Chubb Reports Fourth Quarter Per Share Net Income and Core Operating Income of $3.13 and $4.05, Respectively; Consolidated Net Premiums Written Up 11.9%, or 16.0% in Constant Dollars, with P&C Up 9.8% and a Combined Ratio of 88.0%, or 85.9% Excluding Agriculture

Full-Year Net Income Per Share of $12.55 and Record Core Operating Income Per Share of $15.24, Up 21.3%; Consolidated Net Premiums Written Up 10.3%, or 13.0% in Constant Dollars, with P&C Up 10.3%; P&C Combined Ratio of 87.6%

QUARTER

• Fourth quarter net income was $1.31 billion and core operating income was $1.70 billion.

• Consolidated net premiums written were $10.2 billion, up 11.9%, or 16.0% in constant dollars. P&C net premiums written were up 5.9%, or 9.8% in constant dollars, with commercial lines up 10.4% and consumer/personal lines up 8.1%. North America was up 9.7%, with growth of 10.8% in commercial lines and 5.9% in personal lines, and Overseas General was down 1.3%, or up 9.7% in constant dollars, with growth of 9.4% in commercial lines and 10.3% in consumer lines. While unfavorable foreign currency movement negatively impacted premium growth in the quarter, the weakening of the U.S. dollar, which reached a 20-year high in September 2022, will benefit growth in the future.

• Fourth quarter P&C combined ratio was 88.0% compared with 85.5% prior year. Excluding Agriculture, the P&C combined ratio was 85.9% compared with 85.4% prior year. The quarter included a true-up to projected full-year crop insurance results reflecting late season development that produced an underwriting loss of $107 million in North America Agriculture. This led to a 94.2% combined ratio and $165 million in underwriting income for the year.

• Fourth quarter pre-tax and after-tax catastrophe losses were $400 million and $323 million, respectively, compared with $275 million and $245 million, respectively, last year.

• Global P&C current accident year underwriting income excluding catastrophe losses was a record $1.49 billion, up 13.9%, leading to a record combined ratio of 82.9% on the same basis compared with 84.1% prior year.

• Fourth quarter Life Insurance net premiums written increased 92.0%, or 100.8% in constant dollars, to $1.21 billion. Growth came predominantly from the company's international life insurance division, driven by the acquisition of the Cigna Asian business in the third quarter.

• Fourth quarter pre-tax net investment income was $1.05 billion, up 24.8%, and adjusted net investment income was $1.12 billion, up 23.6%. Both were records.

YEAR

• Full-year net income was $5.31 billion versus $8.54 billion prior year. Core operating income was a record $6.46 billion, up 15.9%.

• Full-year consolidated net premiums written were $41.8 billion, up 10.3%, or 13.0% in constant dollars. P&C net premiums written were up 7.7%, or 10.3% in constant dollars, with commercial lines up 11.0% and consumer/personal lines up 8.4%. North America was up 9.7%, with growth of 10.6% in commercial lines and 6.2% in personal lines, and Overseas General was up 3.2%, or 11.4% in constant dollars, with growth of 11.8% in commercial lines and 10.8% in consumer lines.

• Full-year P&C underwriting income was a record $4.56 billion, up 23.2%, leading to a P&C combined ratio of 87.6% compared with 89.1% prior year. P&C current accident year underwriting income excluding catastrophe losses was a record $5.86 billion, up 13.3%, leading to a record 84.2% combined ratio compared with 84.8% prior year.

• Full-year Life Insurance net premiums written increased 47.1%, or 52.0% in constant dollars, to $3.64 billion, impacted by six months of the acquired Cigna Asian business.

• Full-year pre-tax net investment income was $3.74 billion, up 8.3%, and adjusted net investment income was $4.02 billion, up 8.2%. Both were records.

• Full-year ROE was 9.6% and core operating ROE was 11.2%. Core operating ROTE was 17.2%.

ZURICH, Jan. 31, 2023 /PRNewswire/ -- Chubb Limited (NYSE: CB) today reported net income for the quarter ended December 31, 2022 of $1.31 billion, or $3.13 per share, and core operating income of $1.70 billion, or $4.05 per share. Net income in the quarter was adversely impacted by adjusted net realized losses of $363 million after tax, principally due to the mark-to-market impact on private equities. The P&C combined ratio was 88.0% compared to 85.5% prior year, and the current accident year P&C combined ratio excluding catastrophe losses was 85.6% compared to 83.9% prior year. Book value per share and tangible book value per share increased 6.2% and 9.5%, respectively, from September 30, 2022. Book value was favorably impacted by after-tax net realized and unrealized gains of $1.15 billion in the company's investment portfolio, principally due to the mark-to-market impact from declining interest rates in the fixed income portfolio. After-tax foreign currency movement further increased book value and tangible book value by $594 million and $229 million, respectively. Book value per share and tangible book value per share now stand at $121.90 and $72.20, respectively. Book value per share and tangible book value per share excluding net unrealized investment losses increased 2.9% and 3.6%, respectively, from September 30, 2022. Book value per share and tangible book value per share excluding AOCI increased 1.6% and 2.6%, respectively, from September 30, 2022.

