. large market a is player, large E&S major a writer,

unimportant well, start you area when it's so numbers casualty, it's this And not business, account keep perspective, large small. we're that to curing relative talking in like about the

David Motemaden

Right. at perspective, in that's and years several quarter, I'm where, about in just several surprisingly the were third just are last given this wondering line guys that quarter, the to mix mix is moving a losses quarter well. the should more accelerating property casualty, over is there see point? as this on business, with comfortable guess -- sort good have The Maybe something you you over also to that fair. dynamics, still side. of from shift No, the guess last so just you third would definitely in of to property it And the just catastrophe the rate third I given had see I this if the as and property years. I that's the that Or property? stabilize And third your market you of is casualty this quarter sort is expect? normal sort of shifting think low

Evan G. Greenberg

volatility. than we have that average -- would in That a that losses volatility. And cat our in expected a just The have the so sides in our We're It's lower an is in return unfavorable volatility. in we side, just annual quarter is produced, loss favorable the that quarters a me were and side than contemplated you is risk pricing. contemplates business loss to X your to modeling pricing, in modeled, there's all divide that. just into periods and average. expected. There Yes. an And there's X a because the and loss business, it would bit the

sense So hit me either that down or you're see from not going to Number the that -- that. up I'd makes one. number, you're to

flexibility. have have a capital we two, we of lot Number

think good business. underwriters I we're of the

selection and whether pricing, to good way have I results overall business, think, we or risk write going industry. our the property to versus And the ensuring casualty. major construction is So Chubb's it a and we're portfolio contributes in

appetite an have We for the volatility.

to price we If going we are write We it is. it, it and the business, assume. structure understand wherever it, can

so we're expectations. cat into lean fast And all is to areas the potential. and and most get into there lines efficiently and thing for continuing our lean see property, enough other after to own can't enough we're own we going appetite our personal organization, continuing frankly, we to frustrating And we're -- and opportunity execute growth inside where

Operator

the of next Kinar from Jefferies. Yaron from question comes line Our

Yaron Kinar

just the maybe questions. previous And on continuing

loss the casualty, I'm the So quickly on based you're been doing it is the exposure that trend. and fixing troubled the on that's has But growth where most when down, I we because to the of jot look exceeding pronounced. you're America I at you guessing that's data. work North tried also where rate, think, getting referenced. definitely less classes

it is as growing the are data, of the coming fair through on lines based just but here, troubled for casualty guidance to results fixed? appetite for asking a in without think So

Evan G. Greenberg

in you lines quickly. our casualty I our you that actually see hardly we getting know where casualty overhang. an of in breakdown. quickly, actually North an decent areas overhang much where -- tell of But I you're not pricing. going are the can but to give are much that of And And billion and I'm America, $XX growing don't picture, don't a growing see I lines

with So you have I of I own can't leave to thoughts. and your your you, line think to logic, agree

Yaron Kinar

pricing just XX points of I'm casualty out basis growth in referencing exposure called you in North America. the

Evan G. Greenberg

stores not store. in -- And last that's X% sold year this That's It That's sold I have sold That's how goods more it. year. you're -- that. missing X% in That's tickets My of growth. more off goods. My theater No, to premium. more okay, price. growth than last exposure year. a we get rate you than

different got confusing X unit just and to number those you price rate with learn in wrote of growth different. customers totally I basics. premium: Yaron, things. You're growth My is of go

Sorry.

Yaron Kinar

right. that you've All in casualty is -- that nature London competitive the both property? true behavior then referenced, and And in the

Evan G. Greenberg

Yes, across the board.

