Chubb (CB) Q2 2024 earnings summary

Executive summary

• Net income rose 24.3% to $2.23B ($5.46/share) in Q2 2024, with core operating income up 7.5% to $2.20B ($5.38/share), driven by strong underwriting and record investment income.

• Consolidated net premiums written increased 11.8% to $13.4B, with P&C up 10.6% and Life Insurance up 27.6%, reflecting Huatai Group consolidation and organic growth.

• Global operations span 54 countries, with 44% of business outside the U.S. and a diverse product portfolio across commercial, personal, accident & health, life, and reinsurance.

• CEO highlighted robust global premium growth, strong P&C underwriting, and record investment income.

• Leadership team with decades of experience guides the company through various cycles.

Financial highlights

• Q2 net income: $2.23B (up 24.3% YoY); core operating income: $2.20B (up 7.5% YoY); EPS (diluted): $5.46.

• Net premiums earned grew 11.7% to $12.3B; net investment income rose 28.2% to $1.5B; total revenues increased 16.9% to $13.8B.

• P&C combined ratio was 86.8% (vs. 85.4% prior year); current accident year combined ratio ex-catastrophe: 83.2%.

• Book value per share: $151.05; tangible book value per share: $91.05; both increased from Q1.

• Returned $939M to shareholders in Q2 ($570M buybacks, $369M dividends); total capital position of $76.1B as of June 30, 2024.

Outlook and guidance

• Management expects continued strong operating earnings growth, driven by P&C revenue, underwriting margins, investment income, and life income.

• Quarterly adjusted net investment income expected to average $1.57B–$1.63B for the rest of 2024.

• Core effective tax rate guidance remains 18.75%–19.25% for the year.

• Catastrophe risk management remains a focus, with reinsurance program renewals and increased retention in North America.

• No material changes to risk factors or forward-looking statements since the last annual report.