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What changed in Chubb Limited's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Chubb Limited's 2023 and 2024 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 2024 report.

+538 added−571 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-23)

Top changes in Chubb Limited's 2024 10-K

538 paragraphs added · 571 removed · 465 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

81 edited+26 added−30 removed177 unchanged
Biggest changeOur captive agency distribution and telemarketing channels sell Chubb Life products exclusively and enable us to maintain direct contact with the individual consumer, promote quality sales practices, and generate higher persistency. We have developed a substantial sales force of agents principally located in our Asia businesses and have market leading positions in telemarketing industry in South Korea, Taiwan and Indonesia.
Biggest changeOur controlled distribution channels are a majority of net written premiums and include tied agency and telemarketing where we focus on recruiting, training and management of quality active distributors. Our captive agency distribution and telemarketing channels sell Chubb Life products exclusively and enable us to maintain direct contact with the retail consumer, promote quality sales practices, and generate better persistency.
Products and services offered include property, professional liability, cyber risk, excess casualty, workers’ compensation, general liability, automobile liability, commercial marine, surety, environmental, construction, medical risk, inland marine, A&H coverages, as well as claims and risk management products and services.
Products and services offered include property, professional liability, cyber risk, excess casualty, workers’ compensation, general liability, automobile liability, commercial marine, surety, environmental, construction, medical risk, inland marine, and A&H coverages, as well as claims and risk management products and services.
We are subject to the New York Department of Financial Services’ Cybersecurity Regulation (the NYDFS Cybersecurity Regulation) which mandates detailed cybersecurity standards and other obligations for all institutions, including insurance entities, authorized by the NYDFS to operate in New York.
We are subject to the New York Department of Financial Services’ (NYDFS) Cybersecurity Regulation which mandates detailed cybersecurity standards and other obligations for all institutions, including insurance entities, authorized by the NYDFS to operate in New York.
We cannot assure that changes in laws or investigative or enforcement activities in the various states in the U.S. will not have a material adverse impact on our financial condition, results of operations, or business practices. We are subject to numerous U.S. federal and state laws governing the protection of personal and confidential information of our clients or employees.
We cannot assure that changes in laws, regulations, or investigative or enforcement activities in the various states in the U.S. will not have a material adverse impact on our financial condition, results of operations, or business practices. We are subject to numerous U.S. federal and state laws governing the protection of personal and confidential information of our clients and employees.
Because our North America systems are integrated, our companies domiciled in other states may also be impacted by this requirement. Additionally, the NAIC adopted an Insurance Data Security Model Law, which requires licensed insurance entities to comply with detailed information security requirements. The NAIC model law is similar in many respects to the NYDFS Cybersecurity Regulation.
Because our North America systems are integrated, our companies domiciled in other states may also be impacted by this regulation. Additionally, the NAIC adopted an Insurance Data Security Model Law, which requires licensed insurance entities to comply with detailed information security requirements. The NAIC model law is similar in many respects to the NYDFS Cybersecurity Regulation.
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 er 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 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.
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, and specialty risk.
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.
While we are unable at this time to determine whether additional reserves may be necessary in the future, we believe that our reserves for unpaid losses and loss expenses are adequate at December 31, 2023. Future additions to reserves, if needed, could have a material adverse effect on our financial condition, results of operations, and cash flows.
While we are unable at this time to determine whether additional reserves may be necessary in the future, we believe that our reserves for unpaid losses and loss expenses are adequate at December 31, 2024. Future additions to reserves, if needed, could have a material adverse effect on our financial condition, results of operations, and cash flows.
Keogh held a range of positions with increasing responsibility during a 20-year career with AIG, including Senior Vice President, Domestic General Insurance, and President and Chief Executive Officer of National Union Fire Insurance Company of Pittsburgh, an AIG member company. He began his insurance career as an underwriter with AIG in 1986. John J.
Keogh held a range of positions with increasing responsibility during a 20-year career with AIG, including Senior Vice President, Domestic General Insurance, and President and Chief Executive Officer of National Union Fire Insurance Company of Pittsburgh, an AIG member company. He began his insurance career as an underwriter with AIG in 1986. 20 Table of Contents John J.
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 2024 account year.
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.
All business underwritten by CGM is accessed through registered brokers, except for a limited number of direct relationships, where risks are written without an intermediary. The main lines of business include aviation, property, energy, professional lines, marine, financial lines, political risk, and credit.
All business underwritten by CGM is accessed through registered brokers, except for a limited number of direct relationships, where risks are written without an intermediary. The main lines of business include aviation, property, energy, marine, financial lines, cyber, political risk, and credit.
A competitive strength of our international operations is our global 8 Table of Contents network and breadth of insurance programs, which assist individuals and business organizations to meet their risk management objectives, while also having a significant presence in all of the countries in which we operate, giving us the advantage of accessing local technical expertise and regulatory environments, understanding local markets and culture, accomplishing a spread of risk, and offering a global network to service multinational accounts.
A competitive strength of our international operations is our global network and breadth of insurance programs, which assist individuals and business organizations to meet their risk management objectives, while also having a significant presence in all of the countries in which we operate, giving us the advantage of accessing local technical expertise and regulatory environments, understanding local markets and culture, accomplishing a spread of risk, and offering a global network to service multinational accounts.
Within Chubb Global Casualty, Chubb Alternative Risk Solutions Group underwrites contractual indemnification policies which provides prospective coverage for loss events within the insured’s policy retention levels, and underwrites assumed loss portfolio transfer (LPT) contracts in which insured loss events have occurred prior to the inception of the contract. • Property provides products and services including primary, quota share and excess all-risk insurance, risk management programs and services, commercial, inland marine, and aerospace products. 5 Table of Contents • Casualty Risk provides coverages including umbrella and excess liability, environmental risk, casualty programs for commercial construction related projects for companies and institutions, and medical risk specialty liability products for the healthcare industry. • Surety offers a wide variety of surety products and specializes in underwriting both commercial and contract bonds and has the capacity for bond issuance on an international basis. • Accident & Health (A&H) products are targeted to large corporate and affinity groups, and include employee benefit plans, occupational accident, student accident, and worldwide travel accident and global medical programs.
Within Chubb Global Casualty, Chubb Alternative Risk Solutions Group underwrites contractual indemnification policies which provide prospective coverage for loss events within the insured’s policy retention levels, and underwrites assumed loss portfolio transfer (LPT) contracts in which insured loss events have occurred prior to the inception of the contract. • Property provides products and services including primary, quota share and excess all-risk insurance, risk management programs and services, commercial, inland marine, and aerospace products. • Casualty provides coverages including umbrella and excess liability, environmental risk, casualty programs for commercial construction related projects for companies and institutions, medical risk specialty liability products for the healthcare industry, and casualty insurance solutions for commercial real estate. • Surety offers a wide variety of surety products and specializes in underwriting both commercial and contract bonds and has the capacity for bond issuance on an international basis. • Accident & Health (A&H) products are targeted to large corporate and affinity groups, and include employee benefit plans, occupational accident, student accident, and worldwide travel accident and global medical programs.
North America Personal P&C Insurance (12 percent of 2023 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 (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.
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 Pacific (including Huatai P&C), Japan, 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.
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. 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 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.
Net investment income is a significant component of Segment income and is earned through strategic asset allocation based on asset liability matching. Funds received from policyholders for investment contracts are not recorded as premium revenue, but rather as policyholder deposits with an offsetting policyholder account balance liability on the balance sheet.
Net investment income is a significant component of Segment income and is earned through strategic asset allocation based on asset liability matching and risk adjusted returns. Funds received from policyholders for investment contracts are not recorded as premium revenue, but rather as policyholder deposits with an offsetting policyholder account balance liability on the balance sheet.
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.
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.
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. 17 Table of Contents 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. Enterprise Risk Management As an insurer, Chubb is in the business of profitably managing risk for its customers.
(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 Boaxing Fund Management.
(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.
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 (12 percent of 2023 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. 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.
For additional information, refer to "Critical Accounting Estimates – Future policy benefits reserves", under Item 7, and Note 1 l) and Note 9 to the Consolidated Financial Statements, under Item 8. Policyholder Account Balances Policyholder account balances represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.
For additional information, refer to "Critical Accounting Estimates – Future policy benefits reserves", under Item 7, and Note 1l) and Note 9 to the Consolidated Financial Statements, under Item 8. Policyholder Account Balances Policyholder account balances represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.
At December 31, 2023, our ownership interest in Huatai Group was approximately 76.5 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, 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.
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, surety, and crop-hail. Chubb Tempest Re Canada 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.
The prescribed form of capital and solvency return is comprised of the BMA’s risk-based capital model, termed the Bermuda Solvency Capital Requirement (BSCR) or an approved internal capital model in lieu thereof; a statutory economic balance sheet; the approved actuary’s opinion; and several prescribed schedules.
The prescribed form of capital and solvency return comprises the BMA’s risk-based capital model, termed the Bermuda Solvency Capital Requirement (BSCR) or an approved internal capital model in lieu thereof; a statutory economic balance sheet; the approved actuary’s opinion; and several prescribed schedules.
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 September 2023.
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.
Tax Matters Refer to “Risk Factors”, under Item 1A and Note 1 t) and Note 12 to the Consolidated Financial Statements, under Item 8. 19 Table of Contents Information about our Executive Officers The following sets forth information regarding our executive officers as of February 23, 2024: Name Age Position Evan G.
Tax Matters Refer to “Risk Factors”, under Item 1A and Note 1 t) and Note 12 to the Consolidated Financial Statements, under Item 8. 19 Table of Contents Information about our Executive Officers The following sets forth information regarding our executive officers as of February 27, 2025: Name Age Position Evan G.
This list is maintained by our Reinsurance Security Committee (RSC), a committee 11 Table of Contents 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.
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.
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 $120 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. 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.
Products offered include commercial P&C and corporate A&H lines, including specialty coverages and services, and consumer lines, including A&H and personal lines insurance products. Chubb International's P&C business is generally written, on both a direct and assumed basis, through major international, regional, and local brokers and agents.
Products offered 7 Table of Contents include commercial P&C and corporate A&H lines, including specialty coverages and services, and consumer lines, including A&H and personal lines insurance products. Chubb International's P&C business is generally written, on both a direct and assumed basis, through major international, regional, and local brokers and agents.
Refer to Note 19 to the Consolidated Financial Statements for additional information about our segments. 4 Table of Contents North America Commercial P&C Insurance (40 percent of 2023 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.
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.
Chubb Tempest Re Bermuda principally provides property catastrophe reinsurance to insurers of commercial and personal property. Property catastrophe reinsurance is on an occurrence or aggregate basis and protects a ceding company against an accumulation of losses covered by its issued insurance policies, arising from a common event or occurrence.
Chubb Tempest Re Bermuda principally provides property catastrophe reinsurance to insurers of commercial and personal property. Property catastrophe reinsurance protects a ceding company against an accumulation of losses covered by its issued insurance policies, arising from a common event or occurrence.
This segment includes: • Commercial Insurance (40 percent of this segment's 2023 NPE), which includes our retail division focused on middle market customers and small businesses • Major Accounts (38 percent of this segment's 2023 NPE), our retail division focused on large institutional organizations and corporate companies • Westchester (17 percent of this segment's 2023 NPE), our wholesale and specialty division • Chubb Bermuda (5 percent of this segment’s 2023 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 property and casualty, workers' compensation, small commercial management and professional liability for small businesses based in the U.S. • Commercial Insurance products and services offered include traditional property and casualty 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 international coverages.
