Chubb Ltd. Files Q3 2024 10-Q

TL;DR

Chubb's Q3 2024 10-Q is in, showing revenues and OCI. Check the numbers.

AI Summary

Chubb Ltd. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including revenues and other comprehensive income, with financial data presented in USD and CHF.

Why It Matters

This filing provides investors and analysts with a detailed look at Chubb's financial health and operational results for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial data is reported.)

Key Players & Entities

• Chubb Ltd. (company) — Filer of the 10-Q
• 20240930 (date) — Period of report
• 20241030 (date) — Filing date
• USD (currency) — Currency used in financial reporting
• CHF (currency) — Currency used in financial reporting

FAQ

Filing Documents

• cb-20240930.htm (10-Q) — 5748KB
• cb-9302024xex311.htm (EX-31.1) — 9KB
• cb-9302024xex312.htm (EX-31.2) — 9KB
• cb-9302024xex321.htm (EX-32.1) — 4KB
• cb-9302024xex322.htm (EX-32.2) — 4KB
• 0000896159-24-000013.txt ( ) — 25510KB
• cb-20240930.xsd (EX-101.SCH) — 75KB
• cb-20240930_cal.xml (EX-101.CAL) — 135KB
• cb-20240930_def.xml (EX-101.DEF) — 681KB
• cb-20240930_lab.xml (EX-101.LAB) — 1098KB
• cb-20240930_pre.xml (EX-101.PRE) — 900KB
• cb-20240930_htm.xml (XML) — 6346KB

FINANCIAL INFORMATION Page

Part I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets (Unaudited) September 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three and Nine Months Ended Sep tember 30, 2024 and 2023 4 Consolidated Statements of Shareholders' Equity (Unaudited) Three and Nine Months Ended September 30, 2024 and 2023 5 Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 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 10 Note 4. Fair value measurements 15 Note 5. Reinsurance 22 Note 6. Deferred policy acquisition costs 23 Note 7. Goodwill 24 Note 8. Unpaid losses and loss expenses 24 Note 9. Future policy benefits 26 Note 10. Policyholders' account balances, Separate accounts, and Unearned revenue liabilities 31 Note 11. Market risk benefits 36 Note 12. Debt 37 Note 13. Commitments, contingencies, and guarantees 37 Note 14. Shareholders' equity 43 Note 15. Share-based compensation 46 Note 16. Postretirement benefits 47 Note 17. Other income and expense 48 Note 18. Segment information 49 Note 19. Earnings per share 54

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 55

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 91

Controls and Procedures

Item 4. Controls and Procedures 93

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 94

Risk Factors

Item 1A. Risk Factors 94

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 94

Other Information

Item 5. Other Information 94

Exhibits

Item 6. Exhibits 95 2 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements CONSOLIDATED BALANCE SHEETS (Unaudited) Chubb Limited and Subsidiaries September 30 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 – $ 4,378 and $ 4,551 ) (includes variable interest entities (VIE) balances of $ 196 and $ 217 ) $ 4,375 $ 4,551 Fixed maturities available-for-sale, at fair value, net of valuation allowance - $ 75 and $ 156 (amortized cost – $ 119,441 and $ 111,128 ) 117,265 106,571 Private debt held-for-investment, at amortized cost, net of valuation allowance - $ 5 and $ 4 2,619 2,553 Equity securities, at fair value (includes VIE balances of $ 1,362 and $ 1,078 ) 4,404 3,455 Private equities (includes VIE balances of $ 22 and $ 21 ) 14,405 14,078 Other investments (includes VIE balances of $ 4,243 and $ 3,773 ) 8,155 5,527 Total investments 151,223 136,735 Cash, including restricted cash $ 153 and $ 172 (includes VIE balances of $ 142 and $ 117 ) 2,678 2,621 Securities lending collateral 1,927 1,299 Accrued investment income 1,165 1,086 Insurance and reinsurance balances receivable, net of valuation allowance - $ 58 and $ 53 15,709 13,379 Reinsurance recoverable on losses and loss expenses, net of valuation allowance - $ 388 and $ 367 19,606 19,952 Reinsurance recoverable on policy benefits 292 280 Deferred policy acquisition costs 8,249 7,152 Value of business acquired 3,452 3,674 Goodwill 19,990 19,686 Other intangible assets 6,594 6,775 Deferred tax assets 1,567 1,741 Prepaid reinsurance premiums 3,648 3,221 Separate account assets 5,996 5,573 Other assets (includes VIE balances of $ 19 and $ 33 ) 8,461 7,508 Total assets $ 250,557 $ 230,682 Liabilities Unpaid losses and loss expenses $ 84,326 $ 80,122 Unearned premiums 24,498 22,051 Future policy benefits 16,003 13,888 Market risk benefits 748 771 Policyholders' account balances 8,136 7,462 Separate account

