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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
YEAR
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 % |
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 % |
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 % |
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 | |||
(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 | $ | 26,109 | $ | 23,805 | 9.7 % |
Combined ratio | 85.4 % | 85.6 % | |||
Current accident year combined ratio excluding catastrophe losses | 82.2 % | 82.2 % | |||
North America Commercial P&C Insurance | |||||
Net premiums written | $ | 17,889 | $ | 16,415 | 9.0 % |
Major accounts retail and excess and surplus (E&S) wholesale | $ | 10,782 | $ | 9,836 | 9.6 % |
Middle market and small commercial | $ | 7,107 | $ | 6,579 | 8.0 % |
Combined ratio | 83.3 % | 85.0 % | |||
Current accident year combined ratio excluding catastrophe losses | 81.1 % | 82.9 % | |||
North America Personal P&C Insurance | |||||
Net premiums written | $ | 5,313 | $ | 5,002 | 6.2 % |
Combined ratio | 87.5 % | 85.5 % | |||
Current accident year combined ratio excluding catastrophe losses | 78.9 % | 77.9 % | |||
North America Agricultural Insurance | |||||
Net premiums written | $ | 2,907 | $ | 2,388 | 21.7 % |
Combined ratio | 94.2 % | 89.1 % | |||
Current accident year combined ratio excluding catastrophe losses | 94.4 % | 86.8 % | |||
Overseas General Insurance | |||||
Net premiums written (increase of 11.4% in constant dollars) | $ | 11,060 | $ | 10,713 | 3.2 % |
Commercial P&C (increase of 11.8% in constant dollars) | $ | 6,865 | $ | 6,581 | 4.3 % |
Consumer P&C (increase of 10.8% in constant dollars) | $ | 4,195 | $ | 4,132 | 1.5 % |
Combined ratio | 84.6 % | 86.4 % | |||
Current accident year combined ratio excluding catastrophe losses | 85.4 % | 87.2 % | |||
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 % |
All comparisons are with the same period last year unless otherwise specifically stated. Please refer to the Chubb Limited Financial Supplement, dated December 31, 2022, which is posted on the company's investor relations website, investors.chubb.com, in the Financials section for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio, and debt and capital.
Chubb Limited will hold its fourth quarter earnings conference call on Wednesday, February 1, 2023 beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at investors.chubb.com or by dialing 877-400-4403 (within the United States) or 332-251-2601 (international), passcode 1641662. Please refer to the Chubb website under Events and Presentations for details. A replay will be available after the call at the same location. To listen to the replay, please click here to register and receive dial-in numbers.
About Chubb
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 34,000 people worldwide. Additional information can be found at: www.chubb.com.
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from the acquisition of The Chubb Corporation (Chubb Corp) and Cigna business of $5 million and $17 million in Q4 2022 and Q4 2021, respectively, and including investment income of $60 million and $44 million in Q4 2022 and Q4 2021, respectively, from partially owned investment companies (private equity partnerships) where our ownership interest is in excess of 3% that are accounted for under the equity method. The amortization of the fair value adjustment on acquired invested assets was $41 million and $84 million for full-year 2022 and 2021, respectively, and the investment income from private equity partnerships was $240 million and $179 million for full-year 2022 and 2021, respectively. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.
Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to adjusted losses and loss expenses.
P&C underwriting income is calculated by subtracting adjusted losses and loss expenses, policy acquisition costs and administrative expenses from net premiums earned by our P&C operations. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, income tax expense and adjusted net realized gains (losses).
P&C current accident year underwriting income excluding catastrophe losses is P&C underwriting income adjusted to exclude catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Core operating income, net of tax, excludes from net income the after-tax impact of adjusted net realized gains (losses), Cigna integration expenses, and the amortization of fair value adjustment of acquired invested assets and long-term debt related to the Chubb Corp acquisition and Cigna business. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) because the amount of these gains (losses) are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. We exclude the amortization of fair value adjustments on purchased invested assets and long-term debt related to the Chubb Corp acquisition and Cigna business due to the size and complexity of these acquisitions. We also exclude Cigna integration expenses due to the size and complexity of this acquisition. Cigna integration expenses are incurred by the overall company and are included in Corporate. These expenses include legal and professional fees and all other costs directly related to the integration activities of the Cigna acquisition. The costs are not related to the on-going activities of the individual segments and are therefore also excluded from our definition of segment income. We believe these integration expenses are not indicative of our underlying profitability, and excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. References to core operating income measures mean net of tax, whether or not noted.
Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average shareholders' equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. For the ROTE calculation, the denominator is also adjusted to exclude goodwill and other intangible assets, net of tax. These measures enhance the understanding of the return on shareholders' equity by highlighting the underlying profitability relative to shareholders' equity and tangible equity excluding the effect of unrealized gains and losses on our investments that are heavily influenced by available market opportunities. We believe ROTE is meaningful because it measures the performance of our operations without the impact of goodwill and other intangible assets.
P&C combined ratio is the sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives, as noted above.
P&C current accident year combined ratio excluding catastrophe losses excludes the impact of P&C catastrophe losses and PPD from the P&C combined ratio. We believe this measure provides a better evaluation of our underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these items.
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company's Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of the company's P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company's global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Tangible book value per common share is shareholders' equity less goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.