This 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.
The key competitors in Global Reinsurance's markets vary by geographic region and product line. An advantage of Global Reinsurance's international platform is that we can change our mix of business in response to changes in competitive conditions in the territories in which it operates.
The key competitors in Global Reinsurance's markets vary by geographic region and product line. An advantage of Global Reinsurance's global platform is that it can change its mix of business in response to changes in competitive conditions in the territories in which it operates.
Lupica served in several senior management positions since joining Chubb in 2000, including President, North America Major Accounts and Specialty Insurance; Chairman, Insurance - North 20 Table of Contents America; Chief Operating Officer, Insurance - North America; President of ACE USA; Division President of U.S. Professional Risk business and U.S. Regional Operations; and Executive Vice President of Professional Risk.
Lupica previously served in several other senior management positions since joining Chubb in 2000, including President, North America Major Accounts and Specialty Insurance; Chairman, Insurance - North America; Chief Operating Officer, Insurance - North America; President of ACE USA; Division President of U.S. Professional Risk business and U.S. Regional Operations; and Executive Vice President of Professional Risk.
Westchester competes against a number of large, national carriers as well as regional competitors and other entities offering risk alternatives such as self-insured retentions and captive programs. Chubb Bermuda competes against international commercial carriers writing business on an excess of loss basis.
Westchester competes against a number of large, national carriers as well as regional competitors and other entities offering risk alternatives such as self-insured retentions and captive programs, and also employs digital-based distribution. Chubb Bermuda competes against international commercial carriers writing business on an excess of loss basis.
The syndicate is managed by Chubb’s Lloyd’s managing agency, Chubb Underwriting Agencies Limited. At December 31, 2023, our ownership interest in Huatai P&C was approximately 76.5 percent.
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.
Lupica was appointed President, North America Insurance in September 2020 and has served as Vice Chairman of Chubb since November 2013. Prior to his current role, Mr.
Lupica was appointed Executive Chairman, North America Insurance in July 2024, and has served as Vice Chairman of Chubb since November 2013. Prior to his current role, Mr. Lupica served as President, North America Insurance from September 2020 to July 2024. Mr.
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, marine, and specialty through its London- and Zurich-based offices. Chubb Tempest Re International underwrites reinsurance on both a proportional and excess of loss basis.
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.
At December 31, 2023, we had total assets of $231 billion and total Chubb shareholders’ equity, which excludes noncontrolling interests, of $60 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, 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.
The RUC meets at least twice a quarter, and is comprised of 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, General Counsel, President – North America Insurance, President – Overseas General Insurance, and Chief Underwriting Officer.
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 Major Accounts operations are organized into the following distinct business units, each offering specialized products and services targeted at specific markets: • Chubb Global Casualty offers a range of customized risk management primary casualty products designed to help large insureds, including national accounts, and managing risk for workers’ compensation, general liability, and automobile liability coverages as well as offering casualty insurance solutions for commercial real estate.
The Major Accounts operations are organized into the following distinct business units, each offering specialized products and services targeted at specific markets: • Chubb Global Casualty offers a range of customized risk management primary casualty products designed to help large insureds, including national accounts, manage risk for workers’ compensation, general liability, and automobile liability coverages.
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 2023, consolidated net premiums earned (NPE) was $45.7 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 2024, consolidated net premiums earned (NPE) was $49.8 billion.
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. 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.
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 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 69 Chairman, Chief Executive Officer, and Director Timothy A. Boroughs 74 Executive Vice President and Chief Investment Officer Peter C. Enns 58 Executive Vice President and Chief Financial Officer Bryce L. Johns 48 Senior Vice President; President, Chubb Life John W. Keogh 59 President and Chief Operating Officer John J.
Greenberg 70 Chairman, Chief Executive Officer, and Director Timothy A. Boroughs 75 Executive Vice President and Chief Investment Officer Peter C. Enns 59 Executive Vice President and Chief Financial Officer Bryce L. Johns 49 Senior Vice President; President, Chubb Life John W. Keogh 60 President and Chief Operating Officer John J.
The policies written by Chubb Life generally provide funds to beneficiaries of insureds upon death and/or protection and/or savings benefits while the contract owner is living. We earn 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 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.
However, FINMA acknowledges the Department's assumption of group supervision over us. In 2008, we formed Chubb Insurance (Switzerland) Limited which offers property and casualty insurance to Swiss companies, A&H, and personal lines insurance for individuals of Swiss companies.
However, FINMA acknowledges the Department's assumption of group supervision over us. Chubb Insurance (Switzerland) Limited offers property and casualty insurance to Swiss companies, A&H, and personal lines insurance for individuals of Swiss companies. We also operate a reinsurance subsidiary named Chubb Reinsurance (Switzerland) Limited, which is primarily a provider of reinsurance to Chubb entities.
Huatai asset management 13 Table of Contents 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 is licensed to manage institutional, pension, and retail mutual fund investments. 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.
Chubb mitigates exposure to climate change risk by ceding catastrophe risk in our insurance portfolio through both reinsurance and capital markets, and our investment portfolio through the diversification of risk, industry, location, type and duration of security.
Chubb mitigates exposure to climate change risk by ceding catastrophe risk in our insurance portfolio through both reinsurance and capital markets, and our investment portfolio through the diversification of risk, industry, location, type, and duration of security. Asset concentrations are actively managed in hurricane-and flood-exposed areas, and our investment portfolio is relatively short in duration.
Products are offered through the wholesale distribution channel. Chubb Bermuda is our high excess retail division which provides commercial insurance products on an excess basis including excess liability, D&O, professional liability, property, and political risk, the latter being written by Sovereign Risk Insurance Ltd., a wholly-owned managing agent.
Chubb Bermuda is our high excess retail division which provides commercial insurance products on an excess basis including excess liability, D&O, professional liability, property, and political risk, the latter being written by Sovereign Risk Insurance Ltd., a wholly-owned managing agent. Chubb Bermuda focuses on Fortune 1000 companies and targets risks that are generally low in frequency and high in severity.
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 ma naged with a long-term perspective and short-term net income volatility is expected.
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.
Chubb Life offers a broad portfolio of protection and savings products including whole life, universal life, unit linked contracts, endowment plans, individual and life, group term life, health protection, personal accident, credit life, group employee benefits, and credit protection insurance for automobile, motorcycle, and home loans.
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.
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.
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.
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.
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.
We have also formed a reinsurance subsidiary named Chubb Reinsurance (Switzerland) Limited, which we operate as primarily a provider of reinsurance to Chubb entities. 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. 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.
Combined Insurance's substantial sales force distributes a wide range of supplemental accident and sickness insurance products, including personal accident, short-term disability, critical illness, Medicare supplement products, and hospital confinement/recovery.
Combined Insurance's substantial sales force distributes a wide range of supplemental accident and sickness insurance products, including personal accident, short-term disability, critical illness, Medicare supplement products, and hospital confinement/recovery. Most of these products are primarily fixed-indemnity benefit obligations and are not directly subject to escalating medical cost inflation.
Chubb also introduced underwriting criteria for oil and gas extraction projects which require reduction of methane emissions and is supporting clients with Chubb’s Methane Resource Hub which offers clients information and insights for measuring and mitigating methane emissions. Additionally, we continue to assess our investment in carbon–intensive industries and plans for transitioning to a lower–carbon economy.
Chubb also introduced underwriting criteria for oil and gas extraction and midstream projects which require reduction of methane emissions and is supporting clients with Chubb’s Methane Resource Hub which offers clients information and insights for measuring and mitigating methane emissions.
Prior to joining Chubb, he served as Senior Vice President for Munich-American Risk Partners, Inc. He also held various management positions at AIG. Frances D. O'Brien was appointed Executive Vice President, Chubb Group and Chief Risk Officer of Chubb Limited in April 2023. Ms. O'Brien has more than 40 years of insurance industry experience. Before her current role, Ms.
Frances D. O'Brien was appointed Executive Vice President, Chubb Group and Chief Risk Officer of Chubb Limited in April 2023. Ms. O'Brien has more than 40 years of insurance industry experience. Before her current role, Ms.
(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 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.
These coverages are offered on both an admitted and excess and surplus lines basis through independent regional agents and brokers, as well as digital partnerships. 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 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.
We earn income on investment contracts from both net investment spreads on policyholder account balances and fees for management and administrative services. These investment contracts are an important component of production and are key to our efforts to grow our business.
We earn income on investment contracts from both net investment spreads on policyholder account balances and fees for management and administrative services. These investment contracts are an important component of production. Chubb Life operates a multichannel distribution network enabling wider consumer reach.
Lupica 58 Vice Chairman; President, North America Insurance Frances D. O'Brien 65 Executive Vice President; Chief Risk Officer Juan Luis Ortega 49 Executive Vice President; President, Overseas General Insurance Joseph F. Wayland 66 Executive Vice President and General Counsel Evan G. Greenberg has been a director of Chubb Limited since August 2002. Mr.
Lupica 59 Vice Chairman; Executive Chairman, North America Insurance Paul McNamee 49 Executive Vice President; President, Overseas General Insurance Frances D. O'Brien 66 Executive Vice President and Chief Risk Officer Juan Luis Ortega 50 Executive Vice President; President, North America Insurance Joseph F. Wayland 67 Executive Vice President and General Counsel Evan G.
The senior executive responsible for overseeing the global environmental program is the Global Climate Officer (GCO). The GCO reports to both the CEO, who approves the goals and objectives of the environmental program, and Chubb's General Counsel.
The GCO reports to both the CEO, who approves the goals and objectives of the sustainability program, and Chubb's General Counsel.
The Model Bulletin also advises insurers of the information and documentation that insurance regulators may request during exams and investigation of insurers' AI systems, including third-party AI systems. This bulletin may be adopted by state insurance departments which in turn may impact our use of artificial intelligence tools in our business operations.
The Model Bulletin also advises insurers of the information and documentation that insurance regulators may request during exams and investigation of insurers' AI systems, including third-party AI systems.
Juan Luis Ortega was appointed Executive Vice President, Chubb Group and President, Overseas General Insurance in August 2019. Mr. Ortega previously served as Senior Vice President, Chubb Group and Regional President of Latin America from 2016 to 2019, and Regional President of Asia Pacific from 2013 to 2016. Mr.
Ortega has also served as Senior Vice President, Chubb Group and Regional President of Latin America from 2016 to July 2019, and Regional President of Chubb’s Asia Pacific operations from 2013 to 2016. Mr.
For additional information refer to "Risk Factors" under Item 1A, “Reinsurance Protection”, below, “Catastrophe Management” and “Global Property Catastrophe Reinsurance Program”, under Item 7, and Note 5 to the Consolidated Financial Statements, under Item 8.
For additional information refer to "Risk Factors" under Item 1A, “Reinsurance Protection”, below, “Catastrophe Management” and “Global Property Catastrophe Reinsurance Program”, under Item 7, and Note 5 to the Consolidated Financial Statements, under Item 8. 11 Table of Contents Reinsurance Protection As part of our risk management strategy, we purchase reinsurance protection to mitigate our exposure to losses, including certain catastrophes, to a level consistent with our risk appetite.
