Chubb Limited (CB) Bundle
A Brief History of Chubb Limited
Chubb Limited, a leading global insurance company, has a rich history that reflects its growth and adaptation in the ever-evolving insurance landscape. As of 2024, Chubb operates through six primary business segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.
Financial Performance Overview
For the nine months ended September 30, 2024, Chubb reported significant financial metrics:
| Metric | 2024 (in millions of USD) | 2023 (in millions of USD) | Change (%) |
|---|---|---|---|
| Net Premiums Written | $34,605 | $31,120 | 7.9% |
| Net Premiums Earned | $33,000 | $30,000 | 10.0% |
| Combined Ratio | 85.1% | 83.3% | 1.8 pts |
| Segment Income | $4,810 | $4,470 | 7.6% |
Acquisition of Huatai Group
In July 2023, Chubb acquired a controlling majority interest in Huatai Group, which significantly expanded its footprint in Asia. This acquisition generated approximately $3.458 billion of goodwill and $1.655 billion of other intangible assets, enhancing Chubb's capabilities in the life and property & casualty insurance sectors. The transaction was financed through available cash on hand, and the consolidation increased Chubb's total assets significantly.
Dividends and Share Repurchases
Chubb has a consistent track record of returning value to shareholders through dividends. In May 2024, Chubb's Board approved an annual dividend of up to $3.64 per share, an increase of $0.20 from the previous year. The dividend is expected to be paid in four quarterly installments of $0.91 per share.
As part of its capital management strategy, Chubb repurchased $1.3 billion of common shares in 2024 under its share repurchase authorization, reflecting strong cash flow and a commitment to enhancing shareholder value.
Recent Challenges and Opportunities
Chubb faced challenges from increased catastrophe losses, notably from Hurricane Helene and other severe weather events, which resulted in $340 million in net catastrophe losses for the three months ended September 30, 2024. Despite these challenges, the company experienced a favorable prior period development, contributing positively to its overall results.
| Catastrophe Losses | 2024 (in millions of USD) | 2023 (in millions of USD) |
|---|---|---|
| Net Catastrophe Losses | $340 | $246 |
| Favorable Prior Period Development | $39 | $84 |
Investment Portfolio Performance
Chubb's investment portfolio remains a critical component of its overall financial health. As of September 30, 2024, total investments amounted to $151.2 billion, with a significant portion allocated to equities, private equities, and other investments. The company reported strong net investment income of $931 million for the third quarter of 2024, an increase of 19.1% compared to the same period in 2023.
| Investment Categories | 2024 (in millions of USD) | 2023 (in millions of USD) |
|---|---|---|
| Total Investments | $151,223 | $136,735 |
| Net Investment Income | $931 | $780 |
Chubb's ability to navigate market fluctuations and capitalize on growth opportunities, particularly in emerging markets, positions it favorably for continued success in the insurance industry.
A Who Owns Chubb Limited (CB)
Major Shareholders
As of 2024, Chubb Limited (CB) is publicly traded, and its ownership is divided among various institutional and individual shareholders. The largest shareholders include:
- The Vanguard Group, Inc. - Approximately 8.5% ownership
- BlackRock, Inc. - Approximately 7.4% ownership
- State Street Corporation - Approximately 4.7% ownership
- Wellington Management Group LLP - Approximately 4.5% ownership
- FMR LLC (Fidelity Investments) - Approximately 3.2% ownership
Insider Ownership
Insider ownership plays a crucial role in corporate governance. As of 2024, the following executives and board members hold significant shares:
- Evan G. Greenberg (Chairman and CEO) - Approximately 1.2 million shares (0.3% ownership)
- John Lupica (Vice Chairman) - Approximately 500,000 shares (0.1% ownership)
- Other executives and board members - Total holdings of approximately 2.0 million shares (0.5% ownership combined)
Institutional Ownership
Institutional investors hold a substantial portion of Chubb's shares, reflecting the company's stability and attractiveness as an investment. The following table summarizes the top institutional investors:
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 34,000,000 |
| BlackRock, Inc. | 7.4% | 29,600,000 |
| State Street Corporation | 4.7% | 18,800,000 |
| Wellington Management Group LLP | 4.5% | 18,200,000 |
| FMR LLC (Fidelity Investments) | 3.2% | 12,800,000 |
Recent Ownership Changes
In recent months, there have been notable changes in ownership, primarily driven by institutional trading activities. For instance, in Q3 2024, the following changes were observed:
- Vanguard Group increased its stake by 0.5%.
- BlackRock reduced its holdings by 0.3%.
- State Street maintained its position.
