Chubb Limited

Last modified by Asif Farooqui on 2023/10/10 04:29

Contents

Summary
Recent Developments
Financial Highlights
Company Overview
References

Summary

Chubb Limited is the world's largest publicly traded property and casualty insurance company.
Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies.
Chubb has operations in 54 countries and territories.

Chubb Limited is the world's largest publicly traded property and casualty insurance company. It provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. Chubb has operations in 54 countries and territories.

Recent Developments

Chubb and HealthAtom to Expand Dental Protection in Latin America¹

July 26, 2023; Chubb and HealthAtom today announced an alliance to offer comprehensive dental healthcare protection and related services for patients across Latin America.

Through the alliance, individual clients and corporate groups will have access to completely digital and easy-to-contract dental insurance protection products. The innovative digital insurance is built to optimize coverage and deliver lasting value to customers through their preferred channels.

Chubb, a leading global property and casualty insurer with operations in nine Latin American countries, will be the preferred insurance partner for HealthAtom's ecosystem in the region. HealthAtom, a Chilean healthtech focused on improving the efficiency of healthcare providers in Latin America through software-as-a-service (SaaS) technology, will be Chubb's preferred partner for dental-related services in the region, which will be available to the insurer's customers and business partners.

The alliance will start in Chile, and during 2024 it is expected to expand to Colombia, Ecuador, Mexico, Panama, and Peru.

Financial Highlights

Q2 2023 Results²

July 25, 2023; Chubb Limited reported net income for the quarter ended June 30, 2023 of $1.79 billion, or $4.32 per share, and core operating income of $2.04 billion, or $4.92 per share. Book value per share and tangible book value per share increased 0.6% and 0.2%, respectively, from March 31, 2023, and now stand at $128.75 and $78.97, respectively. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $1.23 billion in the company's investment portfolio.

For the six months ended June 30, 2023, net income was $3.69 billion, or $8.84 per share, and core operating income was $3.89 billion, or $9.32 per share. Book and tangible book value per share increased 5.7% and 8.9%, respectively, from December 31, 2022. Book value was favorably impacted by after-tax net realized and unrealized gains of $472 million in the company's investment portfolio. In addition, changes in discount rates on long-duration contracts and net losses from market risk benefits resulted in realized and unrealized losses of $286 million.

Net income was $1.79 billion, up 50.7%, and core operating income was a record $2.04 billion, up 13.9%. For the six months, net income was $3.69 billion, up 17.2%, and core operating income was a record $3.89 billion, up 12.9%.
P&C net premiums written of $10.68 billion were up 9.8%, or 10.4% in constant dollars.
Global P&C premiums, which exclude Agriculture, were up 10.2%, or 10.9% in constant dollars, with commercial lines up 11.1% and consumer lines up 10.5%. North America was up 10.6%, with personal lines growth of 10.8% and growth of 10.5%, or 14.0% excluding financial lines, in commercial lines. Overseas General was up 9.3%, or 10.9% in constant dollars, with growth of 11.9% in commercial lines and 9.5% in consumer lines; Asia Pacific was up 17.4% and Europe was up 10.5%.
P&C underwriting income was $1.43 billion with a combined ratio of 85.4%. P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 9.4%, leading to a record combined ratio of 83.3%. Global P&C current accident year underwriting income excluding catastrophe losses was a record $1.55 billion, up over 10%.
Pre-tax and after-tax catastrophe losses were $400 million and $319 million, respectively, compared with $291 million and $241 million, last year.
Life Insurance net premiums written increased 126.1%, or 127.6% in constant dollars, to $1.27 billion. Life Insurance segment income was $254 million, up 140.3%.
Pre-tax net investment income was $1.14 billion, up 28.9%, and adjusted net investment income was $1.24 billion, up 30.6%. Both were records.
Annualized return on equity (ROE) was 13.6% and annualized core operating ROE was 13.8%. Annualized core operating return on tangible equity (ROTE) was 21.0%.