North America Agricultural Insurance (7 percent of 2023 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 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.
Independent brokers complement our agency channel, reaching a wider pool of mass affluent customers, especially in South Korea, Hong Kong and Taiwan. Huatai Asset Management is licensed to manage institutional, pension, and retail mutual fund investments.
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.
Westchester is our wholesale and specialty division that serves the market for business risks that tend to be hard to place or not easily covered by traditional policies due to unique or complex exposures and provides specialty products for property, casualty, environmental, professional liability, inland marine, product recall, small business, binding and program coverages in the U.S. and Canada.
The net results for ESIS are included in North America Commercial P&C Insurance’s administrative expenses. Westchester is our wholesale and specialty division that serves the market for business risks that tend to be hard to place or not easily covered by traditional policies due to unique or complex exposures.
Asset concentrations are actively managed in hurricane-and flood-exposed areas, and our investment portfolio is relatively short in duration with an average duration of about five years. Chubb supports industries involved in mitigating climate risk, through our global climate business unit, Chubb Climate+, which offers solutions to Cleantech companies and the renewable energy sector.
Chubb supports industries involved in mitigating climate risk through our global climate business unit, Chubb Climate+, which offers solutions to Clean Tech companies and the renewable energy sector.
Combined Insurance distributes specialty supplemental A&H and life insurance products targeted to middle income consumers and businesses in the U.S. and Canada through both worksite and direct marketing sales. In the U.S., worksite products for mid and large-market employers are distributed through our Chubb Workplace Benefits division while the U.S. Agency division focuses on the small to mid-market employers.
In the U.S., worksite products for mid and large-market employers are distributed through Chubb Workplace Benefits and a strong broker network. Combined U.S. focuses on small to mid-market employers, Main Street brokers and individual sales. In Canada, the business goes to market as Combined Canada, focused primarily on individual sales.
We seek a competitive advantage through our ability to provide superior service to our customers, including the development of digital solutions.
We seek a competitive advantage through our ability to provide superior service to our customers, including the development of digital solutions. Chubb Agribusiness competes against both national and regional competitors offering specialty P&C insurance coverages to companies that manufacture, process, and distribute agricultural products.
Our seamless customer experience and superior coverage protect not only our clients’ most valuable possessions, but also their standard of living. Our target customers consist of high net worth consumers with insurance needs that typically extend beyond what mass market carriers can offer.
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.
The Audit Committee meets with the Risk & Finance Committee at least annually in order to exercise its duties under New York Stock Exchange Rules.
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.
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.
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.
Chubb's financial strength and reputation as an entrepreneurial organization with a global presence and strong local management capabilities gives Chubb Life a strong base from which to compete and grow revenues. Combined Insurance competes for A&H business in the U.S. against numerous A&H and life insurance companies across various industry segments.
Competitive Environment Chubb Life's competition differs by location but generally includes multinational insurers, local insurers, joint ventures, and state-owned insurers. Chubb's financial strength and reputation as an entrepreneurial organization with a global presence and strong local management capabilities gives Chubb Life a strong base from which to compete and grow revenues.
Products and Distribution Chubb Life provides individual life and group benefit insurance primarily in Asia, including South Korea, mainland China, Hong Kong, Taiwan, Thailand, Vietnam, New Zealand, Indonesia, and Myanmar. Chubb Life also provides insurance coverage in Egypt and selectively in Latin America, mainly Chile, Brazil, Ecuador and Mexico through a joint distribution model with Chubb P&C.
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.
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. 18 Table of Contents Chubb has a comprehensive, coordinated global environmental program that is embedded in all areas of the organization and its activities and performance are reported to the executive team.
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).
At December 31, 2023, our direct and indirect ownership interest in Huatai Life was 81.0 percent, Huatai Asset Management Co. Ltd. was 69.6 percent, and Huatai Boaxing Fund Management was 65.1 percent.
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.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe cannot assure, however, that the Tax Information Exchange Agreements (TIEAs) that have been entered into by Switz erland and Bermuda will be sufficient to preclude all of the sanctions described above, which, if ultimately adopted, could adversely affect us or our shareholders. 31 Table of Contents Shareholders There are provisions in our charter documents that may reduce the voting rights and diminish the value of our Common Shares.
Biggest changeIt is still unclear what all these sanctions might be, which countries might adopt them, and when or if they might be imposed. We cannot provide assurance that the Tax Information Exchange Agreements (TIEAs) that have been entered into by Switzerland and Bermuda will be sufficient to preclude the sanctions described above, which, if ultimately adopted, could adversely affect us.
Cyber catastrophic scenarios are not bound by time or geographic limitations and cyber catastrophic perils do not have well-established definitions and fundamental physical properties. Rather, cyber risks are engineered by human actors and thus are continuously evolving, often in ways that are engineered specifically to evade established loss mitigation controls.
Cyber catastrophic scenarios are not bound by time or geographic limitations and cyber catastrophic perils do not have well-established definitions or fundamental physical properties. Rather, cyber risks are engineered by human actors and thus are continuously evolving, often in ways that are engineered specifically to evade established loss mitigation controls.
It is also possible that losses could manifest themselves in ways that we do not anticipate and that our risk mitigation strategies are not designed to address. Additionally, various provisions of our policies, such as limitations or exclusions from coverage or choice of forum negotiated to limit our risks, may not be enforceable in the manner we intend.
It is also possible that losses could manifest themselves in ways that we do not anticipate and that our risk mitigation strategies are not designed to address. Additionally, various provisions of our policies, negotiated to limit our risks, such as limitations or exclusions from coverage and choice of forum may not be enforceable in the manner we intend.
As a result, one or more natural or man-made catastrophes, terrorism, or other events could result in claims that substantially exceed our expectations, which could have an adverse effect on our results of operations and financial condition. We may be unable to purchase reinsurance, and/or if we successfully purchase reinsurance, we are subject to the possibility of non-payment.
As a result, one or more natural or man-made catastrophes, terrorism, or other events could result in claims that substantially exceed our expectations, which could have an adverse effect on our results of operations and financial condition. We may be unable to purchase reinsurance, or if we successfully purchase reinsurance, we are subject to the possibility of non-payment.
While we generally seek to mitigate this risk 24 Table of Contents through collateral agreements and maintain a provision for uncollectible accounts associated with this credit exposure, an increased inability of customers to reimburse us in this context could have an adverse effect on our financial condition and results of operations.
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.
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 25 Table of Contents 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 25 Table of Contents of our Common Shares.
Our ability to pay dividends and/or 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 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.
In the U.S., several other states are considering similar legislation, and there are ongoing discussions regarding a 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. 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.
If, based upon these models or other factors, we misprice our products or underestimate the frequency and/or severity of loss events, or overestimate the risks we are exposed to, new business growth and retention of our existing business may be adversely affected which could have an adverse effect on our results of operations and financial condition.
If, based upon these models or other factors, we misprice our products or underestimate the frequency or severity of loss events, or overestimate the risks we are exposed to, new business growth and retention of our existing business may be adversely affected which could have an adverse effect on our results of operations and financial condition.
This range may vary depending upon changes in annual dividends, special dividends, certain share repurchases, the U.S. dollar/Swiss franc exchange rate, changes in par value or capital contribution reserves or adoption of changes or new interpretations to Swiss corporate or tax law or regulations. Under certain circumstances, U.S. shareholders may be subject to adverse U.S. federal income tax consequences.
This range may vary depending upon changes in annual dividends, special dividends, share repurchases, the U.S. dollar/Swiss franc exchange rate, changes in par value or capital contribution reserves or adoption of changes or new interpretations to Swiss corporate or tax law or regulations. Under certain circumstances, U.S. shareholders may be subject to adverse U.S. federal income tax consequences.
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/or 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., 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 have substantial exposure to losses resulting from natural disasters, man-made catastrophes, such as terrorism or cyber-attack, and other catastrophic events, including pandemics. This could impact a variety of our businesses, including our commercial and personal lines, and life and accident and health (A&H) products.
We have substantial exposure to losses resulting from natural disasters, man-made catastrophes, such as terrorism or cyber-attack, and other catastrophic events. This could impact a variety of our businesses, including our commercial and personal lines, and life and accident and health (A&H) products.
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 Security 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.
However, there are inherent limitations in all of these tactics, and no assurance can be given against the possibility of an event or series of events that could result in loss levels that could have an adverse effect on our financial condition or results of operations.
However, there are inherent limitations in all of these tactics, and no assurance can be given against the possibility of an event or series of events that result in loss levels that have an adverse effect on our financial condition or results of operations.
Repayment of loans receivable, guarantee fees and dividends and other permitted distributions from our insurance subsidiaries are its primary sources of funds to meet ongoing cash requirements, including any future debt service payments, other expenses, repurchases of its shares, and paying dividends to our shareholders.
Repayment of loans receivable, guarantee fees and dividends and other permitted distributions from subsidiaries are its primary sources of funds to meet ongoing cash requirements, including any future debt service payments, other expenses, repurchases of its shares, and paying dividends to our shareholders.
A variety of governments and regulators have adopted or are in the process of adopting climate change and greenhouse gas emissions disclosure requirements for which Chubb and certain of its individual subsidiaries are or will be subject to in the future.
A variety of governments and regulators have adopted or are in the process of adopting climate change and greenhouse gas emissions disclosure requirements to which Chubb and certain of its individual subsidiaries are or will be subject in the future.
Treasury Department contain new rules that may affect the application of the PFIC provisions to an insurance company. Shareholders are advised to consult their tax advisors.
Treasury Department contain rules that may affect the application of the PFIC provisions to an insurance company. Shareholders are advised to consult their tax advisors.
If Chubb Limited or any of its non-U.S. subsidiaries were considered to be engaged in a trade or business in the U.S., such entity could be subject to U.S. corporate income and branch profits taxes on the portion of its earnings effectively connected to such U.S. business, in which case our results of operations and our shareholders' investments could be adversely affected.
If Chubb Limited or any of its non-U.S. subsidiaries were considered to be engaged in a trade or business in the U.S., such entity could be subject to U.S. corporate income and branch profits taxes on the portion of its earnings effectively connected to such U.S. business, in which case our results of operations and our shareholders' equity could be adversely affected.
However, a smaller portion of the portfolio, approximately 17 percent at December 31, 2023, 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, 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.
Despite the contingency plans and facilities, we have in place and our efforts to observe th e 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.
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.
Swiss law imposes certain restrictions on our ability to repurchase our shares. Swiss la w imposes certain withholding tax and other restrictions on a Swiss company’s ability to return earnings or capital to its shareholders, including through the repurchase of its own shares. We may only repurchase shares to the extent that sufficient freely distributable reserves are available.
Swiss law imposes certain restrictions on our ability to repurchase our shares. Swiss law imposes certain withholding tax and other restrictions on a Swiss company’s ability to return earnings or capital to its shareholders, including through the repurchase of its own shares. We may only repurchase shares to the extent that sufficient freely distributable reserves are available.
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 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 which 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 (each, a Security Event).
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.
Generally, state statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing 10 percent or more of the voting securities of the domestic insurer.
Generally, U.S. state statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing 10 percent or more of the voting securities of the U.S. insurer.
