CB - Earnings call transcript Q4 2024

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Operator

Thank you for standing by, and welcome to the Chubb Limited Fourth 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 December 31, 2024 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. could SEC on release investors.chubb our information factors recent which financial for our on available matters. are website that see filings, and earnings supplement, more Please these affect site at

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

like Now our introduce to I'd speakers.

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

It's my call over to the to Evan. turn pleasure

Evan G. Greenberg

Good morning.

wildfires, property, Before still to speak a I the to a unfolding. I and moment take want tremendous loss lives major the lost the disaster of terrible begin, California about tragedy surrounding

play job society in is role to the Our our holders. and we policy support

Chubb U.S., have to Our supported had on the been disrupted. ground, their by been lives property, lost those the colleagues homes assist from severely displaced colleagues and throughout their businesses, ] covering clients have [ who

While doing it in we enormous doesn't and and they their small ease ways burden. all big to can experience, to erase will continue have the we're difficulty

are to those our tirelessly. thoughts emergency suffered, workers served gratitude have those and Our with who goes who and firefighters

and helping pretax financial perspective, net and recover them rebuild and a of cost $X.X from XXXX customers billion event. a From catastrophe our our current the first estimate supporting their is quarter of is

to year, fact, our 'XX, had great all we in to our a outstanding company's which fourth results in contributed you which turning for have best history. quarter Now the the quarter, seen, an

benefit by with of of distorted Operating basis, earnings tax record a per income with were pretax another led were operating though tax investment XX.X% were income received world-class quarter, income, billion. combined last XX.X%, ratio we the year. X.X% the they up a $X.X onetime core to underwriting on share, quarter of P&C record For after together

through tax. over was operating X.X% that, income after Looking up

the Global P&C both good premium Premiums revenue, from contributions which constant North in P&C grew in globally, overseas our division excludes our grew and dollar. general. America quarter, with X.X% Life Insurance X.X% agriculture, businesses

we the up tax income $X.X benefit, billion, For and onetime of the a for basis. per adjusted XX% XX.X% operating generated on year, share

over income Looking double more X nearly XX% grown the is XXXX. broadly, core amount pre-COVID from past the years, operating and has over

P&C of investment All billion. $X.X major year. X% income for $X company income results net X Insurance billion up our with income of XX.X%. XX.X% underwriting Adjusted produced grew to of billion. ratio topped combined sources published record was Life over $X.X income last a And

year, P&C and the we grew in returns life constant strong. premiums dollar. X.X% premiums For Shareholder global XX.X% were

operating ROE equity about was our on Our XX.X%. return tangible XX%. core was And

X.X% value and grew tangible Per share respectively. and book book XX.X%,

to line Europe, Our consumer. of results, consistency businesses broad the the Asia, demonstrate America, and and of America, and around continue bottom contributions our world, top North diversified company the commercial nature and both Latin the from

top and As good we losses line, year optimistic notwithstanding. both bottom are the have look and we about XXXX, ahead, CAT to FX and momentum forward

quarter. the to Returning

result. year while XX.X%, current the CATs, Our level accident excluding P&C points normal prior year $X.X ratio, absorbing underwriting also performance outstanding, underwriting and billion. than a income was CAT a was was And of than better X combined losses. more more record

practices. loss year million, million of nature $XXX reserves, reserve and for the and respectively, year's the $XXX our the in reserving was and of the strength speaks to prior Our conservative development quarter

On investment performance. the business, managers, other our of asset we're in added and we another quarter terms side, excellent

to billion, it $XXX continue grow. and Our invested asset now stands at will

was income billion, XX.X%. adjusted net record up quarter, $X.X investment the For a

to is averaging say X% our about current have Our items. more new financial ago, year is Peter a X.X% fixed rate versus and yield money income will portfolio X.X%.

