CEO of Chubba Evan Greenberg
Scott Mlyn | CNBC
California is a difficult market for insurers – and increasing increasing, according to Chubb Executive director Evan Greenberg.
Executive director has long declared that Chubb will not write insurance where he cannot receive a reasonable risk return. And it was this approach that helped to report strong results in 2024.
“We had a great quarter, which contributed to the extraordinary year. In fact, the best in the history of our company,” Greenberg told analysts to call for earnings in the fourth quarter of the company.
CHUBB shares trade 3% more Tuesday. The shares have increased by 13%in the last year, but was under pressure this month because the Los Angeles area struggled with expensive fires. Chubb, together with Allstate and Passengersamong whom are insurers who are expected to have some of the biggest exposures.
Chubb shares over the past year
Greenberg began an invitation to earning a company, immediately dealing with disaster exposure. He is currently expecting to see $ 1.5 billion nets in the first quarter.
Chubb reduced exposure to 50% in areas where fires occurred, he said.
The state, as well as consumer advocacy groups, prevent insurers from charging premiums that really reflect risks in the area, he said, explaining that artificially suppressed prices only encourage people and companies to opt for more risky places to live and work.
“Honestly, it’s an unsustainable model, and in one way or the other, the citizens of the state paid the price to cover,” he said. “California is not alone in this regard, but it certainly stands out.”
Best. Year. Ever.
Greenberg expressed confidence in Chubb’s ability to manage the risks that the industry faces.
“While we are at risk and in the world there are a lot of uncertainty, we are sure of our ability to continue with the growth of operating earnings and EPS at a two-core rate, tax and taxes and [foreign exchange] No matter what. Our earning growth will come from three sources: [property and casualty] Getting insurance, investment revenue and life income. “
He said he expects the industry to be a sustainable inflation in the period – and so the footsteps increase only to remain stable, which may not affect marginal improvement.
Why the size is important
Greenberg said that Chubb is positioned competitive with the growth of its commercial medium markets, which serve companies with less than $ 1 billion, because there are many changes in climate and catastrophic events and growing in litigation. Regional and mutual insurers “have more difficult” in this area, he said.
“They are not equipped with data, with a balance sheet, with the depth of business in reinsurance relations so that they could … compete the same way,” he said.
In multiple measuring data, the company records praised growth.
P&C insurance revenues increased 7% in 2024 compared to the previous year, with a combined ratio of 86.6%. The written global P&C premiums increased almost 10% in the same period, and Life premiums jumped 18.5% in permanent dollars.
During the last quarter, Chubb reported on a net revenue of $ 2.58 billion or $ 6.33 per share. With the exception of the subjects, he made $ 6.02 per share. The net investment revenue increased 13.7% to $ 1.69 billion on a custom -founded basis.
Chubb reached its mark by providing wealthier customers, which contributed to the power of the fourth quarter. Premium growth in this segment increased by 10%, including 34% of the new business murder, the company said.
“The premiums in our true segments of high net value, a group seeking our brand for differentiated coverage and service we are known to, have grown 17.6%,” he added.
The prices of homeowners have increased more than 12% for the quarter and in front of the cost of loss.
Chubb, a market in the crop insurance market, said that agriculture premiums have fallen slightly due to lower prices of goods and changes in the risk formula with the US Government.
