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What changed in Chubb Limited's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Chubb Limited's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+434 added−521 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-27)

Top changes in Chubb Limited's 2025 10-K

434 paragraphs added · 521 removed · 380 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

92 edited+21 added−76 removed116 unchanged
Biggest changeThis segment includes: • Commercial Insurance (39 percent of this segment's 2024 NPE), which includes our retail division focused on middle market customers and small businesses • Major Accounts (38 percent of this segment's 2024 NPE), our retail division focused on large institutional organizations and corporate companies • Westchester (18 percent of this segment's 2024 NPE), our wholesale and specialty division • Chubb Bermuda (5 percent of this segment’s 2024 NPE), our high excess retail division Products and Distribution The Commercial Insurance operations provide a broad range of P&C, financial lines, and A&H products targeted to U.S and Canadian-based middle market customers in a variety of industries, while the Small Commercial operations provide a broad range of P&C, workers' compensation, small commercial management and professional liability for small businesses based in the U.S. • Commercial Insurance products and services offered include traditional P&C lines of business, including Package, which combines property and general liability, workers' compensation, automobile, umbrella; financial lines of business, including professional liability, management liability and cyber risk coverage; and other lines including environmental, A&H, and 4 Table of Contents international coverages.
Biggest changeThis segment includes: • Commercial Insurance (40 percent of this segment's 2025 NPE), which includes our retail division focused on middle market customers and small businesses • Major Accounts (36 percent of this segment's 2025 NPE), our retail division focused on large institutional organizations and corporate companies • Westchester (19 percent of this segment's 2025 NPE), our wholesale and specialty division • Chubb Bermuda (5 percent of this segment’s 2025 NPE), our high excess retail division Products and Distribution The Commercial Insurance operations provide a broad range of P&C, financial lines, and A&H products targeted to U.S and Canadian-based middle market and small commercial customers in a variety of industries.
For additional information on our MPCI program, refer to “Crop Insurance” under Item 7. • Crop-Hail coverage provides crop protection from damage caused by hail and/or fire, with options in some markets for other perils such as wind or theft. Coverage is provided on an acre-by-acre basis and is available in the U.S. and in some parts of Canada.
For additional information on our MPCI program, refer to “Crop Insurance” under Item 7. • Crop-Hail coverage provides crop protection from damage caused by hail or fire, with options in some markets for other perils such as wind or theft. Coverage is provided on an acre-by-acre basis and is available in the U.S. and in some parts of Canada.
Coverages include farm and ranch structures, automobile and other vehicle coverages, and machinery and other equipment coverages. Competitive Environment Rain and Hail primarily operates in a federally regulated program where all approved providers offer the same product forms and rates through independent and/or captive agents.
Coverages include farm and ranch structures, automobile and other vehicle coverages, and machinery and other equipment coverages. Competitive Environment Rain and Hail primarily operates in a federally regulated program where all approved providers offer the same product forms and rates through independent or captive agents.
The policies written by Chubb Life generally provide funds to beneficiaries of insureds upon death or insured event occurring and/or savings benefits while the contract owner is living in the case of savings products. Chubb Life earns income from both insurance contracts subject to mortality and morbidity risks and investment contracts not subject to insurance risks.
The policies written by Chubb Life generally provide funds to beneficiaries of insureds upon death or insured event occurring or savings benefits while the contract owner is living in the case of savings products. Chubb Life earns income from both insurance contracts subject to mortality and morbidity risks and investment contracts not subject to insurance risks.
Underwriting Chubb is an underwriting company and we strive to emphasize quality of underwriting rather than volume of business or market share. Our underwriting strategy is to manage risk by employing consistent, disciplined pricing and risk selection.
Chubb is an underwriting company and we strive to emphasize quality of underwriting rather than volume of business or market share. Our underwriting strategy is to manage risk by employing consistent, disciplined pricing and risk selection.
For example: • in some countries, insurers are required to prepare and file monthly and/or quarterly financial reports, and in others, only annual reports; • some regulators require intermediaries to be involved in the sale of insurance products, whereas other regulators permit direct sales contact between the insurer and the customer; • the extent of restrictions imposed upon an insurer's use of local and offshore reinsurance vary; • policy form filing and rate regulation vary by country; • the frequency of contact and periodic on-site examinations by insurance authorities diff ers by country; and • regulatory requirements relating to insurer dividend policies vary by country.
For example: • in some countries, insurers are required to prepare and file monthly or quarterly financial reports, and in others, only annual reports; • some regulators require intermediaries to be involved in the sale of insurance products, whereas other regulators permit direct sales contact between the insurer and the customer; • the extent of restrictions imposed upon an insurer's use of local and offshore reinsurance vary; • policy form filing and rate regulation vary by country; • the frequency of contact and periodic on-site examinations by insurance authorities diff ers by country; and • regulatory requirements relating to insurer dividend policies vary by country.
Our global ERM framework is broadly multi-disciplinary and its strategic objectives include: • External Risks : identify, analyze, quantify, and where possible, mitigate significant external risks that could materially hamper the financial condition of Chubb and/or the achievement of corporate business objectives over the next 36 months; • Exposure Accumulations : identify and quantify the accumulation of exposure to individual counterparties, products or industry sectors , particularly those that materially extend across or correlate between business units or divisions and/or the balance sheet; • Risk Modeling : develop and use various data-sets, advanced analytics, metrics and processes (such as probabilistic exposure and economic capital models to assess aggregation risk from natural and other catastrophes) that help business and corporate leaders make informed underwriting, portfolio management, and risk management decisions within a consistent risk/reward framework; • Governance : • establish and coordinate risk guidelines that reflect the corporate appetite for risk; • monitor exposure accumulations relative to established guidelines; and • ensure effective internal risk management communication up to management and the Board (including our Risk & Finance Committee), down to the various business units and legal entities, and across the firm; and • Disclosure : develop protocols and processes for risk-related disclosure internally as well as externally to rating agencies, regulators, shareholders and analysts.
Our global ERM framework is broadly multi-disciplinary and its strategic objectives include: • External Risks : identify, analyze, quantify, and where possible, mitigate significant external risks that could materially hamper the financial condition of Chubb or the achievement of corporate business objectives over the next 36 months; • Exposure Accumulations : identify and quantify the accumulation of exposure to individual counterparties, products or industry sectors , particularly those that materially extend across or correlate between business units or divisions or the balance sheet; • Risk Modeling : develop and use various data-sets, advanced analytics, metrics and processes (such as probabilistic exposure and economic capital models to assess aggregation risk from natural and other catastrophes) that help business and corporate leaders make informed underwriting, portfolio management, and risk management decisions within a consistent risk/reward framework; • Governance : • establish and coordinate risk guidelines that reflect the corporate appetite for risk; • monitor exposure accumulations relative to established guidelines; and • ensure effective internal risk management communication up to management and the Board (including our Risk & Finance (R&F) Committee), down to the various business units and legal entities, and across the firm; and • Disclosure : develop protocols and processes for risk-related disclosure internally as well as externally to rating agencies, regulators, shareholders and analysts.
Chubb Tempest Re Canada offers an array of traditional and specialty P&C reinsurance for the Canadian market, including but not limited to property, property catastrophe, casualty, and specialty. Chubb Tempest Re Canada underwrites reinsurance on both a proportional and excess of loss basis.
Chubb Tempest Re International underwrites reinsurance on both a proportional and excess of loss basis. Chubb Tempest Re Canada offers an array of traditional and specialty P&C reinsurance for the Canadian market, including but not limited to property, property catastrophe, casualty, and specialty. Chubb Tempest Re Canada underwrites reinsurance on both a proportional and excess of loss basis.
Chubb International comprises our international retail commercial P&C and corporate A&H traditional and specialty lines serving large corporations, middle market and small customers; consumer A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada.
Chubb International comprises our international retail commercial P&C and traditional and specialty lines serving large corporations, middle market and small customers; consumer A&H and traditional and specialty personal lines business serving local territories outside the U.S., Bermuda, and Canada.
The EBS framework is embedded as part of the BSCR and forms the basis of our ECR. 16 Table of Contents In order to minimize the risk of a shortfall in capital arising from an unexpected adverse deviation the BMA has established a threshold capital level, (termed the Target Capital Level (TCL)), set at 120 percent of ECR, that serves as an early warning tool for the BMA.
The EBS framework is embedded as part of the BSCR and forms the basis of our ECR. 13 Table of Contents In order to minimize the risk of a shortfall in capital arising from an unexpected adverse deviation, the BMA has established a threshold capital level, (termed the Target Capital Level (TCL)), set at 120 percent of ECR, that serves as an early warning tool for the BMA.
These distribution channels generate operating profits that exceed our target returns on invested capital and are sustainable due to a large in-force book. We are rapidly transforming our business digitally, leveraging our global data and artificial Intelligence assets to capitalize on digital partnership capabilities and our unique positioning as the leading composite insurer in Asia.
These distribution channels generate operating profits that exceed our target returns on invested capital and are sustainable due to a large in-force book. We are also transforming our business digitally, leveraging our global data and artificial Intelligence assets to capitalize on digital partnership capabilities and our unique positioning as the leading composite insurer in Asia.
This segment provides affluent and high-net-worth individuals and families with homeowners, high value automobile and collector cars, valuable articles (including fine arts), personal and excess liability/umbrella, travel insurance, cyber, and recreational marine insurance and services. Our homeowners business, including valuable articles, represented 69 percent of North America Personal P&C Insurance’s net premiums earned in 2024.
This segment provides affluent and high-net-worth individuals and families with homeowners, high value automobile and collector cars, valuable articles (including fine arts), personal and excess liability/umbrella, travel insurance, cyber, and recreational marine insurance and services. Our homeowners business, including valuable articles, represented 69 percent of North America Personal P&C Insurance’s net premiums earned in 2025.
Overseas General Insurance (27 percent of 2024 Consolidated NPE) Overview The Overseas General Insurance segment comprises our retail division Chubb International, which includes Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), our wholesale division Chubb Global Markets (CGM), and the international supplemental A&H business of Combined International Insurance, which is no longer writing new business.
Overseas General Insurance (27 percent of 2025 Consolidated NPE) Overview The Overseas General Insurance segment comprises our retail division Chubb International, which includes Huatai Property & Casualty Insurance Co., Ltd. (Huatai P&C), our wholesale division Chubb Global Markets (CGM), and the international supplemental A&H business of Combined International Insurance, which is no longer writing new business.
Products and Distribution Chubb Personal Risk Services offers comprehensive personal insurance products and services to meet the evolving needs of high-net-worth families and individuals. Our seamless customer experience and superior coverage protect not only our clients’ most valuable possessions, but also their standard of living.
Products and Distribution Chubb PRS offers comprehensive personal insurance products and services to meet the evolving needs of high-net-worth families and individuals. Our seamless customer experience and superior coverage protect not only our clients’ most valuable possessions, but also their standard of living.
From time to time, Chubb and its subsidiaries and affiliates receive inquiries from state agencies and attorneys general, with which we generally comply, seeking information concerning business practices, such as underwriting, claims handling, loss 15 Table of Contents experience, and insurance availability.
From time to time, Chubb and its subsidiaries and affiliates receive inquiries from state agencies and attorneys general, with which we generally comply, seeking information concerning business practices, such as underwriting, claims handling, loss 12 Table of Contents experience, and insurance availability.
Combined Insurance competes for A&H business in the U.S. against numerous A&H and life insurance companies across various industry segments. In China, we also compete for assets under management (AUM) with investment management firms, banks, and other financial institutions that offer products that are similar to those offered by Huatai Group’s asset management companies.
Chubb Benefits competes for A&H business in the U.S. against numerous A&H and life insurance companies across various industry segments. In China, we also compete for assets under management (AUM) with investment management firms, banks, and other financial institutions that offer products that are similar to those offered by Huatai Group’s asset management companies.
Crop-Hail can be used in co njunction with MPCI or other comprehensive coverages to offset the deductible and provide protection up to the actual cash value of the crop. Chubb Agribusiness comprises Commercial Agribusiness and Farm and Ranch Agribusiness. • Commercial Agribusiness offers specialty P&C coverages for commercial companies that manufacture, process, and distribute agricultural products.
Crop-Hail can be used in co njunction with MPCI or other comprehensive coverages to offset the deductible and provide protection up to the actual cash value of the crop. 5 Table of Contents Chubb Agribusiness comprises Commercial Agribusiness and Farm and Ranch Agribusiness. • Commercial Agribusiness offers specialty P&C coverages for commercial companies that manufacture, process, and distribute agricultural products.
Both companies are licensed and governed by FINMA. 14 Table of Contents U.S. Operations Our U.S. insurance subsidiaries are subject to extensive regulation by the states in which they do business.
Both companies are licensed and governed by FINMA. 11 Table of Contents U.S. Operations Our U.S. insurance subsidiaries are subject to extensive regulation by the states in which they do business.
Since risk management must permeate an organization conducting a global insurance business, we have an established Enterprise Risk Management (ERM) framework, 17 Table of Contents which encompasses climate risk, that is integrated into management of our businesses and is led by Chubb's senior management. As a result, ERM is a part of the day-to-day management of Chubb and its operations.
Since risk management must permeate an organization conducting a global insurance business, we have an established Enterprise Risk Management (ERM) framework, which encompasses climate risk, that is integrated into management of our businesses and is led by Chubb's senior management. As a result, ERM is a part of the day-to-day management of Chubb and its operations.
There are various regulatory bodies and initiatives that impact Chubb in multiple international jurisdictions and the potential for significant impact on Chubb could be heightened as a result of recent industry and economic developments. Enterprise Risk Management As an insurer, Chubb is in the business of profitably managing risk for its customers.
There are various regulatory bodies and initiatives that impact Chubb in multiple international jurisdictions and the potential for significant impact on Chubb could be heightened as a result of recent industry and economic developments. 14 Table of Contents Enterprise Risk Management As an insurer, Chubb is in the business of profitably managing risk for its customers.
Securities and Exchange Commission (SEC). Also available through our website (under Investor Relations / Corporate Governance) are our Corporate Governance Guidelines, Code of Conduct, and Charters for the Committees of the Board of Directors (the Board). Printed documents are available by contacting our Investor Relations Department (Telephone: +1 (212) 827-4445, E-mail: investorrelations@chubb.com).
Securities and Exchange Commission (SEC). Also available through our website (under About / Investors / Governance / Governance Documents) are our Corporate Governance Guidelines, Code of Conduct, and Charters for the Committees of the Board. Printed documents are available by contacting our Investor Relations Department (Telephone: +1 (212) 827-4445, E-mail: investorrelations@chubb.com).
The Audit Committee meets with the Risk & Finance Committee at least annually in order to exercise its duties under New York Stock Exchange Rules. Others within the overall ERM structure contribute toward accomplishing Chubb's ERM objectives, including regional management, Corporate Underwriting, Internal Audit, Compliance, external consultants, and managers of our internal control processes and procedures.
The Audit Committee meets with the R&F Committee at least annually in order to exercise its risk assessment and management duties under New York Stock Exchange Rules. Others within the overall ERM structure contribute toward accomplishing Chubb's ERM objectives, including regional management, Corporate Underwriting, Internal Audit, Compliance, external consultants, and managers of our internal control processes and procedures.
Chubb Life offers a broad portfolio of protection and savings products including whole life, universal life, unit linked contracts, endowment plans, individual and group term life, dental, critical illness, dementia, hospital cash, personal accident, credit life and group employee benefits.
Chubb Life offers a broad portfolio of protection and savings products including individual and group term life, dental, critical illness, dementia, hospital cash, personal accident, disability income, credit life and group employee benefits, whole life, universal life, unit linked contracts, endowment plans, and annuities.
Chubb has a comprehensive, coordinated global sustainability program that is embedded in all areas of the organization, and its activities and performance are reported to the executive team. The senior executive responsible for overseeing the global sustainability program is the Global Climate Officer (GCO).
Chubb has a comprehensive, coordinated global sustainability program that is embedded in all areas of the organization, and its activities and performance are reported to the executive team. The senior executive responsible for overseeing the global 15 Table of Contents sustainability program is the Global Climate Officer (GCO).
Chubb Tempest Re International offers an array of traditional and specialty P&C reinsurance to insurance companies worldwide, with emphasis on non-U.S. and non-Canadian risks, including but not limited to property, property catastrophe, casualty, and specialty. Chubb Tempest Re International underwrites reinsurance on both a proportional and excess of loss basis.
Chubb Tempest Re USA underwrites reinsurance on both a proportional and excess of loss basis. 7 Table of Contents Chubb Tempest Re International offers an array of traditional and specialty P&C reinsurance to insurance companies worldwide, with emphasis on non-U.S. and non-Canadian risks, including but not limited to property, property catastrophe, casualty, and specialty.
The role of the Risk & Finance Committee includes evaluation of the integrity and effectiveness of our ERM procedures, systems, and information; governance on major policy decisions pertaining to risk aggregation and minimization; and assessment of our major decisions and preparedness levels pertaining to perceived material risks.
The role of the R&F Committee includes evaluation of the integrity and effectiveness of our ERM procedures, systems, and information; governance on major policy decisions pertaining to risk aggregation and minimization; and assessment of our major decisions and preparedness levels pertaining to perceived material risks.
Allowable investment classes are further refined through analysis of our operating environment including expected volatility of cash flows, potential impact on our capital position, and regulatory and rating agency considerations. 13 Table of Contents Huatai Asset Management has over $125 billion in assets under management (AUM) in China, and is licensed to manage institutional, pension, and retail mutual fund investments.
Allowable investment classes are further refined through analysis of our operating environment including expected volatility of cash flows, potential impact on our capital position, and regulatory and rating agency considerations. Huatai Asset Management has over $155 billion in assets under management (AUM) in China, and is licensed to manage institutional, pension, and retail mutual fund investments.
Chubb Life growth is focused on maximizing opportunities in Asia, where we have market leading positions in direct marketing notably in South Korea, Taiwan and Indonesia. We intend to take advantage of rapid growth in our face-to-face channels through tied and independent agents and selected bancassurance partnerships.
Chubb Life growth is focused on maximizing opportunities in Asia, where we have market leading positions in direct marketing notably in South Korea, Taiwan and Indonesia. We take advantage of rapid growth in face-to-face channels to sell insurance through tied and independent agents and selected bancassurance partnerships.
At December 31, 2024, our ownership interest in Huatai Group was approximately 85.5 percent. Refer to Note 2 to the Consolidated Financial Statements for additional information on our acquisitions. With operations in 54 countries and territories, Chubb provides commercial and consumer P&C insurance, A&H, reinsurance, and life insurance to a diverse group of clients.
At December 31, 2025, our ownership interest in Huatai Group was approximately 87.2 percent. Refer to Note 2 to the Consolidated Financial Statements for additional information on our acquisitions. With operations in 54 countries and territories, Chubb provides commercial and consumer P&C insurance, A&H, reinsurance, and life insurance to a diverse group of clients.
Among its responsibilities, the Risk & Finance Committee of the Board: • reviews and approves asset allocation targets and investment policy to ensure that it is consistent with our overall goals, strategies, and objectives; • reviews and approves investment guidelines to ensure that appropriate levels of portfolio liquidity, credit quality, diversification, and volatility are maintained; and • systematically reviews the portfolio's exposures including any potential violations of investment guidelines.
Among its responsibilities, the R&F Committee: • reviews and approves asset allocation targets and investment policy to ensure that it is consistent with our overall goals, strategies, and objectives; • reviews and approves investment guidelines to ensure that appropriate levels of portfolio liquidity, credit quality, diversification, and volatility are maintained; and • systematically reviews the portfolio's exposures including any potential violations of investment guidelines.
Within the guidelines and asset allocation parameters established by the Risk & Finance Committee, individual investment committees of the segments determine tactical asset allocation. Additionally, these committees review all investment-related activity that affects their operating company, including the selection of outside investment advisors, proposed asset allocation changes, and the systematic review of investment guidelines.
Within the guidelines and asset allocation parameters established by the R&F Committee, individual investment committees of the segments determine tactical asset allocation. Additionally, these committees review all investment-related activity that affects their operating company, including the selection of outside investment advisors, proposed asset allocation changes, and the systematic review of investment guidelines.
Competitive Environment Chubb Personal Risk Services competes against insurance companies of varying sizes that sell personal lines products through various distribution channels, including retail agents as well as online distribution channels.
Competitive Environment Chubb PRS competes against insurance companies of varying sizes that sell personal lines products through various distribution channels, including retail agents as well as online distribution channels.