Some remedies available under the laws of U.S. jurisdictions, including some remedies available under the U.S. federal securities laws, would not be allowed in Swiss courts as contrary to that nation's public policy. Shareholders may be subject to Swiss withholding taxes on the payment of dividends.
Some remedies available under the laws of U.S. jurisdictions, including some remedies available under the U.S. federal securities laws, would not be allowed in Swiss courts as contrary to that country's public policy. Shareholders may be subject to Swiss withholding taxes on the payment of dividends.
As the breadth and complexity of our security infrastructure continues to grow, the risk of a Security Event increases.
As the breadth and complexity of our security infrastructure continues to grow, the risk of a cybersecurity event increases.
Chubb Limited and our non-U.S. subsidiaries operate in a manner so that none of these companies should be subject to U.S. tax (other than U.S. excise tax on insurance and reinsurance premium income attributable to insuring or reinsuring U.S. risks and U.S. withholding tax on some types of U.S. source investment income), because none of these companies should be treated as engaged in a trade or business within the U.S.
Chubb Limited and our non-U.S. subsidiaries operate such that none of these companies should be subject to U.S. tax (other than U.S. excise tax on insurance and reinsurance premium income attributable to insuring or reinsuring U.S. risks and U.S. withholding tax on some types of U.S. source investment income), because none of these companies should be treated as engaged in a trade or business within the U.S.
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 significant, can affect our ability to conduct business.
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.
These laws and regulations are increasing in complexity and number, change frequently, sometimes conflict, and could expose Chubb to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions.
These laws and regulations are increasing in complexity and number, change frequently, sometimes conflict, and could expose Chubb to significant monetary damages, regulatory enforcement actions, fines, litigation or claims, and criminal prosecution in one or more jurisdictions.
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 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; social, political or economic instability resulting from climate change; and nationalization of our 28 Table of Contents operations without compensation.
Because a person acquiring 10 percent or more of our Common Shares would indirectly control the same percentage of the stock of our U.S. insurance subsidiaries, the insurance change of control laws of various U.S. jurisdictions would likely apply to such a transaction.
Because a person acquiring 10 percent or more of our Common Shares would indirectly control the same percentage of the stock of our insurance subsidiaries, the insurance change of control laws of various jurisdictions would likely apply to such a transaction.
For example, "reviver" legislation in certain states does allow civil claims relating to molestation to be asserted against policyholders that would otherwise be barred by statutes of limitations. As a result, the full extent of liability under our insurance or reinsurance contracts may not be known for many years after issuance.
For example, "reviver" legislation in certain states allows civil claims relating to molestation to be asserted against policyholders that would otherwise be barred by statutes of limitations. As a result, the full extent of liability under our insurance or reinsurance contracts may not be known for many years after issuance.
The process of establishing MRB liabilities relies on our ability to accurately estimate insured events that have not yet occurred but that are expected to occur in future periods. Significant deviations in actual experience from a ssumptions used for pricing and for MRB liabilities could have an adverse effect on the profitability of our products and our business.
The process of establishing MRB liabilities relies on our ability to accurately estimate insured events that have not yet occurred but that are expected to occur in future periods. Significant deviations in actual experience from assumptions used for pricing and for MRB liabilities could have an adverse effect on the profitability of our products and our business.
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 .
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 .
In addition, if Chubb Limited were considered a PFIC, upon the death of any U.S. individual owning shares, such individual's heirs or estate would not be entitled to a "step-up" in the basis of the shares which might otherwise be available under U.S. federal 33 Table of Contents income tax laws.
In addition, if Chubb Limited were considered a PFIC, upon the death of any U.S. individual owning shares, such individual's heirs or estate would not be entitled to a "step-up" in the basis of the shares which might otherwise be available under U.S. federal income tax laws.
The foreign and U.S. federal and state laws and regulations that are applicable to our operations are complex and may increase the costs of regulatory compliance or subject our business to the possibility of regulatory actions or proceedings.
The non-U.S. and U.S. federal and state laws and regulations that are applicable to our operations are complex and may increase the costs of regulatory compliance or subject our business to the possibility of regulatory actions or proceedings.
We currently anticipate that the new Bermuda income tax would 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 enacted Bermuda income tax toward such OECD minimum tax.
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.
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 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.
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.
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.
We believe that we are not, have not been, and currently do not expect to become, a PFIC for U.S. federal income tax purposes. We cannot assure, however, that we will not be deemed a PFIC by the IRS. Recently enacted U.S. federal tax law and recent final and proposed regulations issued by the IRS and U.S.
We believe that we are not, have not been, and currently do not expect to become, a PFIC for U.S. federal income tax purposes. We cannot assure, however, that we will not be deemed a PFIC by the IRS. U.S. federal tax law and final and proposed regulations issued by the IRS and U.S.
Under the terms of certain high-deductible policies which we offer, such as workers’ compensation and general liability, our customers are responsible to reimburse us for an agreed-upon dollar amount per claim. In nearly all cases, we are required under such policies to pay covered claims first and then seek reimbursement for amounts within the applicable deductible from our customers.
Under the terms of certain high-deductible policies that we offer, such as workers’ compensation and general liability, our customers are responsible for reimbursing us for an agreed-upon dollar amount per claim. In nearly all cases, we are required under such policies to pay covered claims first and then seek reimbursement for amounts within the applicable deductible from our customers.
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, 2023, gross A&E liabilities represented approximately 1.8 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, 2024, gross A&E liabilities represented approximately 1.6 percent of our gross loss reserves.
Payment of obligations under surety bonds could have an adverse effect on our results of operations. The surety business tends to be characterized by infr equent 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 tends to be characterized by infrequent but potentially high severity losses. The majority of our surety obligations are intended to be performance-based guarantees.
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, 2023, we had $20.2 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, 2024, we had $20.1 billion of reinsurance recoverables, net of reserves for uncollectible recoverables.
Any such evaluation could result in future changes in estimates of losses or reinsurance recoverables and would be reflected in our results of operations in the period in which the estimates are changed. Losses and loss expenses are charged to income as incurred.
Such evaluations could result in future changes in estimates of losses or reinsurance recoverables and would be reflected in our results of operations in the period in which the estimates are changed. Losses and loss expenses are charged to income as incurred.
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 impact of insurance, judicial decisions, and/or social inflation.
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.
We purchase protection from third parties including, but not limited to, reinsurance to protect against catastrophes and other sources of volatility, to increase the amount of protection we can provide our clients, and as part of our overall risk management strategy.
We purchase protection from third parties, including reinsurance, to protect against catastrophes and other sources of volatility, to increase the amount of protection we can provide our clients, and as part of our overall risk management strategy.
We may need to raise additional funds through financings or access funds through existing or new credit facilities or through short-term repurchase agreements. We also from time to time seek to refinance debt or credit as amounts become due or commitments expire.
We may need to raise additional funds through financings or access funds through existing or new credit facilities or through short-term repurchase or borrowing arrangements. We also from time to time seek to refinance debt or credit as amounts become due or commitments expire.
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, artificial intelligence 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.
Such an event or events may jeopardize Chubb's or its clients' or counterparties' confidential and other information processed and stored within Chubb, and transmitted through its information systems, or otherwise cause interruptions, delays, or malfu nctions in Chubb's, its clients', its counterparties', or third parties' operations, or result in data loss or loss of assets which could result in significant losses, reputational damage or an adverse effect on our operations and critical business functions.
Such an event or events may jeopardize Chubb's or its clients' or counterparties' confidential and other information processed and stored within Chubb, and transmitted through its information systems, or otherwise cause interruptions, delays, or malfunctions in Chubb's, its clients', its counterparties', or third parties' operations, or result in data loss or loss of assets that could result in significant losses, reputational damage or an adverse effect on our operations and critical business functions.
If an agreement is terminated before closing, the result would be that our 30 Table of Contents proposed acquisition would not occur, which could, among other things, expose us to damages or liability and adversely impact our stock price and future operations.
If an agreement is terminated before closing, the result would be that our proposed acquisition would not occur, which could, among other things, expose us to damages or liability and adversely impact our stock price and future operations.
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.
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.
The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks including the deployment of artificial intelligence by bad actors intent on finding and exploiting vulnerabilities, their use of "deep fakes," and long-term persistent attacks.
The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks, which include the deployment of artificial intelligence by bad actors intent on finding and exploiting vulnerabilities, use of "deep fakes," and long-term persistent attacks.
Our pricing, establishment of liabilities for life insurance and annuity products, including reinsurance programs, are based upon various assumptions, including but not limited to equity market changes, interest rates, mortality rates, morbidity rates, and policyholder behavior. With the adoption of long-duration targeted improvements (LDTI), the accounting for our FPB reserves is also sensitive to changing interest rate conditions.
Our pricing, establishment of liabilities for life insurance and annuity products, including reinsurance programs, are based upon various assumptions, including equity market changes, interest rates, mortality rates, morbidity rates, and policyholder behavior. Under long-duration targeted improvements (LDTI), the accounting for our FPB reserves is also sensitive to changing interest rate conditions.
Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business. Exposure to cyber risk is increasing systematically due to greater digital dependence and increases possible losses due to a catastrophic cyber event.
We cannot predict how legal, regulatory or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business. In addition, exposure to cyber risk is increasing systematically due to greater digital dependence, which may increase possible losses due to a catastrophic cyber event.
Applicable laws may make it difficult to effect a change of control of our company. Before a person can acquire control of a U.S. insurance company, prior written approval must be obtained from the insurance commissioner of the state where the domestic insurer is domiciled.
Applicable laws may make it difficult to effect a change of control of our company. Before a person can acquire control of an insurance company, prior written approval must be obtained from the insurance commissioner of the U.S. state or the regulator of the applicable country where the insurer is domiciled.
Laws of other jurisdictions in which one or more of our existing subsidiaries are, or a future subsidiary may be, organized or domiciled may contain similar restrictions on the acquisition of control of Chubb.
Laws of other jurisdictions in which one or more of our existing companies are, or a future affiliate may be, organized or domiciled may contain similar restrictions on the acquisition of control of Chubb.
Our business depends on effective information security and systems and the integrity and timeliness of the data our information systems use to run our business. 28 Table of Contents Our ability to adequately price products and services, to establish reserves, to provide effective, efficient and secure service to our customers, to value our investments and to timely and accurately report our financial results also depends significantly on the integrity and availability of the data we maintain, including that within our information systems, as well as data in and assets held through third-party service providers and systems.
Our ability to adequately price products and services, to establish reserves, to provide effective, efficient and secure service to our customers, to value our investments and to timely and accurately report our financial results also depends significantly on the integrity and availability of the data we maintain, including that within our information systems, as well as data in and assets held through third-party service providers and systems.
Should Century's loss reserves experience adverse development in the future and sho uld Century be placed into rehabilitation or liquidation, the reinsurance recoverables due from Century to its affiliates would be payable only after the payment in full of third-party expenses and liabilities, including administrative expenses 23 Table of Contents and direct policy liabilities.
Should Century's loss reserves experience adverse development in the future and should Century be placed into rehabilitation or liquidation, the reinsurance recoverables due from Century to its affiliates could be payable only after the payment in full of third-party expenses and liabilities, including administrative expenses and direct policy liabilities.