Turning to in regions the and Again, and up with quarter, up the world X.X%. X.X% of premiums X.X%. X.X% growth, consumer environment. Global P&C premiums the pricing commercial All contributed increased rate Life grew favorably.

at depending more loss and terms of accident those has trends grown themes market is layered in Casualty rate were current pricing the or quarter. And overall In year in shared underwriting consistent or Property and with competition while previous on market the particularly firming pricing margins. of environment, is the liability track. lines, D&O the reaching ahead more where accounts, practices class, is and stable P&C large employment E&S, cost is is for of favorable. financial share commercial and competitive expense

see over North P&C Global business. American for Overall favorable, Europe growth Asia, we and market Latin conditions general, opportunity for our consumer, commercial with as areas and as life overseas our business, and good growth each many America, favorable opportunity. of are XX% of well

digital our middle business, E&S small personal Our our and businesses business, Plus market high our business, global Climate our as businesses specialty commercial international and U.S. U.S. such lines, A&H growing business. worth and life, globally, net

to the turning Now quarter.

me Beginning policy XX% commercial, XX% disciplined a year. and the give X.X% of retention up again growth growth P&C These lines We financial with renewal versus you basis up another market strong for on more lines excellent reasonably performance. Let color and division. XX.X%. business, consisted had North the And agriculture, personal premiums, quarter prior of new count in was America, our to operating by were X.X% over down in tone X.X%. speak excluding X.X% up our some and and with insurance

lines grew Westchester our middle exposure X.X%, division division major Specialty, our with financial P&C E&S excluding down X.X%, X.X%, and X.X% up and was lines Premiums business in X%. Major and comp, and financial up and account of with in Pricing casualty, market increased lines Within Premiums down financial and with specialty X%. up XX% up and our for X.X%. rates X.X% P&C X.X%. increased property change

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

pricing up up rates further, pricing with in X.X%, with stable, and XX.X% property North picks. America up Casualty and in up P&C change was exposure change with costs up exposure loss X.X%. X.X% our line of we what XX.X%, North rates America X.X%. remains no contemplate down Loss pricing in in Breaking and was

were the with down finished formulas commodity million ramped leader, America prices result. an XX.X% commercial year, we where lines and year excellent, sharing ratio North we this result amazing government. prior risk the quarter due the in from to profit. crop Our combined with year agriculture, published business underwriting In market underwriting were Premiums an and lower amazing for are $XXX the the again, our for

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

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

we ran ratio year, net XX.X% business. high the our outstanding lines worth combined in personal an For

the XX.X%. Pac perspective, XX% just and grew way Europe impacted growth business international X.X% quarter commercial operations. XX.X% Turning up our continent. by the foreign to up Asia up retail general with consumer of Latin including up the world and on lines insurance a was were grew region From X.X%. premiums Premiums for with X.X%, in our America led exchange. the of X.X%,

If XX.X% constant you for was adjust in up America dollars. Latin that,

X% international down pricing X.X% X.X%, lines than up our Premiums down In wholesale were market as financial to were in grow and business, pricing competitive. They commercial retail more prices with London London continued P&C up flat. business X%. more was our was essentially the

ran general XX.X% ratio. overseas our For the combined an year, business excellent

quarter combined reflecting Global business market more Our pockets casualty. ratio year of XX.X%, XX% of premium a disciplined had Reinsurance and reinsurance a with the about property a finished growth up on premiums both with and strong of XX%

over international deposits our Asia, worksite XX.X%. which insurance in dollar. life and combined U.S. In up fundamentally company, In our grew XX% constant premiums business is business, were

Our finished was year with of life income originally of projected what ahead we pretax the division for billion, $X.X year. the which

build. momentum life which good have to our We continues in business

great year. In summary, a quarter and great we had a

and plenty notwithstanding. a earnings EPS the of in our in we're growing rate, risk business and tax confident FX world, we're While operating uncertainty in double-digit there's ability continue to and the at

Our earnings investment income underwriting, sources: from come and income. P&C life X growth will

turn to over back Now call Peter. the I'll

Peter Enns

you, Evan, and morning. good Thank

just across our you results full year the primary concluded X we heard, another As with of year to record strong earnings. contributing sources quarter,

finished year value Our billion. balance book position, $XX sheet invested the $XXX assets in exceptionally total with an strong and billion of of

a cash January, of the rating flow quarter year and also billion It's S&P $XX.X Best outlook. $X.X that rating produced and And and our during worth The stable billion, stable company's record affirmed outlook. our noting quarter, respectively. adjusted A.M. full in affirmed operating and

