Chubb Limited

Thank you for standing by. My name is JL and I'll be a conference operator today. At this time, I would like to welcome everyone to the Chubb Limited fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.

Thank you, and welcome to our December 31st, 2025 fourth quarter and year-end earnings conference call. Our report today will contain forward-looking statements, including statements relating to company performance, pricing and business mix, growth opportunities, and economic and market conditions, which are subject to risks and uncertainties, and actual results may differ materially. See our recent SEC filings, earnings release, and financial supplement, which are all available on our website at investors.chubbs.com for more information on factors that could affect these matters. We will also refer today to non-GAAP financial measures, reconciliations of which to the most direct comparable GAAP measures and related details are provided in our earnings press release and financial supplement. Now, I'd like to introduce our speakers. First, we have Evan Greenberg, Chairman and Chief Executive Officer, followed by Peter Enns, our Chief Financial Officer. Then we'll take your questions. Also with us today to assist with your questions are several members of our management team. And now, it's my pleasure to turn the call over to Evan.

Good morning. We had an outstanding quarter, which contributed to another record year. demonstrating both the resilience and the broadly diversified nature of our company. We delivered excellent full-year results with strong contributions from virtually all of our businesses. We achieved record earnings for both the quarter and the year. For the quarter, very strong double-digit increases in underwriting and life income. along with record investment income led to core operating income of nearly $3 billion or 752 per share up about 22 and 25% respectively. Total company net premiums grew almost 9% with PNC up 7.7 and life up about 17%. In fact, Our company's published growth this quarter was faster than the average for the full year. In the quarter, our underwriting performance was simply outstanding. PNC underwriting income was $2.2 billion, up 40%, with a record low combined ratio of 81.2%. Our published underwriting results were supported, of course, by low CATs and prior period reserve development. But importantly, very strong current accident year performance from our businesses across the board, including from our agriculture division, where we are the number one crop insurer in America. Agriculture's outstanding results benefited the quarter's underlying current accident year combined ratio of 80.4. which was nearly two points better than prior year and a record low. Importantly, however, excluding agriculture, the global P&C current accident year combined ratio, reflecting the strength of our businesses from around the globe, was 80.9%, almost a full point better than prior year, and again, a record result. And we had an outstanding quarter on the investment side of our business. We generated record adjustment net investment income of 1.8 billion, up 7.3%. Our fixed income portfolio yield is 5.1. And our current new money rate averages slightly above that. Our invested asset now stands at 169 billion, up from 151 billion a year ago. The more important timeframe to me to discuss though is the full year and what a year we had. We printed record operating income just shy of $10 billion or $24.79 per share, up about 9% and 11% respectively over prior. For perspective, over the past three and five years, core operating income has grown 55%, and over 200%. All three major sources of income for our company produced record results last year. PNC underwriting income of $6.5 billion was up 11.6%, with a record low combined ratio for the year of 85.7%. Adjusted net investment income rose 9% to almost $7 billion, and life insurance income of $1.2 billion was up over 13%. Our record underwriting results in earnings were achieved in spite of full-year CAT losses that were in fact higher than prior year, substantially driven by the California wildfires in the first quarter. Though U.S. and worldwide hurricane and typhoon seasons were unusually light this year, Annual industry cat losses still approached $129 billion. By its nature, cat exposure is volatile. Frequency and severity of losses are alive and well. Fire, floods, cyclonic, and earthquake are all perils that contributed to industry cat losses. For the year, we grew total company premiums over 6.5%. with PNC up about five and a half and life up over 15. Per share tangible book value, our most important measure of wealth creation grew 25.7% last year. Peter's going to have more to say about financial items. Again, our results for both the quarter and the year, top and bottom line, put a point on the broad-based diversified nature of the company by geography, by product, by commercial and consumer customer segment, and distribution channel. It speaks to how well we are positioned, both relatively and in absolute terms. Turning to growth pricing in the rate environment, PNC premium revenue again grew over 7.5% in the quarter, with consumer up almost 12% and commercial up over 6%. Our international PNC and U.S. agriculture business had a particularly strong growth quarter with premiums up nearly 11% and over 45% respectively. But we also had strong growth from our U.S. personal lines business and our commercial U.S. middle market and ENS businesses. In terms of the commercial PNC underwriting environment in the fourth quarter, As I said the last few quarters, the market globally is in transition and growing incrementally more competitive quarter by quarter, particularly large account property admitted in ENS and upper middle market. Casualty pricing. Overall, large account, ENS, and middle market continues to firm in the areas that require rate. And in those that don't Price increases have slowed. Financial lines remain soft, with some signs affirming indiscreet classes. I'm going to give you some more color on the fourth quarter by division, and I'm going to begin with our international PMC business. Premiums in overseas general were up 10.8%, or over 8% in constant dollar. A very good result. Premiums in our global retail which operates in 53 countries and which is 90% of our overseas general division. We're up 12.5% with consumer premiums, both ANH and personal lines up 18.7 and commercial lines up almost 7.5%. Latin America grew 14.7 with consumer up almost 18 and commercial up 10.5. Asia grew 13%, with consumer up 25% and commercial flat, and Europe grew over 7%. In our international retail commercial business, P&C rates were down 3.6% and financial lines rates were down almost 9%. Loss costs remained steady. Premiums in our London wholesale business which is 10% of our international P&C. We're down about 1%, given more competitive London open market conditions, basically across the board, property, marine, aviation, and professional lines. Turning to North America, total P&C premiums were up over 6.5%. Agriculture, again, was up over 45%. predominantly due to the profit-sharing formula with the government. Excluding agriculture, premiums were up 4.7%, including more than 6% in personal lines and 4.3% in commercial, which is made up of middle market, small, E&S, and large account divisions. Breaking U.S. commercial growth down further Premiums in middle market and small commercial grew over 6%, with P&C up 7.5% and financial lines up 1.5%. New business for middle market and small was strong, up more than 17% versus prior year. Premiums in major accounts and specialty grew 3%, with major or large account business up 0.5% and Westchester, our ENS company, up over 7.5%. Major account, and for that matter, Westchester growth, was impacted by property, obviously. And in major, we wrote fewer one-off LPT transactions than we did prior year. Commercial pricing for property and casualty, excluding FIN lines and comp, was up 4.3%, with rates up 2.5%, and exposure change of 1.8. Property pricing was down 1.5%, with rates down 4.6, partially offset by exposure of 3.3. Going a step further, property pricing was down over 13.5% in large account business and E&S, and it was up 3.7 in middle market and small commercial. Casualty pricing in North America was up 8.5%, with rates up 7.6% and exposure up 0.8%. Financial lines pricing was down 1.5%, and comp middle market pricing was down just under a percent. Large account risk management pricing was up 6.5%. In North America commercial, again, there was no change to our selected loss cost trends. Premiums in North America high net worth personal lines grew over 6%, and homeowners pricing was up over 8.5%. In our international life insurance business, which is fundamentally Asia, premiums were up almost 18% in constant dollars. And in North America, premiums in Chubb worksite benefits business were up over 16.5%. Our life division produced $322 million of pre-tax income in the quarter, up just shy of 20%. So in summary, we had a great quarter and a great year. which again speaks to the broadly diversified and global nature of our company. We have many sources of opportunity on both the liability and asset side of the balance sheet. At the same time, we are continuing to invest to improve our competitive profile. While early, we're off to a good start in 26, and we're confident in our ability to generate for the year strong growth in operating earnings, and double-digit growth in EPS and tangible book value through the three sources of income, PNC underwriting, investment income, and life, though CATS and FX aside. I'll turn the call over to Peter, and then we're going to come back and take your questions.