Latest news with #ChubbLtd
Bloomberg
25-03-2025
- Business
- Bloomberg
California at Risk of New Insurance Bailout Amid Fire Danger
As Los Angeles-area residents recover from one of the costliest natural disasters in US history, California's insurer of last resort is careening toward another hot and dry summer with its coffers already strained. That's raising the prospect that state residents will need to pick up the bill for more funds. The California FAIR Plan last month required member companies such as State Farm, Allstate Corp. and Chubb Ltd. to cough up a combined $1 billion to bolster its reserves as it sorts through liabilities from the Palisades and Eaton fires. The measure, known as an assessment, offered a rare look into the program's relatively opaque financials. One key takeaway: Just three months into 2025, there's little extra cash should another disaster hit this year. And California is battling blazes year-round.
Yahoo
31-01-2025
- Business
- Yahoo
Chubb Ltd (CB) Q4 2024 Earnings Call Highlights: Strong Growth Amidst Challenges
Core Operating Income: $2.5 billion for Q4 2024, up 9.4% pre-tax, 10.5% per share. Global P&C Premium Revenue Growth: 6.7% in Q4 2024. Life Insurance Premium Growth: 8.5% in constant dollars for Q4 2024. Combined Ratio: 85.7% for Q4 2024. Adjusted Net Investment Income: $1.7 billion for Q4 2024, up 13.7%. Fixed Income Portfolio Yield: 5% for Q4 2024. North America Premium Growth: 6.3% excluding Agriculture for Q4 2024. International Retail Business Premium Growth: 7.7% for Q4 2024. Global Reinsurance Premium Growth: 20% for Q4 2024. Adjusted Operating Cash Flow: $4.2 billion for Q4 2024. Capital Returned to Shareholders: $1.1 billion in Q4 2024, including $725 million in share repurchases and $367 million in dividends. Core Operating ROE: 14.3% for Q4 2024. Core Operating Return on Tangible Equity: 22.0% for Q4 2024. Pre-tax Catastrophe Losses: $607 million for Q4 2024. Warning! GuruFocus has detected 5 Warning Sign with CB. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chubb Ltd (NYSE:CB) reported record P&C underwriting income with a combined ratio of 85.7% for the fourth quarter of 2024. The company achieved a 9.4% increase in operating earnings on a pre-tax basis, contributing to a strong year with $9.1 billion in operating income. Global P&C premium revenue grew by 6.7% in the quarter, with Life Insurance premiums increasing by 8.5% in constant dollars. Chubb Ltd (NYSE:CB) returned $1.1 billion of capital to shareholders in the quarter, including $725 million in share repurchases. The company's balance sheet remains strong with book value of $64 billion and total invested assets of $151 billion. Chubb Ltd (NYSE:CB) faced a significant financial impact from the California wildfires, estimating a cost of $1.5 billion net pre-tax. The company's financial lines, particularly D&O and employment practices liability insurance, are experiencing increased competition, affecting underwriting margins. Book value was adversely impacted by unrealized mark-to-market losses on the fixed income portfolio due to interest rate changes. The company reported adverse development of $139 million in its corporate runoff portfolio, primarily asbestos-related. Chubb Ltd (NYSE:CB) is facing challenges in the California insurance market due to regulatory constraints on pricing and coverage. Q: Can you provide more details on the $1.5 billion loss estimate from the California wildfires? A: Evan Greenberg, Chairman and CEO, explained that the $1.5 billion is a ground-up estimate based on Chubb's own losses, not industry-wide estimates. It includes an assessment for the FAIR plan but does not account for subrogation. Q: What are your expectations for organic growth in 2025, and are you considering inorganic growth opportunities? A: Evan Greenberg stated that while they do not provide specific guidance, the logic of expecting mid to high single-digit organic growth seems reasonable. Inorganic growth is considered opportunistic and must align with their organic strategies. Q: Can you elaborate on the favorable long-tail reserve development in general casualty? A: Evan Greenberg clarified that reserve development varies by portfolio each quarter. The favorable development this quarter was due to the strength of reserves in the specific casualty portfolios reviewed. Q: How do you view the current competitive environment in financial lines, and what might improve conditions? A: Evan Greenberg noted that while Chubb values financial lines, current pricing is not favorable. He expects conditions to improve as losses emerge and normalize, impacting current accident year margins. Q: What is Chubb's approach to the California insurance market following the wildfires? A: Evan Greenberg highlighted the challenges in California due to regulatory constraints on pricing. Chubb has been reducing exposure in the state and will not write insurance where they cannot achieve a reasonable risk-adjusted return. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
28-01-2025
- Business
- Bloomberg
Chubb Expects LA Wildfires to Cost It $1.5 Billion This Quarter
Chubb Ltd estimates that the wildfires that ravaged swaths of Los Angeles earlier this month will cost the insurer $1.5 billion in the first quarter. The Zurich-based firm revealed the expected cost in a statement Tuesday that detailed its fourth-quarter 2024 results, making it the first insurer to provide an estimate of wildfires' financial impact.