We may be subject to U.S. tax and Bermuda tax which may have an adverse effect on our results of operations and shareholder investment.
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.
In the case of our assumed proportional reinsurance treaties, we seek per occurrence limitations or loss and loss expense ratio caps to limit the impact of losses ceded by the client. In proportional reinsurance, the reinsurer shares a proportional part of the premiums and losses of the reinsured. We also seek to limit our loss exposure by geographic diversification.
We also look to limit our loss by using assumed proportional reinsurance treaties, in which we seek per occurrence limitations or loss and loss expense ratio caps to limit the impact of losses ceded by the client. In proportional reinsurance, the reinsurer shares a proportional part of the premiums and losses of the reinsured.
This framework and proposed changes 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.
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.
Consequently, we assume a degree of credit risk associated with a broker with whom we transact business. However, due to the unsettled and fact-specific nature of the law, we are unable to quantify our exposure to this risk. To date, we have not experienced any material losses related to this credit risk.
Consequently, we assume a degree of credit risk associated with a broker with whom we transact business. However, due to the unsettled and fact-specific nature of the law, we are unable to quantify our exposure to this risk.
The principal currencies creating foreign exchange risk are the Korean won, Chinese yuan, Canadian dollar, Australian dollar, Taiwan dollar, Mexican peso, Brazilian real, Thai baht, British pound sterling, and euro. At December 31, 2023, approximately 31.8 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, 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.
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 limit our ability to compete in desired markets.
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.
Thus, the intercompany reinsurance recoverables would be at risk to the extent of the shortage of assets remaining to pay these recoverables.
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.
We are subject to numerous U.S. federal and state laws and non-U.S. regulations governing the protection of personal and confidential information of our clients and employees, including in relation to medical records, credit card data and financial information.
Evolving privacy, data security, and artificial intelligence (AI) regulations could adversely affect our business. We are subject to numerous U.S. federal and state laws and non-U.S. laws and regulations governing the protection of personal and confidential information of our clients and employees, including in relation to medical records, credit card data and financial information.
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 an exemption from the 10 percent limit applies for repurchased treasury shares dedicated for cancellation and acquired pursuant to a shareholder-ratified repurchase program.
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.
This risk may be 29 Table of Contents particularly acute for us relative to some of our competitors because some of our senior executives work in countries where they are not citizens, and work permit and immigration issues could adversely affect the ability to retain or hire key persons.
This risk may be particularly acute for us relative to some of our competitors because some of our senior executives work in countries where they are not citizens, and work permit and immigration issues could adversely affect the ability to retain or hire key persons. We do not maintain key person life insurance policies with respect to our employees.
While our Articles of Association limit the voting power of any shareholder to less than 10 percent, we cannot assure that the applicable regulatory body would agree that a shareholder who owned 10 percent or more of our Common Shares did not, because of the limitation on the voting power of such shares, control the applicable insurance subsidiary.
Although our Articles of Association may limit the voting power of any shareholder to less than 10 percent, applicable regulators may not agree that a shareholder that owned 10 percent or more of our Common Shares did not, because of the limitation on the voting power of such shares, control the applicable insurance subsidiary.
Chubb has been advised by its Swiss counsel that there is doubt as to whether the courts in Switzerland would enforce: • judgments of U.S. courts based upon the civil liability provisions of the U.S. federal securities laws obtained in actions against it or its directors and officers, who reside outside the U.S.; or • original actions brought in Switzerland against these persons or Chubb predicated solely upon U.S. federal securities laws. 32 Table of Contents Chubb has also been advised by its Swiss counsel that there is no treaty in effect between the U.S. and Switzerland providing for this enforcement, and there are grounds upon which Swiss courts may not enforce judgments of U.S. courts.
Chubb has been advised by its Swiss counsel that there is doubt as to whether the courts in Switzerland would enforce: • judgments of U.S. courts based upon the civil liability provisions of the U.S. federal securities laws obtained in actions against it or its directors and officers, who reside outside the U.S.; or • original actions brought in Switzerland against these persons or Chubb predicated solely upon U.S. federal securities laws.
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 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.
Furthermore, our current repurchase program relies on Swiss tax rulings. 26 Table of Contents 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.
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.
Prior to granting approval of an application to acquire control of a domestic insurer, the state insurance commissioner will consider such factors as the financial strength of the applicant, the integrity and management of the applicant's Board of Directors and executive officers, the acquirer's plans for the future operations of the domestic insurer, and any anti-competitive results that may arise from the consummation of the acquisition of control.
The regulator may consider such factors as the financial strength of the applicant, the integrity and management of the applicant's Board of Directors and executive officers, the acquirer's plans for the future operations of the domestic insurer, and any anti-competitive results that may arise from the consummation of the acquisition of control.
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 Risk & Finance Committee of the Board of Directors.
The imposition of the Bermuda corporate income tax could have an adverse effect on our results of operations 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).
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).
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 e xpose us to future policy benefit (FPB) reserve and market risk benefits changes that are directly affected by market and other factors and assumptions.
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.
While we believe the intercompany reinsurance recoverables from Century are not impaired at this time, we cannot assure that adverse development with respect to Century's loss reserves, if manifested, will not result in Century's insolvency, which could result in our recognizing a loss to the extent of any uncollectible reinsurance from Century.
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.
Key tax provisions included in the IRA 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 percen t excise tax on repurchases of corporate stock. The CAMT and the excise tax on share repurchases are effective for tax years beginning after December 31, 2022.
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.
Geographic zone limitations involve significant underwriting judgments, including the determination of the area of the zones and the inclusion of a particular policy within a particular zone's limits.
We further seek to limit our loss exposure by geographic diversification. Geographic zone limitations involve significant underwriting judgments, including the determination of the area of the zones and the inclusion of a particular policy within a particular zone's limits.
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. As part of ComFrame, the IAIS is developing an international capital standard for such IAIGs.
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.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+0 added−0 removed18 unchanged
Biggest changeWe review third-party software and hardware in our environment to understand the components used and what impact they could have on our overall cyber risk environment. 34 Table of Contents To 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, nor are they reasonably likely to materially affect 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. 35 Table of Contents
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.
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 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. 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.
Our cybersecurity program and control environment incorporate appropriate industry standards and best practices, such as the National Institutes of Standards and Technology Cyber Security Framework (NIST CSF), and is designed to comply with numerous U.S. federal and state and international laws, rules and regulations governing the protection of personal and confidential information of our clients and employees.
Our cybersecurity program and control environment incorporate appropriate industry standards and best practices, such as the National Institute of Standards and Technology Cyber Security Framework (NIST CSF), and are designed to comply with numerous U.S. federal and state and international laws, rules, and regulations governing the protection of personal and confidential information of our clients and employees.
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. Cybersecurity risk management oversight is led by our CISO and CTO.
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.
In accordance with our cybersecurity risk assessment processes, we have deployed a set of cybersecurity controls to protect Chubb.
In accordance with our cybersecurity risk assessment processes, we have deployed a set of cybersecurity controls to 35 Table of Contents protect Chubb.
Chubb recognizes the growing risk associated with third-party hardware, software, and services, and we have taken steps we believe are appropriate to manage those risks.
Chubb recognizes the growing risk associated with third-party hardware, software, and services, and we have taken steps we believe are appropriate to manage those risks. We review third-party software and hardware in our environment to understand the components used and what impact they could have on our overall cyber risk environment.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed5 unchanged
Biggest changeThe chart depicts the value on December 31, 2019, 2020, 2021, 2022, and 2023, of a $100 investment made on December 31, 2018, with all dividends reinvested. 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Chubb Limited $100 $123 $125 $159 $185 $193 S&P 500 Index $100 $131 $156 $200 $164 $207 S&P 500 P&C Index $100 $126 $135 $161 $191 $212
Biggest changeThe 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
We have paid dividends each quarter since we became a public company in 1993. In 2023 and 2022, 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.
We 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.
(2) The aggregate value of shares purchased in the three months ended December 31, 2023 as part of the publicly announced plan was $720 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, 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.
As of February 22, 2024, $3.62 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, 2018, through December 31, 2023, 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, 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.
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 16, 2024 was 6,922.
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.
(3) For the period January 1, 2024 through February 22, 2024, we repurchased 269,450 Common Shares for a total of $67 million in a series of open market transactions.
(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.
Issuer's Repurchases of Equity Securities for the Three Months Ended December 31, 2023 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 98,280 $ 209.37 96,000 $ 4.38 billion November 1 through November 30 955,371 $ 224.25 953,000 $ 4.17 billion December 1 through December 31 2,146,123 $ 226.90 2,142,000 $ 3.68 billion Total 3,199,774 $ 225.57 3,191,000 (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, 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.

Item 7. Management's Discussion & Analysis

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

249 edited+35 added−69 removed197 unchanged
Biggest changeSecurities and Exchange Commission (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; • 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; 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 outstanding purchases of additional interests in Huatai Insurance Group Co., Ltd.
Biggest changeThese 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).
We amortize the 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 at the time of the acquisition.
The average credit quality of our non-U.S. fixed income securities is 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 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.
Our Internet site (investors.chubb.com, under Financials/Financial Strength Rating) also contains some information about our ratings, but such information on our website is not incorporated by reference into this report. Financial strength ratings reflect the rating agencies' opinions of a company's claims paying ability. Independent ratings are one of the important factors that establish our competitive position in the insurance markets.
Our Internet site (investors.chubb.com, under Financials/Financial Strength Ratings) also contains some information about our ratings, but such information on our website is not incorporated by reference into this report. Financial strength ratings reflect the rating agencies' opinions of a company's claims paying ability. Independent ratings are one of the important factors that establish our competitive position in the insurance markets.