Chubb Limited
Fourth Quarter Summary
(in millions of U.S. dollars, except per share amounts and ratios)
(Unaudited)
	Q4	Q4			(Per Share)
	2022	2021	Change		2022	2021	Change
Net income	$1,312	$2,141	(38.7) %		$3.13	$4.95	(36.8) %
Cigna integration expenses, net of tax	18	--	NM		0.04	--	NM
Amortization of fair value adjustment of acquired invested      assets and long-term debt, net of tax	6	12	(50.0) %		0.01	0.03	(66.7) %
Adjusted net realized (gains) losses, net of tax	363	(504)	NM		0.87	(1.17)	NM
Core operating income, net of tax	$1,699	$1,649	3.0 %		$4.05	$3.81	6.3 %
Annualized return on equity (ROE)	10.7 %	14.4 %
Core operating return on tangible equity (ROTE)	18.6 %	17.7 %
Core operating ROE	11.9 %	11.6 %

For the year ended December 31, 2022, net income was $5.31 billion, or $12.55 per share, and core operating income was $6.46 billion, or $15.24 per share. The P&C combined ratio was 87.6% compared to 89.1% prior year, and the current accident year P&C combined ratio excluding catastrophe losses was 84.2% compared to 84.8% prior year. Book value per share and tangible book value per share decreased 12.9% and 23.5%, respectively, from December 31, 2021. Book value was unfavorably impacted by after-tax net realized and unrealized losses of $10.92 billion in the company's investment portfolio, principally due to the mark-to-market impact from rising interest rates in the fixed income portfolio. At December 31, 2022, the investment portfolio was in an unrealized loss position of $7.28 billion, compared with an unrealized gain position of $2.26 billion at December 31, 2021. After-tax foreign currency movement further reduced book value and tangible book value by $629 million and $453 million, respectively. In addition, tangible book value included the impact of $1.54 billion for goodwill and other intangible assets related to the acquisition of Cigna's business in Asia. Book value per share and tangible book value per share excluding net unrealized investment losses increased 3.5% and 0.8%, respectively, from December 31, 2021. Book value per share and tangible book value per share excluding AOCI increased 5.3% and 3.0%, respectively, from December 31, 2021.

Chubb Limited
Full Year Summary
(in millions of U.S. dollars, except per share amounts and ratios)
(Unaudited)
	FY	FY			(Per Share)
	2022	2021	Change		2022	2021	Change
Net income	$5,313	$8,539	(37.8) %		$12.55	$19.27	(34.9) %
Cigna integration expenses, net of tax	38	--	NM		0.09	--	NM
Amortization of fair value adjustment of acquired invested      assets and long-term debt, net of tax	19	53	(64.2) %		0.04	0.12	(66.7) %
Adjusted net realized (gains) losses, net of tax	1,087	(3,023)	NM		2.56	(6.83)	NM
Core operating income, net of tax	$6,457	$5,569	15.9 %		$15.24	$12.56	21.3 %
Annualized return on equity (ROE)	9.6 %	14.3 %
Core operating return on tangible equity (ROTE)	17.2 %	15.3 %
Core operating ROE	11.2 %	9.9 %

For the years ended December 31, 2022 and 2021, the tax expenses (benefits) related to the table above were $(10) million and nil, respectively, for Cigna integration expenses; $(1) million and $(11) million, respectively, for amortization of fair value adjustment of acquired invested assets and long-term debt; $(129) million and $271 million, respectively, for adjusted net realized gains and losses; and $1.39 billion and $1.02 billion, respectively, for core operating income.

Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: "We had a strong quarter which contributed to the best full-year financial performance in our company's history. Our quarterly results included record net investment income, double-digit premium growth, and an excellent underwriting performance with an 88% combined ratio despite a true-up to our annual agriculture results reflecting a below-average crop year. Per share core operating earnings were $4.05 for the quarter and a record $15.24 for the year. Crop insurance results were 39 cents per share less than expected.

"Consolidated net premiums, P&C and life together, increased 12% in the quarter, or 16% in constant dollars, to $10.2 billion. P&C premium growth of 9.8% was broad-based globally with good contributions from our commercial and consumer businesses, up 10.4% and 8.1%, respectively. Life premiums, reflecting the addition of the Cigna Asia business, were up over 100%.

