Evan Greenberg, general director of Chubb
Scott Mlyn CNBC
California is a difficult market for insurers – and growing, according to this Chubb CEO Evan Greenberg.
Management has long said that Chubb will not write insurance where he cannot obtain a reasonable return to take risks. And this approach helped him report strong results 2024.
“We had a great quarter that contributed to the outstanding year. In fact, the best in the history of our company, “Greenberg told analysts about the earnings of the fourth quarter of the company.
Chubb shares are 3% higher on Tuesday. The actions increased by 13% over the past year, but they were under pressure this month, when the Los Angeles area fought for expensive fires. Chubb along with Allstate AND TravelersThey belong to publicly commercial insurers who will have one of the greatest exposures.
Shares of Chubb over the past year
Greenberg began connection with the company's earnings, immediately solving its exposure to the disaster. At the moment, he expects that in the first quarter he will see $ 1.5 billion in net prepartted costs.
He said that Chubb reduced the exhibition by 50% in the areas where fires occurred.
He said that the state, as well as groups of consumer spokes, prevent insurers from contributions that really reflect the risk in this area, explaining that artificially suppressed prices are encouraged only by people and companies to choose more risky places to live and work.
“To be honest, this is an unbalanced model, and in one way or another the citizens of the state paid for the price for insurance,” he said. “California is not alone in this respect, but she certainly stands out.”
The best. Year. Whenever.
Greenberg expressed confidence in Chubb's ability to manage the risk to which the industry faces.
“While we are in the risk industry and there is high uncertainty in the world, we are sure that our ability to continue to increase operational earnings and EPS at a double -digit rate, tax and (currency exchange). It comes from three sources: (real estate and victims) insurance, investment income and life income. “
He said that he expected the industry in permanent inflation – that's why the rates are growing to remain stable, which may not improve the margin.
Why the size matters
Greenberg said that Chubb is competitive to develop their commercial lines of medium market, which serve companies less than $ 1 billion, because there have been many changes in climatic and catastrophic events and court growths. He said that regional and mutual insurers “have a more difficult time” in this area.
“They are not equipped with data with a balance sheet, with a depth of activity in reinsurance relations, to be able to … compete in the same way,” he said.
A narrow growth is observed in many indicators.
Income from P&C insurance increased by 7% in 2024 compared to the previous year, with a total indicator of 86.6%. Written Global P&C Premiums increased by almost 10% in the same period, and Premium Life jumped by 18.5% in fixed dollars.
In the last quarter, Chubb recorded a net income of USD 2.58 billion, i.e. USD 6.33 per share. By excluding items, he earned USD 6.02 per share. Net investment income increased by 13.7% to USD 1.69 billion in the corrected base.
Chubb left its mark, insuring more wealthy customers, which contributed to the strength of the fourth quarter. The premium increase in this segment increased by 10%, including 34% unevenness in new business, said the company.
“The bonuses in our real segments with a high net value of the group, which is looking for our brand in terms of diverse range and service, from which we are known, increased by 17.6%” – she added.
Prices of house owners increased by more than 12% for the quarter and before the costs of the loss.
Chubb, the leader of the crop insurance market, said that agricultural premiums have fallen slightly due to lower goods prices and changes in the risk formula with the US government.