Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the $1.5 billion loss estimate from the California wildfires? A: Evan Greenberg, Chairman and CEO, explained that the $1.5 billion is a ground-up estimate based on Chubb's own losses, not industry-wide estimates. It includes an assessment for the FAIR plan but does not account for subrogation.
Q: What are your expectations for organic growth in 2025, and are you considering inorganic growth opportunities? A: Evan Greenberg stated that while they do not provide specific guidance, the logic of expecting mid to high single-digit organic growth seems reasonable. Inorganic growth is considered opportunistic and must align with their organic strategies.
Q: Can you elaborate on the favorable long-tail reserve development in general casualty? A: Evan Greenberg clarified that reserve development varies by portfolio each quarter. The favorable development this quarter was due to the strength of reserves in the specific casualty portfolios reviewed.
Q: How do you view the current competitive environment in financial lines, and what might improve conditions? A: Evan Greenberg noted that while Chubb values financial lines, current pricing is not favorable. He expects conditions to improve as losses emerge and normalize, impacting current accident year margins.
Q: What is Chubb's approach to the California insurance market following the wildfires? A: Evan Greenberg highlighted the challenges in California due to regulatory constraints on pricing. Chubb has been reducing exposure in the state and will not write insurance where they cannot achieve a reasonable risk-adjusted return.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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