"In P&C, North America grew 9.7%, and so did Overseas General in constant dollars while declining 1.3% on a published basis, impacted by the strongest U.S. dollar in 20 years. We expect future published growth to benefit with the dollar weakening. Pricing conditions in commercial P&C remain favorable, the vast majority of our portfolio is achieving good risk-adjusted returns, and we are staying on top of loss cost inflation. On the consumer side, premiums in our North America personal lines business grew a very strong 6% in the quarter with our core high net worth segments up 12.5%. P&C premiums in our international consumer lines increased over 10% in the quarter in constant dollars, driven by our A&H business, which grew over 20% with strong growth in Asia, Latin America and the U.K.

"On the asset side of the balance sheet, adjusted net investment income topped $1.1 billion for the quarter, up about $215 million from prior year, and contributed to a record $4 billion for the year. We are reinvesting our strong operating cash flow at substantially higher rates and that's translating into a growing investment income run rate.

"We are off to a strong start in the new year and are firing on all cylinders. While there's certainly plenty of risk and uncertainty in the operating environment globally – economic and geopolitical, from what we know and can control, '23 should be a good year in terms of growth and earnings."

Operating highlights for the quarter ended December 31, 2022 were as follows:

Chubb Limited	Q4		Q4
(in millions of U.S. dollars except for percentages)	2022		2021		Change
Consolidated
Net premiums written (increase of 16.0% in constant dollars)	$	10,234	$	9,150	11.9 %
P&C
Net premiums written (increase of 9.8% in constant dollars)	$	9,021	$	8,517	5.9 %
Underwriting income	$	1,121	$	1,266	(11.4) %
Combined ratio		88.0 %		85.5 %
Current accident year underwriting income excluding catastrophe losses	$	1,354	$	1,396	(3.0) %
Current accident year combined ratio excluding catastrophe losses		85.6 %		83.9 %
Global P&C (excludes Agriculture)
Net premiums written (increase of 8.8% in constant dollars)	$	8,637	$	8,239	4.8 %
Underwriting income	$	1,228	$	1,205	1.9 %
Combined ratio		85.9 %		85.4 %
Current accident year underwriting income excluding catastrophe losses	$	1,493	$	1,310	13.9 %
Current accident year combined ratio excluding catastrophe losses		82.9 %		84.1 %
Life Insurance
Net premiums written (increase of 100.8% in constant dollars)	$	1,213	$	633	92.0 %
Segment income (increase of 105.8% in constant dollars)	$	217	$	108	100.9 %

• Consolidated net premiums earned increased 13.2%, or 17.3% in constant dollars. P&C net premiums earned increased 7.5%, or 11.3% in constant dollars.

• Total pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, were $400 million (4.2 percentage points of the combined ratio) and $323 million, respectively, compared with $275 million (3.2 percentage points of the combined ratio) and $245 million, respectively, last year.

• Total pre-tax and after-tax favorable prior period development were both $167 million (1.8 percentage points of the combined ratio) compared with $145 million (1.6 percentage points of the combined ratio) and $149 million, respectively, last year.

• Unfavorable foreign currency movement in the current quarter negatively impacted core operating income by $71 million, or $0.16 per share.

• Operating cash flow was $2.65 billion for the quarter.

• Fourth quarter annualized return on equity (ROE) was 10.7% and annualized core operating ROE was 11.9%. Annualized core operating return on tangible equity (ROTE) was 18.6%.

• Total capital returned to shareholders in the quarter was $544 million, including share repurchases of $199 million at an average purchase price of $221.67 per share, and dividends of $345 million.

Operating highlights for the year ended December 31, 2022 were as follows:

Chubb Limited	FY		FY
(in millions of U.S. dollars except for percentages)	2022		2021		Change
Consolidated
Net premiums written (increase of 13.0% in constant dollars)	$	41,755	$	37,868	10.3 %
P&C
Net premiums written (increase of 10.3% in constant dollars)	$	38,112	$	35,391	7.7 %
Underwriting income	$	4,555	$	3,696	23.2 %
Combined ratio		87.6 %		89.1 %
Current accident year underwriting income excluding catastrophe losses	$	5,861	$	5,171	13.3 %
Current accident year combined ratio excluding catastrophe losses		84.2 %		84.8 %
Global P&C (excludes Agriculture)
Net premiums written (increase of 9.5% in constant dollars)	$	35,205	$	33,003	6.7 %
Underwriting income	$	4,390	$	3,441	27.6 %
Combined ratio		87.1 %		89.1 %
Current accident year underwriting income excluding catastrophe losses	$	5,693	$	4,866	17.0 %
Current accident year combined ratio excluding catastrophe losses		83.3 %		84.6 %
Life Insurance
Net premiums written (increase of 52.0% in constant dollars)	$	3,643	$	2,477	47.1 %
Segment income (increase of 69.1% in constant dollars)	$	704	$	418	68.3 %

• Consolidated net premiums earned increased 11.1%, or 13.9% in constant dollars. P&C net premiums earned increased 8.5%, or 11.2% in constant dollars.

