CEO of Chubb Evan Greenberg
Scott Milin CNBC
California is a difficult market for insurance companies – and grows more, according to Chubb CEO Ivan Greenberg.
The CEO has long announced that Chubb will not write insurance as he cannot obtain a reasonable return for his risks. It is this approach that helped her to report strong 2024 results.
“We had a wonderful quarter, he contributed in a wonderful year. In fact, the best in the history of our company,” Greenberg told analysts in the company's profit call in the fourth quarter.
Chubb shares are trading 3 % on Wednesday. The stock increased by 13 % during the past year, but it was pressured this month as the Los Angeles region clashed in expensive fires. Chubb, along with Allstate and TravelersIt is among the insurance companies circulating for the public that is expected to have some of the greatest exposure.
Chubb shares during the past year
Greenburg has a company's profit call immediately processing its disaster. Currently, you expect to see $ 1.5 billion of net multiplication costs in the first quarter.
He said that Chop had reduced his exposure by 50 % in the areas where forest fires occurred.
He said that the state, as well as consumer defense groups, prevents insurance companies from shipping insurance premiums that really reflect the risks in the region, explaining that artificial pent -up prices encourage people and companies to choose more dangerous places to live and work.
He said, “Frankly, it is an unsustainable model, a method or another, the citizens of the state paid the price of the coverage price,” he said. “California is not alone in this regard, but it is definitely stands out.”
better. year. never.
Greenberg expressed his confidence in the ability to manage the risks facing the industry.
“While we are in the field of risk, there is a lot of uncertainty in the world, we are confident of our ability to continue the increase in operating profits and the arrow at a rate of two numbers and tax and (a foreign exchange) despite the growth of our profits will come from three sources: (property and losses) subscription And the investment entered and entered life.
He said that he expected the industry to be in a period of persistent inflation – and therefore the rates rise just because they remain fixed, which may not affect the improvement of the margin.
Why is the size important
Greenberg said that Chubb is in a competitive position to develop commercial intermediate market lines, which serves companies that exceed one billion dollars, because there is a lot of change in climate events, disaster and growth in litigation. He said that regional and mutual insurance companies “have more difficult time” in this field.
“It is not equipped with data, with the public budget, with the depth of work in reinsurance relations to be able to compete in the same way,” he said.
On multiple standards, the company is witnessing great growth.
The P&C ISIS income increased by 7 % in 2024 from the previous year, with a common rate of 86.6 %. The written P & C Global installments grew almost 10 % during the same period, as life premiums jumped by 18.5 % in fixed dollar.
During the last quarter, Chubb was reported about a net income of $ 2.58 billion, or $ 6.33 per share. With the exception of the elements, he got $ 6.02 per share. The net investment income increased 13.7 % to $ 1.69 billion on the basis of modification.
Chubb made its fingerprints by securing more richer clients, which contributed to its strength in the fourth quarter. The company said that the excellent growth in this sector increased by 10 %, including 34 % of new business.
He added, “The installments in our real high -value sectors, the group that is looking for our brand for coverage and the distinct service that we know, has grown by 17.6 %.”
The prices of homeowners increased more than 12 % for a quarter and before the costs of the loss.
Chop, the pioneer in the market in securing crops, said that the cultivation premiums fell slightly due to the low commodity prices and a change in the risk formula with the US government.
Correction: Chubb shares were trading on Wednesday. Previous version made a mistake per day.
