The conference call for Chubb Limited's second quarter 2024 earnings began with the operator, Eric, introducing Karen Beyer, Senior Vice President of Investor Relations. Beyer reminded listeners that the call would contain forward-looking statements and referred them to the company's recent SEC filings for more information. The speakers for the call were Evan Greenberg, Chairman and CEO, and Peter Enns, CFO. Greenberg highlighted the company's strong financial performance and growth in premium revenue across all of their business segments.

The company had excellent underwriting results, with a combined ratio of 86.8% and a 25% increase in investment income. P&C underwriting income was flat due to higher cat losses, but on an ex-cat basis, underwriting income was up 11% with a record combined ratio of 83.2%. Investment income was a record $1.5 billion and the company's liquidity is strong. Life segment income was in line with expectations. The company's annualized core operating ROE was 13.3% and return on tangible equity was over 21%. The company saw growth in consolidated net premiums of 11.8% and is a reflection of their diversified global presence.

The company experienced broad growth in various regions and customer segments, with a favorable commercial P&C rate environment and steady loss-cost inflation. In North America, premiums increased by 8%, driven by personal and commercial lines. The major accounts and specialty division saw a 6.5% increase in premiums, while the middle market division saw a 7.5% increase. P&C pricing was up 8.3%, while financial lines pricing was down 3.2%. Overall, the underwriting environment in North America is favorable and rational.

In the workers' comp sector, pricing and exposure have both increased, while property pricing has also risen. In North America, casualty pricing has gone up significantly, but loss-costs remain stable. The company's high net-worth personal lines business has had a strong quarter, with impressive premium growth. In the International General Insurance sector, net premiums have increased in both commercial and consumer businesses.

The Asia Pacific region saw a significant increase in premiums, with strong growth also seen in Latin America and Europe. The Overseas General division's consumer premiums are growing steadily, particularly in the A&H and personal lines sectors. International A&H and personal lines businesses also experienced strong growth, while positive rates were achieved across the commercial portfolio. The International Life Insurance business, primarily in Asia, saw a significant increase in premiums and earnings. Global Re had a strong quarter with growth in property-driven premiums and a low combined ratio. Overall, the company's global strength and diversity contributed to a successful quarter, and they are confident in their ability to continue growing their operating earnings through various channels.

Peter Enns discusses the strong financial position of the company, with a book value of over $61 billion and record adjusted operating cash flow. The company returned $939 million of capital to shareholders and closed on two small acquisitions. The core operating ROE and return on tangible equity were also strong. The A-rated portfolio produced adjusted net investment income of $1.56 billion, with expected quarterly income to average between $1.57 billion to $1.63 billion. Pre-tax catastrophe losses of $580 million were mainly due to weather-related events.

The company experienced positive prior-period development in the quarter, with a split of 35% in long-tail lines and 65% in short-tail lines. The corporate run-off portfolio had adverse development mostly due to molestations-related claims. The core effective tax rate was 18.8% for the quarter and is expected to remain within 18.75% to 19.25% for the rest of the year. Loss-cost trends in North America were stable and in-line with expectations, with a 7.3% increase in P&C lines and an 8.3% increase in pricing. There was no change in loss-cost trend.

The speaker, Evan Greenberg, responds to a question about Chubb's approach to pricing and accepting business. He mentions that Chubb wrote a record amount of new business and experienced growth in their P&C business. He also states that the market overall is good and that Chubb only writes business where they can earn an underwriting profit. He mentions that some classes are well-priced, while others have pricing below loss-cost. He also states that Chubb is writing business in casualty-related lines where they are getting rate in excess of loss-cost.

Evan Greenberg discusses the company's shrinking returns and lack of growth in financial lines. He then responds to questions about the company's casualty lines, stating that they are growing in areas they should be and that there have been some restructuring and changes in terms that have affected growth in large accounts. He mentions that about $50 million in the quarter was related to auto liability.

The speaker is discussing the growth and stability of different classes, as well as overall casualty, and the potential impact of social inflation on loss picks. They clarify that they have already raised their loss picks and are constantly adjusting based on loss-cost trends and reserve studies.

Chubb's personal lines have seen double-digit growth year-to-date, driven by broad-based growth in various regions and improved pricing and coverage options. Chubb's brand is well-known for its rich coverage and services, and there is a growing demand for the company despite not being the cheapest option.

Evan Greenberg, CEO of Chubb, discusses the success of the company's personal lines business and their focus on improving services and communication with customers. He also mentions their success in the cat-exposed areas and reshaping their portfolio to include a healthier mix of risks. In terms of opportunities, Greenberg mentions seeing growth potential in accident and health and personal lines globally, particularly in Europe and Asia. The company's North American division is also experiencing double-digit growth.

The worksite voluntary benefits business is growing at a healthy rate, particularly in traditional accident and health insurance. The company's direct marketed A&H business in Asia is the largest in the world and is contributing to growth. The digital distributed consumer lines business, which includes A&H and personal lines, is also growing at a healthy rate. Travel insurance in Asia and employer, employee, and direct marketed A&H in Europe are also performing well. There was no significant increase in the North America P&C long-tail ex-comp loss trend in the quarter.

Paul O'Connell and Evan Greenberg of the insurance company gave an explanation for the change in casualty numbers in the last quarter. They clarified that the numbers did not change sequentially and that the 7.3% cited was the purest way to hear about property and casualty. They also stated that there have been no major shifts in the claims environment, but they have observed inflation in the casualty loss-cost environment due to litigation.

The speaker discusses the reasons for the current concerns about casualty insurance, such as inflation and the closure of the court system. They also mention how companies have managed this issue and how reinsurers may be slower to react. The speaker reassures that Chubb's reserves are strong, even with the positive development in some areas and negative development in others.

Evan Greenberg, CEO of a major insurance company, is asked about the company's performance in North America. He explains that they have been able to achieve significant improvement in their margins and returns, despite market uncertainty. They have been able to achieve this through a combination of growing their business in areas where they can earn a profit, while shrinking or maintaining in areas where they cannot. They have the resources and capabilities to continue growing, and are willing to trade rate for growth or vice versa as needed. Greenberg also mentions the industry's current accident year combined ratio, which he has previously discussed in detail.

Greenberg discusses the impact of property losses on the combined ratio and the company's growth strategy. He mentions that the company has a big appetite for growth, but only when it can earn a reasonable return. He also notes that there has been an increase in new business and a high renewal retention rate. Ward asks about prior-period development and Greenberg breaks down the $144 million in North America commercial losses.

Evan Greenberg, CEO of Chubb Limited, discusses the company's recent studies on large-account workers' comp and auto liability. He also clarifies the role of a newly hired executive who will focus on the litigation environment and work with corporate America to impact laws and regulations.

The speaker, Evan Greenberg, is discussing recent management changes and promotions within the company. He explains that these changes were part of a planned succession management process and were made to address the company's growth and strategic opportunities. He also mentions the importance of having leadership that can handle the complexities of the business.

The speaker reflects on their role in the succession process and how it produces a strong team. They then transition to discussing the agricultural business and mention that the growing conditions are good so far, but they are hesitant to make any predictions. They also mention that spot market prices are not a reliable indicator of the overall outlook.

The speaker is discussing the current state of the speculative market and how it is affecting prices. They mention the government's role in regulating growth and how people are monitoring corn stocks to predict future prices. The speaker also mentions that the base price is only 10% lower than last year, which is a positive sign for the company. The call concludes with the speaker thanking everyone for joining and offering to take any follow-up questions.

This summary was generated with AI and may contain some inaccuracies.