Company Overview

Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Companies. Chubb Limited, which is headquartered in Zurich, Switzerland, and its direct and indirect are a global insurance and reinsurance organization, serving the needs of a diverse group of clients worldwide. At December 31, 2022, the company had total assets of $199 billion and shareholders’ equity of $51 billion. Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda. Chubb has grown its business through increased premium volume, expansion of product offerings and geographic reach, and the acquisition of other companies, to become a global property and casualty (P&C) leader. Chubb has also expanded its personal accident and supplemental health (A&H), and life insurance business with the acquisition of Cigna's business in several Asian markets. This complementary strategic acquisition on July 1, 2022 expands its presence and advances its longterm growth opportunity in Asia. On January 4, 2023, the company increased its ownership interest in Huatai Insurance Group Co. Ltd (Huatai Group) from 47.3 percent to 64.2 percent.³

Product and Services

Commercial insurance

Chubb provides commercial insurance products and services to a wide range of businesses, including multinational corporations, mid-size companies, and small businesses. These products and services include:

Property insurance
Casualty insurance
Liability insurance
Financial lines insurance
Marine insurance
Risk engineering services

Personal insurance

Chubb provides personal insurance products and services to individuals and families, including affluent and high net worth individuals. These products and services include:

Homeowners insurance
Automobile insurance
Life insurance
Personal accident and supplemental health insurance
Specialty personal insurance coverage

Reinsurance

Chubb provides reinsurance coverage to insurers around the world. Reinsurance helps insurers to manage their risk by transferring a portion of their risk to Chubb.

Life insurance
Chubb provides life insurance products and services to individuals and families. These products and services include:
Term life insurance
Whole life insurance
Universal life insurance
Indexed universal life insurance
Variable universal life insurance

Business Segments

With operations in 54 countries and territories, Chubb provides commercial and consumer P&C insurance, A&H, reinsurance, and life insurance to a diverse group of clients.

Chubb operates through six 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.

North America Commercial P&C Insurance

The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda.

The Commercial Insurance operations, which include Small Commercial, provides a broad range of P&C, financial lines, and A&H products targeted to U.S and Canadian-based middle market customers in a variety of industries, while the Small Commercial operations provide a broad range of property and casualty, workers' compensation, small commercial management and professional liability for small businesses based in the U.S.

North America Personal P&C Insurance

The North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division, which includes high net worth personal lines business, with operations in the U.S. and Canada. This segment provides affluent and high net worth individuals and families with homeowners, high value automobile and collector cars, valuable articles (including fine arts), personal and excess liability, travel insurance, cyber, and recreational marine insurance and services. The company's homeowners business, including valuable articles, represented 69 percent of North America Personal P&C Insurance’s net premiums earned in 2022.

Chubb Personal Risk Services offers comprehensive personal insurance products and services to meet the evolving needs of high net worth families and individuals. The company's seamless customer experience and superior coverage protect not only its clients’ most valuable possessions, but also their standard of living. The company's target customers consist of high net worth consumers with insurance needs that typically extend beyond what mass market carriers can offer. These coverages are offered solely through independent regional agents and brokers.

North America Agricultural Insurance

The North America Agricultural Insurance segment comprises its U.S. and Canadian based businesses that provide a variety of coverages including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail insurance through Rain and Hail Insurance Service, Inc. (Rain and Hail) as well as farm and ranch and specialty P&C commercial insurance products and services through its Chubb Agribusiness unit.

Overseas General Insurance

The Overseas General Insurance segment comprises Chubb International, its retail division, Chubb Global Markets (CGM), its wholesale division, and the international supplemental A&H business of Combined International Insurance. Chubb International comprises its international retail commercial P&C and corporate A&H traditional and specialty lines serving large corporations, middle market and small customers; consumer A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada. CGM, its London-based international specialty and excess and surplus lines wholesale business, includes Lloyd's of London (Lloyd's) Syndicate 2488, a wholly-owned Chubb syndicate supported by funds at Lloyd’s provided by Chubb Corporate Members. Syndicate 2488 has an underwriting capacity of £630 million for the Lloyd’s 2023 account year. The syndicate is managed by Chubb’s Lloyd’s managing agency, Chubb Underwriting Agencies Limited. The Overseas General Insurance segment also includes the P&C related operations of its investment in China based Huatai Group. As of December 31, 2022, Chubb International’s presence in China included its 47.3 percent ownership interest in Huatai Group.