Operator

Gregory of line James. the from Raymond from comes Peters question next Your

Charles Peters

Evan, around question, I business. to for back comments the my to first Insurance your want Life go

give As departure. you pointed a out, is of this you guidance, forward so somewhat rarely

of would growth growth curious on there why just the Looking we're that translate inside with Or constant some deposit seeing in at be and assets, income helpful. clarification that other the on in not dollars there statistics, growth. currency? Is some going the just than to something more

Peter Enns

and the earnings call, was so top last just The The or in international the line tracking. and fourth as had on item. bit in It's called of total international, out quarterly insurance pretty a Peter, was said, combined much over was a on I last nonrecurring of X%, income in around know, half oversized business year, growth Greg. The XX%. growth you life

all consistent back out, be you relatively rate international. if life that the growth would So of for with

Charles Peters

appreciate Great. that. I

Curious view results and the on price on had strong. I changed any comments as you or versus third if results, views really outstanding. company capital your the repurchase on are quarter. there's dividends any was The your flow capital. if repurchase question your Noted share The given of was second appreciates, in dividends cash share free The on around have special management. stock the change

Evan G. Greenberg

hold good We're exceed she and as capital risk-adjusted of returning capital healthy put the goes. and our capital, balance It's cost a of that shareholders well of to steady work returns we we we're a the that's can that at to -- amount balance. No.

Operator

Our next question Tunis Autonomous Ryan from of comes from Research. the line

Ryan Tunis

mean when I can intertwined. Or about London? ledge your is fair to on London be guess, London on guess that, And about wholesale, say just is comments market a my I what that me, you maybe wholesale in Evan, behavior your competition with I this wondering that, in I So the -- start me but like a like pretty commentary bit are on talk might concern, is just there. a off little typical coming honing strictly really you you that next. concern? bit,

Evan G. Greenberg

my of to the point over finite I'm -- business, and it to in, it's the at about prospering. market them And just it real the exhibit, ultimately London sets saying occur behavior I'm attract the will times, the behavior kind look, think stand just particularly profitable. of seeing London. of the a number and capital as they're movie way overall, it in more it's I of that No, amount the I've can't they was the many business that trying I capital watched is guises years, same a table the look for But

and the it, I'm just seeing it it because is I'm so particular or it to begin, London. in I'm out And peculiar calling seeing

Ryan Tunis

Got international thinking about it. And life. a then I follow-up, guess just

next $X take a of get $X give took us it want on going suggestion So there? long to Any billion billion to how of than get you premium. operating decade the more earnings to to to it's

Evan G. Greenberg

In international. life? In

I international Ryan? think life, you did it's life. But say

Ryan Tunis

I did, yes.

Evan G. Greenberg

is Yes. a not Stay it to going decade. take tuned, buddy,

Operator

Our next from Alex Barclays. from comes Scott line of question the

Taylor Scott

thoughts so hand one for liability excess pretty of some profitability you of here view I general the and seeing in much just for the overall, lines in those to And at across many adequacy in one keep seems First get in pushing good or your I on seeing need your we're on across these there mean these forth. is casualty specific casualty? is price price how market. But casualty look there of to unfavorable I ROEs industry we're we when product businesses. lines. some overall And some pricing the had in wanted just on dynamics like

Evan G. Greenberg

no It why always And it's have is underwriter's area command to and casualty, an it by geography. to cohort, the simple, control have actually have There you varies Yes. got data, general then got There no up. to experience, to by actuarial the and to by is that's statement. you mark. of customer have back and you got to the you got to analytics put And the it and work.

So there in is no general casualty, and a massive insurance, statement that neat box which a a could is sticker. put on bumper class of

Taylor Scott

Understood.

more I sorry the the overall it's just looking something companies. And for profitability the broad-based question, with of versus products like grapple specific at

Evan G. Greenberg

you give out Honestly, help you. I'd give -- I'd it to and

Taylor Scott

Understood.

one net sort about I I on that claims more base, casualty, grow of relative good just we asset an part bases claims asset the mean asset would, they have the incurred, you than growth we're paid think should guess, income potentially. as is guess, seeing otherwise lower the get base? the Next the elongation of of seeing, is to I which kind investment how in cycle about in more we're I

Evan G. Greenberg

I those dots. said how that going you have to you're think about just to think you connected something

that at all strength paid said pattern. to growth to. I do relate a can point areas reserves, I an generally know, pattern, and being of Chubb. I elongated mix notion don't to pattern, longer-tail But it in relate least to payout in just that speaking. And I I understand do and payout equal when and to I elongated You things elongated incurred of relate got don't don't to payout And comes a in the regard. business data,

Taylor Scott

driver... base mean invested a I the clip. was pretty I the what underlying strong asset at mean growing