$X.X shareholders, repurchases to $XXX capital in on for for billion the and in dividends, repurchases share $X XX% represented we earnings. billion the $X.X in price in billion million which returned core our million was year average We dividends. of billion $X.X year in of During full repurchases $XXX year, the returned share The operating $XXX.XX. share approximately including and quarter, total including

the year. the interest high-quality XX.X% foreign X.X% impacted for excluding expect adversely due as Book which losses. and unrealized and rate by respectively, for tangible and well grew Book value book par as to X.X%, time, back respectively, value exchange and we AOCI, quarter quarter, to share, to changes, our amortize portfolio the income per for was over and fixed the mark-to-market XX.X%, year on losses

XX.X%. operating core for XX.X% respectively, and and core tangible return Our XX% year on year operating and was XX.X%, while the quarter quarter for our the and ROE was equity

Turning to investments.

of Our which income $X.XX A-rated an $XX net yield investment included book approximately portfolio, private adjusted now higher-than-normal of of million equity. X%, which produced from has average income billion,

billion We and income rate adjusted have X months. expect a run investment over to billion quarterly between net our $X.XX the next $X.XX

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

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

runoff corporate had development asbestos-related. of portfolio adverse primarily million, Our $XXX

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

which for shifts for guided the Our range core are below effective quarter tax previously income. our to rate and was of XX.X% the year. in mix due XX.X% the

be the to income XX.X%, tax to Bermuda expect XXXX tax in the tax. adoption effective the for the We rate annual core including XX% of on benefit range provided transition our new cash operating of

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

Karen Beyer

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

Operator

[Operator Instructions] UBS. the from of Your first question line comes Brian from Meredith

Brian Meredith

how of here Does ground that thinking questions assessment, subrogation, include you've billion should of on a Evan, us I'm given $X.X the we bit Maybe it kind dig -- number. you loss there. little couple fire A little Cal give context wondering a kind for could of the into be estimate about if out up?

Evan G. Greenberg

Yes.

First on loss it's total for ground-up our the of as is own go number, number. our our any assessment and the take we been adjusters does industry subrogation. It projection of off our this don't FAIR or all, a from in estimate don't able property. an market ours and wildfire we -- share a the of It's ground Plan what that imagine to property We for credit assessment include have in by an losses.

Brian Meredith

looking this to we're target is at of that it, That's little then mean, period think is premium. organic single-digit number you looking lines, Evan, I'm curious, But solid maybe call if opportunities? And organically? second kind should a XXXX, commercial start good high at of it's helpful. growth you that at inorganic here. some in to then still Great. getting that question, XXXX, And more growth bit a growth I my mid- looking kind just of the

Evan G. Greenberg

you Brian. I make. logic you, statement, we say give love it, But your didn't guidance forward and pretty it. give I I decent Yes. don't first don't sounds looking. -- your to said

money growth, and be of our the price. And a is you at our it's in to right know, hole inorganic burning the in as for it's opportunistic organic it's not as and right thing support got And pocket. strategies

looking. so always And we're

Operator

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

David Motemaden

several a Peter for over so or the XXX a favorable -- bit development, like of the versus was of last Evan, the long-tail on general by on the the that driven guys XX% question the change experienced have companies. It and what a had That's I reserve casualty. you quarters. sounds active on

reporting. you're would if that wondering elaborate that's and the clarity seeing different on you you accident I'm it's been too So of sort because quite what have years development there be could than favorable helpful. any on coming others And from what

Evan G. Greenberg

with. I'm correct Well, model going mental to to your begin

quarter. each Our casualty in casualty, we portfolios study different

strengthening. Some taken we casualty portfolios, reserve have

action. no Some we've portfolios, taken

reserve the had worker. the we we've releases. study a portfolios, per consistency It's quarter. And portfolios there is Some -- each has been not consistency up

the this so development of in quarter casualty reserve given had And we strength favorable that cohort portfolio. studied

David Motemaden

me maybe bit Got then America commercial. too. structured it. point you the durability going about the strong Helpful. on of Could included loss how North think help just about transactions obviously, think Could loss basis of headwind And we the -- a ratio results you That headwind. that in that -- from that of a ratio, little XX impact the should and had forward?

Evan G. Greenberg

You're saying impact structured on transaction, on what's the quarter ratio? in its loss

David Motemaden

Yes.