• Total pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, were $2.18 billion (5.9 percentage points of the combined ratio) and $1.80 billion, respectively, compared with $2.40 billion (7.1 percentage points of the combined ratio) and $1.98 billion, respectively, last year.

• Total pre-tax and after-tax favorable prior period development were $876 million (2.5 percentage points of the combined ratio) and $729 million, respectively, compared with $926 million (2.8 percentage points of the combined ratio) and $756 million, respectively, last year.

• Unfavorable foreign currency movement for the year negatively impacted core operating income by $161 million, or $0.36 per share.

• Record operating cash flow of $11.24 billion for the year.

• Total capital returned to shareholders for the year was $4.39 billion, including share repurchases of $3.01 billion at an average purchase price of $201.96 per share, and dividends of $1.38 billion.

Details of financial results by business segment are available in the Chubb Limited Financial Supplement. Key segment items for the quarter ended December 31, 2022 are presented below:

Chubb Limited	Q4		Q4
(in millions of U.S. dollars except for percentages)	2022		2021		Change
Total North America P&C Insurance
(Comprising NA Commercial P&C Insurance, NA Personal P&C Insurance and NA Agricultural Insurance) Net premiums written	$	6,162	$	5,616	9.7 %
Combined ratio		88.5 %		76.7 %
Current accident year combined ratio excluding catastrophe losses		84.0 %		80.8 %
North America Commercial P&C Insurance
Net premiums written	$	4,463	$	4,097	8.9 %
Major accounts retail and excess and surplus (E&S) wholesale	$	2,682	$	2,458	9.1 %
Middle market and small commercial	$	1,781	$	1,639	8.7 %
Combined ratio		84.3 %		76.8 %
Current accident year combined ratio excluding catastrophe losses		80.8 %		82.0 %
North America Personal P&C Insurance
Net premiums written	$	1,315	$	1,241	5.9 %
Combined ratio		89.3 %		72.3 %
Current accident year combined ratio excluding catastrophe losses		77.1 %		77.0 %
North America Agricultural Insurance
Net premiums written	$	384	$	278	37.9 %
Combined ratio		117.2 %		87.3 %
Current accident year combined ratio excluding catastrophe losses		122.1 %		81.2 %
Overseas General Insurance
Net premiums written (increase of 9.7% in constant dollars)	$	2,696	$	2,730	(1.3) %
Commercial P&C (increase of 9.4% in constant dollars)	$	1,688	$	1,702	(0.9) %
Consumer P&C (increase of 10.3% in constant dollars)	$	1,008	$	1,028	(2.0) %
Combined ratio		79.6 %		81.0 %
Current accident year combined ratio excluding catastrophe losses		84.8 %		86.6 %
Life Insurance
Net premiums written (increase of 100.8% in constant dollars)	$	1,213	$	633	92.0 %
Segment income (increase of 105.8% in constant dollars)	$	217	$	108	100.9 %

• North America Commercial P&C Insurance: The combined ratio increased 7.5 percentage points, primarily reflecting the favorable COVID reserve release in the prior year and higher catastrophe losses in the current year. The current accident year combined ratio excluding catastrophe losses decreased 1.2 percentage points, including a 0.8 percentage point decrease in the loss ratio and a 0.4 percentage point decrease in the expense ratio.

• North America Personal P&C Insurance: The combined ratio increased 17.0 percentage points, primarily reflecting the impact of higher catastrophe losses in the fourth quarter related to Winter Storm Elliott. The current accident year combined ratio excluding catastrophe losses increased 0.1 percentage point, including a 0.5 percentage point increase in the loss ratio and a 0.4 percentage point decrease in the expense ratio.

• North America Agricultural Insurance: The current accident year combined ratio excluding catastrophe losses was 122.1%, due to a true-up to projected full-year crop insurance results reflecting late season development that produced an underwriting loss of $107 million.

• Overseas General Insurance: The current accident year combined ratio excluding catastrophe losses decreased 1.8 percentage points, comprising a 1.0 percentage point in the loss ratio, principally due to underlying loss ratio improvement in certain lines of business, and a 0.8 percentage point in the expense ratio reflecting earned rate outpacing increased expenses.

• Global Reinsurance: Net premiums written were $163 million, down 4.6%. The combined ratio was 83.6%, compared with 126.2% prior year. The current accident year combined ratio excluding catastrophe losses was 83.1% compared with 81.6% prior year.

Details of financial results by business segment are available in the Chubb Limited Financial Supplement. Key segment items for the year ended December 31, 2022 are presented below:

Chubb Limited	FY		FY