Shareholder Meetings and Voting
Chubb Limited conducts regular shareholder meetings where major decisions are made, including board elections and approval of dividends. In May 2024, shareholders approved an annual dividend increase of $3.64 per share, reflecting a robust financial position.
Market Performance and Impact on Ownership
Chubb's stock performance influences ownership dynamics. As of September 30, 2024, the stock price was approximately $170.96, with a market capitalization of around $70 billion. The company repurchased $1.3 billion of its common shares in the nine months ending September 30, 2024, indicating strong cash flows and a commitment to returning value to shareholders.
Ownership Summary
The current ownership structure of Chubb Limited is a mix of institutional investors, individual shareholders, and company insiders. This diversified ownership base supports the company's long-term stability and growth potential.
Chubb Limited (CB) Mission Statement
Overview of Chubb Limited's Mission
Chubb Limited's mission focuses on providing superior insurance products and services to customers worldwide, emphasizing integrity, professionalism, and the commitment to maintaining the highest standards of service.
Financial Performance Indicators
As of September 30, 2024, Chubb Limited reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income Attributable to Chubb | $2.3 billion | $2.0 billion | +15.0% |
| Net Premiums Written | $13.8 billion | $13.1 billion | +5.5% |
| Net Premiums Earned | $13.4 billion | $12.7 billion | +5.5% |
| Combined Ratio | 87.7% | 88.4% | -0.7 pts |
| Operating Cash Flow | $4.3 billion | $4.7 billion | -8.5% |
| Total Shareholder Equity | $65.8 billion | $59.5 billion | +10.4% |
Core Values and Strategic Focus
Chubb's mission is underpinned by its core values:
- Integrity: Commitment to ethical conduct in all business dealings.
- Client-Centricity: Focus on delivering exceptional service and tailored solutions.
- Innovation: Continuous improvement and adaptation to market changes.
- Collaboration: Working together across teams and geographies to achieve common goals.
Market Position and Competitive Advantage
Chubb Limited is positioned as a leading global insurer, with a diverse range of insurance products that cater to various market segments, including:
- Commercial Property and Casualty
- Consumer Insurance
- Life Insurance
- Reinsurance
Recent Developments and Future Outlook
In 2024, Chubb completed the acquisition of Huatai Group, enhancing its market presence in Asia, with an acquisition cost generating $3.4 billion in goodwill. This strategic move is expected to contribute significantly to future earnings.
| Acquisition Details | Amount (in millions) |
|---|---|
| Goodwill from Huatai Acquisition | $3,458 |
| Other Intangible Assets | $1,655 |
| Total Assets Acquired | $20,461 |
| Total Liabilities Assumed | $10,823 |
| Net Acquired Assets | $9,638 |
Commitment to Shareholders
Chubb Limited has a strong commitment to returning value to its shareholders through dividends and share repurchase programs. As of May 2024, the company announced an annual dividend of up to $3.64 per share, reflecting a $0.20 increase from the previous year.
| Dividend Information | 2024 | 2023 |
|---|---|---|
| Annual Dividend per Share | $3.64 | $3.44 |
| Quarterly Dividend Payment | $0.91 | $0.86 |
| Total Dividends Paid (YTD) | $1.069 billion | $1.044 billion |
Conclusion
Chubb Limited's mission statement reflects its strategic objectives, commitment to stakeholders, and ongoing dedication to delivering value through comprehensive insurance solutions.
How Chubb Limited (CB) Works
Business Overview
Chubb Limited operates as a global insurance company, providing a wide range of property and casualty insurance products, as well as life insurance. The company offers insurance coverage to individuals, organizations, and corporations worldwide.
Financial Performance
As of September 30, 2024, Chubb reported consolidated net premiums written of $13.8 billion, marking a 5.5% increase compared to $13.1 billion in the same period of 2023. The net income attributable to Chubb was $2.3 billion, up from $2.0 billion year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Premiums Written | $13.8 billion | $13.1 billion | 5.5% |
| Net Income Attributable to Chubb | $2.3 billion | $2.0 billion | 15.0% |
| Consolidated Net Premiums Earned | $13.4 billion | $12.7 billion | 5.5% |
| Operating Cash Flow | $4.3 billion | $4.7 billion | -8.5% |
| P&C Combined Ratio | 87.7% | 88.4% | -0.8 pts |
Investment Income
Chubb achieved a record pre-tax net investment income of $1.5 billion in Q3 2024, compared to $1.3 billion in Q3 2023. The increase is attributed to higher reinvestment rates on fixed maturities and strong operating cash flow.