Evan G. Greenberg

typically a you transactions and component -- they each know average don't loss higher But going We you they ]. give down off pieces run exactly. Structured -- [ than ratio portfolio favorable to does. of what the is the the run break should that

. you? help that does David,

David Motemaden

XX guess total sort of just placeholder -- of just that a bit for the I that ratio, as maybe a may sort bigger mean, what guess basis the like ratio. have Yes, that help. combined points I I given up... on loss you can guys maybe the had on the on had use does impact I little

Evan G. Greenberg

I the okay? in it's range, have a probably but -- don't it's --

David Motemaden

Got it. Understood. That's helpful.

Evan G. Greenberg

XX easy basis help But in you're to with be take we're you you for tell and basis so you offline the range. it it mean down. talking points, with Look, or I we'll points it's that. up me could

Operator

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

Charles Peters

analyst. Brian's to recall you saying him. said response you a I love in you sell-side Evan, ever don't love you question,

for So off the good definitely starting new us. year is

Evan G. Greenberg

Don't up, Greg. it mess

Charles Peters

rate. in release say press you -- that's double-digit EPS earnings operating can, the I sure and growing a you're I'm right. at All

You and life insurance. investment talked the X about buckets, PC, income

the see next year you 'XX, growth it how this big maybe So how picture compare 'XX. might can, and the life perspective, for from out you I insurance about came should a or with unpack coming where year, and talk growth say,

Evan G. Greenberg

was the impact 'XX. the income in 'XX. consolidation Yes. noise life There of was onetime year of a in on a There bit lot and in 'XX little stuff

to growth look was to income. that look When through solid in XX% rate range. a double-digit of the really So rate underlying in it it, it that, growth I produced XX% through

look see and bit. When strengthening forward, continuing a even I I that

it's Asia. it's Southeast good momentum, have North And obviously We both Asia. and it's and Asia

growing It's our ballast Korea, revenue not income business of supported in business is overall exciting, that overly the It's is expand of the Our while the margin growth to growing. and continues a business. growing Hong producing more then by faster Kong, Taiwan, growth. And us. of income for much quickly: faster -- now are countries more improved quickly each China that those margin and, therefore,

Thailand, the health XX% past picking Zealand It's accelerating XX% they is And rest is momentum. of have in savings-related about Southeast marketing. products. products. up conservatively accident And in business, And forward. response over the we It's finally, businesses, and with and in other very of direct agency. are it, and risk-based are Indonesia really structured this type and in Asia had businesses that slower they good go year, X New and we Vietnam growth as

Because have Asia, you X people themes. in

savings population, There the people population Asia requires in health-related kind a of north they You in world. rely these are have safety Southeast oriented. they other so you of nets, then than certain products. more family parts And on and have and the much that kinds aging no products a of with an do younger social in

parts these is of you, West. the seeing multiples remind particularly means Asia class. rising of unlike Southeast just the many world, we're And middle The I'll in economic Asia. that a growth growing, And what regions are of

Charles Peters

about competition Even comments other lines. guess lines Thanks of And bucket, results like pretty producing market pivoting increased broader we're broader a is which seems your hearing It to good detail. to in PC. some set I across longer-term of for you the averages. financial relative business. perspective is the talked the and about

out us could be to the So maybe of how come and give spend -- we some you going you positioned perspective are Chubb and in to it. think a minute where some how cycle on is

Evan G. Greenberg

my goes It of grow where business therefore you and see to pockets of XX% comment the Yes. the about competition.

this in seen a backdrop a relatively we're and it about long time. very while, think a than been the the prolonged really insurance thinking one, we industry, through it's decades went way in cycles, a We and I've about inflation. a period for As and inflationary low have in more in you

long On the there's a And side, the side, been it short-tail flat. class on but pockets, at running tail virtually pretty always lower level. was

in a inflation. We're period of sustained

mean just loss have keep to they just margins So improve with rates pace to in stay move. Doesn't cost. place, if

amount is certain industry a So of just inflation. reflect growth to

The competition and business. large shared is account increasing in

slowly property, you where means priced. to It account business. in large [ more margin. bit more because business it layered there's it's Sheridan grow that you competition of first, property, it's And of a So increases, become a lines a retain have well want mean business, couple doesn't more harder will competitive, that but to decrease ] grow, that

to see going not you're going you're imagining, forward. So go good all, from we growth, we're as results see to but

