On July 23, 2024, Chubb Ltd (CB, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial performance. Chubb Ltd, which became one of the largest domestic property and casualty insurers after ACE acquired Chubb in the first quarter of 2016, operates in 54 countries and offers a wide range of insurance products.
Performance Overview
Chubb Ltd reported net income of $2.23 billion, or $5.46 per share, and core operating income of $2.20 billion, or $5.38 per share, for the quarter ended June 30, 2024. These figures represent a 24.3% and 9.3% increase, respectively, compared to the same period last year. The company's consolidated net premiums written reached $13.4 billion, up 11.8% year-over-year.
Key Financial Metrics
Chubb Ltd's book value per share and tangible book value per share increased by 1.3% and 1.7%, respectively, from March 31, 2024, standing at $151.05 and $91.05. Despite after-tax net realized and unrealized losses of $437 million in the investment portfolio and $457 million in foreign exchange losses, the book value per share and tangible book value per share excluding AOCI rose by 2.6% and 3.1%, respectively.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $2,230 | $1,793 | 24.3% |
| Net Income per Share | $5.46 | $4.32 | 26.4% |
| Core Operating Income (in millions) | $2,196 | $2,044 | 7.5% |
| Core Operating Income per Share | $5.38 | $4.92 | 9.3% |
Segment Performance and Challenges
Chubb Ltd's Property & Casualty (P&C) combined ratio stood at 86.8%, reflecting strong underwriting performance despite higher catastrophe losses. The company's P&C underwriting income excluding catastrophe losses reached a record $1.8 billion, with a combined ratio of 83.2%. Adjusted investment income also hit a record $1.5 billion, up nearly 26% year-over-year.
"We had another great quarter which contributed to record six-month results. Per-share core operating income in the quarter was up 9.3% while record year-to-date operating income was up 15.7%," said Evan G. Greenberg, Chairman and CEO of Chubb Ltd.
Financial Achievements
Chubb Ltd's annualized return on equity (ROE) for the quarter was 14.7%, while the core operating return on tangible equity (ROTE) was 21.1%. The company's core operating ROE stood at 13.3%. For the six months ended June 30, 2024, net income was $4.37 billion, or $10.68 per share, and core operating income was $4.41 billion, or $10.78 per share, marking a 20.8% and 15.7% increase, respectively, from the same period last year.
Analysis and Outlook
Chubb Ltd's strong financial performance in Q2 2024 highlights its robust underwriting capabilities and effective risk management strategies. The company's ability to grow premiums and investment income, despite market challenges, underscores its resilience and strategic positioning in the insurance industry. With favorable underwriting conditions and steady loss-cost inflation, Chubb Ltd is well-positioned to continue delivering strong financial results.
For more detailed information on Chubb Ltd's financial performance, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Chubb Ltd for further details.
