Chubb Ltd. Files 10-Q for Q1 2024

TL;DR

<b>Chubb Ltd. has filed its Q1 2024 10-Q report, detailing its financial performance and position.</b>

AI Summary

Chubb Ltd (CB) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Chubb Ltd. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. Chubb Ltd. is incorporated in V8. The company's primary SIC code is FIRE, MARINE & CASUALTY INSURANCE [6331].

Why It Matters

For investors and stakeholders tracking Chubb Ltd, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data for Chubb Ltd., crucial for assessing performance and making investment decisions. Understanding the details within this report allows for a timely evaluation of the company's financial health and operational status in the insurance sector.

Risk Assessment

Risk Level: low — Chubb Ltd shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to understand Chubb Ltd.'s current financial health and strategic outlook.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-26 — Filing Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 6331 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• Chubb Ltd (company) — FILER
• 20240331 (date) — CONFORMED PERIOD OF REPORT
• 20240426 (date) — FILED AS OF DATE
• FIRE, MARINE & CASUALTY INSURANCE [6331] (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• ZURICH (location) — CITY
• CH-8001 (postal_code) — ZIP
• ACE Ltd (company) — FORMER COMPANY
• 20160115 (date) — DATE OF NAME CHANGE

FAQ

Industry Context

Chubb Ltd. operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by risk management and underwriting.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Examine the risk factors section for any new or evolving risks impacting the company.
3. Compare the current quarter's performance against historical data and industry benchmarks.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-26: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the 2024 fiscal year, providing the first set of quarterly financial data for the year.

Filing Documents

• cb-20240331.htm (10-Q) — 4202KB
• cb-3312024xex101.htm (EX-10.1) — 87KB
• cb-3312024xex102.htm (EX-10.2) — 71KB
• cb-3312024xex103.htm (EX-10.3) — 55KB
• cb-3312024xex311.htm (EX-31.1) — 9KB
• cb-3312024xex312.htm (EX-31.2) — 9KB
• cb-3312024xex321.htm (EX-32.1) — 4KB
• cb-3312024xex322.htm (EX-32.2) — 4KB
• 0000896159-24-000006.txt (&nbsp;) — 20944KB
• cb-20240331.xsd (EX-101.SCH) — 75KB
• cb-20240331_cal.xml (EX-101.CAL) — 122KB
• cb-20240331_def.xml (EX-101.DEF) — 639KB
• cb-20240331_lab.xml (EX-101.LAB) — 1076KB
• cb-20240331_pre.xml (EX-101.PRE) — 855KB
• cb-20240331_htm.xml (XML) — 4711KB

FINANCIAL INFORMATION Page

Part I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets (Unaudited) March 31, 2024 and December 31, 2023 3 Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended March 31, 2024 and 2023 4 Consolidated Statements of Shareholders' Equity (Unaudited) Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2024 and 2023 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1. General and significant accounting policies 7 Note 2. Acquisitions 8 Note 3. Investments 9 Note 4. Fair value measurements 14 Note 5. Reinsurance 20 Note 6. Deferred acquisition costs 21 Note 7. Unpaid losses and loss expenses 22 Note 8. Future policy benefits 24 Note 9. Policyholders' account balances, Separate accounts, and Unearned revenue liabilities 28 Note 10. Market risk benefits 32 Note 11. Debt 33 Note 12. Commitments, contingencies, and guarantees 33 Note 13. Shareholders' equity 39 Note 14. Share-based compensation 42 Note 15. Postretirement benefits 42 Note 16. Other income and expense 43 Note 17. Segment information 44 Note 18. Earnings per share 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 47