Westchester provides specialty products for property, 5 Table of Contents casualty, environmental, professional liability, inland marine, product recall, small business, and pet insurance, with digital and program coverages in the U.S. Products are offered through the wholesale distribution channel.
Westchester provides specialty products for property, casualty, environmental, professional liability, inland marine, product recall, small business, and pet insurance, with digital and program coverages in the U.S. Products are offered through the wholesale distribution channel.
The majority of our customers purchase a Package product or a portfolio of products, which is a collection of insurance offerings designed to cover various needs. • Small Commercial Insurance products and services offered include property and casualty lines of business, including a business owner policy which contains property and general liability; financial l ines, including professional liability, management liability, and cyber risk coverage; and other lines including workers’ compensation, automobile liabilit y, and international coverages.
The majority of our customers purchase a package product or a portfolio of products, which is a collection of insurance offerings designed to cover various needs. • Commercial Insurance products and services offered to our small and lower middle market customers include P&C lines of business, including a Package or business owner policy which contains property and general liability; financial l ines, including professional liability, management liability, and cyber risk coverage; and other lines including workers’ compensation, automobile liabilit y, umbrella, and international coverages.
Global Reinsurance's geographic reach is also sought by multinational ceding companies since its offices, except for Bermuda, provide local reinsurance license capabilities which benefit our clients in dealing with country regulators. 9 Table of Contents Life Insurance (13 percent of 2024 Consolidated NPE) Overview The Life Insurance segment comprises our international life operations (Chubb Life), which includes Huatai Life Insurance Co., Ltd.
Global Reinsurance's geographic reach is also sought by multinational ceding companies since its offices, except for Bermuda, provide local reinsurance license capabilities which benefit our clients in dealing with country regulators. Life Insurance (14 percent of 2025 Consolidated NPE) Overview The Life Insurance segment comprises our international life operations (Chubb Life), which includes Huatai Life Insurance Co., Ltd.
North America Personal P&C Insurance (12 percent of 2024 Consolidated NPE) Overview The North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division, which includes high-net-worth personal lines business, with operations in the U.S. and Canada.
North America Personal P&C Insurance (13 percent of 2025 Consolidated NPE) Overview The North America Personal P&C Insurance segment includes the business written by Chubb Personal Risk Services division (PRS), which includes high-net-worth personal lines business, with operations in the U.S. and Canada.
The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this report. The SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file with the SEC.
The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this report. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file with the SEC. 18 Table of Contents
Chubb Tempest Re USA offers an array of traditional and specialty P&C reinsurance for the North American market, principally on a treaty basis, with a focus on writing property and casualty reinsurance. Chubb Tempest Re USA underwrites reinsurance on both a proportional and excess of loss basis.
Chubb Tempest Re USA offers an array of traditional and specialty P&C reinsurance for the North American market, principally on a treaty basis, with a focus on writing property and casualty reinsurance.
Chubb's Chief Risk Officer also reports to the Board's Risk & Finance Committee, which helps execute the Board's supervisory responsibilities pertaining to ERM.
Chubb's Chief Risk Officer also reports to the Board's R&F Committee, which helps execute the Board's supervisory responsibilities pertaining to ERM.
The RUC meets at least twice a quarter, and comprises Chubb Group's most senior executives which, in addition to the Chair, includes the Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer, Chief Investment Officer, Chief Actuary, Chief Claims Officer, Chief Digital Business Officer, General Counsel, Executive Chairman – North America Insurance, President – North America Insurance, President – Overseas General Insurance, and Chief Underwriting Officer.
The RUC meets at least once a quarter, and comprises Chubb Group's most senior executives which, in addition to the Chair, includes the Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer, Chief Investment Officer, Chief Actuary, Chief Digital Business Officer, General Counsel, President – North America Insurance, President – Overseas General Insurance, and Global Head of Underwriting.
Group Supervision The Pennsylvania Insurance Department (Department) is the group-wide supervisor for the Chubb Group of Companies. In consultation with other insurance regulatory bodies that oversee Chubb's insurance activities, the Department has convened the Chubb Supervisory College (College) bi-annually since 2012, with regulator-only interim Colleges held in intervening years since 2017. The most recent College was held in October 2024.
Group Supervision The Pennsylvania Insurance Department (Department) is the group-wide supervisor for the Chubb Group of Companies. In consultation with other insurance regulatory bodies that oversee Chubb's insurance activities, the Department has convened the Chubb Supervisory College (College) bi-annually since 2012, with annual Colleges convened since 2017. The most recent College was held in October 2025.
At December 31, 2024, we had total assets of $247 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $64 billion. Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda.
At December 31, 2025, we had total assets of $272 billion and total shareholders’ equity, of $74 billion (excluding noncontrolling interests). Chubb was incorporated in 1985 at which time it opened its first business office in Bermuda and continues to maintain operations in Bermuda.
Products and Distribution Chubb International maintains a presence in every major insurance market in the world and is organized geographically along product lines as follows: Europe, Middle East and Africa, Asia (including Huatai P&C), and Latin America.
Products and Distribution Chubb International maintains a presence in every major insurance market in the world and is organized geographically along product lines as follows: Europe, Middle East and Africa, Asia (including Huatai P&C), and Latin America. Products offered include commercial P&C, including specialty coverages and services, and consumer lines, including A&H and personal lines insurance products.
Our strong balance sheet is attractive to businesses, and our strong capital position and global platform affords us opportunities for growth not available to smaller, less diversified insurance companies. Refer to “Segment Information” for competitive environment by segment.
Our strong balance sheet is attractive to businesses, and our strong capital position and global platform affords us opportunities for growth not available to smaller, less diversified insurance companies.
(Huatai Life), Chubb Tempest Life Re (Chubb Life Re), and the supplemental A&H and life business of Combined Insurance. Also included in the Life Insurance segment are Huatai’s asset management companies, principally Huatai Asset Management Co. Ltd and Huatai Baoxing Fund Management.
(Huatai Life), Chubb Tempest Life Re (Chubb Life Re), and the supplemental accident, health, disability, and life business of Chubb Benefits. Also included in the Life Insurance segment are Huatai’s asset management companies, principally Huatai Asset Management Co. Ltd and Huatai Baoxing Fund Management.
Products are offered primarily through the Bermuda offices of major, internationally recognized insurance brokers. Competitive Environment The Commercial Insurance operations compete against numerous insurance companies ranging from large national carriers to small and mid-size insurers who provide specialty coverages and standard P&C products. Recent competitive developments include the growth of new digital-based distribution models.
Products are offered primarily through the Bermuda offices of major, internationally recognized insurance brokers. 4 Table of Contents Competitive Environment The Commercial Insurance operations compete against numerous insurance companies ranging from large national carriers to small and mid-size insurers who provide specialty coverages and standard P&C products.
We make available free of charge through our website (investors.chubb.com, under Financials) our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, if any, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after they have been electronically filed with or furnished to the U.S.
Wayland 68 EVP of Chubb Limited (January 2016 to present); General Counsel and Secretary of Chubb Limited (July 2013 to present). 17 Table of Contents Additional Resources We make available free of charge through our website (investors.chubb.com, under Financials) our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, if any, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after they have been electronically filed with or furnished to the U.S.
At December 31, 2024, our direct and indirect ownership interest in Huatai Life was 88.2 percent, Huatai Asset Management Co. Ltd. was 77.8 percent, and Huatai Baoxing Fund Management was 72.7 percent. Insurance and asset management form an integral part of our China strategy to help customers with their protection and savings needs.
At December 31, 2025, our direct and indirect ownership interest in Huatai Life was 89.5 percent, Huatai Asset Management Co. Ltd. was 79.2 percent, and Huatai Baoxing Fund Management was 74.1 percent. Insurance and asset management form an integral part of our China strategy to help customers with their protection and savings needs.
They also use CEG to underwrite similar classes, including in the U.S. where they are eligible to write excess and surplus lines business. Factors influencing the decision to place business with the Syndicate or CEG include licensing eligibilities and client/broker preference.
CGM uses the Syndicate to underwrite P&C business on a global basis through Lloyd's worldwide licenses. They also use CEG to underwrite similar classes, including in the U.S. where they are eligible to write excess and surplus lines business. Factors influencing the decision to place business with the Syndicate or CEG include licensing eligibilities and client/broker preference.
Independent brokers complement our agency channel, reaching a wider pool of mass affluent customers, especially in South Korea, Hong Kong and Taiwan. In China, Huatai Life has a network of over 300 branches across 20 provinces.
Independent broker channels complement our tied agency channel, reaching a wider pool of mass affluent 8 Table of Contents and affluent customers, especially in South Korea, Hong Kong and Taiwan. In China, Huatai Life has a network of 265 branches/sales offices across 20 provinces.
Since 2007 , Chubb Life Re has not quoted on new opportunities in the variable annuity reinsurance marketplace and our focus has been on managing the current portfolio of risk, both in the aggregate and on a contract basis.
Since 2007, Chubb Life Re has not quoted on new opportunities in the variable annuity reinsurance marketplace and our focus has been on managing the current portfolio of risk, both in the aggregate and on a contract basis. This business is managed with a long-term perspective and short-term net income volatility is expected.
In addition to using brokers, certain products are also distributed through general agents, independent agents, managing general agents (MGA), managing general underwriters, alliances, affinity groups, and direct marketing operations.
Major Accounts distributes its insurance products primarily through a limited number of retail brokers. In addition to using brokers, certain products are also distributed through general agents, independent agents, managing general agents (MGA), managing general underwriters, alliances, affinity groups, and direct marketing operations.
Refer to Note 19 to the Consolidated Financial Statements for additional information about our segments. North America Commercial P&C Insurance (40 percent of 2024 Consolidated NPE) Overview The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda.
North America Commercial P&C Insurance (38 percent of 2025 Consolidated NPE) Overview The North America Commercial P&C Insurance segment comprises operations that provide P&C and A&H insurance and services to large, middle market, and small commercial businesses in the U.S., Canada, and Bermuda.
We also offer consumer lines insurance coverage including homeowners, automobile, valuables, umbrella liability, and recreational marine products. In addition, we supply A&H and life insurance to individuals in select countries.
We also offer consumer lines insurance coverage including homeowners, automobile, valuables, umbrella liability, and recreational marine products. In addition, we supply A&H and life insurance to individuals in select countries. We generate earnings from three primary sources of income: P&C underwriting income, investment income, and life segment income.
A&H and other consumer lines products are distributed through brokers, agents, direct marketing programs, including thousands of telemarketers, and sponsor relationships. The A&H operations primarily offer personal accident and supplemental medical coverages including accidental death, business/holiday travel, specified disease, disability, medical and hospital indemnity, and income protection. We are not in the primary healthcare business.
The A&H operations primarily offer personal accident and supplemental medical coverages including accidental death, business/holiday travel, specified disease, disability, medical and hospital indemnity, and income protection. We are not in the primary healthcare business.
Products and Distribution Chubb Life provides individual life, accident and health, and group benefit insurance primarily in Asia which accounts for 95 percent of Chubb Life net written premiums and deposits. Our Asia markets comprise South Korea, mainland China, Hong Kong, Taiwan, Thailand, Vietnam, New Zealand, Indonesia, and Myanmar.
Products and Distribution Chubb Life's main operations are in Asia, which accounts for 95 percent of its net written premiums, deposits, and earnings. Our Asia markets comprise South Korea, mainland China, Hong Kong, Taiwan, Thailand, Vietnam, New Zealand, and Indonesia.
The reinsurers on the authorized list and potential new markets are regularly reviewed and the list may be modified following these reviews.
Changes to the list are authorized by the RSC and recommended to the Chair of the Risk and Underwriting Committee. The reinsurers on the authorized list and potential new markets are regularly reviewed and the list may be modified following these reviews.
Segment Information Chubb operates through six 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. In 2024, consolidated net premiums earned (NPE) was $49.8 billion.
Segment Information Chubb operates through six 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. In 2025, consolidated net premiums earned (NPE) was $53.0 billion. Refer to Note 19 to the Consolidated Financial Statements for additional information about our segments.
Keogh was appointed President of Chubb in December 2020, and has served as Chief Operating Officer since July 2011. Mr. Keogh was appointed Vice Chairman of Chubb Limited in 2010 and Executive Vice Chairman in 2015. Mr. Keogh joined Chubb in 2006 as Chairman, Insurance – Overseas General. Before joining Chubb, Mr.
Keogh 61 President (December 2020 to present) and Chief Operating Officer (July 2011 to present) of Chubb Limited; Vice Chairman (2010 to 2015) and Executive Vice Chairman (2015 to December 2020) of Chubb Limited; Chairman, Insurance – Overseas General, Chubb (2006 to 2010).
The syndicate is managed by Chubb’s Lloyd’s managing agency, Chubb Underwriting Agencies Limited. At December 31, 2024, our ownership interest in Huatai P&C was approximately 85.5 percent.
Syndicate 2488 has an underwriting capacity of £630 million for the Lloyd’s 2026 account year. The syndicate is managed by Chubb’s Lloyd’s managing agency, Chubb Underwriting Agencies Limited. At December 31, 2025, our ownership interest in Huatai P&C was approximately 87.2 percent.
In most countries there is more freedom of choice, and the counterparty is selected based upon its financial strength, claims settlement record, management, line of business expertise, and its price for assuming the risk transferred. In support of this process, we maintain a Chubb authorized reinsurer list that stratifies these authorized reinsurers by classes of business and acceptable limits.
In most countries there is more freedom of choice, and the counterparty is selected based upon its financial strength, claims settlement record, management, line of business expertise, and its price for assuming the risk 9 Table of Contents transferred.
We achieve a competitive advantage through our ability to address the specific needs of high-net-worth families and individuals, to provide superior service to our customers, and to develop and deploy digital production and processes. 6 Table of Contents North America Agricultural Insurance (5 percent of 2024 Consolidated NPE) Overview The North America Agricultural Insurance segment comprises our U.S. and Canadian based businesses that provide a variety of coverages including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail insurance through Rain and Hail Insurance Service, Inc.
North America Agricultural Insurance (5 percent of 2025 Consolidated NPE) Overview The North America Agricultural Insurance segment comprises our U.S. and Canadian based businesses that provide a variety of coverages including crop insurance, primarily Multiple Peril Crop Insurance (MPCI) and crop-hail insurance through Rain and Hail Insurance Service, Inc.
We also invest in limited partnerships and investment funds. We do not allow leverage in our investment portfolio. The critical aspects of the investment process are controlled by Chubb Asset Management, an indirect wholly-owned subsidiary of Chubb. These aspects include asset allocation, portfolio and guideline design, risk management, and oversight of external asset managers.
As such, Chubb's investment portfolio is invested primarily in investment-grade fixed-income securities as measured by the major rating agencies. We also invest in limited partnerships and investment funds. We do not allow leverage in our investment portfolio. The critical aspects of the investment process are controlled by Chubb Asset Management, an indirect wholly-owned subsidiary of Chubb.
For additional information, refer to Note 10 to the Consolidated Financial Statements, under Item 8. Investments Our objective is to maximize investment income and total return while ensuring an appropriate level of liquidity, investment quality, and diversification. As such, Chubb's investment portfolio is invested primarily in investment-grade fixed-income securities as measured by the major rating agencies.
For additional information refer to “Catastrophe Management” and “Global Property Catastrophe Reinsurance Program” under Item 7, and Note 5 to the Consolidated Financial Statements, under Item 8. Investments Our objective is to maximize investment income and total return while ensuring an appropriate level of liquidity, investment quality, and diversification.
Chubb International personal lines operations provide a wide range of consumer lines products to meet the needs of specific target markets around the world. Products include high net worth homes, traditional homeowners, automobile, and specialty products that cover smart phones, eyeglasses, and personal cyber risk.
Chubb International personal lines operations provide a wide range of consumer lines products to meet the needs of specific target markets around the world.
Major Accounts competes against a number of large, global carriers as well as regional competitors and other entities offering risk alternatives such as self-insured retentions and captive programs. The markets in which we compete are subject to significant cycles of fluctuating capacity and wide disparities in price adequacy.
Major Accounts competes against large, global carriers; regional competitors; and self-insured retentions and captive programs. The markets are subject to cycles of fluctuating capacity and price adequacy. We pursue a specialist strategy and focus on market opportunities where we can compete effectively.
Huatai asset management companies earn management and performance fees from the management of third-party assets and also earn fees related to the origination, distribution and management of private loans on behalf of highly rated domestic institutions in China.
Huatai asset management companies earn management and performance fees from the management of third-party assets and also earn fees related to the origination, distribution and management of private loans on behalf of highly rated domestic institutions in China. 10 Table of Contents The Chubb Limited Board of Directors (the Board) established a Risk & Finance (R&F) Committee which helps execute the Board's supervisory responsibilities pertaining to enterprise risk management including investment risk.
CGM, our London-based international specialty and excess and surplus lines wholesale business, includes Lloyd's of London (Lloyd's) Syndicate 2488, a wholly-owned Chubb syndicate supported by funds at Lloyd’s provided by Chubb Corporate Members. Syndicate 2488 has an underwriting capacity of £630 million for the Lloyd’s 2025 account year.
In 2025, Chubb International expanded its operations through the acquisition of LMG Insurance in Thailand, offering a range of consumer and commercial P&C products. CGM, our London-based international specialty and excess and surplus lines wholesale business, includes Lloyd's of London (Lloyd's) Syndicate 2488, a wholly-owned Chubb syndicate supported by funds at Lloyd’s provided by Chubb Corporate Members.
Greenberg has been a director of Chubb Limited since August 2002. Mr. Greenberg was elected Chairman of the Board of Directors in May 2007. Mr. Greenberg was appointed to the position of President and Chief Executive Officer of Chubb Limited in May 2004, and in June 2003, was appointed President and Chief Operating Officer of Chubb Limited. Mr.
Greenberg 71 Director (August 2002 to present), Chairman of the Board (May 2007 to present), and Chief Executive Officer of Chubb Limited (May 2004 to present). Timothy A.
We operate in 54 countries and territories and our global workforce of 43,000 employees is geographically dispersed with 39 percent in North America, 38 percent in Asia, 13 percent in Latin America and 10 percent in Europe, Eurasia, and Africa. The average age of our workforce is 41 years, and the average tenure is 7.4 years.
Our workforce is distributed across the following regions: 40 percent in Asia, 37 percent in North America, 13 percent in Latin America, and 10 percent in Europe/Eurasia/Africa. The average age of our workforce is 41.2 years, with an average tenure of 7.3 years.
These products are marketed through various distribution channels including nearly 200 licensed sales locations in 28 Chinese provinces. Property insurance products include traditional commercial fire coverage, as well as energy industry-related, marine, construction, and other technical coverages. Principal casualty products are commercial primary and excess casualty, environmental, and general liability.
Property insurance products include traditional commercial fire coverage, as well as energy industry-related, marine, construction, and other technical coverages. Principal casualty products are commercial primary and excess casualty, environmental, and general liability. A&H and other consumer lines products are distributed through brokers, agents, direct marketing programs, including thousands of telemarketers, and sponsor relationships.
We recognize that climate changes and weather patterns, as well as inflationary forces, are integral to our underwriting process and we continually adjust our process to address these changes.
We are focused on delivering P&C underwriting profit and life segment income by only writing policies which we believe adequately compensate us for the risk we accept. We recognize that climate changes and weather patterns, as well as inflationary forces, are integral to our underwriting process and we continually adjust our process to address these changes.
This list is maintained by our Reinsurance Security Committee (RSC), a committee comprising senior management personnel and a dedicated reinsurer security team. Changes to the list are authorized by the RSC and recommended to the Chair of the Risk and Underwriting Committee.
In support of this process, we maintain a Chubb authorized reinsurer list that stratifies these authorized reinsurers by classes of business and acceptable limits. This list is maintained by our Reinsurance Security Committee (RSC), a committee comprising senior management personnel and a dedicated reinsurer security team.
Certain branded products are also offered via digital-commerce platforms, allowing agents and brokers to quote, bind, and issue policies at their convenience. Huatai P&C provides a range of commercial and personal P&C products in China, including automobile, homeowners, property, professional liability, product liability, employer liability, business interruption, marine cargo, personal accident, supplemental health, and specialty risk.
Huatai P&C provides a range of commercial and personal P&C products in China, including automobile, homeowners, property, professional liability, product liability, employer liability, business interruption, marine cargo, personal accident, supplemental health, and specialty risk. These products are marketed through various distribution channels including nearly 200 licensed sales locations in 28 Chinese provinces.