Evan G. Greenberg

our been good. have Our on business has been growing, margins and

so has invested on adjusted base, of excess a risk and source asset income And That continues of a of our cost capital is returns capital. and well to invested superior grow, our in yes, growing. been asset

is that source strength the for So company. a of

portfolio And reserves, asset on asset grow. capital, continue continue that is a manager. as continue which that's to would, to focus on will about purpose. party. within will will my And asset of invested grow We're that good we to claim third as us a comments And an manager earlier returns we allocator the

Operator

Our line TD next question Kligerman of comes from from Andrew Cowen. the

Andrew Kligerman

You're down you financial $X.X billion about think generated lines digit. premium. you But X.X%. still I the where single premium rate of And was highlighted off thinking low about

was And outlook D&O? Can D&O? thinking money wondering the how are just in you still there? make So I'm that of about how you much

Evan G. Greenberg

I'm a not was And breakdown the proprietary. we to am I give going I money. we you D&O. writing large customer is a what much of business you can't make -- not But tell if installed how very will base. we're That's have

that We more have the a we're And because, layers. And lines. primary, excess competition we're that. manage we write long-storied financial the their yes, reputation in Chubb D&O in making. then a more is are, for is writing it. on than in brand We're major to want their looking someone D&O and risk, they're And where when often not, they

Andrew Kligerman

London of commentary That follow just on And makes gave. that a sense. maybe then movie of to that lot kind you

just exceptional bit. you XX.X maybe combined, and it these little more -- underlying environment could globally, where Evan, overseas. in exceptional gets combines a such excellent XX.X competitive doing these in North an You're see erode America,

] but it's great, do ratio... still see [ X into years You didn't market the bond that already, we loss

Evan G. Greenberg

missing. you're what Here's

That's You're cat levered. combined tells what ex-cat you. looking an published basis when at everyone on ratios. it at Look is

out the understanding can't losses Because denominator. in that's reject I premium the just not risk. the You chuck and that discussion. leave

much markets, cat those at understand levered -- look how But to you is to various real feel when you health. to have how yourself then And look And at got do levered, ex in much ask a what of so you you and cat and -- like. the look work. is not that's get cat the various companies,

to that, And published equal, things, being after ratio why say is all it. you tells most I a then then that's important secondary indicator. It cat. ex things is combined And overread continue indicator, your don't some but

Andrew Kligerman

what So right. I'm

outlook is in are should on So very good what just high the the for the still an absolute is combined that Chubb. for simply and I basis read industry

Evan G. Greenberg

overall. They're returns good. it by for varies industry, good company. the They're delivering And

delivering not. about that's off returns, if you're room of There's companies not some a thinking ROEs decent. not Some like it's adequacy. move, the or It's pricing industry They're lot good to charts.

decent. lost on you is then They're year risk-adjusted relentless. They're good trend trend. And loss Every have basis. a

you So still. just can't stand

where got stay to get to you rate you've or are, Just price.

Andrew Kligerman

of a Makes sense. lot

Operator

from Wells question of next line Your from the Greenspan comes Elyse Fargo.

Elyse Greenspan

My there give to was pulls. response excess on added you of, long-tail there was Can question workers' in the a in casualty released what versus I you an were sense question, million of what us right, guys guess, I was guys to earlier first and said, reserves. quarter? in some $XX strengthening comp know pushes

Evan G. Greenberg

No. much was, gave and related. color and there we're And negative that, given not was that positive both tail, negative, I detail. excess giving there beyond -- We've around as was long more in

Elyse Greenspan

typically was to that relative And guys forward? provide investment quarter. Any guide. just an given Okay. think then you don't fourth provide there color this and you income can I quarter

Peter Enns

Elyse, and months gave X last quarter I guidance. last

quarter are end on guidance things end But at for quarter. high third the I would what recurring level basis. of guidance that harder the to basis quarter on normal recurring high quarter. in fourth million on be the I'd predict, $XX for rate will out the a That for we there's say of the was fourth P/E. the that spiked So I is than a higher like the fourth Obviously, say,

Elyse Greenspan

QX. right, rate would you you And just guys changes But then just given effect, year that imply to said year give going guide? relative directionally, would think would with Bermuda would this you tax on next into us, next be higher the tax year's tax,

Peter Enns

uncertainty, guidance we not is fourth in typically go. year so specific. full far we're as as any we Elyse, more giving the There not give quarter, the

Operator

Your Meyer from KBW. the next Shields from comes line question of

Meyer Shields

can to I To progress? that does rate exposure pricing ratio that go the extent back division from of of the If and more for implications than closed to is units, rate have unit. loss coming rather pricing

Evan G. Greenberg

say Just what?