Letters A, B, C, D, E, and F included in the table are references for calculating the ratios above. 69 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, 2022 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 10,828 $ 3,186 $ 2,557 $ 5,252 $ 670 $ 363 $ 22,856 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (961) (631) (64) (365) (161) — (2,182) Reinstatement premiums collected (expensed) on catastrophe losses (1) (2) — (3) 55 — 49 Catastrophe losses, gross of related adjustments (960) (629) (64) (362) (216) — (2,231) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 562 186 61 448 (22) (359) 876 Net premiums earned adjustments on PPD - unfavorable (favorable) 88 — 168 — — — 256 Expense adjustments - unfavorable (favorable) 24 — (2) — 1 — 23 PPD reinstatement premiums - unfavorable (favorable) — — — — (2) — (2) PPD, gross of related adjustments - favorable (unfavorable) 674 186 227 448 (23) (359) 1,153 CAY loss and loss expense ex CATs B $ 10,542 $ 2,743 $ 2,720 $ 5,338 $ 431 $ 4 $ 21,778 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 3,426 $ 1,348 $ 116 $ 3,888 $ 276 $ 385 $ 9,439 Expense adjustments - favorable (unfavorable) (24) — 2 — (1) — (23) Policy acquisition costs and administrative expenses, adjusted D $ 3,402 $ 1,348 $ 118 $ 3,888 $ 275 $ 385 $ 9,416 Denominator Net premiums earned E $ 17,107 $ 5,180 $ 2,838 $ 10,803 $ 922 $ 36,850 Reinstatement premiums (collected) expensed on catastrophe losses 1 2 — 3 (55) (49) Net premiums earned adjustments on PPD - unfavorable (favorable) 88 — 168 — — 256 PPD reinstatement premiums - unfavorable (favorable) — — — — (2) (2) Net premiums earned excluding adjustments F $ 17,196 $ 5,182 $ 3,006 $ 10,806 $ 865 $ 37,055 P&C Combined ratio Loss and loss expense ratio A/E 63.3 % 61.5 % 90.1 % 48.6 % 72.6 % 62.0 % Policy acquisition cost and administrative expense ratio C/E 20.0 % 26.0 % 4.1 % 36.0 % 30.0 % 25.6 % P&C Combined ratio 83.3 % 87.5 % 94.2 % 84.6 % 102.6 % 87.6 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 61.3 % 52.9 % 90.5 % 49.4 % 49.7 % 58.8 % Policy acquisition cost and administrative expense ratio, adjusted D/F 19.8 % 26.0 % 3.9 % 36.0 % 31.8 % 25.4 % CAY P&C Combined ratio ex CATs 81.1 % 78.9 % 94.4 % 85.4 % 81.5 % 84.2 % Combined ratio Combined ratio 87.6 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 87.6 % 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. 68 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, 2022 (in millions of U.S. dollars except for ratios) Numerator Losses and loss expenses/policy benefits A $ 10,828 $ 3,186 $ 2,557 $ 5,252 $ 670 $ 363 $ 22,856 Catastrophe losses and related adjustments Catastrophe losses, net of related adjustments (961) (631) (64) (365) (161) — (2,182) Reinstatement premiums collected (expensed) on catastrophe losses (1) (2) — (3) 55 — 49 Catastrophe losses, gross of related adjustments (960) (629) (64) (362) (216) — (2,231) PPD and related adjustments PPD, net of related adjustments - favorable (unfavorable) 562 186 61 448 (22) (359) 876 Net premiums earned adjustments on PPD - unfavorable (favorable) 88 — 168 — — — 256 Expense adjustments - unfavorable (favorable) 24 — (2) — 1 — 23 PPD reinstatement premiums - unfavorable (favorable) — — — — (2) — (2) PPD, gross of related adjustments - favorable (unfavorable) 674 186 227 448 (23) (359) 1,153 CAY loss and loss expense ex CATs B $ 10,542 $ 2,743 $ 2,720 $ 5,338 $ 431 $ 4 $ 21,778 Policy acquisition costs and administrative expenses Policy acquisition costs and administrative expenses C $ 3,426 $ 1,348 $ 116 $ 3,888 $ 276 $ 385 $ 9,439 Expense adjustments - favorable (unfavorable) (24) — 2 — (1) — (23) Policy acquisition costs and administrative expenses, adjusted D $ 3,402 $ 1,348 $ 118 $ 3,888 $ 275 $ 385 $ 9,416 Denominator Net premiums earned E $ 17,107 $ 5,180 $ 2,838 $ 10,803 $ 922 $ 36,850 Reinstatement premiums (collected) expensed on catastrophe losses 1 2 — 3 (55) (49) Net premiums earned adjustments on PPD - unfavorable (favorable) 88 — 168 — — 256 PPD reinstatement premiums - unfavorable (favorable) — — — — (2) (2) Net premiums earned excluding adjustments F $ 17,196 $ 5,182 $ 3,006 $ 10,806 $ 865 $ 37,055 P&C Combined ratio Loss and loss expense ratio A/E 63.3 % 61.5 % 90.1 % 48.6 % 72.6 % 62.0 % Policy acquisition cost and administrative expense ratio C/E 20.0 % 26.0 % 4.1 % 36.0 % 30.0 % 25.6 % P&C Combined ratio 83.3 % 87.5 % 94.2 % 84.6 % 102.6 % 87.6 % CAY P&C Combined ratio ex CATs Loss and loss expense ratio, adjusted B/F 61.3 % 52.9 % 90.5 % 49.4 % 49.7 % 58.8 % Policy acquisition cost and administrative expense ratio, adjusted D/F 19.8 % 26.0 % 3.9 % 36.0 % 31.8 % 25.4 % CAY P&C Combined ratio ex CATs 81.1 % 78.9 % 94.4 % 85.4 % 81.5 % 84.2 % Combined ratio Combined ratio 87.6 % Add: impact of gains and losses on crop derivatives — P&C Combined ratio 87.6 % Note: The ratios above are calculated using whole U.S. dollars.
Our net income may be volatile because certain variable annuity reinsurance products sold expose us to reserve and fair value liability changes that are directly affected by market and other factors and assumptions. Pandemic An outbreak of pandemic disease, such as the COVID-19 pandemic, could have a materially adverse effect on our results of operations.
Our net income may be volatile because certain variable annuity reinsurance products sold expose us to fair value liability changes that are directly affected by market and other factors and assumptions. Pandemic An outbreak of pandemic disease, such as the COVID-19 pandemic, could have a materially adverse effect on our results of operations.
The determination of the need for a valuation allowance is based on all available information including projections of future taxable income, principally derived from business plans and where appropriate available tax planning strategies. Projections of future taxable income incorporate assumptions of future business and operations that are apt to differ from actual experience.
The determination of the need for a valuation allowance is based on all available information including projections of future taxable income, principally derived from business plans and where there are appropriate available tax planning strategies. Projections of future taxable income incorporate assumptions of future business and operations that are apt to differ from actual experience.
On July 19, 2021, the Board authorized a one-time incremental share repurchase program of up to $5.0 billion of Chubb Common Shares effective through June 30, 2022. In May 2022, the Board authorized the repurchase of up to $2.5 billion of Chubb Common Shares effective through June 30, 2023.
On July 19, 2021, the Board of Directors (Board) authorized a one-time incremental share repurchase program of up to $5.0 billion of Chubb Common Shares effective through June 30, 2022. In May 2022, the Board authorized the repurchase of up to $2.5 billion of Chubb Common Shares effective through June 30, 2023.
Therefore, we urge caution in using these very simplistic ratios to gauge reserve adequacy. 78 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. 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.
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. 80 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. 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 below-investment grade and non-rated portfolio includes over 1,600 issuers, with the greatest single exposure being $168 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 $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).
Interest payments related to these obligations total $6.1 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 $6.6 billion with $0.5 billion due over the next twelve months. These estimates are based on current exchange rates.
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 4.4 4.3 Environmental 3.1 3.4 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 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.
Sensitivity to underlying assumptions While we believe that our reserve for unpaid losses and loss expenses at December 31, 2023, 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, 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.
Our minimum rating for initial purchase is BB/B. Sixteen 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. 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.
For example, the reserves established for high excess casualty claims, asbestos and environmental claims, claims from major catastrophic events, or for our various product lines each require different assumptions and judgments to be made. The effects of recent heightened inflation create additional uncertainty, while climate change could, over time, add new uncertainties to the loss reserving process.
For example, the reserves established for high excess casualty claims, asbestos and environmental claims, claims from major catastrophic events, or for our various product lines each require different assumptions and judgments to be made. The effects of inflation create additional uncertainty, while climate change could, over time, add new uncertainties to the loss reserving process.
Derivative and structured securities (e.g., credit default swaps and collateralized debt obligations) are not permitted in the high-yield portfolio. 77 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. 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.
During 2023, 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 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.
Comparisons between 2022 and 2021 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, 2022. All comparisons in this discussion are to the prior year unless otherwise indicated.
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.
Excluding Huatai, the portfolio is primarily managed externally by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers. We hold no collateralized debt obligations in our investment portfolio, and we provide no credit default protection. We have long-standing global credit limits for our entire portfolio across the organization.
The portfolio is primarily managed externally by independent, professional investment managers and is broadly diversified across geographies, sectors, and issuers. We hold no collateralized debt obligations in our investment portfolio, and we provide no credit default protection. We have long-standing global credit limits for our entire portfolio across the organization.
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. 85 Table of Contents Capital Resources Capital resources consist of funds deployed or available to be deployed to support our business operations.
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.
For such contracts, often referred to as finite or structured products, we require that risk transfer be specifically assessed for each contract by developing expected cash flow analyses at contract inception. To support risk transfer, the cash flow analyses must demonstrate that a significant loss is reasonably possible.
For such contracts, often referred to as structured products, we require that risk transfer be specifically assessed for each contract by developing expected cash flow analyses at contract inception. To support risk transfer, the cash flow analyses must demonstrate that a significant loss is reasonably possible.
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 2024. 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. Securities Repurchases From time to time, we repurchase shares as part of our capital management program.
The table below presents our modeled pre-tax estimates of natural catastrophe PML, net of reinsurance, at December 31, 2023, 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, 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.
North America Agricultural Insurance Approximately 69 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 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.
Department of Agriculture’s Risk Management Agency (RMA), is a federal subsidized insurance program that covers revenue shortfalls or production losses due to natural causes such as drought, 82 Table of Contents excessive moisture, hail, wind, freeze, insects, and disease. These revenue products are defined as providing both commodity price and yield coverages.
Department of Agriculture’s Risk Management Agency (RMA), is a federal subsidized insurance program that covers revenue shortfalls or production losses due to natural causes such as drought, excessive moisture, hail, wind, freeze, insects, and disease. These revenue products are defined as providing both commodity price and yield coverages.
The first table lists investments according to type and second according to S&P credit rating: December 31, 2023 December 31, 2022 (in millions of U.S. dollars, except for percentages) Fair Value % of Total Fair Value % of Total U.S.
The first table lists investments according to type and second according to S&P credit rating: December 31, 2024 December 31, 2023 (in millions of U.S. dollars, except for percentages) Fair Value % of Total Fair Value % of Total U.S.
In June 2023, the Board authorized the repurchase of up to $5.0 billion of Chubb's Common Shares effective July 1, 2023 with no expiration date. Share repurchases may be made in the open market, in privately negotiated transactions, block trades, accelerated repurchases and/or through option or other forward transactions.
In June 2023, the Board authorized the repurchase of up to $5.0 billion of Chubb's Common Shares effective July 1, 2023, with no expiration date. 84 Table of Contents Share repurchases may be made in the open market, in privately negotiated transactions, block trades, accelerated repurchases and/or through option or other forward transactions.
Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Interest expense, Amortization of purchased intangibles, and Income tax expense. 57 Table of Contents Segment Operating Results – Years Ended December 31, 2023, 2022, and 2021 We operate 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.
Refer to the respective sections that follow for a discussion of Net investment income, Other (income) expense, Net realized gains (losses), Interest expense, Amortization of purchased intangibles, and Income tax expense. 55 Table of Contents Segment Operating Results – Years Ended December 31, 2024, 2023, and 2022 We operate 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.
At December 31, 2023 , 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 loss events covered under those contracts. Total cash requirements are not determinable from underlying contracts and must be estimated.
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.
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 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 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.
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, 2023 and 2022 and comparisons between 2023 and 2022.
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.
In addition, 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, 2023, through March 31, 2024, 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, 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.
To the extent the creditworthiness of our reinsurers was to deteriorate due to an adverse 50 Table of Contents event affecting the reinsurance industry, such as a large number of major catastrophes, actual uncollectible amounts could be significantly greater than our valuation allowance for uncollectible reinsurance.
To the extent the creditworthiness of our reinsurers was to deteriorate due to an adverse event affecting the reinsurance industry, such as a large number of major catastrophes, actual uncollectible amounts could be significantly greater than our valuation allowance for uncollectible reinsurance.