These findings actively inform our underwriting risk appetite for property-related exposures for wild-fire, where we have significantly reduced our business in certain western states, and other perils such as flood and hurricane. Chubb regularly applies exclusions as part of its underwriting process, which depend on the specific conditions and circumstances of the risk being evaluated.
Based on science and our own experience to date, we have conducted extensive work to understand the potential impact of climate change on our risk profile. These findings actively inform our underwriting risk appetite for property-related exposures for wildfire, where we have significantly reduced our business in certain areas, and other perils such as flood and hurricane.
The Board has established a Risk & Finance Committee which helps execute the Board's supervisory responsibilities pertaining to enterprise risk management including investment risk. Under the overall supervision of the Risk & Finance Committee, Chubb's governance over investment management is rigorous and ongoing.
Under the overall supervision of the R&F Committee, Chubb's governance over investment management is rigorous and ongoing.
O'Brien served as Senior Vice President and Deputy Chief Risk Officer from January 2022 to March 2023, and from 2016 to 2021 was Division President, North America Personal Risk Services. Ms.
O'Brien 67 EVP, Chubb Group and Chief Risk Officer of Chubb Limited (April 2023 to present); SVP and Deputy Chief Risk Officer, Chubb (January 2022 to March 2023); Division President, North America Personal Risk Services, Chubb (2016 to 2021); SVP, Chief Risk Officer of The Chubb Corporation at the time of its acquisition by Chubb Limited (2016).
CGM differentiates itself from competitors through long standing experience in its product lines, its multiple insurance entities (Syndicate 2488 and CEG), and the quality of its underwriting and claims service. 8 Table of Contents Global Reinsurance (3 percent of 2024 Consolidated NPE) Overview The Global Reinsurance segment represents Chubb's reinsurance operations comprising Chubb Tempest Re Bermuda, Chubb Tempest Re USA, Chubb Tempest Re International, and Chubb Tempest Re Canada.
Competition for international risks is also seen from domestic insurers in the country of origin of the insured. CGM differentiates itself from competitors through long standing experience in its product lines, its multiple insurance entities (Syndicate 2488 and CEG), and the quality of its underwriting and claims service.
The GCO has executive management responsibility for Chubb's climate-related strategies, including business and policy initiatives and coordination with the Chief Risk Officer and Chief Underwriting Officer regarding the execution of related underwriting and portfolio management processes. 18 Table of Contents The potential impacts of climate change on the insurance industry, including Chubb, are complex, myriad and will develop over a multi-year time horizon.
The GCO reports to both the CEO, who approves the goals and objectives of the sustainability program, and Chubb's General Counsel. The GCO has executive management responsibility for Chubb's climate-related strategies, including business and policy initiatives and coordination with the Chief Risk Officer and Chief Underwriting Officer regarding the execution of related underwriting and portfolio management processes.
Customers For most commercial and personal lines of business we offer, insureds typically use the services of an insurance broker or agent. An insurance broker acts as an agent for the insureds, offering advice on the types and amount of insurance to purchase, and assists in the negotiation of price and terms and conditions.
For most commercial and personal lines of business we offer, insureds typically use the services of an insurance broker or agent. We obtain business from the local and major international insurance brokers and typically pay a commission to brokers for business accepted and bound.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRegulatory standards relating to the use of artificial intelligence (AI) are evolving in the countries where we do business, and may increase risks associated with bias, unfair discrimination, transparency, and information security. State insurance regulators in the U.S. have issued and will continue to consider regulations or guidelines on the use of external data, algorithms, and AI in insurance practices.
Biggest changeState insurance regulators in the U.S. have issued and will continue to consider regulations or guidelines on the use of external data, algorithms, and AI in insurance practices. The European Parliament and European Council have also promulgated the European Union Artificial Intelligence Act, which will regulate the use of AI within the European Union.
Our ability to pay dividends and to make payments on indebtedness may be constrained by our holding company structure. Chubb Limited is a holding company that owns shares of its operating insurance and reinsurance subsidiaries along with several loans receivable from affiliates. Beyond this it does not itself have any significant operations or liquid assets.
Our ability to pay dividends and make payments on indebtedness may be constrained by our holding company structure. Chubb Limited is a holding company that owns shares of its operating insurance and reinsurance subsidiaries along with several loans receivable from affiliates. Beyond this it does not itself have any significant operations or liquid assets.
It is our practice to recommend to shareholders that they annually approve the payment of dividends in such form, but we cannot assure that our shareholders will continue to approve a reduction in such form each year or that we will be able to meet the other legal requirements for a reduction, or that Swiss withholding tax rules will not be changed in the future.
It is our practice to recommend to shareholders that they annually approve the payment of dividends in such form, but we cannot assure that our shareholders will continue to approve a reduction in such form each year or that we will be able to meet the other legal requirements, or that Swiss withholding tax rules will not be changed in the future.
Our life insurance investments typically focus on longer duration bonds to better match the obligations of this business. For the life insurance business, policyholder behavior may be influenced by changing interest rate conditions and require a re-balancing of duration to effectively manage our asset/liability position. As stated, our fixed income portfolio is primarily invested in high quality, investment-grade securities.
Our life insurance investments typically focus on longer duration bonds to better match the obligations of this business. For the life insurance business, policyholder behavior may be influenced by changing interest rate conditions and require a re-balancing of duration to effectively manage our asset/liability position. Our fixed income portfolio is primarily invested in high quality, investment-grade securities.
We compete on an international and regional basis with major U.S., Bermuda, European, and other international insurers and reinsurers and with underwriting syndicates, some of which have greater financial, technological, marketing, distribution and management resources than we do. In addition, capital market participants have created alternative products that are intended to compete with reinsurance products.
We compete on an international and regional basis with major U.S., Bermudian, European, and other international insurers and reinsurers and with underwriting syndicates, some of which have greater financial, technological, marketing, distribution and management resources than we do. In addition, capital market participants have created alternative products that are intended to compete with reinsurance products.
However, a smaller portion of the portfolio, approximately 17 percent at December 31, 2024, is invested in below investment-grade securities. These securities, which pay a higher rate of interest, also have a higher degree of credit or default risk and may also be less liquid in times of economic weakness or market disruptions.
However, a smaller portion of the portfolio, approximately 17 percent at December 31, 2025, is invested in below investment-grade securities. These securities, which pay a higher rate of interest, also have a higher degree of credit or default risk and may also be less liquid in times of economic weakness or market disruptions.
Payment of obligations under surety bonds could have an adverse effect on our results of operations. The surety business tends to be characterized by infrequent but potentially high severity losses. The majority of our surety obligations are intended to be performance-based guarantees.
Payment of obligations under surety bonds could have an adverse effect on our results of operations. The surety business is characterized by infrequent but potentially high severity losses. The majority of our surety obligations are intended to be performance-based guarantees.
We cannot provide assurance that Swiss law requirements relating to our capital management will not have an adverse effect on Chubb or our shareholders. Chubb Limited is a Swiss company; it may be difficult to enforce judgments against it or its directors and executive officers. Chubb Limited is incorporated pursuant to the laws of Switzerland.
We cannot provide assurance that Swiss law requirements relating to our capital management will not have an adverse effect on Chubb or our shareholders. 29 Table of Contents Chubb Limited is a Swiss company; it may be difficult to enforce judgments against it or its directors and executive officers. Chubb Limited is incorporated pursuant to the laws of Switzerland.
These laws may discourage potential acquisition proposals and may delay, deter, or prevent a change of control of Chubb, including transactions that some or all of our shareholders might consider to be desirable. 32 Table of Contents Shareholder voting requirements under Swiss law may limit our flexibility with respect to certain aspects of capital management .
These laws may discourage potential acquisition proposals and may delay, deter, or prevent a change of control of Chubb, including transactions that some or all of our shareholders might consider to be desirable. Shareholder voting requirements under Swiss law may limit our flexibility with respect to certain aspects of capital management .
This generally would be the case if either (i) Chubb Limited is considered a CFC and the tax-exempt shareholder is a 10 percent U.S. shareholder or (ii) there is RPII, certain exceptions do not apply, and the tax-exempt organization, directly (or indirectly through foreign entities) owns any shares of Chubb Limited.
This generally would be the case if either (i) Chubb Limited is considered a CFC and the tax- 30 Table of Contents exempt shareholder is a 10 percent U.S. shareholder or (ii) there is RPII, certain exceptions do not apply, and the tax-exempt organization, directly (or indirectly through foreign entities) owns any shares of Chubb Limited.
Any equity or debt financing or refinancing, if available at all, may be on terms that are not favorable to us. In the case of equity financings, dilution to our shareholders could result, and in any case, such securities may have rights, preferences, and privileges that are senior to those 25 Table of Contents of our Common Shares.
Any equity or debt financing or refinancing, if available at all, may be on terms that are not favorable to us. In the case of equity financings, dilution to our shareholders could result, and in any case, such securities may have rights, preferences, and privileges that are senior to those of our Common Shares.
It is not always possible to deter or prevent employee misconduct, and the precautions that we take to prevent and detect this activity may not be effective in all cases. Resultant losses could adversely affect our business, results of operations, and financial condition.
It is not always possible to deter or prevent employee, agent, broker or vendor misconduct, and the precautions that we take to prevent and detect this activity may not be effective in all cases. Resultant losses could adversely affect our business, results of operations, and financial condition.
In addition to these considerations, changes in the frequency and severity of losses suffered by insureds and insurers may affect the cycles of the insurance and reinsurance markets significantly, as could periods of economic weakness (such as recession). 30 Table of Contents The integration of acquired companies may not be as successful as we anticipate.
In addition to these considerations, changes in the frequency and severity of losses suffered by insureds and insurers may affect the cycles of the insurance and reinsurance markets significantly, as could periods of economic weakness (such as recession). The integration of acquired companies may not be as successful as we anticipate.
In addition, Swiss law requires that the total par value of Chubb's treasury shares must not be in excess of 10 percent of its total share capital, although, to the extent permitted by Swiss law, exemptions from the 10 percent limit apply for repurchased treasury shares dedicated for cancellation under our shareholder-approved capital band or for shares acquired pursuant to a shareholder-ratified repurchase program and dedicated for cancellation.
In addition, Swiss law requires that the total par value of Chubb's treasury shares 23 Table of Contents must not be in excess of 10 percent of its total share capital, although, to the extent permitted by Swiss law, exemptions from the 10 percent limit apply for repurchased treasury shares dedicated for cancellation under our shareholder-approved capital band and for shares acquired pursuant to a shareholder-ratified repurchase program and dedicated for cancellation.
Insurance Subsidiary did not in prior years of operation and is not expected in the foreseeable future to equal or exceed 20 percent of each such company's gross insurance 33 Table of Contents income. Likewise, we do not expect the direct or indirect insureds of each Non-U.S.
Insurance Subsidiary did not in prior years of operation and is not expected in the foreseeable future to equal or exceed 20 percent of each such company's gross insurance income. Likewise, we do not expect the direct or indirect insureds of each Non-U.S.
The IAIS has developed a Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame), which is focused on the effective group-wide supervision of international active insurance groups (IAIGs), such as Chubb. The IAIS also implements the Holistic Framework for the assessment and mitigation of systemic risk.
The IAIS has developed a Common Framework for the Supervision of Internationally Active Insurance Groups 24 Table of Contents (ComFrame), which is focused on the effective group-wide supervision of international active insurance groups (IAIGs), such as Chubb. The IAIS also implements the Holistic Framework for the assessment and mitigation of systemic risk.
We include in our loss reserves liabilities for latent claims, such as asbestos and environmental (A&E), which are principally related to claims arising from remediation costs associated with hazardous waste sites and bodily-injury claims related to exposure to asbestos products and environmental hazards. At December 31, 2024, gross A&E liabilities represented approximately 1.6 percent of our gross loss reserves.
We include in our loss reserves liabilities for latent claims, such as asbestos and environmental (A&E), which are principally related to claims arising from remediation costs associated with hazardous waste sites and bodily-injury claims related to exposure to asbestos products and environmental hazards. At December 31, 2025, gross A&E liabilities represented approximately 1.4 percent of our gross loss reserves.
Consequently, the insolvency of these counterparties, or the inability, or unwillingness of any of our present or future reinsurers to make timely payments to us under the terms of our reinsurance or retrocessional agreements could have an adverse effect on us. At December 31, 2024, we had $20.1 billion of reinsurance recoverables, net of reserves for uncollectible recoverables.
Consequently, the insolvency of these counterparties, or the inability, or unwillingness of any of our present or future reinsurers to make timely payments to us under the terms of our reinsurance or retrocessional agreements could have an adverse effect on us. At December 31, 2025, we had $20.6 billion of reinsurance recoverables, net of reserves for uncollectible recoverables.
Like all global companies, our systems and those of our third-party service providers, have been, and will likely continue to be, targeted by or subject to viruses, malware or other malicious codes, unauthorized access, cyber-attacks, cyber frauds, ransomware or other unauthorized occurrences, on or conducted through our information systems, which jeopardize the confidentiality, integrity or availability of our information or information systems.
Our systems and those of our third-party service providers, have been, and will likely continue to be, targeted by or subject to viruses, malware or other malicious codes, unauthorized access, cyber-attacks, cyber frauds, ransomware or other unauthorized occurrences, on or conducted through our information systems, which jeopardize the confidentiality, integrity or availability of our information or information systems.
In addition, the amount and timing of the settlement of our P&C liabilities are uncertain and our actual payments could be higher than contemplated in our loss reserves owing to the impacts of insurance, judicial decisions, and social inflation.
In addition, the amount and timing of the settlement of our P&C liabilities are 19 Table of Contents uncertain and our actual payments could be higher than contemplated in our loss reserves owing to the impacts of insurance, judicial decisions, and social inflation.
At December 31, 2024, the aggregate reinsurance balances ceded by our active subsidiaries to Century were approximately $1.9 billion.
At December 31, 2025, the aggregate reinsurance balances ceded by our active subsidiaries to Century were approximately $1.9 billion.
New reporting standards, regulations and requirements with various aims and goals could expose us to legal, regulatory, investor and other stakeholder scrutiny, and customers that disagree with our actions or reporting on climate change may determine not to do business with us, all of which may adversely affect our business, reputation and results of operations.
New reporting standards, regulations and requirements with various aims and goals could expose us to legal, regulatory, investor and other stakeholder scrutiny, and customers that disagree with our actions may determine not to do business with us, all of which may adversely affect our business, reputation and results of operations.
Accordingly, the ultimate settlement of losses, arising from either latent or non-latent causes, may be significantly greater or less than the loss and loss 22 Table of Contents expense reserves held at the balance sheet date.
Accordingly, the ultimate settlement of losses, arising from either latent or non-latent causes, may be significantly greater or less than the loss and loss expense reserves held at the balance sheet date.
In addition, a lack of credit available to our customers could impact our ability to collateralize this risk to our satisfaction, which in turn, could reduce the amount of high-deductible policies we could offer.
In addition, a lack of credit 21 Table of Contents available to our customers could impact our ability to collateralize this risk to our satisfaction, which in turn, could reduce the amount of high-deductible policies we could offer.
The failure of any of the loss limitation methods we use could have an adverse effect on our results of operations and financial condition. We seek to manage our loss exposure by maintaining a disciplined underwriting process throughout our insurance operations.
The failure of any of the loss limitation methods we use could have an adverse effect on our results of operations and financial condition. We seek to manage our loss exposure by maintaining a disciplined underwriting process throughout our insurance operations, including the use of underwriting controls and risk models.
This includes exposure to financial institutions in the form of secured and unsecured debt instruments and equity securities. In accordance with industry practice, we generally pay amounts owed on claims to brokers who, in turn, remit these amounts to the insured or ceding insurer.
This includes exposure to financial institutions in the form of secured and unsecured debt instruments and equity securities. We generally pay amounts owed on claims to brokers who, in turn, remit these amounts to the insured or ceding insurer.
Chubb also receives requests for information from investors, customers and other stakeholders from time 27 Table of Contents to time on various aspects of its policies and strategies relating to climate change.
Chubb also receives requests for information from investors, customers and other stakeholders from time to time on various aspects of its policies and strategies relating to climate change.
In addition, regulatory changes sometimes affect our obligations to post collateral. The need to post this additional collateral, if significant enough, may require us to sell investments at a loss in order to provide securities of suitable credit quality or otherwise secure adequate capital at an unattractive cost. This could adversely impact our net income and liquidity and capital resources.
The need to post this additional collateral, if significant enough, may require us to sell investments at a loss in order to provide securities of suitable credit quality or otherwise secure adequate capital at an unattractive cost. This could adversely impact our net income and liquidity and capital resources.
Although we have implemented administrative and technical controls and have taken protective actions designed to reduce the risk of cyber incidents and to protect our information technology and assets, including conducting due diligence security reviews and negotiating agreements with third-party service providers, and we additionally endeavor to modify such procedures and agreements as circumstances warrant, such measures may be insufficient to prevent cybersecurity events, which may include unauthorized access, computer viruses, malware or other malicious code or cyber-attack, ransomware, phishing scams, or similar attempts to fraudulently induce our employees or others to take actions that compromise our information or information systems, business compromise attacks, catastrophic events, system failures and disruptions, employee errors, negligence or malfeasance, loss of assets or data and other events that could have security consequences.
The administrative and technical controls and protective actions we have taken (including conducting due diligence security reviews and negotiating agreements with third-party service providers), which are designed to reduce the risk of cyber incidents and to protect our information technology and assets, may be insufficient to prevent cybersecurity events, which may include unauthorized access, computer viruses, malware or other malicious code or cyber-attack, ransomware, phishing scams, or similar attempts to fraudulently induce our employees, third party vendors or others to take actions that compromise our information or information systems, business compromise attacks, catastrophic events, system failures and disruptions, employee errors, negligence or malfeasance, loss of assets or data and other events that could have security consequences.
Thus, the intercompany reinsurance recoverables could be at risk to the extent of the shortage of 23 Table of Contents assets remaining to pay these recoverables.
Thus, the intercompany reinsurance recoverables could be at risk to the extent of the shortage of assets remaining to pay these recoverables.
We may be subject to U.S. tax and Bermuda tax which may have an adverse effect on our results of operations and shareholders' equity.
Our non-U.S. companies may be subject to U.S. tax which may have an adverse effect on our results of operations and shareholders' equity.
The new Bermuda income tax will be a covered tax under the OECD’s global minimum tax regime discussed in our Risk Factor below titled “The Organization for Economic Cooperation and Development (OECD), European Union (EU), Swiss Federal Council, and other jurisdictions are considering, have considered, or have passed measures that might change long standing tax principles that could increase our taxes.” Therefore, we would expect any implementation of the OECD global minimum tax regime to count any current Bermuda income tax toward such OECD minimum tax.
The new Bermuda CIT will be a covered tax under the OECD’s global minimum tax regime discussed in our Risk Factor below titled “The Organization for Economic Cooperation and Development (OECD), European Union (EU), Swiss Federal Council, and other jurisdictions have passed measures that have changed long standing tax principles that could increase our taxes.” Therefore, we would expect any implementation of the OECD global minimum tax regime to count any current Bermuda CIT toward such OECD minimum tax. 28 Table of Contents The Organization for Economic Cooperation and Development (OECD), European Union (EU), Swiss Federal Council, and other jurisdictions have passed measures that have changed long standing tax principles that could increase our taxes.
We estimate we would be able to pay dividends in such form, and thus exempt from Swiss withholding tax, until 2028–2033.
We estimate we would be able to pay dividends in such form, and thus exempt from Swiss withholding tax, until 2032–2036.
Both current and future foreign operations could be adversely affected by unfavorable geopolitical developments, including law changes; tax changes; changes in trade policies; changes to visa or immigration policies; regulatory restrictions; government leadership changes; political events and upheaval; sociopolitical instability; social, political or economic instability resulting from climate change; and nationalization of our 28 Table of Contents operations without compensation.
Both current and future foreign operations could be adversely affected by unfavorable geopolitical developments, including law changes; tax changes; changes in trade policies; changes to visa or immigration policies; regulatory restrictions; government leadership changes; political events and upheaval; sociopolitical instability; and nationalization of our operations without compensation.
Insurance and reinsurance markets are historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates. The insurance and reinsurance markets have historically been cyclical, characterized by periods of intense price competition due to excessive underwriting capacity as well as periods when shortages of capacity permitted favorable premium levels.