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 18 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 Healthy Paws On May 31, 2024, we acquired the business of Healthy Paws Pet Insurance LLC, a managing general agent specializing in pet insurance, from Aon plc for approximately $ 300 million in cash. We recognized goodwill of $ 256 million and intangible assets of $ 44 million from this acquisition. Chubb has been the exclusive underwriter of Healthy Paws since 2013. The transaction positions Chubb to expand in a niche market with substantial growth potential. This business is assigned to the North America Commercial Insurance segment. 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 paid prior to 2024, and $ 236 million of which was paid in 2024. Our aggregate ownership interest in Huatai Group was approximately 85.5 percent as of September 30, 2024. In the fourth quarter of 2024, we entered into an agreement to purchase approximately 1.0 percent of incremental ownership interests. Chubb has total outstanding agreements for approximately 1.6 percent of incremental ownership i

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries The following table summarizes the fair value of the assets acquired and liabilities assumed on July 1, 2023. Huatai Group assets and liabilities consolidated July 1 (in millions of U.S. dollars) 2023 Assets Investments and Cash $ 13,346 Accrued investment income 60 Insurance and reinsurance balances receivable 277 Reinsurance recoverable on losses and loss expenses 581 Reinsurance recoverable on future policy benefits 27 Value of business acquired 309 Goodwill and intangible assets 5,113 Other assets 748 Total assets $ 20,461 Liabilities Unpaid losses and loss expenses $ 831 Unearned premiums 800 Future policy benefits 2,351 Policyholders' account balances 4,014 Insurance and reinsurance balances payable 644 Accounts payable, accrued expenses, and other liabilities 682 Deferred tax liabilities 232 Repurchase agreements 1,269 Total liabilities $ 10,823 Net acquired assets, including goodwill, attributable to Chubb 4,428 Net acquired assets, attributable to noncontrolling interests 5,210 Net acquired assets, including goodwill $ 9,638 The following table summarizes the results of the acquired Huatai Group operations that have been included within our Consolidated statements of operations for both the three and nine months ended September 30, 2023: (in millions of U.S. dollars) Total revenues $ 389 Net loss $ ( 11 ) Net loss attributable to Chubb $ ( 9 ) 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 occurred had the acquisition of a controlling

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries 3. Investments a) Fixed maturities September 30, 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 $ 2,709 $ — $ 18 $ ( 98 ) $ 2,629 Non-U.S. 37,560 ( 23 ) 895 ( 931 ) 37,501 Corporate and asset-backed securities 47,588 ( 52 ) 736 ( 1,579 ) 46,693 Mortgage-backed securities 29,517 — 341 ( 1,384 ) 28,474 Municipal 2,067 — 18 ( 117 ) 1,968 $ 119,441 $ ( 75 ) $ 2,008 $ ( 4,109 ) $ 117,265 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: September 30, 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 $ 4,536 $ 4,536 $ 4,729 $ 4,729 Due after 1 year through 5 years 35,739 35,739 33,573 33,573 Due after 5 years through 10 years 28,913 28,913 28,480 28,480 Due after 10 years 19,603 19,603 17,731 17,731 88,791 88,791 84,513 84,513 Mortgage-backed securities 28,474 28,474 22,058 22,058 $ 117,265 $ 117,265 $ 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. 10 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – continued (Unaudited) Chubb Limited and Subsidiaries b) Gross unrealized loss Fixed maturities in an unrealized loss position at September 30, 2024, and December 31, 2023, comprised both investment grade and below investment grade securities for which fair value declined, principally due to rising interest rates since the date of purchase. Refer to Note 1 f) in the 2023 Form 10-K for further information on factors considered in the evaluation of expected credit losses. 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 September 30, 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 $ — $ — $ 1,677 $ ( 98 ) $ 1,677 $ ( 98 ) Non-U.S. 1,706 ( 26 ) 13,628 ( 734 ) 15,334 ( 760 ) Corporate and asset-backed securities 1,511 ( 13 ) 15,280 ( 959 ) 16,791 ( 972 ) Mortgage-backed securities 664 ( 5 ) 13,684 ( 1,366 ) 14,348 ( 1,371 ) Municipal 35 ( 1 ) 1,188 ( 114 ) 1,223 ( 115 ) Total AFS fixed maturities $ 3,916 $ ( 45 ) $ 45,457 $ ( 3,271 ) $ 49,373 $ ( 3,316 ) 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 )

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