And large thing. same a other of of growth ballast same growth lines a supports then casualty primary that Financial it's is real property, lines, in but thing. accounts. many large E&S account, not business,

So large much. account, not so

In opportunity. certain by global. across many that place growth not commercial, way, way, in the And it's middle it's United business. segments. the And and secular And change market States; small it's by simply there's a taking in the growth opportunity

class then life America And our you the I outside to to the add on up, anyway, in that When does -- particularly high and side. all Latin it a lines Asia side that consumer businesses, States, the health and middle from the both net United business, accident in sense? lines non-life worth give and personal with

Charles Peters

comment? change secular the by mean you do What does. it Yes,

Evan G. Greenberg

the with depth States, sheet, that in to same over the compete bar example. around environment the the to social share to the able of and time, and -- business be have With of in change climate reinsurance shifting -- and be legal inflation, few with in that, the and trial and it's advantages to time. middle change the take in ] with and [ I'll not larger as shifting And United a an able equipped They're technology, CAT with players. the it a particularly the activity, way. all harder mutuals data, regional balance the with you When in market and relationships is market

Operator

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

Meyer Shields

through First, I us X? can at was reinsurance walk hoping January you purchasing your changes any to

Evan G. Greenberg

None.

Meyer Shields

That's Okay. easy. pretty

significant... know don't if is this I Second,

Evan G. Greenberg

[indiscernible]. There's nothing to

Meyer Shields

There's bit was little uptick through or and us America I don't That's in a something that. expenses else? fine. an of [indiscernible]. I you administrative North incentive in walk compensation Commercial, it's if could hoping know

Evan G. Greenberg

what North little in America? in A uptick

Meyer Shields

The admin expenses.

Evan G. Greenberg

No, it's noise. oh just my it's This God, is -- X.X%.

Meyer Shields

I'm sorry, not go ahead. for Yes, percentage. the dollars, looking

Evan G. Greenberg

just no. quarter. -- No, that. the in just in not it's There's variability trend a Nothing. It's

Operator

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

Michael Zaremski

the is middle insights U.S. the your a to secular space. First follow-up in market change about

So picture in less a inorganic versus to mid-market your But down Chubb's you've have has space if comments do that kind might different I on? peers. or small some Chubb think of said of the aspirations in aspirations past, goes painting Evan, the the market competitive market, still to just your small time U.S. of that would you're as or through mid-market curious if be its things and definition advantages in the than you peers, so more also are move growing some of

Evan G. Greenberg

and middle been organic, has opportunistic. organic. focus. on focus that's that's It's SME, it's inorganic and our not market, is anything is focus. opportunistic. On is our and simply Our that small And our focus And

Michael Zaremski

bit different over to a there you up the There's equities gears, of of the changing of the $X shift investment on lastly, investment in were Anything of expect couple And billion. Okay. see about increase over portfolio. year to in an mix last in next portfolio? switching terms kind a been the quarters,

Peter Enns

it's Mike, Peter.

different is into of investment-grade efficiency relates First The it fixed shift we to corporates still call show moving underlying but entities. for, to because GAAP, income, off, that a investment as specific actually $X about $X billion us purposes of million it, fund have equity. between investment-grade

in there's So change underlying that. no

spoken presentation. in allocation, change in forward, investment we going There you'll terms will we've strategy, a investor put the which investor of the be see our about there deck. change, slight In out in that

Operator

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

Andrew Kligerman

But mentioned hearing were pockets a Evan, you going softness in lot you casualty reinsurance in in sounds overall in reinsurance, That America. of North of rate really solid. there on. there's the I'm lines, casualty, said strains. XX% increases And

disconnect? what So And two, the casualty in weakness one, are of why pockets reinsurance? those

Evan G. Greenberg

casualty. said there's I No, pockets reinsurance in of opportunity

of stressed have going let's overstate see fact, underwriting writers. over to And shrank into not it's selective profit. and so means, have quite you ], that. to detail casualty. are very and go shrank a other [ be it. select And markets we I'm You clear, any very money. see because been an more slick we we we to market than didn't I'm And reinsurance years -- see in Chubb, significant, going not and casualty -- have not big in shrank But pockets, to be number we be reinsurance the to not producing Relative by