The insurance and reinsurance markets have historically been cyclical, characterized by periods of intense price competition due to excessive underwriting capacity as well as periods when shortages of capacity permitted favorable premium levels.
We may from time to time face challenges resulting from changes in applicable law and regulations in particular jurisdictions, or changes in approach to oversight of our business from insurance or other regulators. Our insurance and reinsurance subsidiaries conduct business globally. Our businesses in each jurisdiction are subject to varying degrees of regulation and supervision.
We may from time to time face challenges resulting from changes in applicable law and regulations in particular jurisdictions, or changes in approach to oversight of our business from insurance or other regulators. Our insurance and reinsurance subsidiaries conduct business globally and are subject to varying degrees of supervision and regulation by the regulatory authorities under which they conduct business.
While we believe the intercompany reinsurance recoverables from Century are not impaired at this time, we cannot provide assurance that adverse development with respect to Century's loss reserves, if manifested, will not result in Century's rehabilitation or insolvency, which could result in our recognizing a loss. This could have an adverse effect on our results of operations and financial condition.
While we believe the intercompany reinsurance recoverables from Century are not 20 Table of Contents impaired at this time, we cannot provide assurance that adverse development with respect to Century's loss reserves, if manifested, will not result in Century's rehabilitation or insolvency, which could result in our recognizing a loss.
We may be required to post additional collateral because of changes in our reinsurance liabilities to regulated insurance companies, or because of regulatory changes that affect our companies. If our reinsurance liabilities increase, including in our property & casualty and variable annuity reinsurance businesses, we may be required to post additional collateral for insurance company clients.
If our reinsurance liabilities increase, including in our property & casualty and variable annuity reinsurance businesses, we may be required to post additional collateral for insurance company clients. In addition, regulatory changes sometimes affect our obligations to post collateral.
Our net income and shareholders' equity may be volatile because certain products sold by our life insurance businesses expose us to future policy benefit (FPB) reserve and market risk benefits changes that are directly affected by market and other factors and assumptions.
This could have an adverse effect on our results of operations and financial condition. Our net income and shareholders' equity may be volatile because certain products sold by our life insurance businesses expose us to future policy benefit (FPB) reserve and market risk benefits changes that are directly affected by market and other factors and assumptions.
The principal currencies creating foreign exchange risk are the Korean won, Chinese yuan renminbi, Canadian dollar, Australian dollar, Mexican peso, British pound sterling, Hong Kong dollar, Thai baht, New Taiwan dollar, and euro. At December 31, 2024, approximately 29.9 percent of our unhedged net assets were denominated in foreign currencies.
The principal currencies creating foreign exchange risk are the Korean won, Chinese yuan renminbi, Canadian dollar, Australian dollar, Mexican peso, Thai baht, Hong Kong dollar, Brazilian real, New Zealand dollar, and euro. At December 31, 2025, approximately 26.7 percent of our unhedged net assets were denominated in foreign currencies.
The laws and regulations of the jurisdictions in which our insurance and reinsurance subsidiaries are domiciled require, among other things, maintenance of minimum levels of statutory capital, surplus, and liquidity, various solvency standards, and periodic examinations of subsidiaries' financial condition. In some jurisdictions, laws and regulations also restrict payments of dividends and reductions of capital.
Applicable statutes, regulations and policies require, among other things, maintenance of minimum levels of statutory capital, surplus, and liquidity, various solvency standards, and periodic examinations of subsidiaries' financial condition. In some jurisdictions, laws and regulations also restrict payments of dividends and reductions of capital.
Financial Our investment performance may affect our financial results and our ability to conduct business. Our investment assets are invested by professional investment management firms under the direction of our management team in accordance with investment guidelines approved by the Risk & Finance Committee of the Board of Directors.
Financial Our investment performance may affect our financial results and our ability to conduct business. Our investment assets are invested by professional investment management firms under the direction of our management team in accordance with investment guidelines approved by the Board. Our investments are subject to market risks and risks inherent in individual securities.
A decline in our credit ratings could increase our borrowing costs and impact our ability to access capital markets. Ratings are an important factor in establishing the competitive position of insurance and reinsurance companies. The objective of these rating systems is to provide an opinion of an insurer's financial strength and ability to meet ongoing obligations to its policyholders.
Ratings are an important factor in establishing the competitive position of insurance and reinsurance companies. The objective of these rating systems is to provide an opinion of an insurer's financial strength and ability to meet ongoing obligations to its policyholders.
Historically, our Bermuda operations have not been subject to Bermuda income tax. However, on December 27, 2023, the Government of Bermuda enacted a 15 percent income tax effective January 1, 2025.
Our Bermuda operations are subject to taxation in Bermuda because of the newly effective Bermuda Corporate Income Tax Act. Historically, our Bermuda operations had not been subject to Bermuda income tax. However, on December 27, 2023, the Government of Bermuda enacted a 15 percent corporate income tax (Bermuda CIT) effective January 1, 2025.
While we have put in place procedures to monitor the credit risk and liquidity of our invested assets, it is possible that, in periods of economic weakness (such as recession), we may experience credit or default losses in our portfolio, which could adversely affect our results of operations and financial condition.
It is possible that in periods of economic weakness (such as recession), we may experience credit or default losses in our portfolio, which could adversely affect our results of operations and financial condition.
In instances where we rely on third parties to perform business functions and process data on our behalf, Chubb may be exposed to additional data security risk as a result of cybersecurity events that impact the third party or others upon whom they rely.
In instances where we rely on third parties to perform business functions and process data on our behalf, Chubb may be exposed to additional data security risk as a result of cybersecurity events that impact the third party or others upon whom they rely. 26 Table of Contents Our ability to conduct business may be adversely affected by a disruption of the infrastructure that supports our business in the communities in which we are located, or of outsourced services or functions.
Advancements in technology are occurring in underwriting, claims, distribution, and operations at a pace that may quicken, including as companies increase use of data analytics, AI and other technology as part of their business strategy.
Advancements in technology are occurring in underwriting, claims, distribution, and operations at a pace that may quicken, including as companies increase use of data analytics, AI and other technology as part of their business strategy. We will be at a competitive disadvantage if our competitors are more effective than us in their utilization of technology and evolving data analytics.
The increasing impact of climate change could affect our cost of claims, loss ratios, and financial results. Volatility in the U.S. and other securities markets may adversely affect our stock price. A decline in our financial strength ratings could affect our standing among distribution partners and customers and cause our premiums and earnings to decrease.
Volatility in the U.S. and other securities markets may adversely affect our stock price. A decline in our financial strength ratings could affect our standing among distribution partners and customers and cause our premiums and earnings to decrease. A decline in our credit ratings could increase our borrowing costs and impact our ability to access capital markets.
Switzerland has enacted aspects of these rules, effective on January 1, 2025, including the income inclusion rule but not the under taxed profits rule. 31 Table of Contents On January 15, 2025, the OECD issued administrative guidance that, if incorporated into law, could cause additional tax to be payable to the extent the deferred tax asset we established upon enactment of Bermuda’s corporate income tax in 2023 reverses after 2026.
On January 15, 2025, the OECD issued Administrative Guidance that, if incorporated into law, could cause additional tax to be payable to the extent the deferred tax asset we established upon enactment of Bermuda’s corporate income tax in 2023 reverses after 2026.
Shareholders There are provisions in our charter documents that may reduce the voting rights and diminish the value of our Common Shares. Our Articles of Association generally provide that shareholders have one vote for each Common Share held by them and are entitled to vote at all meetings of shareholders.
Our Articles of Association generally provide that shareholders have one vote for each Common Share held by them and are entitled to vote at all meetings of shareholders.
If we cannot obtain adequate capital or sources of credit on favorable terms, or at all, we could be forced to use assets otherwise available for our business operations, and our business, results of operations, and financial condition could be adversely affected.
If we cannot obtain adequate capital or sources of credit on favorable terms, or at all, we could be forced to use assets otherwise available for our business operations, and our business, results of operations, and financial condition could be adversely affected. 22 Table of Contents We may be required to post additional collateral because of changes in our reinsurance liabilities to regulated insurance companies, or because of regulatory changes that affect our companies.
This has resulted in expanded and increasingly complex expectations related to reporting under multiple, various, disparate and potentially inconsistent reporting requirements, increased due diligence, and potential requirements for the reporting of scope 3 greenhouse gas emissions.
This has resulted in expanded and increasingly complex expectations related to reporting under multiple, disparate and potentially inconsistent reporting requirements, increased due diligence, and potential requirements for the reporting of scope 3 greenhouse gas emissions. Responding to such disclosure requirements and requests involves risks and uncertainties, including dependence in part on estimates and third-party data that are outside our control.
Volatility in interest rates could impact the performance of our investment portfolio which could have an adverse effect on our investment income and operating results. Although we take measures to manage the risks of investing in a changing interest rate environment, we may not be able to effectively mitigate interest rate sensitivity.
Realized and unrealized losses in our investment portfolio would reduce our book value, and if material, can affect our ability to conduct business. Volatility in interest rates could impact the performance of our investment portfolio which could have an adverse effect on our investment income and operating results. We may not be able to effectively mitigate interest rate sensitivity.
The European Parliament and European Council have also promulgated the European Union Artificial Intelligence Act, which will regulate the use of AI within the European Union. The application of existing law and introduction of new or revised laws and regulations may require changes in our operations, increase compliance costs and reduce benefits from our adoption of artificial intelligence technologies.
Several nations in Asia are also considering legislation or regulatory guidance. The application of existing law and introduction of new or revised laws and regulations may require changes in our operations, increase compliance costs and reduce benefits from our adoption of artificial intelligence technologies.
In general, we match assets and liabilities in local currencies. Where possible, capital levels in local currencies are limited to satisfy minimum regulatory requirements and to support local insurance operations.
Our operating results and shareholders' equity may be adversely affected by currency fluctuations. Our reporting currency is the U.S. dollar. In general, we match assets and liabilities in local currencies. Where possible, capital levels in local currencies are limited to satisfy minimum regulatory requirements and to support local insurance operations.
In the U.S., several other states are considering similar legislation, and there are ongoing discussions regarding a U.S. National Privacy Law. New laws similar to the GDPR and the CCPA are expected to be enacted in coming years in various countries and jurisdictions in which we operate.
In the U.S., several other states are considering similar legislation, and there are ongoing discussions regarding a U.S. National Privacy Law.
The modeled outputs and related analyses are subject to various assumptions, uncertainties, model errors and the inherent limitations of any statistical analysis, including the use of historical internal and 29 Table of Contents industry data.
The modeled outputs and related analyses are subject to various assumptions, uncertainties, model errors and the inherent limitations of any statistical analysis, including the use of historical internal and industry data. In addition, the modeled outputs and related analyses may from time to time contain inaccuracies, perhaps in material respects, including as a result of inaccurate inputs or applications thereof.
The occurrence of claims from catastrophic events could result in substantial volatility in our results of operations or financial condition for any fiscal quarter or year.
The occurrence of claims from catastrophic events could result in substantial volatility in our results of operations or financial condition for any fiscal quarter or year. Catastrophic events are inherently unpredictable and the actual nature of such events, when they occur, could be more frequent or severe than contemplated in our pricing and risk management expectations.
If our shareholders do not approve either of the foregoing, we may be restricted or unable to return capital to shareholders through share repurchases in the future.
If our shareholders do not approve either of the foregoing, we may be restricted or unable to return capital to shareholders through share repurchases in the future. Furthermore, our current repurchase program relies on bank counterparties for execution and Swiss tax rulings confirmed by the competent tax authority for a certain period.
This framework, along with related administrative guidance, could redefine what income is taxed in which country and institute a 15 percent global minimum tax in 2024 or later years. To date, many EU and other countries have enacted the 15 percent global minimum tax.
The OECD has published a framework for taxation that in many respects is different than long standing international tax principles. This framework, along with related Administrative Guidance, is redefining what income is taxed in which country and instituted a 15 percent global minimum tax in 2024 or later years.
While we generally seek to mitigate this risk through collateral agreements and maintain a provision for uncollectible accounts associated with this credit exposure, an 24 Table of Contents increased inability of customers to reimburse us in this context could have an adverse effect on our financial condition and results of operations.
This obligation subjects us to credit risk from these customers. An increased inability of customers to reimburse us in this context could have an adverse effect on our financial condition and results of operations.
Although our investment guidelines stress diversification of risks and conservation of principal and liquidity, our investments are subject to market risks and risks inherent in individual securities. Our investment performance is highly sensitive to many factors, including interest rates, inflation, monetary and fiscal policies, and domestic and international political conditions.
Our investment performance is highly sensitive to many factors, including interest rates, inflation, monetary and fiscal policies, and domestic and international political conditions. The volatility of our losses may force us to liquidate securities, which may cause us to incur capital losses.
Any future revocation, lapse, expiration, or loss of our Swiss tax rulings or the inability to conduct repurchases in accordance with these rulings could jeopardize our ability to continue repurchasing our shares. Our operating results and shareholders' equity may be adversely affected by currency fluctuations. Our reporting currency is the U.S. dollar.
We can re-apply for such tax rulings in the future but cannot guarantee that they will also be granted going forward. Any future revocation, lapse, expiration, or loss of our Swiss tax rulings or the inability to conduct repurchases in accordance with these rulings could jeopardize our ability to continue repurchasing our shares.
In addition, the modeled outputs and related analyses may from time to time contain inaccuracies, perhaps in material respects, including as a result of inaccurate inputs or applications thereof. Climate change may make modeled outcomes less certain or produce new, non-modeled risks. Consequently, actual results may differ materially from our modeled results.
Climate change may make modeled outcomes less certain or produce new, non-modeled risks. Consequently, actual results may differ materially from our modeled results.
We will be at a competitive disadvantage if, over time, our competitors are more effective than us in their utilization of technology and evolving data analytics. If we do not anticipate or keep pace with these technological and other changes impacting the insurance industry, it could adversely affect our business results of operations and financial condition.
If we do 27 Table of Contents not anticipate or keep pace with these technological and other changes impacting the insurance industry, it could adversely affect our business results of operations and financial condition. Insurance and reinsurance markets are historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates.
Removed
Although we attempt to manage our exposure to such events through the use of underwriting controls, risk models, and the purchase of third-party reinsurance, catastrophic events are inherently unpredictable and the actual nature of such events, when they occur, could be more frequent or severe than contemplated in our pricing and risk management expectations.
Added
The amount of capital that our insurance subsidiaries have and must hold to maintain their financial strength and credit ratings and meet other requirements can vary significantly from time to time and is sensitive to a number of factors, some of which are outside of our control.
Removed
This obligation subjects us to credit risk from these customers.
Added
Capital requirements for our insurance subsidiaries are prescribed by the applicable insurance regulators, while rating agencies establish requirements that inform ratings for our insurance subsidiaries. Projecting surplus and the related capital requirements is complex and requires making assumptions regarding how our business will perform within the broader macroeconomic environment.
Removed
The volatility of our losses may force us to liquidate securities, which may cause us to incur capital losses. Realized and unrealized losses in our investment portfolio would reduce our book value, and if material, can affect our ability to conduct business.
Added
Insurance regulators and rating agencies evaluate company capital through financial models that calculate minimum capitalization requirements based on risk-based capital formulas for property and casualty insurance groups and their subsidiaries.
Removed
Furthermore, our current repurchase program relies on bank counterparties for execution and Swiss tax rulings confirmed by the competent tax authority for a certain period. 26 Table of Contents We can re-apply for such tax rulings in the future but cannot guarantee that they will also be granted going forward.
Added
In any particular year, capital levels and risk-based capital requirements may increase or decrease depending on a variety of factors including the mix of business written by our insurance subsidiaries and correlation or diversification in the business profile, the amount of additional capital our insurance subsidiaries must hold to support business growth, the value of securities in our investment portfolio, changes in interest rates and foreign currency exchange rates, as well as changes to the regulatory and rating agency models used to determine our required capital.
Removed
Responding to such disclosure requirements and requests involves risks and uncertainties, including dependence in part on estimates and third-party data that are outside our control.
Added
The extent of regulation on our insurance business varies across the jurisdictions where we operate, but generally is governed by laws that delegate regulatory, supervisory and administrative authority to insurance departments and similar regulatory agencies.
Removed
Despite the contingency plans and facilities we have in place and our efforts to observe the regulatory requirements surrounding information security, our ability to conduct business may be adversely affected by a disruption of the infrastructure that supports our business in the communities in which we are located, or of outsourced services or functions.
Added
The laws and regulations of the jurisdictions in which our insurance and reinsurance subsidiaries are domiciled generally grant regulatory agencies and/or self-regulatory organizations broad rulemaking and enforcement powers, including the power to regulate the issuance, marketing, sale and distribution of our products, the manner in which we underwrite our policies, the delivery of our services, the nature or extent of disclosures that we give our customers, the compensation of our distribution partners, the manner in which we handle claims on our policies and the administration of our policies and contracts, as well as the power to limit or restrict our business for failure to comply with applicable laws and regulations.
Removed
The imposition of the Bermuda corporate income tax will increase our effective tax rate and cash taxes paid beginning in 2025. We could be adversely affected by certain features of the Inflation Reduction Act. On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) of 2022 (H.R. 5376).
Added
New laws similar to the GDPR and the CCPA are expected to be enacted in coming years in various countries and jurisdictions in which we operate. 25 Table of Contents Regulatory standards relating to the use of artificial intelligence (AI) are evolving in the countries where we do business, and may increase risks associated with bias, unfair discrimination, transparency, and information security.
Removed
Key tax provisions included in the Inflation Reduction Act include a 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income for corporations with average profits over $1 billion, and a 1 percent excise tax on repurchases of corporate stock.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeTo our knowledge, and as of the filing date on this annual report, risks from cybersecurity threats, including potential risks arising from previous cybersecurity incidents, have not materially affected, nor are they reasonably likely to materially affect Chubb’s business strategy, results of operations, or financial condition.
Biggest changeTo our knowledge, and as of the filing date on this annual report, risks from cybersecurity threats, including potential risks arising from previous cybersecurity incidents, have not materially affected Chubb’s business strategy, results of operations, or financial condition.
Consistent with our incident response plan, the CISO informs the Chief Privacy Officer, who is a member of our legal team, and they notify other members of management of significant cybersecurity incidents and provide them with regular updates on the status of such incidents, including mitigation, remediation, and steps to avoid recurrence.
Consistent with our incident response plan, the CISO informs the Chief Privacy Officer, who is a member of our legal team, and they notify other members of management of significant cybersecurity incidents and provide them with regular updates on the status of such incidents, including mitigation, remediation, and steps to avoid recurrence. 32 Table of Contents
The Audit and Risk & Finance Committees also conduct a joint meeting on ERM matters, which includes coverage of strategic risk priorities, as well as Chubb’s actions and mitigation efforts in response to such risks. The management-level responsibility for assessing and managing cybersecurity risk is led by our CISO and CTO.
The Audit and R&F Committees also conduct a joint meeting on ERM matters, which includes coverage of strategic risk priorities, including cybersecurity, as well as Chubb’s actions and mitigation efforts in response to such risks. The management-level responsibility for assessing and managing cybersecurity risk is led by our CISO and CTO.
The Risk & Finance Committee is responsible for oversight of risk generally and identifying significant risks, which may include risks relating to cybersecurity and privacy, business continuity risk (including the resilience of IT operations and physical infrastructure) and cyber underwriting risk.
The R&F Committee is responsible for oversight of risk generally and identifying significant risks, which may include risks relating to cybersecurity and privacy, business continuity risk (including the resilience of IT operations and physical infrastructure) and cyber underwriting risk.
We use a variety of training methods, including computer-based training, role-based training, company intranet awareness campaigns, and various simulation exercises. 34 Table of Contents Data Protection Culture Chubb actively promotes a data protection culture. We maintain policies and standards designed to protect personal and corporate information.
We use a variety of training methods, including computer-based training, role-based training, company intranet awareness campaigns, and various simulation exercises. Data Protection Culture Chubb actively promotes a data protection culture. We maintain policies, standards, and technology designed to protect personal and corporate information.
Direct Chubb Board-level oversight is generally within the purview of two of the Board’s committees: Audit and Risk & Finance. The Audit Committee is responsible for oversight of our cybersecurity program and related exposures and risks. The Audit Committee periodically reports to the full Board and consults with the Risk & Finance Committee on such matters.