Products and Distribution Chubb International maintains a presence in every major insurance market in the world and is organized geographically along product lines as follows: Europe, Middle East and Africa, Asia Pacific, Japan, and Latin America. Products offered include commercial P&C and corporate A&H lines, including specialty coverages and services, and consumer lines, including A&H and personal lines insurance products. Chubb International's P&C business is generally written, on both a direct and assumed basis, through major international, regional, and local brokers and agents.

Global Reinsurance

The Global Reinsurance segment represents Chubb's reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada. Global Reinsurance markets its reinsurance products worldwide primarily through reinsurance brokers under the Chubb Tempest Re brand name and provides a broad range of traditional and non-traditional reinsurance coverage to a diverse array of primary P&C companies.

Global Reinsurance services clients globally through its major units. Major international brokers submit business to one or more of these units' underwriting teams who have built strong relationships with both key brokers and clients by providing a responsive, client-focused approach to risk assessment and pricing. Global Reinsurance’s diversified portfolio is produced through reinsurance intermediaries.

Chubb Tempest Re USA offers an array of traditional and specialty P&C reinsurance for the North American market, principally on a treaty basis, with a focus on writing property and casualty reinsurance. Chubb Tempest Re USA underwrites reinsurance on both a proportional and excess of loss basis.

Life Insurance

The Life Insurance segment comprises its international life operations (Chubb Life), Chubb Tempest Life Re (Chubb Life Re), and the North American supplemental A&H and life business of Combined Insurance.

Chubb Life provides individual life and group benefit insurance primarily in Asia, including Hong Kong, Indonesia, South Korea, Taiwan, Thailand, Vietnam, and Myanmar. On July 1, 2022, the company expanded its presence in Asia with the acquisition of Cigna’s A&H and life insurance operations. Predominantly writing a portfolio of personal accident and supplemental health insurance and term life, the operations are located in Korea, Taiwan, Hong Kong, New Zealand, and Indonesia. Chubb Life also provides coverage throughout Latin America; selectively in Europe; Egypt; and in China through its direct and indirect investments in Huatai Group, Huatai Life Insurance Co., Ltd. (Huatai Life) and Huatai Asset Management Co., Ltd.

Chubb Life offers a broad portfolio of protection and savings products including whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, Group Employee benefits, unit linked contracts, and credit protection insurance for automobile, motorcycle, and home loans.

Company History

The origins of the Chubb Corporation date back to 1882 when Thomas Caldecot Chubb and his son Percy opened their marine underwriting business in the seaport district of New York City.⁴

Year	Milestone
1792	Investors meet at Independence Hall in Philadelphia to organize the Insurance Company of North America.
1837	Thomas Caldecot Chubb is born in London.
1882	The origins of the Chubb Corporation date back to 1882 when Thomas Caldecot Chubb and his son Percy opened their marine underwriting business in the seaport district of New York City.
1901	Percy Chubb organizes the Federal Insurance Company in New Jersey. They write marine insurance and expand into fire two years later.
1912	Three of ourpredecessor insurance companies (Aetna, Federal, INA) suffer losses from the sinking of the Titanic.
1913	Lloyds of Minneapolis (later Great Northern Insurance Company) begins offering auto liability insurance; it is acquired by Chubb in 1960.
1921	Chubb acquires control of U.S. Guarantee Company, transforming it from a fidelity and surety company to a general casualty insurer.
1928	Chubb & Son opens its first branch outside the U.S. in Montreal, Canada.
1965	INA debuts on the New York Stock Exchange. That year it acquires the Pacific Employers Group.
1967	The Chubb Corporation is formed. That year, Chubb acquires the Pacific Indemnity Companies.
1982	INA Corporation and the Connecticut General Corporation complete a merger to create CIGNA Corporation.
1984	Chubb is listed on the New York Stock Exchange.
1993	ACE goes public on the New York Stock Exchange.
1996	ACE acquires the first of its Lloyd's syndicate managing agencies and acquires Tempest Re,Chubb major global reinsurer.
1999	ACE acquires CIGNA P&C for $3.45 billion, thus entering 50 countries and transforming its business from specialty catastrophic risk to diversified property and casualty.
2016	ACE and Chubb become one and adopt the Chubb name.