Meyer Shields

terms that when -- ratio exposure earned, does move? will how, a pricing more loss have in from the rates Does that and premiums imply of are units, comes if of these difference

Evan G. Greenberg

me and would more be more using go all. only exposure didn't We're different Look, that into An policies. times at Not rate took wrote careful, That maybe I terms. doesn't exposure. No. be -- exposure to we're talking say price insured. unit price. I I

we a is [ price, of apply you certain exposure, ] units equals it we that have rate so have in of kind And and and order. then which exposure, against

of part driving all XX acts it And exactly just portion it's that an earns rate, and price with [X Because rate, -- annual like to month. nothing that it's the if it the of way. same premium, exposure policy, like earned -- the do it So is a we the ] count. has

Meyer Shields

issue. apologize for I the Yes, terminology

that extent pricing slowing to the does of reflects economic underwriting to though, component slowing implications is extent that, profitability? down, growth, that question itself that the maybe for Second have that

Evan G. Greenberg

-- theoretical it, a and Not talking we're line Not No. we on that's all what of business, as the that about. different things whole see no. discussion depends

God, So, no. oh my

you If that have a gestalt want to discussion about [indiscernible]. sit and sometime

Meyer Shields

All right. I'll herring. bring the

Evan G. Greenberg

cream No, in sauce. sour no, only

Operator

Your comes of line question from the next from Zaremski Mike BMO.

Michael Zaremski

the So of competitive casualty back just marketplace. kind to

especially as And what quarters most in to well publicly above accelerating recent are good lines, state companies trying understand way that number. XX%, I I'm stated below all to the that's environment, loss you just interest cost higher long-tail accelerated would well XX%. loss So be which up too, today's if approximately in guess is assumption. to costs their indeed rate casualty pricing pricing why for

Evan G. Greenberg

of rate about, of casualty. costs, mixes achieve to had is we are produced combined different. of these There levels up keep where and as priced, with what's pushing I has producing majority many ratios. are rate pace there it trying to way, are far What were our greater loss that an together, by to majority, simplistic, price of The of and just be increases, achieve adequately Yes. you're everyone's And you. And of those I've increase the cohorts our And risk-adjusted return. It's of casualty that's made casualty priced. too price kinds accelerate has areas all adequacy. which vast to portfolio and take we're outstanding where to can book as is the been portfolio, adequately significant, adequate clear -- where

Michael Zaremski

Okay. to were offer Insurance. gears you switching That's guidance since on lastly, on understood. just your some Maybe Life willing color

was, billion the so... if or target guess, year this I $X So

Evan G. Greenberg

of where achieve you just sort guys year exceed to thing it's target where The $X happen. not that the giving I it -- that to forward I we I was only forward. was not I'm gave No. 'XX full was was the And our is just guidance. a first going billion, doing you because was Mike, to or it income, it's and a for year because where noise it in we excess first it, and to get was, landing comment there, this I was operating place. of don't that you're our and then about That you give are in all year where think and why trying we year it, have to you just on well said, should a of be. that doing for relative from didn't own a of acquisitions we and are track where And give that. we

Michael Zaremski

some Got there there was year but Because was -- and, $X last great. have noise definitely are Okay. earnings it. over been billion, obviously,

Evan G. Greenberg

a You're by welcome. way, it's Thanks. the growth But area.

Karen Beyer

Thank you, us everyone, for joining today.

If be we'll to call. Thanks. day. you Enjoy any follow-up questions, your the around take have

Operator

This you your conference today's concludes for Thank call. participation.

may now disconnect. You

Chubb Limited (CB) 30 Oct 242024 Q3 Earnings call transcript