Direct Chubb Board-level oversight is generally within the purview of two of the Board’s committees: Audit and R&F Committee. The Audit Committee is responsible for oversight of our cybersecurity program and related exposures and risks. The Audit Committee periodically reports to the full Board and consults with the R&F Committee on such matters.
In addition, we benchmark our programs against key regulatory frameworks and conduct technical assessments of our controls, which may include penetration testing and other technical testing. These processes are integrated into our established Enterprise Risk Management (ERM) framework, which is led by Chubb's senior management and overseen by our Board's Risk & Finance Committee.
In addition, we benchmark our programs against key regulatory frameworks and conduct technical assessments of our controls, which may include penetration testing and other technical testing. These processes are integrated into our established Enterprise Risk 31 Table of Contents Management (ERM) framework, which is led by Chubb's senior management and overseen by our Board's Risk & Finance (R&F) Committee.
The oversight responsibilities of the Audit and Risk & Finance Committees with respect to cyber security and information technology risks are each set forth in their respective charters. Members of management, including our Chief Information Security Officer (CISO) and Global Chief Technology Officer (CTO), regularly provide updates to these committees in person and through written reports.
The oversight responsibilities of the Audit and R&F Committees with respect to cybersecurity and information technology risks are each set forth in their respective charters. Members of management, including our Chief Information Security Officer (CISO) and Global Chief Technology Officer (CTO), regularly provide updates to these committees in person and through written reports.
In accordance with our cybersecurity risk assessment processes, we have deployed a set of cybersecurity controls to 35 Table of Contents protect Chubb.
In accordance with our cybersecurity risk assessment processes, we have deployed a set of cybersecurity controls to protect Chubb.

Item 2. Properties

Properties — owned and leased real estate

1 edited+2 added−0 removed1 unchanged
Biggest changeMost of our office facilities are leased, although we own major facilities in Hamilton, Bermuda; Seoul, South Korea; Beijing and Shanghai, China; and in the U.S., including in Philadelphia, Pennsylvania; Wilmington, Delaware; and Simsbury, Connecticut. Management considers its office facilities suitable and adequate for the current level of operations.
Biggest changeMost of our office facilities are leased, although we own major facilities in Hamilton, Bermuda; Seoul, South Korea; Beijing and Shanghai, China; and in the U.S., including in Philadelphia, Pennsylvania; Wilmington, Delaware; and Simsbury, Connecticut.
Added
As of the date of this filing, our Philadelphia, Pennsylvania and Wilmington, Delaware office properties are being marketed for sale, with the transactions expected to close shortly after the date of this filing. Following these transactions, we expect to relocate operations in Philadelphia to a new leased office within the same city and consolidate Wilmington operations into this facility.
Added
Management considers its office facilities suitable and adequate for the current level of operations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeWe have paid dividends each quarter since we became a public company in 1993. In 2024 and 2023, our annual dividends were paid by way of a distribution from capital contribution reserves (Additional paid-in capital) through the transfer of dividends from Additional paid-in capital to Retained earnings (free reserves) as approved by our shareholders.
Biggest changeIn 2025 and 2024, our annual dividends were paid by way of a distribution from capital contribution reserves (Additional paid-in capital) through the transfer of dividends from Additional paid-in capital to Retained earnings (free reserves) as approved by our shareholders. Chubb Limited is a holding company whose principal sources of income are dividends and interest income from its operating subsidiaries.
Refer to Part I, Item 1A and Part II, Item 7 for additional information. The number of record holders of Common Shares as of February 20, 2025, was 6,594.
Refer to Part I, Item 1A and Part II, Item 7 for additional information. The number of record holders of Common Shares as of February 20, 2026, was 6,265.
(2) The aggregate value of shares purchased in the three months ended December 31, 2024, as part of the publicly announced plan was $725 million. Refer to Note 15 to the Consolidated Financial Statements for more information on the Chubb Limited securities repurchase authorizations.
(2) The aggregate value of shares purchased in the three months ended December 31, 2025, as part of the publicly announced plan was $1.1 billion. Refer to Note 15 to the Consolidated Financial Statements for more information on the Chubb Limited securities repurchase authorizations.
As of February 26, 2025, $1.53 billion in share repurchase authorization remained. 37 Table of Contents Performance Graph Set forth below is a line graph comparing the dollar change in the cumulative total shareholder return on Chubb's Common Shares from December 31, 2019, through December 31, 2024, as compared to the cumulative total return of the Standard & Poor's 500 Stock Index and the cumulative total return of the Standard & Poor's Property-Casualty Insurance Index.
As of February 26, 2026, $2.11 billion in share repurchase authorization remained. 34 Table of Contents Performance Graph Set forth below is a line graph comparing the dollar change in the cumulative total shareholder return on Chubb's Common Shares from December 31, 2020, through December 31, 2025, as compared to the cumulative total return of the Standard & Poor's 500 Stock Index and the cumulative total return of the Standard & Poor's Property-Casualty Insurance Index.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our Common Shares have been listed on the New York Stock Exchange since March 25, 1993, with a current par value of CHF 0.50 per share. The trading symbol for our Common Shares is "CB".
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our Common Shares have been listed on the New York Stock Exchange (NYSE: CB) since March 25, 1993, with a current par value of CHF 0.50 per share. We have paid dividends each quarter since we became a public company in 1993.
(3) For the period January 1, 2025, through February 26, 2025, we repurchased 543,782 Common Shares for a total of $148 million in a series of open market transactions.
(3) For the period January 1, 2026, through February 26, 2026, we repurchased 1,716,988 Common Shares for a total of $551 million in a series of open market transactions.
Issuer's Repurchases of Equity Securities for the Three Months Ended December 31, 2024 Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan (2) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (3) October 1 through October 31 338 $ 289.85 — $ 2.40 billion November 1 through November 30 421,683 $ 281.73 420,000 $ 2.28 billion December 1 through December 31 2,185,641 $ 278.21 2,182,601 $ 1.68 billion Total 2,607,662 $ 278.78 2,602,601 (1) This column represents open market share repurchases and the surrender to Chubb of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees and to cover the cost of the exercise of options by employees through stock swaps.
Issuer's Repurchases of Equity Securities for the Three Months Ended December 31, 2025 Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan (2) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (3) October 1 through October 31 1,542,738 $ 272.04 1,540,000 $ 3.35 billion November 1 through November 30 1,201,994 $ 282.08 1,200,831 $ 3.00 billion December 1 through December 31 1,126,112 $ 298.89 1,123,919 $ 2.66 billion Total 3,870,844 $ 282.97 3,864,750 (1) This colum n represents open market share repurchases and the surrender to Chubb of Common Shares to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees and to cover the cost of the exercise of options by employees through stock swaps.
Chubb Limited is a holding company whose principal sources of income are dividends and interest income from its operating subsidiaries. The ability of the operating subsidiaries to pay dividends to us and our ability to pay dividends to our shareholders are each subject to legal and regulatory restrictions.
The ability of the operating subsidiaries to pay dividends to us and our ability to pay dividends to our shareholders are each subject to legal and regulatory restrictions.
The chart depicts the value on December 31, 2020, 2021, 2022, 2023, and 2024, of a $100 investment made on December 31, 2019, with all dividends reinvested. 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Chubb Limited $100 $101 $130 $150 $157 $194 S&P 500 Index $100 $118 $152 $125 $158 $197 S&P 500 P&C Index $100 $107 $128 $152 $168 $228
The chart depicts the value on December 31, 2021, 2022, 2023, 2024, and 2025, of a $100 investment made on December 31, 2020, with all dividends reinvested. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Chubb Limited $100 $128 $148 $155 $191 $219 S&P 500 Index $100 $129 $105 $133 $166 $196 S&P 500 P&C Index $100 $119 $142 $157 $213 $234

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

186 edited+22 added−50 removed245 unchanged
Biggest changeWe previously included our share of Huatai results based on our equity method investment within Other (income) expense. % Change (in millions of U.S. dollars, except for percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Net premiums written $ 13,972 $ 12,575 $ 11,060 11.1 % 13.7 % Net premiums written - constant dollars 11.8 % 13.3 % Net premiums earned 13,400 12,231 10,803 9.6 % 13.2 % Losses and loss expenses 6,414 5,643 4,894 13.7 % 15.3 % Policy benefits 408 457 358 (10.9) % 27.7 % Policy acquisition costs 3,410 3,113 2,818 9.5 % 10.4 % Administrative expenses 1,351 1,219 1,070 10.8 % 14.0 % Underwriting income 1,817 1,799 1,663 1.0 % 8.2 % Net investment income 1,136 895 626 26.8 % 43.0 % Other (income) expense 14 (25) 2 NM NM Amortization of purchased intangibles 81 70 57 15.8 % 22.2 % Segment income $ 2,858 $ 2,649 $ 2,230 7.9 % 18.8 % Segment income - constant dollars 7.9 % 18.3 % Combined ratio: Loss and loss expense ratio 50.9 % 49.9 % 48.6 % 1.0 pts 1.3 pts Policy acquisition cost ratio 25.4 % 25.4 % 26.1 % — pts (0.7) pts Administrative expense ratio 10.1 % 10.0 % 9.9 % 0.1 pts 0.1 pts Combined ratio 86.4 % 85.3 % 84.6 % 1.1 pts 0.7 pts Catastrophe losses (3.4) % (3.3) % (3.4) % (0.1) pts 0.1 pts Prior period development 2.2 % 3.1 % 4.2 % (0.9) pts (1.1) pts CAY combined ratio excluding catastrophe losses 85.2 % 85.1 % 85.4 % 0.1 pts (0.3) pts NM – not meaningful Net Catastrophe Losses and Prior Period Development (in millions of U.S. dollars) 2024 2023 2022 Net catastrophe losses $ 459 $ 403 $ 365 Favorable prior period development $ 290 $ 376 $ 448 Catastrophe losses were primarily from the following events: •2024: Rio Grande Storms, Hurricane Helene, Hurricane Milton, and International weather-related events. •2023: Storms in New Zealand, international weather-related events, and Hurricane Otis losses. •2022: Hurricane Ian losses, international weather-related events, and storms in Australia.
Biggest changeChubb provides funds at Lloyd's to support underwriting by Syndicate 2488 which is managed by Chubb Underwriting Agencies Limited. % Change (in millions of U.S. dollars, except for percentages) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Net premiums written $ 15,024 $ 13,972 $ 12,575 7.5 % 11.1 % Net premiums written - constant dollars 8.0 % 11.8 % Net premiums earned 14,374 13,400 12,231 7.3 % 9.6 % Losses and loss expenses 6,589 6,414 5,643 2.7 % 13.7 % Policy benefits 470 408 457 15.4 % (10.9) % Policy acquisition costs 3,724 3,410 3,113 9.2 % 9.5 % Administrative expenses 1,435 1,351 1,219 6.2 % 10.8 % Underwriting income 2,156 1,817 1,799 18.6 % 1.0 % Net investment income 1,139 1,136 895 0.3 % 26.8 % Other (income) expense 50 14 (25) NM NM Amortization of purchased intangibles 78 81 70 (4.3) % 15.8 % Segment income $ 3,167 $ 2,858 $ 2,649 10.8 % 7.9 % Segment income - constant dollars 10.6 % 7.9 % Combined ratio: Loss and loss expense ratio 49.1 % 50.9 % 49.9 % (1.8) pts 1.0 pts Policy acquisition cost ratio 25.9 % 25.4 % 25.4 % 0.5 pts — pts Administrative expense ratio 10.0 % 10.1 % 10.0 % (0.1) pts 0.1 pts Combined ratio 85.0 % 86.4 % 85.3 % (1.4) pts 1.1 pts Catastrophe losses (3.5) % (3.4) % (3.3) % (0.1) pts (0.1) pts Prior period development 3.3 % 2.2 % 3.1 % 1.1 pts (0.9) pts CAY combined ratio excluding catastrophe losses 84.8 % 85.2 % 85.1 % (0.4) pts 0.1 pts NM – not meaningful Net Catastrophe Losses and Prior Period Development (in millions of U.S. dollars) 2025 2024 2023 Net catastrophe losses $ 505 $ 459 $ 403 Favorable prior period development $ 471 $ 290 $ 376 Refer to Note 8 to the Consolidated Financial Statements for detail on prior period development. 57 Table of Contents Net Premiums Written by Region % Change (in millions of U.S. dollars, except for percentages) 2025 2024 2023 C$ 2024 2025 vs. 2024 C$ 2025 vs. 2024 2024 vs. 2023 Region Europe, Middle East, and Africa $ 6,491 $ 6,132 $ 5,713 $ 6,221 5.9 % 4.3 % 7.3 % Asia (1) 5,337 4,822 4,072 4,797 10.7 % 11.3 % 18.4 % Latin America 3,059 2,876 2,653 2,749 6.3 % 11.3 % 8.4 % Other (2) 137 142 137 143 (3.4) % (3.7) % 4.2 % Net premiums written $ 15,024 $ 13,972 $ 12,575 $ 13,910 7.5 % 8.0 % 11.1 % Region 2025 % of Total 2024 % of Total 2023 % of Total Europe, Middle East, and Africa 43 % 44 % 45 % Asia (1) 36 % 34 % 33 % Latin America 20 % 21 % 21 % Other (2) 1 % 1 % 1 % Net premiums written 100 % 100 % 100 % (1) Includes the consolidated results of Huatai P&C effective July 1, 2023.
Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. 67 Table of Contents North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Corporate Total P&C For the Year Ended December 31, 2023 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 11,256 $ 3,511 $ 2,874 $ 6,100 $ 426 $ 281 $ 24,448 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (710) (669) (39) (403) (7) — (1,828) Reinstatement premiums collected (expensed) on catastrophe losses — — — — — — — Catastrophe losses, gross of related adjustments (710) (669) (39) (403) (7) — (1,828) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 494 134 18 376 28 (277) 773 Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — 6 — — — 84 Expense adjustments - unfavorable (favorable) 20 — — — (1) — 19 PPD reinstatement premiums - unfavorable (favorable) — (2) — — 8 — 6 PPD, gross of related adjustments - favorable (unfavorable) 592 132 24 376 35 (277) 882 CAY loss and loss expense ex CATs B $ 11,138 $ 2,974 $ 2,859 $ 6,073 $ 454 $ 4 $ 23,502 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 3,765 $ 1,457 $ 149 $ 4,332 $ 301 $ 402 $ 10,406 Expense adjustments - favorable (unfavorable) (20) — — — 1 — (19) Policy acquisition costs and administrative expenses, adjusted D $ 3,745 $ 1,457 $ 149 $ 4,332 $ 302 $ 402 $ 10,387 Denominator Net premiums earned E $ 18,416 $ 5,536 $ 3,169 $ 12,231 $ 962 $ 40,314 Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — 6 — — 84 PPD reinstatement premiums - unfavorable (favorable) — (2) — — 8 6 Net premiums earned excluding adjustments F $ 18,494 $ 5,534 $ 3,175 $ 12,231 $ 970 $ 40,404 P&C Combined ratio Loss and loss expense ratio A/E 61.1 % 63.4 % 90.7 % 49.9 % 44.3 % 60.6 % Policy acquisition cost and administrative expense ratio C/E 20.5 % 26.3 % 4.7 % 35.4 % 31.2 % 25.9 % P&C Combined ratio 81.6 % 89.7 % 95.4 % 85.3 % 75.5 % 86.5 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.2 % 53.8 % 90.1 % 49.7 % 46.8 % 58.2 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.3 % 26.3 % 4.6 % 35.4 % 31.1 % 25.7 % CAY P&C Combined ratio ex CATs 80.5 % 80.1 % 94.7 % 85.1 % 77.9 % 83.9 % Combined ratio Combined ratio 86.5 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.5 % Note: The ratios above are calculated using whole U.S. dollars.
Letters A, B, C, D, E and F included in the table are references for calculating the ratios above. 65 Table of Contents North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Corporate Total P&C For the Year Ended December 31, 2023 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 11,256 $ 3,511 $ 2,874 $ 6,100 $ 426 $ 281 $ 24,448 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (710) (669) (39) (403) (7) — (1,828) Reinstatement premiums collected (expensed) on catastrophe losses — — — — — — — Catastrophe losses, gross of related adjustments (710) (669) (39) (403) (7) — (1,828) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 494 134 18 376 28 (277) 773 Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — 6 — — — 84 Expense adjustments - unfavorable (favorable) 20 — — — (1) — 19 PPD reinstatement premiums - unfavorable (favorable) — (2) — — 8 — 6 PPD, gross of related adjustments - favorable (unfavorable) 592 132 24 376 35 (277) 882 CAY loss and loss expense ex CATs B $ 11,138 $ 2,974 $ 2,859 $ 6,073 $ 454 $ 4 $ 23,502 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 3,765 $ 1,457 $ 149 $ 4,332 $ 301 $ 402 $ 10,406 Expense adjustments - favorable (unfavorable) (20) — — — 1 — (19) Policy acquisition costs and administrative expenses, adjusted D $ 3,745 $ 1,457 $ 149 $ 4,332 $ 302 $ 402 $ 10,387 Denominator Net premiums earned E $ 18,416 $ 5,536 $ 3,169 $ 12,231 $ 962 $ 40,314 Net premiums earned adjustments on PPD - unfavorable (favorable) 78 — 6 — — 84 PPD reinstatement premiums - unfavorable (favorable) — (2) — — 8 6 Net premiums earned excluding adjustments F $ 18,494 $ 5,534 $ 3,175 $ 12,231 $ 970 $ 40,404 P&C Combined ratio Loss and loss expense ratio A/E 61.1 % 63.4 % 90.7 % 49.9 % 44.3 % 60.6 % Policy acquisition cost and administrative expense ratio C/E 20.5 % 26.3 % 4.7 % 35.4 % 31.2 % 25.9 % P&C Combined ratio 81.6 % 89.7 % 95.4 % 85.3 % 75.5 % 86.5 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.2 % 53.8 % 90.1 % 49.7 % 46.8 % 58.2 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.3 % 26.3 % 4.6 % 35.4 % 31.1 % 25.7 % CAY P&C Combined ratio ex CATs 80.5 % 80.1 % 94.7 % 85.1 % 77.9 % 83.9 % Combined ratio Combined ratio 86.5 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.5 % Note: The ratios above are calculated using whole U.S. dollars.
These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the SEC, include but are not limited to: • actual amount of new and renewal business, premium rates, underwriting margins, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets; the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections, and changes in market conditions that could render our business strategies ineffective or obsolete; • losses arising out of natural or man-made catastrophes; actual loss experience from insured or reinsured events and the timing of claim payments; the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments; • changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance; • uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties; judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms; the effects of data privacy or cyber laws or regulation; global political conditions and possible business disruption or economic contraction that may result from such events; • the impact of changes in tax laws, guidance and interpretations, such as the implementation of the Organization for Economic Cooperation and Development international tax framework, or the increasing number of challenges from tax authorities in the current global tax environment; • severity of pandemics and related risks, and their effects on our business operations and claims activity, and any adverse impact to our insureds, brokers, agents, and employees; actual claims may exceed our best estimate of ultimate insurance losses incurred which could change including as a result of, among other things, the impact of legislative or regulatory actions taken in response to a pandemic; • developments in global financial markets, including changes in interest rates, stock markets, and other financial markets; increased government involvement or intervention in the financial services industry; the cost and availability of financing, and foreign currency exchange rate fluctuations; changing rates of inflation; and other general economic and business conditions, including the depth and duration of potential recession; • the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; and the amount of dividends received from subsidiaries; • changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale fixed maturity investments before their anticipated recovery; • actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent; • the effects of public company bankruptcies and accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues; • acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization, and risks and uncertainties relating to our planned purchases of additional interests in Huatai Insurance Group Co., Ltd; • risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens; share repurchase plans and share cancellations; • loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame; 40 Table of Contents • the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; and • management’s response to these factors and actual events (including, but not limited to, those described above).