Andrew Kligerman

the And to lines... it. then with regard Got financial

Evan G. Greenberg

Opportunistic pipeline [ ]. trades

Andrew Kligerman

it then decline, financial it of Got looks across board. that's It's point? they business and after -- where it And about that it's the it lines, What D&O. decline to the to premiums particularly you're in think this been now at it. that like X good you seeing go continuous public continue about years in players like is this regard with don't just area

Evan G. Greenberg

there a significant the in Well, And look, the other class pricing. financial and loss, It's liability, call pandemic, prices. actions, employment was practices during we of it securities love forms the in the during let's drop-off business.

is fact, year, in like quickly. results. increasing reverting mean. the actions, in And back practices, class the producing terms years areas, use is loss, some are securities around favorable number pretty I words so why is of current the frequency the the And loss, head of of employment in it, And of those to fake frequency accident which is loss

]. continues of to Severity loss trend [

about see current what's We this. year and coming And know accident pressure. where so what think don't margins they ignore is they I

business book classes. business, this big and leader have across is of a a in Chubb We this

And so ebb and how we're that we in patient, flow period. to and know

-- hand, you something it's to not got of doesn't we've tables at, it on the play. but So other like other plenty looking

Operator

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

Taylor Scott

changes have is And to specifically, any for you the the First make interested wildfires. you what that And will had from be approach guess, stabilize the all you to Will in needs California from make you way any I of the one approach have to sort market forward? what of going what the see done to I we're just there. insurance your to be fallout in in on thoughts market? -- to sort market going

Evan G. Greenberg

activity risk-adjusted Yes. for difficult for more time. companies, only that risk along and charge their part return suppresses of the actually a to with that management the a will tailor not mitigation governments, state, the are Thank a it to and insurance difficult it risk commensurate reasonable and well, occurring ensuring and Look, state. businesses unable work, activity. loss federal, to disaster. This local California state with generate following to coverages loss the by or live such the you choose wildfire, fair perils, rising, groups, hand price advocacy the question. become and of pricing Insurers risk ] improve is are risk cost taking as receives or [ and The has is to citizens for of individuals And reconstruction consumer pressure they the as a ability mitigation with encourages which from affordability in as all California a over availability insurance for of market where occurring. natural in more associated signals, suppression or by less encourages and have

those economics economic word, is incent behaviors. In And impacting a California signals.

reduced state, the through the own is coverage its last exposures offered state insurers As in resort. underpriced their more have of insurer

this state way stands Frankly, in for And the citizens it's coverage. is the one price an the unsustainable regard, but of California out. paid certainly not a other, it or model. alone

for been our shrinking exposure We've time. in some California

exposure the by to for where XX%. achieve risk. wildfires has over our insurance where return the For risk-adjusted reduced We're example, in going occurred, a area not been reasonable we the taking write cannot

Taylor Scott

That's place. sort seems then going I And mean follow-on of and the expect this really you becoming the from that. it's question riskier your like world in other property Would level maybe be And in primary fallout is property good just price whether thinking view? broadly? pricing will in reinsurance what's a helpful. in affect enough that a California it seem certainly, to areas. to more to a adequacy on pretty But change

Evan G. Greenberg

It's too know I early tell. yet. don't to

this sheets. that's the of As in maintain end is pricing that why magnitude has to the find grows, reminder to of begins of what other sheets industry and to overall balance more adequate. -- loss that reinsurance and my the it the us is size whether And up? the which, -- is to ultimate does needs its impact it will loss adequacy. of emerges loss And will to give where a pricing, determine it way this a broader balance is And on judgment, going be the property overall question, and

Operator

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

Elyse Greenspan

excess drag capital on you My current the guess, question, can your is? ROE I first what provide, guys

Evan G. Greenberg

excess drag. ROE current capital The

Peter Enns

Yes.

while, our again, We alts. allocation starting. with investment about consistent thinking what in increase disclosed And things, a asset gradually a investor our haven't talked Elyse. just incrementally also source that looking we're That's about and as we capital how at presentation, as our we in of is towards

year that to, the would similar a backward discussed call I'll range right people computed. looking in So say it, ago now, it be we and a us, behind year at

was the X% of on So backwards looking and ROE ROCE. it in on range of around X% ROE