The following tables present the calculation of combined ratio, as reported for each segment to P&C combined ratio, adjusted for CATs and PPD: 68 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. 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.
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, 2023, 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.
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.
This represents an impact of about 18 percent relative to recorded net loss and loss expense reserves of approximately $3.9 billion for these portfolios.
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.
At December 31, 2023, the use of different assumptions within our approach could have a material effect on the valuation allowance for uncollectible reinsurance.
At December 31, 2024, the use of different assumptions within our approach could have a material effect on the valuation allowance for uncollectible reinsurance.
The Board will determine the record and payment dates at which the annual dividend may be paid until the date of the 2024 annual general meeting, and is authorized to abstain from distributing a dividend at its discretion. The first three quarterly installments each of $0.86 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 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.
As shown in our loss triangle disclosure, the vast majority (almost 95 percent) of Personal Lines net ultimate losses and allocated loss adjustment expenses are typically paid within five years of the accident date and almost 80 percent within two years.
As shown in our loss triangle disclosure, the vast majority (over 90 percent) of Personal Lines net ultimate losses and allocated loss adjustment expenses are typically paid within five years of the accident date and almost 80 percent within two years.
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. 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. 48 Table of Contents The recognition of a reinsurance recoverable asset requires two key judgments.
Each year the RMA issues a final SRA for the subsequent reinsurance year (i.e., the 2024 SRA covers the 2024 reinsurance year from July 1, 2023 through June 30, 2024).
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).
This represents an impact of about 10.7 percent relative to recorded net loss and loss expense reserves of approximately $10.2 billion.
This represents an impact of about 10.9 percent relative to recorded net loss and loss expense reserves of approximately $10.2 billion.
Based on our impairment testing for 2023, we determined no impairment was required and none of our reporting units were at risk for impairment.
Based on our impairment testing for 2024, 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 $2.1 billion pre-tax based on the exposures, net of reinsurance and TRIPRA, as of December 31, 2023.
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.
Refer to Note 1 o) to the Consolidated Financial Statements for additional information. • Repurchase agreements - We use repurchase agreements as a low-cost funding alternative. At December 31, 2023 , there were $2.8 billion in repurchase agreements outstanding with various maturities over the next five months.
Refer to Note 1 o) to the Consolidated Financial Statements for additional information. • Repurchase agreements - We use repurchase agreements as a low-cost funding alternative. At December 31, 2024 , there were $2.7 billion in repurchase agreements outstanding with various maturities over the next five months.
(2) Includes $21 million, $41 million, and $84 million of amortization expense related to the fair value adjustment of acquired invested assets in 2023, 2022, and 2021, respectively. Excludes investment income from our private equities where we own more than 3 percent interest.
(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.
The decrease in the ETR from 2022 to 2023 was primarily due to a one-time deferred tax benefit 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. 66 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. 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.
At December 31, 2023, the case reserves, net of retrocessions, reported to us by our ceding companies approximated our recorded case reserves.
At December 31, 2024, the case reserves, net of retrocessions, reported to us by our ceding companies approximated our recorded case reserves.
In addition, in the case of loans to government-owned entities or loans that have a government guarantee, political risk policies cover 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 79 Table of Contents scheduled payments against risks of non-payment or non-honoring of government guarantees.
Total cash requirements are estimated at approximately $621 million over the term of the lease. Ratings Chubb Limited and its subsidiaries are assigned credit and financial strength (insurance) ratings from internationally recognized rating agencies, including S&P, A.M. Best, Moody's, and Fitch. The ratings issued on our companies by these agencies are announced publicly and are available directly from the agencies.
Total cash requirements are estimated at approximately $400 million over the term of the lease. Ratings Chubb Limited and its subsidiaries are assigned credit and financial strength (insurance) ratings from internationally recognized rating agencies, including S&P, AM Best, Moody's, and Fitch. The ratings issued on our companies by these agencies are announced publicly and are available directly from the agencies.
However, based on the composition (particularly the average credit quality) of the reinsurance recoverable balance at December 31, 2023, 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 $97 million or approximately 0.5 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, 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.
These other catastrophe programs have the potential to reduce our effective retention below the stated levels. (b) These coverages are partially placed with Reinsurers. (c) These coverages are both part of the same Second layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.
These other catastrophe programs have the potential to reduce our effective retention below the stated levels. (b) These coverages are both part of the same First layer within the Global Property Catastrophe Reinsurance Program and are fully placed with Reinsurers.
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 84 Table of Contents approval of regulatory insurance authorities. Chubb Limited received no dividends from Chubb INA in 2023 and 2022.
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.
Refer to Note 13 to the Consolidated Financial Statements for additional information. • Operating leases - Total obligations for operating leases are $1.2 billion with $166 million estimated due over the next twelve months. Refer to Note 14 j) to the Consolidated Financial Statements for additional informat ion.
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.
Net investment income is influenced by a number of factors including the amounts and timing of inward and outward cash flows, the level of interest rates, and changes in overall asset allocation. Net investment income increased 31.9 percent in 2023 compared with 2022, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai Group.
Net investment income is influenced by a number of factors including the amounts and timing of inward and outward cash flows, the level of interest rates, and changes in overall asset allocation. Net investment income increased 20.1 percent in 2024 compared with 2023, primarily due to higher reinvestment rates on fixed maturities and the consolidation of Huatai Group.
If a reporting unit fails this qualitative assessment, a single quantitative analysis is used to measure and 51 Table of Contents record the amount of the impairment.
If a reporting unit fails this qualitative assessment, a single quantitative analysis is used to measure and record the amount of the impairment.
The average duration of our fixed income securities, including the effect of options and swaps, was 4.8 years and 4.5 years at December 31, 2023 and 2022, respectively. We estimate that a 100 basis point (bps) increase in interest rates would reduce the valuation of our fixed income portfolio by approximately $5.5 billion at December 31, 2023.
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.
At our May 2022 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.32 per share, which was paid in four quarterly installments of $0.83 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 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.
The following table presents, as of December 31, 2023, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the next five years: For the Years Ending December 31 (in millions of U.S. dollars) Reduction to deferred tax liability associated with intangible assets 2024 $ 82 2025 73 2026 68 2027 63 2028 60 Total $ 346 Amortization of the fair value adjustment on assumed long-term debt The following table presents, as of December 31, 2023, the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the next five years: For the Years Ending December 31 (in millions of U.S. dollars) Amortization benefit of the fair value adjustment on assumed long-term debt (1) 2024 $ 21 2025 21 2026 21 2027 21 2028 21 Total $ 105 (1) Recorded as a reduction to Interest expense in the Consolidated statements of operations. 73 Table of Contents Investments Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A/A as rated by the independent investment rating services Standard and Poor’s (S&P)/ Moody’s Investors Service (Moody’s).
The following table presents, as of December 31, 2024, the expected reduction to the deferred tax liability associated with the amortization of Other intangible assets, at current foreign currency exchange rates, for the next five years: For the Years Ending December 31 (in millions of U.S. dollars) Reduction to deferred tax liability associated with intangible assets 2025 $ 76 2026 71 2027 66 2028 62 2029 55 Total $ 330 Amortization of the fair value adjustment on assumed long-term debt The following table presents, as of December 31, 2024, the expected amortization benefit from the fair value adjustment on assumed long-term debt related to the Chubb Corp acquisition for the next five years: For the Years Ending December 31 (in millions of U.S. dollars) Amortization benefit of the fair value adjustment on assumed long-term debt (1) 2025 $ 21 2026 21 2027 21 2028 21 2029 21 Total $ 105 (1) Recorded as a reduction to Interest expense in the Consolidated statements of operations. 71 Table of Contents Investments Our investment portfolio is invested primarily in publicly traded, investment grade, fixed income securities with an average credit quality of A/A as rated by the independent investment rating services Standard and Poor’s (S&P)/ Moody’s Investors Service (Moody’s) at December 31, 2024.
The amortization of purchased intangibles expense in 2024 is expected to be $312 million, or approximately $78 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 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.
At our May 2023 annual general meeting, our shareholders approved an annual dividend for the following year of up to $3.44 per share, expected to be paid in four quarterly installments of $0.86 per share 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, 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.
For balances recoverable from unrated reinsurers for which our ceded reserve is below a certain threshold, we generally apply a default factor of 34.0 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.
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.
(2) U.S. hurricane losses include losses from wind, storm-surge, and related precipitation-induced flooding. (3) California earthquakes 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, 2023, and reflect the September 1, 2023, reinsurance program as well as inuring reinsurance protection coverages.
(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.
The primary components of the default analysis are reinsurance recoverable balances by reinsurer, net of collateral, and forward looking default factors used to estimate the probability that the reinsurer may be unable to meet its future obligations in full.
Generally, we use a default analysis to estimate uncollectible reinsurance. The primary components of the default analysis are reinsurance recoverable balances by reinsurer, net of collateral, and forward looking default factors used to estimate the probability that the reinsurer may be unable to meet its future obligations in full.
Chubb Limited also received dividends of $134 million from its other international subsidiary in 2022. The U.S. insurance subsidiaries of Chubb INA Holdings Inc. (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 $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).
Letters A, B, C, D, E and F included in the table are references for calculating the ratios above. 71 Table of Contents Net Investment Income (in millions of U.S. dollars, except for percentages) 2023 2022 2021 Average invested assets (1) $ 118,357 $ 110,865 $ 108,870 Net investment income (2) $ 4,937 $ 3,742 $ 3,456 Yield on average invested assets 4.2 % 3.4 % 3.2 % Market yield on fixed maturities 5.3 % 5.6 % 2.3 % (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. 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.
The total mark-to-market movement for private equities excluded from Net investment income was as follows: (in millions of U.S. dollars) 2023 2022 2021 Total mark-to-market gain (loss) on private equity, pre-tax $ 504 $ (250) $ 2,115 Interest Expense Interest expense was $672 million, $570 million, and $492 million for the years ended December 31, 2023, 2022, and 2021, respectively.
The total mark-to-market movement for private equities excluded from Net investment income was as follows: (in millions of U.S. dollars) 2024 2023 2022 Total mark-to-market gain (loss) on private equity, pre-tax $ 661 $ 504 $ (250) Interest Expense Interest expense was $741 million, $672 million, and $570 million for the years ended December 31, 2024, 2023, and 2022, respectively.
At December 31, 2023, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,558 million.
At December 31, 2024, the deferred tax liability associated with the Other intangible assets (excluding the fair value adjustment on Unpaid losses and loss expenses) was $1,478 million.
Refer to Note 13 to the Consolidated Financial Statements, under Item 8, for more information. 72 Table of Contents Amortization of Purchased Intangibles and Other Amortization Amortization of purchased intangibles Amortization expense related to purchased intangibles was $310 million, $285 million, and $287 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Refer to Note 13 to the Consolidated Financial Statements, under Item 8, for more information. 70 Table of Contents Amortization of Purchased Intangibles and Other Amortization Amortization of purchased intangibles Amortization expense related to purchased intangibles was $323 million, $310 million, and $285 million for the years ended December 31, 2024, 2023, and 2022, respectively.