Book value per share and tangible book value per share excluding unrealized investment gains (losses), excludes the mark-to-market on the company's fixed maturities portfolio. We believe that excluding these net unrealized gains (losses) would highlight the underlying growth in book value and tangible book value without the impact of interest rate volatility. Book value per share and tangible book value per share excluding accumulated other comprehensive income (loss) (AOCI), excludes AOCI from the numerator because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates and foreign currency movement, to highlight underlying growth in book and tangible book value.
International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because life deposits are an important component of production and key to our efforts to grow our business.
See the reconciliation of Non-GAAP Financial Measures on pages 29-35 in the Financial Supplement. These measures should not be viewed as a substitute for measures determined in accordance with GAAP, including premium, net income, book value, return on equity, and net investment income.
NM - not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to company performance, pricing, growth opportunities, economic and market conditions, and our expectations and intentions and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, loss of key employees or disruptions to our operations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, infection rates and severity of pandemics, including COVID-19, and their effects on our business operations and claims activity, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management's response to these factors, and other factors identified in our filings with the Securities and Exchange Commission (SEC). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chubb Limited | |||||||||
Summary Consolidated Balance Sheets | |||||||||
(in millions of U.S. dollars, except per share data) | |||||||||
(Unaudited) | |||||||||
December 31 | December 31 | ||||||||
Assets | |||||||||
Investments | $ | 113,551 | $ | 122,323 | |||||
Cash | 2,012 | 1,659 | |||||||
Insurance and reinsurance balances receivable | 11,933 | 11,322 | |||||||
Reinsurance recoverable on losses and loss expenses | 18,901 | 17,366 | |||||||
Goodwill and other intangible assets | 21,818 | 20,668 | |||||||
Other assets | 30,909 | 26,716 | |||||||
Total assets | $ | 199,124 | $ | 200,054 | |||||
Liabilities | |||||||||
Unpaid losses and loss expenses | $ | 76,323 | $ | 72,943 | |||||
Unearned premiums | 20,360 | 19,101 | |||||||
Other liabilities | 51,901 | 48,296 | |||||||
Total liabilities | 148,584 | 140,340 | |||||||
Shareholders' equity | |||||||||
Total shareholders' equity, excl. AOCI | 60,733 | 59,364 | |||||||
Accumulated other comprehensive income (loss) (AOCI) | (10,193) | 350 | |||||||
Total shareholders' equity | 50,540 | 59,714 | |||||||
Total liabilities and shareholders' equity | $ | 199,124 | $ | 200,054 | |||||
Book value per common share | $ | 121.90 | $ | 139.99 | |||||
Tangible book value per common share | $ | 72.20 | $ | 94.38 | |||||
Book value per common share, excl. AOCI | $ | 146.49 | $ | 139.16 | |||||
Tangible book value per common share, excl. AOCI | $ | 94.60 | $ | 91.85 | |||||
Summary Consolidated Financial Data | |||||||||||||
(in millions of U.S. dollars, except share, per share data, and ratios) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
December 31 | December 31 | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Gross premiums written | $ | 12,447 | $ | 11,320 | $ | 52,013 | $ | 46,780 | |||||
Net premiums written | 10,234 | 9,150 | 41,755 | 37,868 | |||||||||
Net premiums earned | 10,551 | 9,321 | 40,389 | 36,355 | |||||||||
Losses and loss expenses | 5,868 | 5,292 | 23,342 | 21,980 | |||||||||
Policy benefits | 702 | 196 | 1,492 | 699 | |||||||||
Policy acquisition costs | 1,941 | 1,777 | 7,392 | 6,918 | |||||||||
Administrative expenses | 916 | 811 | 3,395 | 3,136 | |||||||||
Net investment income | 1,053 | 843 | 3,742 | 3,456 | |||||||||
Net realized gains (losses) | (178) | 319 | (965) | 1,152 | |||||||||
Interest expense | 154 | 126 | 570 | 492 | |||||||||
Other income (expense): | |||||||||||||
Gains (losses) from separate account assets | 74 | (3) | (42) | (8) | |||||||||
Other | (169) | 338 | (32) | 2,373 | |||||||||
Amortization of purchased intangibles | 74 | 71 | 285 | 287 | |||||||||
Cigna integration expenses | 22 | -- | 48 | -- | |||||||||
Income tax expense | 342 | 404 | 1,255 | 1,277 | |||||||||
Net income | $ | 1,312 | $ | 2,141 | $ | 5,313 | $ | 8,539 | |||||
Diluted earnings per share: | |||||||||||||
Net income | $ | 3.13 | $ | 4.95 | $ | 12.55 | $ | 19.27 | |||||
Core operating income | $ | 4.05 | $ | 3.81 | $ | 15.24 | $ | 12.56 | |||||
Weighted average shares outstanding | 418.9 | 432.8 | 423.5 | 443.2 | |||||||||
P&C combined ratio | |||||||||||||
Loss and loss expense ratio | 62.1 % | 58.7 % | 62.0 % | 62.6 % | |||||||||
Policy acquisition cost ratio | 17.9 % | 18.4 % | 17.8 % | 18.3 % | |||||||||
Administrative expense ratio | 8.0 % | 8.4 % | 7.8 % | 8.2 % | |||||||||
P&C combined ratio | 88.0 % | 85.5 % | 87.6 % | 89.1 % | |||||||||
P&C underwriting income | $ | 1,121 | $ | 1,266 | $ | 4,555 | $ | 3,696 | |||||
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SOURCE Chubb Limited