Premiums by Segment
The following table summarizes the net premiums written by segment for the three months ended September 30, 2024:
| Segment | Net Premiums Written (in millions) | % Change |
|---|---|---|
| Property and Other Short-Tail Lines | $2,314 | 11.1% |
| Commercial Casualty | $2,548 | 9.3% |
| Financial Lines | $1,249 | (6.2%) |
| Workers' Compensation | $539 | 0.1% |
| Personal Homeowners | $1,287 | 7.9% |
| Personal Automobile | $624 | 14.3% |
Capital Management
As of September 30, 2024, Chubb's total shareholders' equity increased to $65.8 billion from $59.5 billion at the end of 2023. The company returned $782 million to shareholders, which included $413 million in share repurchases and $369 million in dividends.
Debt and Liquidity
Chubb's total financial debt stood at $16.1 billion as of September 30, 2024. The company issued $1.0 billion in senior notes in March 2024 and additional notes totaling $1.3 billion in July 2024. The interest expense for the nine months ending September 30, 2024, was $552 million.
| Debt Metrics | Value (in millions) |
|---|---|
| Short-Term Debt | $1,571 |
| Long-Term Debt | $14,560 |
| Total Financial Debt | $16,131 |
| Trust Preferred Securities | $309 |
| Total Shareholders’ Equity | $65,757 |
Market Risk Management
Chubb utilizes a comprehensive approach to manage market risks associated with its investments and insurance liabilities. The total pre-tax and after-tax catastrophe losses for Q3 2024 were $765 million, which accounted for 6.4 percentage points of the P&C combined ratio.
Dividends
Chubb declared an annual dividend of up to $3.64 per share, which includes a quarterly distribution of $0.91 per share. This represents a $0.20 increase over the prior year.
Conclusion
Chubb Limited continues to strengthen its position in the insurance market through solid financial performance, strategic investments, and effective risk management practices.
How Chubb Limited (CB) Makes Money
Revenue Sources
Chubb Limited generates revenue primarily through its insurance operations, which include property and casualty (P&C) insurance, life insurance, and reinsurance. For the nine months ended September 30, 2024, the company reported consolidated net premiums written of $39.4 billion, reflecting a growth of 10.6% compared to the previous year.
| Segment | Net Premiums Written (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Commercial P&C Insurance | $15,690 | 8.3% |
| Personal P&C Insurance | $4,911 | 10.5% |
| Agricultural Insurance | $2,386 | (7.6%) |
| Overseas General Insurance | $10,536 | 10.1% |
| Global Reinsurance | $1,122 | 7.7% |
| Life Insurance | $4,765 | 10.6% |
Investment Income
In addition to insurance premiums, Chubb earns significant income from its investment portfolio. For the nine months ended September 30, 2024, the company reported net investment income of $4.37 billion, up from $3.57 billion in the previous year, driven by higher reinvestment rates on fixed maturities.
Underwriting Performance
Chubb's underwriting performance is a critical component of its profitability. The company reported a P&C combined ratio of 87.7% for the three months ended September 30, 2024, indicating effective cost management and risk selection. A combined ratio below 100% suggests profitability in underwriting activities.
Catastrophe Losses
During the same period, Chubb experienced total pre-tax catastrophe losses of $765 million, which accounted for 6.4 percentage points of the P&C combined ratio. This is an increase from $670 million in the prior year period, reflecting the impact of natural disasters on the company's financial results.
Operating Cash Flow
Chubb reported operating cash flow of $11.6 billion for the nine months ended September 30, 2024, which is an increase from $9.4 billion in the previous year. This improvement was primarily due to higher net investment income and net premiums collected.
Shareholder Returns
The company also returned capital to shareholders through dividends and share repurchases. In the third quarter of 2024, Chubb returned a total of $782 million to shareholders, which included share repurchases of $413 million and dividends of $369 million.
| Capital Returned to Shareholders (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|
| Share Repurchases | $413 | $606 |
| Dividends | $369 | $352 |
| Total Capital Returned | $782 | $958 |
Financial Summary
For the nine months ended September 30, 2024, Chubb reported net income of $7.0 billion, a 22.2% increase from the previous year. This growth was attributed to strong underwriting results and record net investment income, highlighting the company's effective operational strategy and market positioning.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $2,490 | $2,040 |
| Net Premiums Earned (in millions) | $13,373 | $12,674 |
| Net Investment Income (in millions) | $1,508 | $1,314 |
| Combined Ratio (%) | 87.7 | 88.4 |
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Article updated on 8 Nov 2024
Resources:
- Chubb Limited (CB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chubb Limited (CB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Chubb Limited (CB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.