These risks, uncertainties, and other factors, which are described in more detail elsewhere herein and in other documents we file with the SEC, include but are not limited to: • actual amount of new and renewal business, premium rates, underwriting margins, market acceptance of our products, and risks associated with the introduction of new products and services and entering new markets; the competitive environment in which we operate, including trends in pricing or in policy terms and conditions, which may differ from our projections, and changes in market conditions that could render our business strategies ineffective or obsolete; • losses arising out of natural or man-made catastrophes; actual loss experience from insured or reinsured events and the timing of claim payments; the uncertainties of the loss-reserving and claims-settlement processes, including the difficulties associated with assessing environmental damage and asbestos-related latent injuries, the impact of aggregate-policy-coverage limits, the impact of bankruptcy protection sought by various asbestos producers and other related businesses, and the timing of loss payments; • changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; the ability to collect reinsurance recoverable, credit developments of reinsurers, and any delays with respect thereto and changes in the cost, quality, or availability of reinsurance; • uncertainties relating to governmental, legislative and regulatory policies, developments, actions, investigations, and treaties; judicial decisions and rulings, new theories of liability, legal tactics, and settlement terms; the effects of data privacy or cyber laws or regulation; global political conditions and possible business disruption or economic contraction that may result from such events; • the impact of changes in tax laws, guidance and interpretations, such as the implementation of the Organization for Economic Cooperation and Development international tax framework, or the increasing number of challenges from tax authorities in the current global tax environment; • severity of pandemics and related risks, and their effects on our business operations and claims activity, and any adverse impact to our insureds, brokers, agents, and employees; actual claims may exceed our best estimate of ultimate insurance losses incurred which could change including as a result of, among other things, the impact of legislative or regulatory actions taken in response to a pandemic; • developments in global financial markets, including changes in interest rates, stock markets, and other financial markets; increased government involvement or intervention in the financial services industry; the cost and availability of financing, and foreign currency exchange rate fluctuations; changing rates of inflation; and other general economic and business conditions, including the depth and duration of potential recession; • the availability of borrowings and letters of credit under our credit facilities; the adequacy of collateral supporting funded high deductible programs; and the amount of dividends received from subsidiaries; • changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale fixed maturity investments before their anticipated recovery; • actions that rating agencies may take from time to time, such as financial strength or credit ratings downgrades or placing these ratings on credit watch negative or the equivalent; • the effects of public company bankruptcies and accounting restatements, as well as disclosures by and investigations of public companies relating to possible accounting irregularities, and other corporate governance issues; • acquisitions made performing differently than expected, our failure to realize anticipated expense-related efficiencies or growth from acquisitions, the impact of acquisitions on our pre-existing organization; • risks associated with being a Swiss corporation, including reduced flexibility with respect to certain aspects of capital management and the potential for additional regulatory burdens; share repurchase plans and share cancellations; • loss of the services of any of our executive officers without suitable replacements being recruited in a reasonable time frame; 37 Table of Contents • the ability of our technology resources, including information systems and security, to perform as anticipated such as with respect to preventing material information technology failures or third-party infiltrations or hacking resulting in consequences adverse to Chubb or its customers or partners; the ability of our company to increase use of data analytics and technology as part of our business strategy and adapt to new technologies; and • management’s response to these factors and actual events (including, but not limited to, those described above).
Historically, dividends and other statutorily permitted payments have come primarily from Chubb's Bermuda-based operating subsidiaries, which we refer to as our Bermuda subsidiaries. During 2024, in accordance with a plan of liquidation and conversion of Chubb INA Holdings Inc.
Historically, dividends and other statutorily permitted payments have come primarily from Chubb's Bermuda-based operating subsidiaries, which we refer to as our Bermuda subsidiaries. During 2025 and 2024, in accordance with a plan of liquidation and conversion of Chubb INA Holdings Inc.
The increase in the ETR from 2023 to 2024 was primarily due to a one-time deferred tax benefit recorded in 2023 of $1.14 billion related to the enactment of Bermuda’s new income tax law, and our mix of earnings among various jurisdictions, partially offset by discrete tax items. 64 Table of Contents Net Realized and Unrealized Gains (Losses) We take a long-term view with our investment strategy, and our investment managers manage our investment portfolio to maximize total return within specific guidelines designed to minimize risk.
The increase in the ETR from 2023 to 2024 was primarily due to a one-time deferred tax benefit recorded in 2023 of $1.14 billion related to the enactment of Bermuda’s new income tax law, and our mix of earnings among various jurisdictions, partially offset by discrete tax items. 61 Table of Contents Net Realized and Unrealized Gains (Losses) We take a long-term view with our investment strategy, and our investment managers manage our investment portfolio to maximize total return within specific guidelines designed to minimize risk.
We use various tests to accomplish this, one of which is the ratio of the net present value of losses and commissions divided by the net present value of premiums equals or exceeds 110 percent with at least a 10 percent probability.
We use various tests to accomplish this, one of which is the ratio of the net present value of losses and ceded commissions divided by the net present value of premiums equals or exceeds 110 percent with at least a 10 percent probability.
Therefore, we urge caution in using these very simplistic ratios to gauge reserve adequacy. 76 Table of Contents Catastrophe Management We activel y monitor and manage our catastrophe risk accumulation around the world from natural perils, which includes setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies, and policyholders, and to provide shareholders with an appropriate risk-adjusted return.
Therefore, we urge caution in using these very simplistic ratios to gauge reserve adequacy. 72 Table of Contents Catastrophe Management We activel y monitor and manage our catastrophe risk accumulation around the world from natural perils, which includes setting risk limits based on probable maximum loss (PML) and purchasing catastrophe reinsurance to ensure sufficient liquidity and capital to meet the expectations of regulators, rating agencies, and policyholders, and to provide shareholders with an appropriate risk-adjusted return.
Our internal data analysis enables us to establish catastrophe reserves for known events with more certainty at an earlier date than would be the case if we solely relied on reports from third parties to determine carried reserves. 44 Table of Contents For our casualty reinsurance business, we generally rely on ceding companies to report claims and then use that data as a key input to estimate unpaid losses and loss expenses.
Our internal data analysis enables us to establish catastrophe reserves for known events with more certainty at an earlier date than would be the case if we solely relied on reports from third parties to determine carried reserves. 41 Table of Contents For our casualty reinsurance business, we generally rely on ceding companies to report claims and then use that data as a key input to estimate unpaid losses and loss expenses.
Our assessment also incorporates the impact of a severe economic downturn which, as stated above under Financial Risk, includes an adverse impact to our investment portfolio and to our insurance products sensitive to certain system-wide financial conditions. 78 Table of Contents Global Property Catastrophe Reinsurance Program Chubb’s core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments).
Our assessment also incorporates the impact of a severe economic downturn which, as stated above under Financial Risk, includes an adverse impact to our investment portfolio and to our insurance products sensitive to certain system-wide financial conditions. 74 Table of Contents Global Property Catastrophe Reinsurance Program Chubb’s core property catastrophe reinsurance program provides protection against natural catastrophes impacting its primary property operations (i.e., excluding our Global Reinsurance and Life Insurance segments).
In the event the S&P or AM Best financial strength ratings of Chubb fall, we may be faced with the cancellation of premium or be required to post collateral on our underlying obligation associated with this premium. 86 Table of Contents Information provided in connection with outstanding debt of subsidiaries Chubb INA Holdings LLC (Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor).
In the event the S&P or AM Best financial strength ratings of Chubb fall, we may be faced with the cancellation of premium or be required to post collateral on our underlying obligation associated with this premium. 82 Table of Contents Information provided in connection with outstanding debt of subsidiaries Chubb INA Holdings LLC (Subsidiary Issuer) is an indirect 100 percent-owned and consolidated subsidiary of Chubb Limited (Parent Guarantor).
For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, we use various estimation techniques, which include, but are not limited to: (i) for tenors 46 Table of Contents where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques.
For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, we use various estimation techniques, which include, but are not limited to: (i) for tenors 43 Table of Contents where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques.
Our below-investment grade and non-rated portfolio includes over 1,600 issuers, with the greatest single exposure being $178 million. We manage high-yield bonds as a distinct and separate asset class from investment grade bonds. The allocation to high-yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B).
Our below-investment grade and non-rated portfolio includes over 1,600 issuers, with the greatest single exposure being $206 million. We manage high-yield bonds as a distinct and separate asset class from investment grade bonds. The allocation to high-yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B).
Sensitivity to underlying assumptions While we believe that our reserve for unpaid losses and loss expenses at December 31, 2024, is adequate, new information or emerging trends that differ from our assumptions may lead to future development of losses and loss expenses that is significantly greater or less than the recorded reserve, which could have a material effect on future operating results.
Sensitivity to underlying assumptions While we believe that our reserve for unpaid losses and loss expenses at December 31, 2025, is adequate, new information or emerging trends that differ from our assumptions may lead to future development of losses and loss expenses that is significantly greater or less than the recorded reserve, which could have a material effect on future operating results.
Our minimum rating for initial purchase is BB/B. Fourteen external investment managers are responsible for high-yield security selection and portfolio construction. Our high-yield managers have a conservative approach to credit selection and very low historical default experience. Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit as a percentage of high-yield allocation.
Our minimum rating for initial purchase is BB/B. 15 external investment managers are responsible for high-yield security selection and portfolio construction. Our high-yield managers have a conservative approach to credit selection and very low historical default experience. Holdings are highly diversified across industries and generally subject to a 1.5 percent issuer limit as a percentage of high-yield allocation.
We have not assumed any such future changes in setting the value of our A&E liabilities, which include provisions for both reported and IBNR claims. 45 Table of Contents There are many complex variables that we consider when estimating the reserves for our inventory of asbestos accounts and these variables may directly impact the predicted outcome.
We have not assumed any such future changes in setting the value of our A&E liabilities, which include provisions for both reported and IBNR claims. 42 Table of Contents There are many complex variables that we consider when estimating the reserves for our inventory of asbestos accounts and these variables may directly impact the predicted outcome.
North America Commercial P&C Insurance – Liability As is the case for Workers’ Compensation above, given the long reporting and paid development patterns, the development factors used to project actual current losses to ultimate losses for our current exposure require considerable judgment that could 43 Table of Contents be material to consolidated loss and loss expense reserves.
North America Commercial P&C Insurance – Liability As is the case for Workers’ Compensation above, given the long reporting and paid development patterns, the development factors used to project actual current losses to ultimate losses for our current exposure require considerable judgment that could 40 Table of Contents be material to consolidated loss and loss expense reserves.
Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio. 75 Table of Contents Asbestos and Environmental (A&E) Asbestos and environmental (A&E) reserving considerations For asbestos, Chubb faces claims relating to policies issued to manufacturers, distributors, installers, and other parties in the chain of commerce for asbestos and products containing asbestos.
Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio. 71 Table of Contents Asbestos and Environmental (A&E) Asbestos and environmental (A&E) reserving considerations For asbestos, Chubb faces claims relating to policies issued to manufacturers, distributors, installers, and other parties in the chain of commerce for asbestos and products containing asbestos.
During 2024, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows. We assess which subsidiaries to draw dividends from based on a number of factors. Considerations such as regulatory and legal restrictions as well as the subsidiary's financial condition are paramount to the dividend decision.
During 2025, we were able to meet all our obligations, including the payments of dividends on our Common Shares, with our net cash flows. We assess which subsidiaries to draw dividends from based on a number of factors. Considerations such as regulatory and legal restrictions as well as the subsidiary's financial condition are paramount to the dividend decision.
If we cannot obtain adequate capital or sources of credit on favorable terms, on a timely basis, or at all, our 81 Table of Contents business, operating results, and financial condition could be adversely affected. To date, we have not experienced difficulty accessing our credit facility or establishing additional facilities when needed .
If we cannot obtain adequate capital or sources of credit on favorable terms, on a timely basis, or at all, our 77 Table of Contents business, operating results, and financial condition could be adversely affected. To date, we have not experienced difficulty accessing our credit facility or establishing additional facilities when needed .
Comparisons between 2023 and 2022 have been omitted from this Form 10-K, but can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2023. All comparisons in this discussion are to the prior year unless otherwise indicated.
Comparisons between 2024 and 2023 have been omitted from this Form 10-K, but can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2024. All comparisons in this discussion are to the prior year unless otherwise indicated.
Specifically, for our main U.S. Excess/Umbrella portfolios, a five percentage point change in the tail factor (e.g., 1.10 changed to either 1.15 or 1.05) would cause a change of approximately $0.8 billion, either positive or negative, for the projected net loss and loss expense reserves.
Specifically, for our main U.S. Excess/Umbrella portfolios, a five percentage point change in the tail factor (e.g., 1.10 changed to either 1.15 or 1.05) would cause a change of approximately $0.9 billion, either positive or negative, for the projected net loss and loss expense reserves.
The average credit quality of our non-U.S. fixed income securities is A/A and 39 percent of our holdings are rated AAA or guaranteed by governments or quasi-government agencies. Within the context of these investment portfolios, our government and corporate bond holdings are highly diversified across industries and geographies.
The average credit quality of our non-U.S. fixed income securities is A/A and 40 percent of our holdings are rated AAA or guaranteed by governments or quasi-government agencies. Within the context of these investment portfolios, our government and corporate bond holdings are highly diversified across industries and geographies.
Chubb INA's international subsidiaries are also subject to insurance laws and regulations particular to the countries in which the subsidiaries operate. These laws and regulations sometimes include restrictions that limit the amount of dividends payable without prior approval of regulatory insurance authorities. Chubb Limited received no dividends from Chubb INA in 2024 and 2023.
Chubb INA's international subsidiaries are also subject to insurance laws and regulations particular to the countries in which the subsidiaries operate. These laws and regulations sometimes include restrictions that limit the amount of dividends payable without prior approval of regulatory insurance authorities. Chubb Limited received no dividends from Chubb INA in 2025 and 2024.
At December 31, 2024 , our long-term cash requirements under our various contractual obligations and commitments include: • Gross loss payments under insurance and reinsurance contracts - We are obligated to pay claims under insurance and reinsurance contracts for specified covered loss events. Total cash requirements are not determinable from underlying contracts and must be estimated.
At December 31, 2025 , our long-term cash requirements under our various contractual obligations and commitments include: • Gross loss payments under insurance and reinsurance contracts - We are obligated to pay claims under insurance and reinsurance contracts for specified covered loss events. Total cash requirements are not determinable from underlying contracts and must be estimated.
The process of establishing loss reserves for property and casualty claims can be complex and is subject to considerable uncertainty as it requires the use of informed estimates and judgments based on circumstances underlying the insured losses 42 Table of Contents known at the date of accrual.
The process of establishing loss reserves for property and casualty claims can be complex and is subject to considerable uncertainty as it requires the use of informed estimates and judgments based on circumstances underlying the insured losses 39 Table of Contents known at the date of accrual.
If we determine that the premium margins or gross 47 Table of Contents profits are less than the unamortized balance, then the asset will be adjusted downward with the adjustment recorded as an expense in the current period. Unrecoverable costs are expensed in the period identified.
If we determine that the premium margins or gross 44 Table of Contents profits are less than the unamortized balance, then the asset will be adjusted downward with the adjustment recorded as an expense in the current period. Unrecoverable costs are expensed in the period identified.
Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2024, through March 31, 2025. The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis.
Chubb renewed its Global Property Catastrophe Reinsurance Program for our North American and International operations effective April 1, 2025, through March 31, 2026. The program consists of three layers in excess of losses retained by Chubb on a per occurrence basis.
The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at December 31, 2024, and does not represent our expected catastrophe losses for any one year. Modeled Net Probable Maximum Loss (PML) Pre-tax Worldwide (1) U.S.
The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at December 31, 2025, and does not represent our expected catastrophe losses for any one year. Modeled Net Probable Maximum Loss (PML) Pre-tax Worldwide (1) U.S.
North America Agricultural Insurance Approximately 58 percent of the reserves for this segment are from the crop related lines, which all have short payout patterns, with the majority of the liabilities expected to be resolved in the ensuing twelve months.
North America Agricultural Insurance Approximately 70 percent of the reserves for this segment are from the crop related lines, which all have short payout patterns, with the majority of the liabilities expected to be resolved in the ensuing twelve months.
We determine the reinsurance recoverable on unpaid losses and loss expenses using actuarial estimates as well as a determination of our ability to cede unpaid losses and loss expenses under existing reinsurance contracts. 48 Table of Contents The recognition of a reinsurance recoverable asset requires two key judgments.
We determine the reinsurance recoverable on unpaid losses and loss expenses using actuarial estimates as well as a determination of our ability to cede unpaid losses and loss expenses under existing reinsurance contracts. 45 Table of Contents The recognition of a reinsurance recoverable asset requires two key judgments.
For balances recoverable from unrated reinsurers for which our ceded reserve is below a certain threshold, we generally apply a default factor of 11.2 percent; • For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting valuation allowance for uncollectible reinsurance based on specific facts and circumstances surrounding 49 Table of Contents each company.
For balances recoverable from unrated reinsurers for which our ceded reserve is below a certain threshold, we generally apply a default factor of 11.2 percent; • For balances recoverable from reinsurers that are either insolvent or under regulatory supervision, we establish a default factor and resulting valuation allowance for uncollectible reinsurance based on specific facts and circumstances surrounding each company.
Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2024, through March 31, 2025, with the same limits and retention and percentage placed except that the majority of terrorism coverage is on an aggregate basis above our retentions without a reinstatement.
Chubb renewed its terrorism coverage (excluding nuclear, biological, chemical and radiation coverage, with an inclusion of coverage for biological and chemical coverage for personal lines) for the United States from April 1, 2025, through March 31, 2026, with the same limits, retention, and percentage placed except that the terrorism coverage is on an aggregate basis above our retentions without a reinstatement.
In addition, in the case of loans to government-owned entities or loans that have a government guarantee, political risk policies cover 79 Table of Contents scheduled payments against risks of non-payment or non-honoring of government guarantees.
In addition, in the case of loans to government-owned entities or loans that have a government guarantee, political risk policies cover 75 Table of Contents scheduled payments against risks of non-payment or non-honoring of government guarantees.
Global Reinsurance At December 31, 2024, net unpaid losses and loss expenses for the Global Reinsurance segment aggregated to $1.9 billion, consisting of $756 million of case reserves and $1,112 million of IBNR.
In comparison, at December 31, 2024, net unpaid losses and loss expenses for the Global Reinsurance segment aggregated to $1.9 billion, consisting of $756 million of case reserves and $1,112 million of IBNR.
However, based on the composition (particularly the average credit quality) of the reinsurance recoverable balance at December 31, 2024, we estimate that a ratings downgrade of one notch for all rated reinsurers (e.g., from A to A- or A- to BBB+) could increase our valuation allowance for uncollectible reinsurance by approximately $54 million or approximately 0.3 percent of the gross reinsurance recoverable balance, assuming no other changes relevant to the calculation.
However, based on the composition (particularly the average credit quality) of the reinsurance recoverable balance at December 31, 2025, we estimate that a ratings downgrade of one notch for all rated reinsurers (e.g., from A to A- or A- to BBB+) could increase our valuation allowance for uncollectible reinsurance by approximately $56 million or approximately 0.3 percent of the gross reinsurance recoverable balance, assuming no other changes relevant to the calculation.
There were no significant changes in the terms and conditions from the 2024 SRA and, therefore, the new SRA does not impact Chubb's outlook on the crop program relative to 2025. 80 Table of Contents We recognize net premiums written as soon as estimable on our MPCI business, which is generally when we receive acreage reports from the policyholders on the various crops throughout the U.S.
There were no significant changes in the terms and conditions from the 2025 SRA and, therefore, the new SRA does not impact Chubb's outlook on the crop program relative to 2026. 76 Table of Contents We recognize net premiums written as soon as estimable on our MPCI business, which is generally when we receive acreage reports from the policyholders on the various crops throughout the U.S.
We also have a shelf registration statement which allows us to issue an unlimited amount of certain classes of debt and equity from time to time. This shelf registration statement expires in October 2027. Securities Repurchases From time to time, we repurchase shares as part of our capital management program.
We also have a shelf registration statement which allows us to issue an unlimited amount of certain classes of debt and equity from time to time. This shelf registration statement expires in October 2027. 80 Table of Contents Securities Repurchases From time to time, we repurchase shares as part of our capital management program.
Our loss reserves comprise approximately 77 percent casualty-related business, which typically encompasses long-tail risks, and other risks where a high degree of judgment is required.
Our loss reserves comprise approximately 76 percent casualty-related business, which typically encompasses long-tail risks, and other risks where a high degree of judgment is required.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following is a discussion of our financial condition and results of operations for the years ended December 31, 2024 and 2023, and comparisons between 2024 and 2023.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following is a discussion of our financial condition and results of operations for the years ended December 31, 2025 and 2024, and comparisons between 2025 and 2024.