Refer to Note 13 to the Consolidated Financial Statements for additional information. 87 Table of Contents • Commitments on invested assets - Total obligations for commitments related to our invested assets are $7.2 billion with $2.1 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 $7.7 billion with $2.2 billion due over the next twelve months.
Profit centers can access various legal entities subject to licensing and other regulatory rules. Profit centers are expected to generate underwriting income and appropriate risk-adjusted returns.
Profit centers can access various legal entities subject to licensing and other regulatory rules. Profit centers are expected to generate P&C underwriting income, life segment income, and appropriate risk-adjusted returns.
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 $56.0 billion and $1.5 billion, respectively, with a total $2.9 billion estimated due over the next twelve months.
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.
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 be material to consolidated loss and loss expense reserves. Specifically, for our main U.S.
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.
(2) 2023 includes a one-time realized gain of $135 million as a result of the consolidation of Huatai Group. Pre-tax net unrealized gains of $3,438 million in 2023 in our investment portfolio reflected the mark-to-market impact in the fixed income portfolio.
(2) 2023 includes a one-time realized gain of $135 million as a result of the consolidation of Huatai Group. Pre-tax net unrealized losses of $251 million in 2024 in our investment portfolio reflected the mark-to-market impact in the fixed income portfolio.
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 $0.7 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 $0.8 billion, either positive or negative, for the projected net loss and loss expense reserves.
We have not purchased any other retroactive ceded reinsurance contracts since 1999. With respect to assumed reinsurance and insurance contracts, products giving rise to judgments regarding risk transfer were primarily sold by our financial solutions business. Although we have significantly curtailed writing financial solutions business, several contracts remain in-force and principally include multi-year retrospectively-rated contracts and loss portfolio transfers.
With respect to assumed reinsurance and insurance contracts, products giving rise to judgments regarding risk transfer were primarily sold by our financial solutions business. Although we have significantly curtailed writing financial solutions business, several contracts remain in-force and principally include multi-year retrospectively-rated contracts and loss portfolio transfers.
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 $2.4 billion and $2.0 billion and non-cash dividends of $170 million and nil from its subsidiaries in 2023 and 2022, 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 $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.
MD&A Index Page Forward-Looking Statements 40 Overview 41 Critical Accounting Estimates 42 Consolidated Operating Results 52 Segment Operating Results 58 Effective Income Tax Rate 66 Net Realized and Unrealized Gains (Losses) 67 Non-GAAP Reconciliation 68 Net Investment Income 72 Interest Expense 72 Amortization of Purchased Intangibles and Other Amortization 73 Investments 74 Asbestos and Environmental (A&E) 78 Catastrophe Management 79 Global Property Catastrophe Reinsurance Program 81 Political Risk and Credit Insurance 82 Crop Insurance 82 Liquidity 84 Capital Resources 86 Ratings 88 Information provided in connection with outstanding debt of subsidiaries 89 Credit Facilities 90 39 Table of Contents Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements.
MD&A Index Page Forward-Looking Statements 40 Overview 41 Critical Accounting Estimates 42 Consolidated Operating Results 52 Segment Operating Results 56 Effective Income Tax Rate 64 Net Realized and Unrealized Gains (Losses) 65 Non-GAAP Reconciliation 66 Net Investment Income 70 Interest Expense 70 Amortization of Purchased Intangibles and Other Amortization 71 Investments 72 Asbestos and Environmental (A&E) 76 Catastrophe Management 77 Global Property Catastrophe Reinsurance Program 79 Political Risk and Credit Insurance 79 Crop Insurance 80 Liquidity 81 Capital Resources 84 Ratings 86 Information provided in connection with outstanding debt of subsidiaries 87 Credit Facilities 88 39 Table of Contents Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements.
At December 31, 2023, the valuation allowance of $716 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.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

21 edited+1 added−1 removed15 unchanged
Biggest changeThe following table summarizes the unhedged portion of net assets (liabilities) in non-U.S. currencies at December 31, 2023 and 2022, and excludes noncontrolling interests: 2023 2022 2023 vs. 2022 % change in exchange rate per USD (in millions of U.S. dollars, except for percentages) Value of net assets (liabilities) Exchange rate per USD Value of net assets (liabilities) Exchange rate per USD Korean won (KRW) (x100) $ 6,115 0.0775 $ 5,333 0.0793 (2.3) % Chinese yuan renminbi (CNY) 5,172 0.1408 4,664 0.1450 (2.9) % Canadian dollar (CAD) 2,362 0.7551 2,166 0.7378 2.3 % Australian dollar (AUD) 1,661 0.6812 1,269 0.6813 — Mexican peso (MXN) 973 0.0589 801 0.0513 14.9 % Brazilian real (BRL) 718 0.2061 624 0.1892 8.9 % New Taiwan dollar (TWD) 647 0.0327 880 0.0325 0.5 % British pound sterling (GBP) 588 1.2731 486 1.2083 5.4 % Baht (THB) 575 0.0292 522 0.0289 1.0 % Euro (EUR) (1) (1,835) 1.1039 (2,006) 1.0705 3.1 % Other foreign currencies 1,952 various 2,106 various NM Value o f unhedged portion of net assets denominated in foreign currencies (2) $ 18,928 $ 16,845 As a percentage of total net assets 31.8 % 33.3 % Pre-tax decrease to Chubb Shareholders' equity of a hypothetical 10 percent strengthening of the USD $ 1,721 $ 1,531 NM – not meaningful (1) Includes unhedged portion of euro denominated debt of $3.1 billion and net assets of $1.3 billion in 2023, and $3.0 billion and $1.0 billion, respectively, in 2022.
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.
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, 2023, 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, 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.
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, 2023, 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, 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.
Our policies to address these risks in 2023 were not materially different from 2022. 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 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.
The following table presents the impact at December 31, 2023 and 2022, 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) 2023 2022 Fair value of fixed income portfolio $ 114.9 $ 98.6 Pre-tax impact of 100 bps increase in interest rates: Decrease in dollars $ 5.5 $ 4.4 As a percentage of total fixed income portfolio at fair value 4.8 % 4.5 % 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, 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.
Treasury curve in the following proportions: up to 15 percent short-term rates (maturing in less than 5 years), 15 percent—25 percent medium-term rates (maturing between 5 years and 10 years, inclusive), and 70 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), 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.
Although our debt and trust preferred securities (collectively referred to as debt obligations) are reported at amortized cost and not adjusted for fair value changes, changes in interest rates could have a material impact on their fair value, albeit there would be no impact on our Consolidated Financial Statements.
Although our debt and hybrid debt (collectively referred to as debt obligations) are reported at amortized cost and not adjusted for fair value changes, changes in interest rates could have a material impact on their fair value, albeit there would be no impact on our Consolidated Financial Statements.
In September 2022, Chubb entered into certain cross-currency swaps designated as fair value hedges and net investment hedges for foreign currency exposure associated with portions of our euro denominated debt and the net investment in certain foreign subsidiaries, respectively. These cross-currency swaps are agreements under which two counterparties exchange principal and interest payments in different currencies at a future date.
Chubb holds certain cross-currency swaps designated as fair value hedges and net investment hedges for foreign currency exposure associated with portions of our euro denominated debt and the net investment in certain foreign subsidiaries, respectively. These cross-currency swaps are agreements under which two counterparties exchange principal and interest payments in different currencies at a future date.
Further, through writing the GLB and GMDB products, collectively referred to as market risk benefits (MRB), we are exposed to volatility in the equity and credit markets, as well as interest rates.
Further, through writing guaranteed living benefits (GLB) and guaranteed minimum death benefits (GMDB) products, collectively referred to as market risk benefits (MRB), we are exposed to volatility in the equity and credit markets, as well as interest rates.
The following table presents the impact at December 31, 2023 and 2022, 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) 2023 2022 Fair value of debt obligations, including repurchase agreements $ 16.6 $ 14.8 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 6.6 % 7.4 % 91 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, 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 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 billion), and Swiss franc (CHF 96 million).
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).
From time-to-time, we use derivatives to hedge planned cross border transactions and, beginning in September 2022, we designated 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, 2023.
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 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.
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.
The tables below present the net amount at risk at December 31, 2023, 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 $ 233 $ 252 $ 478 $ 685 $ 668 $ 544 Claims at 100% immediate mortality 136 148 151 141 129 115 The treaty limits function as a ceiling as equity markets fall.
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.
As part of our investing activities, from time to time we purchase to be announced mortgage backed securities (TBAs). Changes in the fair value of TBAs are included in Net realized gains (losses) and, therefore, have an immediate effect on both our Net income and Shareholders' equity.
Changes in the fair value of TBAs are included in Net realized gains (losses) and, therefore, have an immediate effect on both our Net income and Shareholders' equity.
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 $ 846 $ 1,136 $ 1,596 $ 2,121 $ 2,486 $ 2,767 The treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall. 94 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 $ 41 $ 48 $ 59 $ 69 $ 78 $ 85 GLB net amount at risk 351 436 546 668 790 817 Claims at 100% immediate mortality 30 29 29 29 29 29 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 $ 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.
Excludes hedged euro denominated debt of $1.6 billion in 2023 and 2022. (2) The unhedged net assets denominated in foreign currencies comprised goodwill and other intangible assets of approximately 54 percent and 37 percent at December 31, 2023 and 2022, 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.
Actual sensitivity of our net income may differ from those disclosed in the tables below due to fluctuations in short-term market movements. 93 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 $ 283 $ 187 $ 73 $ (69) $ (263) $ (507) Increase/(decrease) in hedge value (119) — 119 239 358 478 Increase/(decrease) in net income $ 164 $ 187 $ 192 $ 170 $ 95 $ (29) Flat (Increase)/decrease in FVL $ 113 $ — $ (135) $ (313) $ (539) $ (813) Increase/(decrease) in hedge value (119) — 119 239 358 478 Increase/(decrease) in net income $ (6) $ — $ (16) $ (74) $ (181) $ (335) -100 bps (Increase)/decrease in FVL $ (100) $ (231) $ (398) $ (608) $ (860) $ (1,160) Increase/(decrease) in hedge value (119) — 119 239 358 478 Increase/(decrease) in net income $ (219) $ (231) $ (279) $ (369) $ (502) $ (682) 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 $ 54 $ (61) $ (1) $ 1 $ (18) $ 17 Increase/(decrease) in net income $ 54 $ (61) $ (1) $ 1 $ (18) $ 17 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. 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.
At December 31, 2023 and 2022, our notional exposure to derivative instruments was $10.4 90 Table of Contents billion and $9.8 billion, respectively. 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.
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).
GAAP accounting guidance for long-duration contracts that affected the accounting for guaranteed minimum death benefits (GMDB) and guaranteed living benefits (GLB) liabilities, collectively referred to as market risk benefits (MRB). 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. 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.
The hedged risk is designated as the foreign currency exposure arising between the functional currency of the foreign subsidiary and the functional currency of its parent entity. For additional information refer to Note 14 to the Consolidated Financial Statements. 92 Table of Contents Reinsurance of market risk benefits Effective January 1, 2023, we adopted new U.S.
The hedged risk is designated as the foreign currency exposure arising between the functional currency of the foreign subsidiary and the functional currency of its parent entity.
Removed
The additional 17 percentage point increase in goodwill and other intangible assets was driven by the consolidation of Huatai Group in 2023.
Added
(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.

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