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 79

Controls and Procedures

Item 4. Controls and Procedures 82

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 83

Risk Factors

Item 1A. Risk Factors 83

Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 83

Other Information

Item 5. Other Information 83

Exhibits

Item 6. Exhibits 84 2 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements CONSOLIDATED BALANCE SHEETS (Unaudited) Chubb Limited and Subsidiaries March 31 December 31 (in millions of U.S. dollars, except share and per share data) 2024 2023 Assets Investments Short-term investments, at fair value (amortized cost – $ 5,108 and $ 4,551 ) (includes variable interest entities (VIE) balances of $ 65 and $ 217 ) $ 5,107 $ 4,551 Fixed maturities available-for-sale, at fair value, net of valuation allowance - $ 115 and $ 156 (amortized cost – $ 113,479 and $ 111,128 ) 108,289 106,571 Private debt held-for-investment, at amortized cost, net of valuation allowance - $ 5 and $ 4 2,708 2,553 Equity securities, at fair value (includes VIE balances of $ 1,163 and $ 1,078 ) 3,769 3,455 Private equities (includes VIE balances of $ 22 and $ 21 ) 14,281 14,078 Other investments (includes VIE balances of $ 4,408 and $ 3,773 ) 6,216 5,527 Total investments 140,370 136,735 Cash, including restricted cash $ 143 and $ 172 (includes VIE balances of $ 127 and $ 117 ) 2,651 2,621 Securities lending collateral 1,708 1,299 Accrued investment income 1,090 1,086 Insurance and reinsurance balances receivable, net of valuation allowance - $ 47 and $ 53 13,991 13,379 Reinsurance recoverable on losses and loss expenses, net of valuation allowance - $ 375 and $ 367 19,109 19,952 Reinsurance recoverable on policy benefits 272 280 Deferred policy acquisition costs 7,537 7,152 Value of business acquired 3,617 3,674 Goodwill 19,696 19,686 Other intangible assets 6,709 6,775 Deferred tax assets 1,761 1,741 Prepaid reinsurance premiums 3,241 3,221 Separate account assets 5,864 5,573 Other assets (includes VIE balances of $ 14 and $ 33 ) 7,251 7,508 Total assets $ 234,867 $ 230,682 Liabilities Unpaid losses and loss expenses $ 80,341 $ 80,122 Unearned premiums 22,728 22,051 Future policy benefits 14,375 13,888 Market risk benefits 611 771 Policyholders' account balances 7,560 7,462 Separate account liab

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Chubb Limited and Subsidiaries 1. General and significant accounting policies a) Basis of presentation Chubb Limited is a holding company incorporated in Zurich, Switzerland. Chubb Limited, through its subsidiaries, provides a broad range of insurance and reinsurance products to insureds worldwide. Our results are reported through the following business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance. Refer to Note 17 for additional information. The interim unaudited consolidated financial statements include the accounts of Chubb Limited and its subsidiaries (collectively, Chubb, we, us, or our), over which Chubb exercises control, including Huatai Group, our majority-owned subsidiary, and minority-owned entities such as variable interest entities (VIEs) in which Chubb is considered the primary beneficiary. Noncontrolling interests on the Consolidated Financial Statements represent the portion of majority-owned subsidiaries and VIEs in which we do not have direct equity ownership. These interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the results and financial position for such periods. All significant intercompany accounts and transactions, including internal reinsurance transactions, have been eliminated. On July 1, 2023, Chubb discontinued equity method accounting for its investment in Huatai Group upon obtaining a controlling interest and applied consolidation accounting. Therefore, effective July 1, 2023, business activity for, and the financial position of, Huatai Group is reported at 100 percent on the Consolidated Financial Statements. A

