Chubb (CB) Q4 2024 earnings summary

Executive summary

• Achieved record P&C underwriting and investment income in Q4 2024, contributing to the best year in company history, with net income of $2.58B for Q4 and $9.27B for the year, and core operating income of $2.5B for Q4 and $9.2B for the year.

• Core operating income for the quarter was $2.5B, up 9.4% pre-tax and over 7.5% after-tax, excluding a prior year one-time tax benefit; full-year operating income reached $9.2B, up 11.5% adjusted.

• Global leader in P&C insurance with $110.7B market cap, operations in 54 countries, and a well-balanced portfolio across product lines and customer segments.

• Exceptional financial strength, rated AA (S&P), A++ (AM Best), and Aa2 (Moody's), with a leadership team experienced in navigating insurance cycles.

• Catastrophe loss estimate from California wildfires is $1.5B pre-tax, recognized in Q1 2025.

Financial highlights

• Q4 P&C combined ratio was 85.7%; current accident year combined ratio excluding catastrophe losses was 82.2%, a record.

• Adjusted net investment income for the year grew 20.1% to $5.93B; Q4 investment income was $1.56B, up 14%.

• Book value per share at year-end $159.77 (+8.8%); tangible book value per share $100.38 (+14.1%).

• Total capital position of $79.6B and shareholders' equity of $68.39B as of December 31, 2024.

• Outperformed peers in underwriting results over 1, 3, 5, and 10-year periods (2015-2024).

Outlook and guidance

• Optimistic for 2025 with strong momentum in both top and bottom line, despite catastrophe losses and FX headwinds.

• Double-digit growth in operating earnings and EPS expected to continue, driven by P&C underwriting, investment income, and life income.

• Annual core operating effective tax rate for 2025 expected to be 19%-19.5%.

• Market conditions are favorable with strong growth opportunities in over 80% of global P&C and life business.

• Estimated $1.5B pre-tax cost from the California wildfire disaster to impact Q1 2025.