Chubb (CB) investor relations material

Executive summary

• Q3 core operating income was $2.98B (-2.2%) and net income was $2.84B (+1.5%); core operating EPS was $7.66 (+0.8%) and diluted EPS was $7.30 (+4.4%).

• 9M core operating income reached a record $8.60B (+21.0%), with core EPS of $21.94 (+24.5%); net income was $8.02B (+12.9%).

• Investment income growth and diversified operations supported results, while higher catastrophe losses and weaker North America Commercial underwriting weighed on Q3.

Financial highlights

• Q3 net premiums written increased 1.9% to $15.14B; 9M net premiums earned rose 7.1% to $42.27B and total revenue increased 5.5% to $46.78B.

• Q3 pre-tax net investment income was a record $1.79B (+8.6%); adjusted net investment income was a record $1.89B (+6.3%).

• Q3 P&C underwriting income was $2.06B; current-accident-year underwriting income excluding catastrophe losses rose 3.3% to $2.26B.

• Operating cash flow reached a Q3 record $6.07B; adjusted operating cash flow was a record $5.55B. 9M adjusted operating cash flow was a record $12.8B.

• Q3 net realized losses were $455M versus gains of $283M a year earlier; 9M losses were $700M versus gains of $327M, mainly from investment marks and foreign exchange.

Outlook and guidance

• North America Commercial growth is expected to improve in coming quarters as underwriting-action headwinds diminish and middle- and small-commercial opportunities grow.

• Medium-term outlook remains for strong operating income and EPS growth and double-digit tangible book value growth, excluding catastrophe losses and FX effects.

• FY core operating effective tax rate expectation remains 19.5%-20%; no specific adjusted net investment income guidance was provided, with fixed-income investment income expected to grow.