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 2. Acquisitions Huatai Group Huatai Insurance Group Co., Ltd. (Huatai Group) is a Chinese financial services holding company and the parent company of, among others, Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), Huatai Life Insurance Co., Ltd. (Huatai Life), Huatai Asset Management Co., Ltd., and Huatai Baoxing Fund Management Co., Ltd., of which Huatai Group owns 100 percent, 80 percent, 91 percent, and 85 percent, respectively (collectively, Huatai). On July 1, 2023, Chubb increased ownership interest from approximately 64.2 percent to approximately 69.6 percent. At that time, Chubb discontinued the equity method of accounting and applied consolidation accounting. Refer to Note 2 to the Consolidated Financial Statements in our 2023 Form 10-K for additional information. In the first quarter of 2024, we closed on incremental ownership interests of approximately 9.0 percent for $ 555 million, $ 319 million of which was previously paid prior to 2024, and $ 236 million was paid in 2024. Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of March 31, 2024. Chubb has outstanding agreements for approximately 0.6 percent of incremental ownership interests, pending completion of certain closing conditions. We have paid deposits of $ 12 million related to these outstanding agreements, with approximately $ 24 million remaining to be paid upon closing, based on current exchange rates. The following table presents supplemental unaudited pro forma consolidated information for the periods indicated as though the acquisition of a controlling majority interest in Huatai Group that occurred on July 1, 2023, had instead occurred on January 1, 2022. The unaudited pro forma consolidated financial information is presented for informational purposes only and is not necessarily indicative of the operating results that would have occur

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 3. Investments a) Fixed maturities March 31, 2024 Amortized Cost Valuation Allowance Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value (in millions of U.S. dollars) Available-for-sale U.S. Treasury / Agency $ 3,058 $ — $ 5 $ ( 164 ) $ 2,899 Non-U.S. 36,962 ( 41 ) 605 ( 1,381 ) 36,145 Corporate and asset-backed securities 45,567 ( 73 ) 306 ( 2,353 ) 43,447 Mortgage-backed securities 25,696 ( 1 ) 89 ( 2,029 ) 23,755 Municipal 2,196 — 7 ( 160 ) 2,043 $ 113,479 $ ( 115 ) $ 1,012 $ ( 6,087 ) $ 108,289 December 31, 2023 Amortized Cost Valuation Allowance Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value (in millions of U.S. dollars) Available-for-sale U.S. Treasury / Agency $ 3,721 $ — $ 13 $ ( 144 ) $ 3,590 Non-U.S. 35,918 ( 49 ) 592 ( 1,297 ) 35,164 Corporate and asset-backed securities 44,695 ( 104 ) 390 ( 2,151 ) 42,830 Mortgage-backed securities 23,720 ( 3 ) 143 ( 1,802 ) 22,058 Municipal 3,074 — 10 ( 155 ) 2,929 $ 111,128 $ ( 156 ) $ 1,148 $ ( 5,549 ) $ 106,571 The following table presents fixed maturities by contractual maturity: March 31, 2024 December 31, 2023 (in millions of U.S. dollars) Net Carrying Value Fair Value Net Carrying Value Fair Value Available-for-sale Due in 1 year or less $ 4,521 $ 4,521 $ 4,729 $ 4,729 Due after 1 year through 5 years 33,533 33,533 33,573 33,573 Due after 5 years through 10 years 28,198 28,198 28,480 28,480 Due after 10 years 18,282 18,282 17,731 17,731 84,534 84,534 84,513 84,513 Mortgage-backed securities 23,755 23,755 22,058 22,058 $ 108,289 $ 108,289 $ 106,571 $ 106,571 Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. b) Gross unrealized loss Fixed maturities in an unrealized loss position at March 31, 2024, and December