Elyse Greenspan

tax considers you right, the for DTAs also were right, that question, of that said, potential, it I had my that then And tax provided reversals -- helpful. and That's I guidance, you second some was from the had some up. there benefit transition Bermuda. think thought set some cash

think might up change year was -- DTA couple assuming assuming guys of So in take year, you be ago? the of no but not structure that Are I a just this out. place might what I'm set a years

Peter Enns

it's based to changes, perspective, on a Bermuda we'd ago So at guidance out reviewed that to it. law have and expected be and with look it change. from isn't administrative an mean Bermuda has accounting to yes, Elyse, weeks if OECD of came applies. it couple how some I see law,

they're basis. may advocating come going are administration participate OECD through the new with the of global you have [ minimum in ] that saying on and to As seen, not tax has

is, So with we and have one all longer involved where thing of new being and are very sense clear well. as some India countries the And know it's 'XX -- we where a not have a we along for with at uncertain, administration China, we very particularly other sense 'XX. very large of term,

Evan G. Greenberg

involve law. Swiss Not

Peter Enns

Swiss law.

Evan G. Greenberg

Yes, it's messy.

Elyse Greenspan

And for throw in right? Do been there. in you do lines, what And you obviously, competition financial then one for right, pulled time. guys -- have back talking some You Evan, better Or not I'll you think to I get for it term? in guess, things of point expecting any kind takes, are conditions, I there the change guess, about to -- at there? is near something

Evan G. Greenberg

losses that I renormalizes, think an be emerge will ameliorating factor. as and

Operator

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

Yaron Kinar

to that us through and can appetite you reconcile America and basis. pricing which asked you which with do go that the takes to risk so was to the maybe growth, of that trying sell-side I'm have. seems the on puts here -- last that, analyst back premium your the the regards around opportunities you're want something a at to walk and of with I environment, seeing gross changing ahead to North just Evan, Maybe X% Commercial there. quarter premium the sentiment quickly, I is be

Evan G. Greenberg

you not what be I'm clear? your -- sure more can

Yaron Kinar

Sure.

was growth, your growth, So premium X%. premium gross

you America North north I think of the pricing pricing offered, and is if bits that. that in of the P&C, we pieces take environment

Evan G. Greenberg

I premium with growth, premium think growth. have to net not you start gross

Yaron Kinar

that be? would Why

Evan G. Greenberg

premium as transactions, not of a has large transactions too a do we distortions be many distort because that, it's structured growth that frankly, program program. or it Well, that number, may self-insured where

with based gross clients. so puts on our the has And and premium calls flows

client lot and get have and when even you you have that's middle the But business, If account a you more noise difference. a where a in steady. it's market lot business, of to then E&S line, what makes -- of gross large

there. get to going never You're

start to net premiums. at have You

just as to can I'm I and nothing -- this as you that, explanation, you Now, that debate. an not is tell giving

Yaron Kinar

take the And enough. X%, was Fair versus which if pricing? net premium X% growth, we roughly

Evan G. Greenberg

retention mix have a does. have mean is it. you It retention. directly. with new it doesn't never a -- business, and the line line, mix of a there you start it's rate, add of mix there's I by to business, do a you then It Well, translate to

will you'll hear revenue through a translate take mix to When have business. simple lesson so you offline, take we give and the of -- to you you And and if pricing adjust it. that you're for to But pricing. you of math overall trying overall want now

Yaron Kinar

Great. I'm always.

Evan G. Greenberg

way I bad don't -- help through another some you mean a you you give maybe and lesson in to I we'll about take way. a mean think it.

Yaron Kinar

you. Always learn. Thank to Great. eager

Operator

back will I question-and-answer concludes turn remarks. And that our the Beyer over now for closing session. call Karen to

Karen Beyer

any Thank questions, around you, everyone, be for have Thank joining if us the you take call. And Enjoy today. you. we'll day. follow-up to your

Operator

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

disconnect. now may You

Chubb Limited (CB) 29 Jan 252024 Q4 Earnings call transcript