On January 28, 2025, Chubb Ltd (CB, Financial) released its 8-K filing, showcasing a strong financial performance for the fourth quarter of 2024. The company reported a net income of $2.58 billion, or $6.33 per share, and core operating income of $2.45 billion, or $6.02 per share. These figures significantly exceed the analyst estimates of $5.50 per share. Chubb Ltd, a leading global property and casualty insurer with operations in 54 countries, continues to demonstrate its financial strength and resilience in the insurance industry.

Performance Highlights and Challenges

Chubb Ltd's performance in the fourth quarter was marked by a 6.7% increase in Global P&C net premiums written, excluding agriculture, with commercial insurance up 6.4% and consumer insurance up 7.5%. The company's P&C combined ratio stood at an impressive 85.7%, reflecting efficient underwriting practices. However, the company faced challenges, including pre-tax catastrophe losses of $607 million, primarily due to Hurricane Milton. Despite these challenges, Chubb Ltd's ability to maintain a strong combined ratio underscores its robust risk management capabilities.

Financial Achievements and Industry Significance

Chubb Ltd's financial achievements are noteworthy, with record full-year per share net income of $22.70 and core operating income of $22.51. The company's consolidated net premiums written reached $51.5 billion, up 8.7% year-over-year. These achievements are crucial for an insurance company, as they reflect the company's ability to grow its premium base while maintaining profitability. The strong performance in both P&C and life insurance segments highlights Chubb Ltd's diversified business model and its ability to capitalize on favorable market conditions.

Key Financial Metrics

Chubb Ltd's income statement reveals a net income of $9.27 billion for the year, with core operating income at $9.20 billion. The company's book value per share decreased by 2.1% from the previous quarter, impacted by after-tax net realized and unrealized losses of $2.44 billion in its investment portfolio and $1.13 billion of foreign currency losses. However, excluding AOCI, book value per share increased by 2.9%. These metrics are vital for assessing the company's financial health and its ability to generate shareholder value.

Evan G. Greenberg, Chairman and CEO of Chubb Ltd, commented: “Our full-year performance was the best in our company’s history. Core operating income was $9.1 billion, up 11.5% adjusted for the one-time tax benefit, and 13% on a per-share basis. All three major sources of income for our company produced record results last year.”

Analysis and Outlook

Chubb Ltd's strong financial performance in Q4 2024 and for the full year underscores its position as a leading player in the insurance industry. The company's ability to grow its premium base, maintain a low combined ratio, and achieve record investment income highlights its operational efficiency and strategic focus. While challenges such as catastrophe losses and foreign currency fluctuations persist, Chubb Ltd's diversified business model and strong financial foundation position it well for continued growth and profitability in the coming year.

Explore the complete 8-K earnings release (here) from Chubb Ltd for further details.