Chubb (CB) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 rose 13.8% to $2.32 billion, with core operating income up 14.3% to $2.33 billion, driven by strong P&C underwriting and record net investment income.

• EPS reached $5.70 (net income) and $5.72 (core operating), both up over 15% from Q3 2023.

• Global P&C premium revenue (excluding agriculture) grew 7.6% (8.5% in constant dollars), with broad contributions from North America, international P&C, and life insurance.

• Book value per share rose 8.0% sequentially to $163.16; tangible book value per share up 12.8% to $102.67.

• Chubb is a global leader in P&C insurance with a market cap of $116.2 billion, operations in 54 countries, and exceptional financial strength ratings.

Financial highlights

• Net premiums written were $13.8 billion for Q3 2024, up 5.5% year-over-year; net investment income reached $1.51 billion, up 14.7%.

• Adjusted net investment income was $1.64 billion, up 15.9%; fixed income portfolio yield at 4.9%, with new money rate averaging 5.5%.

• Book value per share and tangible book value per share increased 11.1% and 16.7% year-to-date.

• Total assets were $250.6 billion and shareholders' equity $65.8 billion as of September 30, 2024.

• Operating cash flow was $4.32 billion for Q3 2024; adjusted operating cash flow $4.55 billion.

Outlook and guidance

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

• Fourth quarter core effective tax rate expected between 19% and 19.25%; full year between 18% and 18.25%.

• Investment income for Q4 expected at the high end of prior guidance on a recurring basis.

• Pre-tax interest expense expected to be ~$200 million for Q4 2024, or $768 million for the full year.