(2) U.S. hurricane modeled losses include losses from wind, storm-surge, and related precipitation-induced flooding. (3) California earthquake modeled losses include the fire-following sub-peril. The PML for worldwide and key U.S. peril regions are based on our in-force portfolio at October 1, 2024, and reflect the September 1, 2024, reinsurance program as well as inuring reinsurance protection coverage.
(2) U.S. hurricane modeled losses include losses from wind, storm-surge, and related precipitation-induced flooding. (3) California earthquake modeled losses include the fire-following sub-peril. The PML for worldwide and key U.S. peril regions are based on our in-force portfolio at October 1, 2025, and reflect the April 1, 2025, reinsurance program as well as inuring reinsurance protection coverage.
Also, issuers of below-investment grade securities usually have higher levels of debt and are more sensitive to adverse economic conditions, such as recession or increasing interest rates, than investment grade issuers. At December 31, 2024, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 14 percent of our fixed income portfolio.
Also, issuers of below-investment grade securities usually have higher levels of debt and are more sensitive to adverse economic conditions, such as recession or increasing interest rates, than investment grade issuers. At December 31, 2025, our corporate fixed income investment portfolio included below-investment grade and non-rated securities which, in total, comprised approximately 15 percent of our fixed income portfolio.
This represents an impact of about 18 percent relative to recorded net loss and loss expense reserves of approximately $4.3 billion for these portfolios.
This represents an impact of about 18 percent relative to recorded net loss and loss expense reserves of approximately $4.9 billion for these portfolios.
At December 31, 2024, the use of different assumptions within our approach could have a material effect on the valuation allowance for uncollectible reinsurance.
At December 31, 2025, the use of different assumptions within our approach could have a material effect on the valuation allowance for uncollectible reinsurance.
The following discussion provides more information regarding the estimates and assumptions required to arrive at these amounts and should be read in conjunction with the sections entitled: Prior Period Development, Asbestos and Environmental (A&E), Reinsurance Recoverable on Ceded Reinsur ance, Investments, and Net Realized and Unrealized Gains (Losses).
The following discussion provides more information regarding the estimates and assumptions required to arrive at these amounts and should be read in conjunction with the sections entitled: Prior Period Development, Asbestos and Environmental (A&E), Reinsurance Recoverable on Ceded Reinsur ance, and Investments, under item 8 and Net Realized and Unrealized Gains (Losses), under item 7.
Upon initial notification of an insolvency, we generally recognize expense for a substantial portion of all balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the valuation allowance for uncollectible reinsurance.
Upon initial notification of an insolvency, we generally recognize expense for a substantial portion of all 46 Table of Contents balances outstanding, net of collateral, through a combination of write-offs of recoverable balances and increases to the valuation allowance for uncollectible reinsurance.
Each year the RMA issues a final SRA for the subsequent reinsurance year (i.e., the 2025 SRA covers the 2025 reinsurance year from July 1, 2024, through June 30, 2025).
Each year the RMA issues a final SRA for the subsequent reinsurance year (i.e., the 2026 SRA covers the 2026 reinsurance year from July 1, 2025, through June 30, 2026).
Given the numerous factors and assumptions involved in both estimates of loss reserves and related estimates as to the timing of future loss payments, differences between actual and estimated loss payments will not necessarily indicate a commensurate change in ultimate loss estimates.
Given the numerous factors and assumptions involved in both estimates of loss reserves and related estimates as to the timing of future loss payments, differences between actual and estimated loss payments will not 81 Table of Contents necessarily indicate a commensurate change in ultimate loss estimates.
The following table presents the gross and net 3-year survival ratios for Asbestos and Environmental loss and ALAE reserves: (in years) Gross loss and ALAE reserves Net loss and ALAE reserves Asbestos 4.1 4.0 Environmental 3.7 4.3 The survival ratios provide only a very rough depiction of reserves and are significantly impacted by a number of factors such as aggressive settlement practices, variations in gross to ceded relationships within the asbestos or environmental claims, and levels of coverage provided.
The following table presents the gross and net 3-year survival ratios for Asbestos and Environmental loss and ALAE reserves: (in years) Gross loss and ALAE reserves Net loss and ALAE reserves Asbestos 3.1 2.9 Environmental 4.3 5.1 The survival ratios provide only a very rough depiction of reserves and are significantly impacted by a number of factors such as aggressive settlement practices, variations in gross to ceded relationships within the asbestos or environmental claims, and levels of coverage provided.
Based on our impairment testing for 2024, we determined no impairment was required and none of our reporting units were at risk for impairment.
Based on our impairment testing for 2025, we determined no impairment was required and none of our reporting units were at risk for impairment.
At our largest exposure location in the U.S., our maximum modeled losses from a 10-ton truck-bomb explosion are estimated to be $2.4 billion pre-tax based on the exposures, net of reinsurance and TRIPRA, as of December 31, 2024.
At our largest exposure location in the U.S., our maximum modeled losses from a 10-ton truck-bomb explosion are estimated to be $2.3 billion pre-tax based on the exposures, net of reinsurance and TRIPRA, as of December 31, 2025.
(2) Includes $16 million, $21 million, and $41 million of amortization expense related to the fair value adjustment of acquired invested assets in 2024, 2023, and 2022, respectively. Excludes investment income from our private equities where we own more than 3 percent interest.
(2) Includes $8 million, $16 million, and $21 million of amortization expense related to the fair value adjustment of acquired invested assets in 2025, 2024, and 2023, respectively. Excludes investment income from our private equities where we own more than 3 percent interest.
Our syndicated letter of credit facility allows for same day drawings to fund a net pool overdraft should participating Chubb entities withdraw contributed funds from the pool. 83 Table of Contents Capital Resources Capital resources consist of funds deployed or available to be deployed to support our business operations.
Our group syndicated credit facility allows for same day drawings to fund a net pool overdraft should participating Chubb entities withdraw contributed funds from the pool. 79 Table of Contents Capital Resources Capital resources consist of funds deployed or available to be deployed to support our business operations.
Gross loss payments under insurance and reinsurance contracts are estimated at $84.1 billion with $23.8 billion estimated due over the next twelve months. These estimated gross loss payments are inherently uncertain and the amount and timing of actual loss payments are likely to differ from these estimates and the differences could be material.
Gross loss payments under insurance and reinsurance contracts are estimated at $88.1 billion with $24.8 billion estimated due over the next twelve months. These estimated gross loss payments are inherently uncertain and the amount and timing of actual loss payments are likely to differ from these estimates and the differences could be material.
At December 31, 2024, the case reserves, net of retrocessions, reported to us by our ceding companies approximated our recorded case reserves.
At December 31, 2025, the case reserves, net of retrocessions, reported to us by our ceding companies approximated our recorded case reserves.
The average duration of our fixed income securities, including the effect of futures, options, and swaps, was 5.1 years and 4.8 years at December 31, 2024 and 2023, respectively. We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $6.2 billion at December 31, 2024.
The average duration of our fixed income securities, including the effect of futures, options, and swaps, was 5.0 years and 5.1 years at December 31, 2025 and 2024, respectively. We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $6.8 billion at December 31, 2025.
The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2025 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The first three quarterly installments each of $0.91 per share, have been distributed by the Board as expected.
The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2026 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The first three quarterly installments each of $0.97 per share, have been declared by the Board and distributed as expected.
Refer to Note 8 to the Consolidated Financial Statements for additional information. • Estimated payments for future policy benefits and market risk benefits - Total estimated payments for future policy benefits and market risk benefits are estimated at $77.9 billion and $1.6 billion, respectively, with $3.0 billion and $0.2 billion estimated due over the next twelve months, respectively.
Refer to Note 8 to the Consolidated Financial Statements for additional information. • Estimated payments for future policy benefits and market risk benefits - Total estimated payments for future policy benefits and market risk benefits are estimated at $90.8 billion and $1.6 billion, respectively, with $2.6 billion and $0.2 billion estimated due over the next twelve months, respectively.
Interest payments related to these obligations total $6.6 billion with $0.5 billion due over the next twelve months. These estimates are based on current exchange rates.
Interest payments related to these obligations total $7.1 billion with $0.6 billion due over the next twelve months. These estimates are based on current exchange rates.
Chubb Limited also received dividends of $91 million from its other international subsidiary in 2024. The U.S. insurance subsidiaries of Chubb INA may pay dividends, without prior regulatory approval, subject to restrictions set out in state law of the subsidiary's domicile (or, if applicable, commercial domicile).
Chubb Limited also received dividends of $207 million and $91 million from its other international subsidiaries in 2025 and 2024, respectively. The U.S. insurance subsidiaries of Chubb INA may pay dividends, without prior regulatory approval, subject to restrictions set out in state law of the subsidiary's domicile (or, if applicable, commercial domicile).
The expense adjustments correlate to the prior period loss development on these same policies. 66 Table of Contents The following tables present the calculation of combined ratio, as reported for each segment to P&C combined ratio, adjusted for CATs and PPD: North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Corporate Total P&C For the Year Ended December 31, 2024 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 12,737 $ 3,584 $ 2,170 $ 6,822 $ 711 $ 299 $ 26,323 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (1,103) (622) (60) (459) (143) — (2,387) Reinstatement premiums collected (expensed) on catastrophe losses — — — — 14 — 14 Catastrophe losses, gross of related adjustments (1,103) (622) (60) (459) (157) — (2,401) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 428 305 104 290 25 (296) 856 Net premiums earned adjustments on PPD - unfavorable (favorable) 70 — 63 — — — 133 Expense adjustments - unfavorable (favorable) (5) — 3 — 2 — — PPD reinstatement premiums - unfavorable (favorable) — — — — 2 — 2 PPD, gross of related adjustments - favorable (unfavorable) 493 305 170 290 29 (296) 991 CAY loss and loss expense ex CATs B $ 12,127 $ 3,267 $ 2,280 $ 6,653 $ 583 $ 3 $ 24,913 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 4,055 $ 1,590 $ 181 $ 4,761 $ 381 $ 432 $ 11,400 Expense adjustments - favorable (unfavorable) 5 — (3) — (2) — — Policy acquisition costs and administrative expenses, adjusted D $ 4,060 $ 1,590 $ 178 $ 4,761 $ 379 $ 432 $ 11,400 Denominator Net premiums earned E $ 20,008 $ 6,188 $ 2,705 $ 13,400 $ 1,272 $ 43,573 Reinstatement premiums (collected) expensed on catastrophe losses — — — — (14) (14) Net premiums earned adjustments on PPD - unfavorable (favorable) 70 — 63 — — 133 PPD reinstatement premiums - unfavorable (favorable) — — — — 2 2 Net premiums earned excluding adjustments F $ 20,078 $ 6,188 $ 2,768 $ 13,400 $ 1,260 $ 43,694 P&C Combined ratio Loss and loss expense ratio A/E 63.7 % 57.9 % 80.2 % 50.9 % 55.9 % 60.4 % Policy acquisition cost and administrative expense ratio C/E 20.2 % 25.7 % 6.7 % 35.5 % 30.0 % 26.2 % P&C Combined ratio 83.9 % 83.6 % 86.9 % 86.4 % 85.9 % 86.6 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.4 % 52.8 % 82.4 % 49.7 % 46.2 % 57.0 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.2 % 25.7 % 6.4 % 35.5 % 30.2 % 26.1 % CAY P&C Combined ratio ex CATs 80.6 % 78.5 % 88.8 % 85.2 % 76.4 % 83.1 % Combined ratio Combined ratio 86.6 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.6 % Note: The ratios above are calculated using whole U.S. dollars.
Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. 64 Table of Contents North America Commercial P&C Insurance North America Personal P&C Insurance North America Agricultural Insurance Overseas General Insurance Global Reinsurance Corporate Total P&C For the Year Ended December 31, 2024 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 12,737 $ 3,584 $ 2,170 $ 6,822 $ 711 $ 299 $ 26,323 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (1,103) (622) (60) (459) (143) — (2,387) Reinstatement premiums collected (expensed) on catastrophe losses — — — — 14 — 14 Catastrophe losses, gross of related adjustments (1,103) (622) (60) (459) (157) — (2,401) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 428 305 104 290 25 (296) 856 Net premiums earned adjustments on PPD - unfavorable (favorable) 70 — 63 — — — 133 Expense adjustments - unfavorable (favorable) (5) — 3 — 2 — — PPD reinstatement premiums - unfavorable (favorable) — — — — 2 — 2 PPD, gross of related adjustments - favorable (unfavorable) 493 305 170 290 29 (296) 991 CAY loss and loss expense ex CATs B $ 12,127 $ 3,267 $ 2,280 $ 6,653 $ 583 $ 3 $ 24,913 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 4,055 $ 1,590 $ 181 $ 4,761 $ 381 $ 432 $ 11,400 Expense adjustments - favorable (unfavorable) 5 — (3) — (2) — — Policy acquisition costs and administrative expenses, adjusted D $ 4,060 $ 1,590 $ 178 $ 4,761 $ 379 $ 432 $ 11,400 Denominator Net premiums earned E $ 20,008 $ 6,188 $ 2,705 $ 13,400 $ 1,272 $ 43,573 Reinstatement premiums (collected) expensed on catastrophe losses — — — — (14) (14) Net premiums earned adjustments on PPD - unfavorable (favorable) 70 — 63 — — 133 PPD reinstatement premiums - unfavorable (favorable) — — — — 2 2 Net premiums earned excluding adjustments F $ 20,078 $ 6,188 $ 2,768 $ 13,400 $ 1,260 $ 43,694 P&C Combined ratio Loss and loss expense ratio A/E 63.7 % 57.9 % 80.2 % 50.9 % 55.9 % 60.4 % Policy acquisition cost and administrative expense ratio C/E 20.2 % 25.7 % 6.7 % 35.5 % 30.0 % 26.2 % P&C Combined ratio 83.9 % 83.6 % 86.9 % 86.4 % 85.9 % 86.6 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 60.4 % 52.8 % 82.4 % 49.7 % 46.2 % 57.0 % Policy acquisition cost and administrative expense ratio, adjusted D/F 20.2 % 25.7 % 6.4 % 35.5 % 30.2 % 26.1 % CAY P&C Combined ratio ex CATs 80.6 % 78.5 % 88.8 % 85.2 % 76.4 % 83.1 % Combined ratio Combined ratio 86.6 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 86.6 % Note: The ratios above are calculated using whole U.S. dollars.
(Chubb INA) to a limited liability company, Chubb Limited received $2.0 billion for the redemption of a portion of its ownership interest in Chubb INA. Chubb INA is expected to fully redeem, by the end of 2027, Chubb Limited's 20 percent ownership interest in Chubb INA.
(Chubb INA) to a limited liability company, Chubb Limited received $4.5 billion and $2.0 billion, respectively, for the redemption of a portion of its ownership interest in Chubb INA. Chubb INA is expected to fully redeem, by the end of 2027, Chubb Limited's 20 percent ownership interest in Chubb INA.
For example, a 20 percent shortening or lengthening of the development patterns used for U.S. long-tail lines would cause the loss reserve estimate derived by the reported Bornhuetter-Ferguson method for these lines to change by approximately $184 million. This represents an impact of 20 percent relative to recorded net loss and loss expense reserves of approximately $935 million.
For example, a 20 percent shortening or lengthening of the development patterns used for U.S. long-tail lines would cause the loss reserve estimate derived by the reported Bornhuetter-Ferguson method for these lines to change by approximately $224 million. This represents an impact of 22 percent relative to recorded net loss and loss expense reserves of approximately $1,040 million.
Goodwill impairment assessment Goodwill, which represents the excess of acquisition cost over the estimated fair value of net assets acquired, was $19.6 billion and $19.7 billion at December 31, 2024 and 2023, respectively. Goodwill is assigned to applicable reporting units of acquired entities at the time of acquisition.
Goodwill impairment assessment Goodwill, which represents the excess of acquisition cost over the estimated fair value of net assets acquired, was $20.2 billion and $19.6 billion at December 31, 2025 and 2024, respectively. Goodwill is assigned to applicable reporting units of acquired entities at the time of acquisition.
(2) Includes the international supplemental A&H business of Combined Insurance and other international operations.
(2) Includes the international supplemental A&H run-off business of Combined Insurance and other international operations.
Any overdraft balances incurred under this program by a Chubb entity would be guaranteed by Chubb Limited (up to $300 million in the aggregate).
Any overdraft balances incurred under this program by a Chubb entity would be guaranteed by Chubb Limited (up to $1,500 million in the aggregate).
We have accessed both the debt and equity markets from time to time. We generally maintain the ability to issue certain classes of debt and equity securities via an unlimited Securities and Exchange Commission (SEC) shelf registration which is renewed every three years. This allows us capital market access for refinancing as well as for unforeseen or opportunistic capital needs.
We generally maintain the ability to issue certain classes of debt and equity securities via an unlimited Securities and Exchange Commission (SEC) shelf registration which is renewed every three years. This allows us capital market access for refinancing as well as for unforeseen or opportunistic capital needs.
At our May 2023 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.44 per share, which was paid in four quarterly installments of $0.86 per share at dates determined by the Board after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment.
At our May 2024 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.64 per share, which was paid in four quarterly installments of $0.91 per share at dates determined by the Board after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment.
Refer to Note 13 to the Consolidated Financial Statements for additional information. • Commitments on invested assets - Total obligations for commitments related to our invested assets are $7.7 billion with $2.2 billion due over the next twelve months.
Refer to Note 13 to the Consolidated Financial Statements for additional information. • Commitments on invested assets - Total obligations for commitments related to our invested assets are $9.0 billion with $3.7 billion due over the next twelve months.
Refer to Note 14 to the Consolidated Financial Statements for additional information. • Deposit liabilities - Total obligations for deposit liabilities, including contract holder deposit funds, are $14.5 billion with $0.8 billion due over the next twelve months.
Refer to Note 14 to the Consolidated Financial Statements for additional information. • Deposit liabilities - Total obligations for deposit liabilities, including contract holder deposit funds, are $15.0 billion with $1.0 billion due over the next twelve months.
The amortization of purchased intangibles expense in 2025 is expected to be $298 million, or approximately $75 million each quarter. Refer to Note 7 to the Consolidated Financial Statements, under Item 8, for more information on the expected pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the next five years.
The amortization of purchased intangibles expense in 2026 is expected to be $287 million, or approximately $72 million each quarter. Refer to Note 7 to the Consolidated Financial Statements, under Item 8, for more information on the expected pre-tax amortization expense of purchased intangibles, at current foreign currency exchange rates, for the next five years.
Sensitivities to underlying assumptions While we believe that our future policy benefits reserves of $16.1 billion are appropriate at December 31, 2024, new information or emerging trends that impact best estimate assumptions may have a material effect on the FPBL and future operating results.
Sensitivities to underlying assumptions While we believe that our future policy benefits reserves of $18.4 billion are appropriate at December 31, 2025, new information or emerging trends that impact best estimate assumptions may have a material effect on the FPBL and future operating results.
At our May 2024 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.64 per share, expected to be paid in four quarterly installments of $0.91 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment.
At our May 2025 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.88 per share, expected to be paid in four quarterly installments of $0.97 per share after the annual general meeting by way of distribution from capital contribution reserves, transferred to free reserves for payment.
Letters A, B, C, D, E and F included in the table are references for calculating the ratios above. 69 Table of Contents Net Investment Income (in millions of U.S. dollars, except for percentages) 2024 2023 2022 Average invested assets (1) $ 131,926 $ 118,357 $ 110,865 Net investment income (2) $ 5,930 $ 4,937 $ 3,742 Yield on average invested assets 4.5 % 4.2 % 3.4 % Market yield on fixed maturities 5.2 % 5.3 % 5.6 % (1) Excludes consolidated investment products and private equities where we own more than three percent.
Letters A, B, C, D, E and F included in the table are references for calculating the ratios above. 66 Table of Contents Net Investment Income (in millions of U.S. dollars, except for percentages) 2025 2024 2023 Average invested assets (1) $ 143,984 $ 131,926 $ 118,357 Net investment income (2) $ 6,465 $ 5,930 $ 4,937 Yield on average invested assets 4.5 % 4.5 % 4.2 % Market yield on fixed maturities 5.0 % 5.2 % 5.3 % (1) Excludes consolidated investment products and private equities where we own more than three percent.
Dividend distributions on Common Shares amounted to CHF 3.15 ($3.59) per share for the year ended December 31, 2024. Refer to Note 15 to the Consolidated Financial Statements for additional information on our dividends.
Dividend distributions on Common Shares amounted to CHF 3.18 ($3.82) per share for the year ended December 31, 2025. Refer to Note 15 to the Consolidated Financial Statements for additional information on our dividends.
Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. Financial Highlights for the Year Ended December 31, 2024 • Net income attributable to Chubb was a record $9.27 billion compared with $9.03 billion in 2023. Net income in 2024 was driven by record underwriting results and net investment income.
Amounts are calculated by translating prior period results using the same local currency exchange rates as the comparable current period. Financial Highlights for the Year Ended December 31, 2025 • Net income attributable to Chubb was a record $10.31 billion compared with $9.27 billion in 2024.
Debt issued by Chubb INA is serviced by statutorily permissible distributions by Chubb INA's insurance subsidiaries to Chubb INA as well as other group resources. Chubb INA received cash dividends of $3.5 billion and $2.4 billion and non-cash dividends of $997 million and $170 million from its subsidiaries in 2024 and 2023, respectively.
Debt issued by Chubb INA is serviced by statutorily permissible distributions by Chubb INA's insurance subsidiaries to Chubb INA as well as other group resources. Chubb INA received cash dividends of $2.6 billion and $3.6 billion and non-cash dividends of nil and $997 million from its subsidiaries in 2025 and 2024, respectively.
In 2024, 2023, and 2022 we repurchased $2.0 billion, $2.5 billion, and $3.0 billion, respectively, of Common Shares in a series of open market transactions under the Board share repurchase authorizations at an average per share price of $269.23, $209.52, and $201.96, respectively.
In 2025, 2024, and 2023 we repurchased $3.4 billion, $2.0 billion, and $2.5 billion, respectively, of Common Shares in a series of open market transactions under the Board share repurchase authorizations at an average per share price of $282.57, $269.23, and $209.52, respectively.
At December 31, 2024, the valuation allowance of $1.08 billion reflects management's assessment that it is more likely than not that a portion of the deferred tax assets will not be realized due to the inability of certain subsidiaries to generate sufficient taxable income.
At December 31, 2025, the valuation allowance of $637 million reflects management's assessment that it is more likely than not that a portion of the deferred tax assets will not be realized due to the inability of certain subsidiaries to generate sufficient taxable income.
Refer to Note 13 to the Consolidated Financial Statements for additional information. • Operating leases - Total obligations for operating leases are $1.4 billion with $0.2 billion estimated due over the next twelve months. Refer to Note 14 j) to the Consolidated Financial Statements for additional informat ion.
Refer to Note 14 e) to the Consolidated Financial Statements for additional information. • Operating leases - Total obligations for operating leases are $1.9 billion with $0.2 billion estimated due over the next twelve months. Refer to Note 14 k) to the Consolidated Financial Statements for additional informat ion.
We amortize VOBA as a component of Policy acquisition costs in the Consolidated statements of operations in relation to the profit emergence of the underlying contracts, which is generally in proportion to premium revenue recognized based upon the same assumptions used at the time of the acquisition.
We amortize VOBA as a component of Policy acquisition costs in the Consolidated statements of operations in relation to the profit emergence of the underlying contracts, which is generally in proportion to premium revenue recognized based upon the same assumptions used in measuring the liability for future policy benefits.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table summarizes the unhedged portion of net assets (liabilities) in non-U.S. currencies at December 31, 2024 and 2023, and excludes noncontrolling interests: 2024 2023 2024 vs. 2023 % change in exchange rate per USD (in millions of U.S. dollars, except for percentages) Value of unhedged net assets (liabilities) Exchange rate per USD Value of unhedged net assets (liabilities) Exchange rate per USD Korean won (KRW) (x100) $ 6,516 0.0676 $ 6,115 0.0775 (12.8) % Chinese yuan renminbi (CNY) (1) 3,709 0.1370 5,172 0.1408 (2.7) % Canadian dollar (CAD) 2,194 0.6952 2,362 0.7551 (7.9) % Australian dollar (AUD) 1,660 0.6188 1,661 0.6812 (9.2) % Mexican peso (MXN) 852 0.0480 973 0.0589 (18.5) % British pound sterling (GBP) 608 1.2516 588 1.2731 (1.7) % Hong Kong dollar (HKD) 568 0.1287 388 0.1280 0.5 % Thai baht (THB) 561 0.0291 575 0.0292 (0.3) % New Taiwan dollar (TWD) 539 0.0305 647 0.0327 (6.7) % Euro (EUR) (2) (797) 1.0354 (1,835) 1.1039 (6.2) % Other foreign currencies 2,716 various 2,924 various NM Value o f unhedged portion of net assets denominated in foreign currencies (3) $ 19,126 $ 19,570 As a percentage of total net assets 29.9 % 32.9 % Pre-tax decrease to Chubb Shareholders' equity of a hypothetical 10 percent strengthening of the USD $ 1,739 $ 1,779 NM – not meaningful (1) 2024 excludes hedged Chinese yuan renminbi net assets of $1.3 billion.
Biggest changeThe following table summarizes the unhedged portion of net assets (liabilities) in non-U.S. currencies at December 31, 2025 and 2024, and excludes noncontrolling interests: 2025 2024 2025 vs. 2024 % change in exchange rate per USD (in millions of U.S. dollars, except for percentages) Value of unhedged net assets (liabilities) Exchange rate per USD Value of unhedged net assets (liabilities) Exchange rate per USD Korean won (KRW) (x100) $ 6,196 0.0692 $ 6,516 0.0676 2.4 % Chinese yuan renminbi (CNH/CNY) (1) 2,844 0.1431 3,709 0.1370 4.5 % Canadian dollar (CAD) 2,519 0.7286 2,194 0.6952 4.8 % Australian dollar (AUD) 1,545 0.6673 1,660 0.6188 7.8 % Mexican peso (MXN) 933 0.0555 852 0.0480 15.6 % Thai baht (THB) 891 0.0318 561 0.0291 9.3 % Hong Kong dollar (HKD) 615 0.1285 568 0.1287 (0.2) % Brazilian Real (BRL) 520 0.1820 460 0.1620 12.3 % New Zealand Dollar (NZD) 452 0.5758 474 0.5594 2.9 % Euro (EUR) (2) 329 1.1746 (797) 1.0354 13.4 % Other foreign currencies 2,834 various 2,929 various NM Value o f unhedged portion of net assets denominated in foreign currencies (3) $ 19,678 $ 19,126 As a percentage of total net assets 26.7 % 29.9 % Pre-tax decrease to Chubb Shareholders' equity of a hypothetical 10 percent strengthening of the USD $ 1,789 $ 1,739 NM – not meaningful (1) Excludes hedged Chinese yuan renminbi net assets of $2.5 billion and $1.3 billion in 2025 and 2024, respectively.
The objective of the net investment cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S. dollar to the British pound sterling (GBP 957 million), Japanese yen (JPY 43.0 billion), Swiss franc (CHF 96 million), and Chinese yuan renminbi (CNY 9.3 billion).
The objective of the net investment cross-currency swaps is to hedge the foreign currency exposure in the net investments of certain foreign subsidiaries by converting cash flows from U.S. dollar to the British pound sterling (GBP 957 million ), Japanese yen (JPY 43.0 billion ), Swiss franc (CHF 96 million ), and Chinese yuan renminbi (CNH 9.3 billion ).
AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers. • The hedge sensitivity is from December 31, 2024, market levels and only applicable to the equity and interest rate sensitivities table below. • The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors.
AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers. • The hedge sensitivity is from December 31, 2025, market levels and only applicable to the equity and interest rate sensitivities table below. • The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors.
Treasury curve in the following proportions: up to 15 percent short-term rates (maturing in less than 5 years), 15 percent—30 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 65 percent—80 percent long-term rates (maturing beyond 10 years). • A change in AA-rated credit spreads impacts the rate used to discount cash flows in the fair value model.
Treasury curve in the following proportions: up to 15 percent short-term rates (maturing in less than 5 years), 10 percent—30 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 65 percent—85 percent long-term rates (maturing beyond 10 years). • A change in AA-rated credit spreads impacts the rate used to discount cash flows in the fair value model.
These instruments are recognized as assets or liabilities in our Consolidated Financial Statements and are sensitive to changes in interest rates, foreign currency exchange rates, and equity security prices. As part of our investing activities, from time to time we purchase to be announced 88 Table of Contents mortgage-backed securities (TBAs).
These instruments are recognized as assets or liabilities in our Consolidated Financial Statements and are sensitive to changes in interest rates, foreign currency exchange rates, and equity security prices. As part of our investing activities, from time to time we purchase to be announced 84 Table of Contents mortgage-backed securities (TBAs).
The tables below are estimates of the sensitivities to instantaneous changes in economic inputs (e.g., equity shock, interest rate shock, etc.) at December 31, 2024, for both the fair value of the MRB liability (FVL) and the fair value of specific derivative instruments held (hedge value) to partially offset the risk in the MRB reinsurance portfolio.
The tables below are estimates of the sensitivities to instantaneous changes in economic inputs (e.g., equity shock, interest rate shock, etc.) at December 31, 2025, for both the fair value of the MRB liability (FVL) and the fair value of specific derivative instruments held (hedge value) to partially offset the risk in the MRB reinsurance portfolio.
From time to time, we use derivatives to hedge planned cross-border transactions, and designate certain derivatives to hedge foreign currency risk on our euro denominated debt and exposure in the net investments of certain foreign subsidiaries. The following is a discussion of our primary market risk exposures at December 31, 2024.
From time to time, we use derivatives to hedge planned cross-border transactions, and designate certain derivatives to hedge foreign currency risk on our euro denominated debt and exposure in the net investments of certain foreign subsidiaries. The following is a discussion of our primary market risk exposures at December 31, 2025.
Our policies to address these risks in 2024 were not materially different from 2023. We do not currently anticipate significant changes in our primary market risk exposures or in how those exposures are managed in future reporting periods based upon what is known or expected to be in effect in future reporting periods.
Our policies to address these risks in 2025 were not materially different from 2024. We do not currently anticipate significant changes in our primary market risk exposures or in how those exposures are managed in future reporting periods based upon what is known or expected to be in effect in future reporting periods.
For additional information refer to Note 14 to the Consolidated Financial Statements. 90 Table of Contents Reinsurance of market risk benefits Market risk benefits (MRB) are measured at fair value using a valuation model based on current net exposures, market data, our experience, and other factors.
For additional information refer to Note 14 to the Consolidated Financial Statements. 86 Table of Contents Reinsurance of market risk benefits Market risk benefits (MRB) are measured at fair value using a valuation model based on current net exposures, market data, our experience, and other factors.
The objective of the fair value cross-currency swaps is to hedge euro 1.5 billion of the foreign currency risk on our euro denominated debt by converting cash flows back into the U.S dollar.
The objective of the fair value cross-currency swaps is to hedge euro 1.8 billion of the foreign currency risk on our euro denominated debt by converting cash flows back into the U.S dollar.
The following table presents the impact at December 31, 2024 and 2023, on the fair value of our fixed income portfolio of a hypothetical increase in interest rates of 100 bps applied instantly across the U.S. yield curve (an immediate time horizon was used as this presents the worst case scenario): (in billions of U.S. dollars, except for percentages) 2024 2023 Fair value of fixed income portfolio $ 121.8 $ 114.9 Pre-tax impact of 100 bps increase in interest rates: Decrease in dollars $ 6.2 $ 5.5 As a percentage of total fixed income portfolio at fair value 5.1 % 4.8 % Changes in interest rates will have an immediate effect on Comprehensive income and Shareholders' equity for our available-for- sale portfolio but will not ordinarily have an immediate effect on Net income.
The following table presents the impact at December 31, 2025 and 2024, on the fair value of our fixed income portfolio of a hypothetical increase in interest rates of 100 bps applied instantly across the U.S. yield curve (an immediate time horizon was used as this presents the worst case scenario): (in billions of U.S. dollars, except for percentages) 2025 2024 Fair value of fixed income portfolio $ 135.6 $ 121.8 Pre-tax impact of 100 bps increase in interest rates: Decrease in dollars $ 6.8 $ 6.2 As a percentage of total fixed income portfolio at fair value 5.0 % 5.1 % Changes in interest rates will have an immediate effect on Comprehensive income and Shareholders' equity for our available-for- sale portfolio but will not ordinarily have an immediate effect on Net income.
From time to time, we also use derivative instruments such as futures, options, swaps, and foreign currency forward contracts to manage the duration of our investment portfolio and foreign currency exposures, and also to obtain exposure to a particular financial market. At December 31, 2024 and 2023, our notional exposure to derivative instruments was $10.2 billion and $10.4 billion, respectively.
From time to time, we also use derivative instruments such as futures, options, swaps, and foreign currency forward contracts to manage the duration of our investment portfolio and foreign currency exposures, and also to obtain exposure to a particular financial market. At December 31, 2025 and 2024, our notional exposure to derivative instruments was $12.5 billion and $10.2 billion, respectively.
(2) Includes unhedged portion of euro denominated debt of $2.3 billion and net assets of $1.5 billion in 2024, and $3.1 billion and $1.3 billion, respectively, in 2023. Excludes hedged euro denominated debt of $1.6 billion in 2024 and 2023.
(2) Includes unhedged portion of euro denominated debt of $2.3 billion and net assets of $2.6 billion in 2025 , and $2.3 billion and $1.5 billion, respectively, in 2024 . Excludes hedged euro denominated debt of $2.0 billion and $1.6 billion in 2025 and 2024, respectively.
(3) The unhedged net assets denominated in foreign currencies comprised goodwill and other intangible assets of approximately 47 percent and 52 percent at December 31, 2024 and 2023, respectively.
(3) The unhedged net assets denominated in foreign currencies comprised goodwill and other intangible assets of approximately 41 percent and 47 percent at December 31, 2025 and 2024 , respectively.
The following table presents the impact at December 31, 2024 and 2023, on the fair value of our debt obligations of a hypothetical decrease in interest rates of 100 bps applied instantly across the U.S. yield curve (an immediate time horizon was used as this presents the worst case scenario): (in billions of U.S. dollars, except for percentages) 2024 2023 Fair value of debt obligations, including repurchase agreements $ 17.0 $ 16.6 Pre-tax impact of 100 bps decrease in interest rates: Increase in dollars $ 1.1 $ 1.1 As a percentage of total debt obligations at fair value 6.2 % 6.6 % 89 Table of Contents Foreign currency management As a global company , Chubb entities transact business in multiple currencies.
The following table presents the impact at December 31, 2025 and 2024, on the fair value of our debt obligations of a hypothetical decrease in interest rates of 100 bps applied instantly across the U.S. yield curve (an immediate time horizon was used as this presents the worst case scenario): (in billions of U.S. dollars, except for percentages) 2025 2024 Fair value of debt obligations $ 16.6 $ 14.3 Pre-tax impact of 100 bps decrease in interest rates: Increase in dollars $ 1.2 $ 1.1 As a percentage of total debt obligations at fair value 7.3 % 7.4 % 85 Table of Contents Foreign currency management As a global company , Chubb entities transact business in multiple currencies.
The tables below present the net amount at risk at December 31, 2024, following an immediate change in equity market levels, assuming all global equity markets are impacted equally. a) Reinsurance covering the GMDB risk only Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GMDB net amount at risk $ 210 $ 208 $ 360 $ 618 $ 626 $ 507 Claims at 100% immediate mortality 130 136 146 136 125 111 The treaty limits function as a ceiling as equity markets fall.
The tables below present the net amount at risk at December 31, 2025, following an immediate change in equity market levels, assuming all global equity markets are impacted equally. a) Reinsurance covering the GMDB risk only Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GMDB net amount at risk $ 194 $ 190 $ 298 $ 554 $ 593 $ 483 Claims at 100% immediate mortality 125 125 143 134 124 111 The treaty limits function as a ceiling as equity markets fall.
There is also an impact due to a portion of the reinsurance under which claims are positively correlated to equity markets (claims decrease as equity markets fall). b) Reinsurance covering the GLB risk only Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GLB net amount at risk $ 702 $ 912 $ 1,242 $ 1,762 $ 2,059 $ 2,335 The treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall. 92 Table of Contents c) Reinsurance covering both the GMDB and GLB risks on the same underlying policyholders Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GMDB net amount at risk $ 35 $ 41 $ 50 $ 60 $ 68 $ 75 GLB net amount at risk 292 359 449 561 673 719 Claims at 100% immediate mortality 26 25 25 25 25 25 The treaty limits cause the GMDB and GLB net amount at risk to increase at a declining rate as equity markets fall.
There is also an impact due to a portion of the reinsurance under which claims are positively correlated to equity markets (claims decrease as equity markets fall). b) Reinsurance covering the GLB risk only Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GLB net amount at risk $ 648 $ 835 $ 1,123 $ 1,557 $ 1,794 $ 2,023 The treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall. 88 Table of Contents c) Reinsurance covering both the GMDB and GLB risks on the same underlying policyholders Equity Shock (in millions of U.S. dollars) +20 % Flat -20 % -40 % -60 % -80 % GMDB net amount at risk $ 31 $ 36 $ 44 $ 53 $ 61 $ 66 GLB net amount at risk 253 308 386 486 588 630 Claims at 100% immediate mortality 23 22 22 22 22 22 The treaty limits cause the GMDB and GLB net amount at risk to increase at a declining rate as equity markets fall.
Actual sensitivity of our net income may differ from those disclosed in the tables below due to fluctuations in short-term market movements. 91 Table of Contents Sensitivities to equity and interest rate movements (in millions of U.S. dollars) Worldwide Equity Shock Interest Rate Shock +10 % Flat -10 % -20 % -30 % -40 % +100 bps (Increase)/decrease in FVL $ 244 $ 164 $ 64 $ (61) $ (218) $ (427) Increase/(decrease) in hedge value (101) — 101 202 304 405 Increase/(decrease) in net income $ 143 $ 164 $ 165 $ 141 $ 86 $ (22) Flat (Increase)/decrease in FVL $ 99 $ — $ (120) $ (266) $ (452) $ (690) Increase/(decrease) in hedge value (101) — 101 202 304 405 Increase/(decrease) in net income $ (2) $ — $ (19) $ (64) $ (148) $ (285) -100 bps (Increase)/decrease in FVL $ (84) $ (202) $ (342) $ (511) $ (728) $ (992) Increase/(decrease) in hedge value (101) — 101 202 304 405 Increase/(decrease) in net income $ (185) $ (202) $ (241) $ (309) $ (424) $ (587) Sensitivities to Other Economic Variables AA-rated Credit Spreads Interest Rate Volatility Equity Volatility (in millions of U.S. dollars) +100 bps -100 bps +2 % -2 % +2 % -2 % (Increase)/decrease in FVL $ 42 $ (47) $ (1) $ 1 $ (15) $ 14 Increase/(decrease) in net income $ 42 $ (47) $ (1) $ 1 $ (15) $ 14 Market Risk Benefits Net Amount at Risk All our MRB reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible which limit the net amount at risk under these programs.
Actual sensitivity of our net income may differ from those disclosed in the tables below due to fluctuations in short-term market movements. 87 Table of Contents Sensitivities to equity and interest rate movements (in millions of U.S. dollars) Worldwide Equity Shock Interest Rate Shock +10 % Flat -10 % -20 % -30 % -40 % +100 bps (Increase)/decrease in FVL $ 228 $ 153 $ 61 $ (53) $ (197) $ (386) Increase/(decrease) in hedge value (94) — 94 188 282 376 Increase/(decrease) in net income $ 134 $ 153 $ 155 $ 135 $ 85 $ (10) Flat (Increase)/decrease in FVL $ 90 $ — $ (109) $ (241) $ (410) $ (621) Increase/(decrease) in hedge value (94) — 94 188 282 376 Increase/(decrease) in net income $ (4) $ — $ (15) $ (53) $ (128) $ (245) -100 bps (Increase)/decrease in FVL $ (77) $ (184) $ (310) $ (461) $ (654) $ (888) Increase/(decrease) in hedge value (94) — 94 188 282 376 Increase/(decrease) in net income $ (171) $ (184) $ (216) $ (273) $ (372) $ (512) Sensitivities to Other Economic Variables AA-rated Credit Spreads Interest Rate Volatility Equity Volatility (in millions of U.S. dollars) +100 bps -100 bps +2 % -2 % +2 % -2 % (Increase)/decrease in FVL $ 41 $ (46) $ — $ — $ (15) $ 14 Increase/(decrease) in net income $ 41 $ (46) $ — $ — $ (15) $ 14 Market Risk Benefits Net Amount at Risk All our MRB reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible which limit the net amount at risk under these programs.

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