Chubb CEO EVAN Greenberg
Scott mlyn | cnbc
For insurance companies, California is a difficult market-more and more Hill cloth CEO Evan Greenberg.
Executives have long announced that Chubb will not write insurance because it cannot get a reasonable return of adventure. It is this method to help it report the results of 2024.
Greenberg told analysts at the company’s income conference in the fourth quarter: “We have a great quarter to contribute to the best year in our company’s history.
On Wednesday, the transaction price of Chubb stock rose 3 %. In the past year, the stock has risen 13 %, but due to the struggle with expensive wildfires in the Los Angeles region, the pressure has been under pressure this month. chubb, and AllState and TravelerIt is expected that one of the public insurance companies with some maximum exposure rates.
Chubb shared in the past year
Greenberg immediately launched the company’s income call to solve its exposure to the disaster. At present, it is expected to see a $ 1.5 billion pre -tax cost in the first quarter.
He said that in the area where wildfires occurred, Chupo’s exposure was reduced by 50 %.
He said that the state and consumer advocating groups are preventing insurance companies from collecting fees to the premiums that truly reflect the risks of the region, and explained that the price of artificially suppressing can only encourage people and companies to choose the risk of living and work.
He said: “Frankly speaking, this is an unsustainable model, and the citizen of the state has paid the coverage of the underwriting.” “In this regard, California is not alone, but it will definitely stand out.”
The best. Year. once.
Greenberg has confidence in the risks facing the Chubb management industry.
“Although we are engaged in risk business and there are many uncertainty in the world, we have confidence in operating income and EP’s ability to continue to grow with dual -digit tax rates, tax and (foreign exchange) tax rates. Our income growth will come from Three sources: (property and casualties) underwriting, investment income and life income. “
He said that he expects the industry to be in a period of continuous inflation-therefore, interest rates are only to increase stability, which may not affect the increase in profit margins.
Why is size important
Greenberg said that Chubb has raised its business intermediate market line competitively, which provides services for companies less than $ 1 billion because of a great change in climate and disaster incidents and the growth of litigation. He said that the region and common insurance company in the area “” has a more difficult period in this field.
He said: “They do not have data from the balance sheet, and in the depth of business in the re -insurance relationship, they can … compete in the same way.”
On multiple indicators, the company is seeing exaggerated growth.
P & C underwriting income increased by 7 % over the previous year, with a total ratio of 86.6 %. During the same period, global P & C premiums increased by nearly 10 %, and the continued increase in the US dollar continued to increase by 18.5 %.
In the last quarter, the net income reported by CHUBB was 2.58 billion US dollars, that is, $ 6.33 per share. It does not include items, earning $ 6.02 per share. The net investment income increased by 13.7 % after adjustment to 1.69 billion US dollars.
Chubb has always ensured that more wealthy customers ensure their marks, which contributes to its strength in the fourth quarter. The company said the premium of the market segment increased by 10 %, including 34 % bumps of new businesses.
It added: “In our real high -net asset segment market, seeking the differentiated coverage of our brand and the premium of the service has increased by 17.6 %.”
The pricing of homeowners rose by more than 12 % this quarter and reached the cost of loss in advance.
Chubb (Chubb), a market leader in crop insurance, said that due to the low price of goods and the changes in risk formulas with the US government, agricultural premiums have declined a bit.