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following tables present, for available-for-sale (AFS) fixed maturities in an unrealized loss position (including securities on loan) that are not deemed to have expected credit losses, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: 0 – 12 Months Over 12 Months Total March 31, 2024 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury / Agency $ 632 $ ( 13 ) $ 2,007 $ ( 151 ) $ 2,639 $ ( 164 ) Non-U.S. 3,793 ( 64 ) 15,928 ( 1,079 ) 19,721 ( 1,143 ) Corporate and asset-backed securities 4,675 ( 71 ) 19,646 ( 1,487 ) 24,321 ( 1,558 ) Mortgage-backed securities 4,907 ( 82 ) 13,783 ( 1,919 ) 18,690 ( 2,001 ) Municipal 443 ( 12 ) 1,218 ( 148 ) 1,661 ( 160 ) Total AFS fixed maturities $ 14,450 $ ( 242 ) $ 52,582 $ ( 4,784 ) $ 67,032 $ ( 5,026 ) 0 – 12 Months Over 12 Months Total December 31, 2023 Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of U.S. dollars) U.S. Treasury / Agency $ 463 $ ( 9 ) $ 2,504 $ ( 135 ) $ 2,967 $ ( 144 ) Non-U.S. 2,464 ( 43 ) 15,971 ( 957 ) 18,435 ( 1,000 ) Corporate and asset-backed securities 2,866 ( 51 ) 20,334 ( 1,194 ) 23,200 ( 1,245 ) Mortgage-backed securities 1,659 ( 58 ) 13,831 ( 1,706 ) 15,490 ( 1,764 ) Municipal 1,117 ( 15 ) 1,310 ( 137 ) 2,427 ( 152 ) Total AFS fixed maturities $ 8,569 $ ( 176 ) $ 53,950 $ ( 4,129 ) $ 62,519 $ ( 4,305 ) At March 31, 2024, the tax benefit on certain unrealized losses in our investment portfolio was reduced by a valuation allowance of $ 543 million necessary due to limitations on the utilization of these losses. As part of evaluating whether it was more likely than not that we could realize these losses, we considered realized gains, carr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following table presents a roll-forward of valuation allowance for expected credit losses on fixed maturities: Three Months Ended March 31 (in millions of U.S. dollars) 2024 2023 Available-for-sale Valuation allowance for expected credit losses - beginning of period $ 156 $ 169 Provision for expected credit loss 31 59 Write-offs charged against the expected credit loss ( 5 ) ( 2 ) Recovery of expected credit loss ( 67 ) ( 58 ) Valuation allowance for expected credit losses - end of period $ 115 $ 168 Held-to-maturity Valuation allowance for expected credit losses - beginning of period $ — $ 34 Recovery of expected credit loss — ( 1 ) Valuation allowance for expected credit losses - end of period $ — $ 33 Private debt held-for-investment Valuation allowance for expected credit losses - beginning of period $ 4 $ — Provision for expected credit loss 1 — Valuation allowance for expected credit losses - end of period $ 5 $ — 11 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries c) Net realized gains (losses) The following table presents the components of net realized gains (losses): Three Months Ended March 31 (in millions of U.S. dollars) 2024 2023 Fixed maturities: Gross realized gains $ 16 $ 2 Gross realized losses ( 141 ) ( 159 ) Other investments - Fixed maturities 168 — Net (provision for) recovery of expected credit losses 40 2 Impairment (1) ( 34 ) ( 25 ) Total fixed maturities 49 ( 180 ) Equity securities 3 11 Private equities (less than 3 percent ownership) 31 15 Foreign exchange ( 131 ) 131 Investment and embedded derivative instruments ( 43 ) ( 46 ) Other derivative instruments ( 2 ) ( 1 ) Other ( 8 ) ( 7 ) Net realized gains (losses) (pre-tax) $ ( 101 ) $ ( 77 ) (1) Relates to certain securities we intended to sell and securities written to market entering default. Realized gains and losses from Other investments, Equity securities and Private equities from the table above include sales of securities and unrealized gains and losses from fair value changes as follows: Three Months Ended March 31 2024 2023 (in millions of U.S. dollars) Equity Securities Other Investments Private Equities Total Equity Securities Private Equities Total Net gains (losses) recognized during the period $ 3 $ 168 $ 31 $ 202 $ 11 $ 15 $ 26 Less: Net gains (losses) recognized from sales of securities ( 3 ) — — ( 3 ) ( 5 ) — ( 5 ) Unrealized gains (losses) recognized for securities still held at reporting date $ 6 $ 168 $ 31 $ 205 $ 16 $ 15 $ 31 12 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries d) Private equities Private equities include investment funds and limited partnerships measured at fair value using net asset value (NAV) as a practical expedient. The following table presents, by investment category, the expected liquidation period, fair value, and maximum future funding commitments for private equities: Expected Liquidation Period of Underlying Assets March 31, 2024 December 31, 2023 (in millions of U.S. dollars) Fair Value Maximum Future Funding Commitments Fair Value Maximum Future Funding Commitments Financial 2 to 1

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