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DATE

Wednesday, Oct. 21, 2026

CALL PARTICIPANTS

• Senior Vice President, Investor Relations - Susan Spivak
• Chairman and Chief Executive Officer - Evan Greenberg
• Chief Financial Officer - Peter Enns

TAKEAWAYS

• Core Operating Income -- $2.98 billion, representing $7.66 per share and marking a quarterly record despite elevated catastrophe losses.
• Consolidated Net Premiums Written -- $15.14 billion, reflecting a 1.9% increase across P&C and life insurance lines.
• P&C Combined Ratio -- 84.1%, compared to 81.8% in the third quarter of 2025.
• Adjusted Net Investment Income -- $1.89 billion, a record result driven by a higher interest rate environment and record cash flows.
• Pretax Catastrophe Losses -- $705 million, primarily resulting from weather-related events and an earthquake in Latin America.
• Favorable Prior Period Development -- $511 million, compared to $361 million in the prior year quarter.
• Life Insurance Segment Income -- $369 million, an 11.4% increase supported by growth in North Asia.
• North America Commercial Premiums -- declined 2.7% to $5.51 billion, reflecting deliberate non-renewals of inadequately priced property and financial lines business.
• Overseas General Premiums -- $3.94 billion, representing 6.7% growth with significant contributions from Latin America and Asia.
• North America Personal Premiums -- $1.91 billion, up 5.3% due to strong performance in the high net worth segment.
• North America Agriculture Premiums -- $1.53 billion, an increase of 5.1% during the quarter.
• Share Repurchases -- $1.18 billion, executed at an average price of $344.32 per share.
• Tangible Book Value Per Share -- $126.96, an increase of 5.7% since Sept. 30, 2025.
• Invested Assets -- $175.5 billion, up from $171.2 billion at the end of 2025.
• New Money Rate -- 6.2%, as of Sept. 30, compared to the current total portfolio yield of 5.2%.
• Adjusted Operating Cash Flow -- $5.55 billion for the quarter, marking a record performance.
• Core Operating Effective Tax Rate -- 19.9%, reflecting shifts in the mix of income and discrete tax items.
• International Life Premiums and Deposits -- $2.44 billion, representing 15.7% growth driven by expansion in China, Hong Kong, Korea, and Taiwan.
• High Net Worth Combined Ratio -- 60.3%, supported by risk selection and lighter catastrophe activity in North America.
• Realized Investment Gain -- $460 million, expected from the sale of the company's investment in USI Insurance Services to Aon.
• Paid to Incurred Ratio -- 80% for the quarter, indicating conservative loss reserving.
• Global P&C ex-CAT Combined Ratio -- 81.8%, which was essentially flat compared to the prior year.
• Accident and Health Premiums -- grew 6% globally, driven by international consumer segment expansion.

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RISKS

• Greenberg noted that pricing in numerous casualty lines is failing to keep pace with loss costs that continue to outpace general inflation.
• Greenberg stated, "There is a lot of hungry and extremely naive capacity available," referring to alternative capital entering the commercial P&C market.

SUMMARY

Chubb Limited (CB -0.78%) reported record core operating income and investment results for the third quarter, supported by a 6.3% increase in adjusted net investment income. Management reported that geographic and business diversification offset more competitive conditions in North America commercial property and financial lines. The company produced record nine-month underwriting income of $5.8 billion and generated record adjusted operating cash flow of $12.8 billion during the first nine months of the year. Management stated that high interest rates and disciplined risk selection continue to support value creation despite elevated catastrophe losses during the period.

• Greenberg stated that the company is utilizing foundational technology, algorithmic models, and agentic-related tools to improve efficiencies in underwriting, marketing, and claims.
• Management noted that economic growth in Southeast Asia and Korea is supported by the supply chain requirements of the U.S. artificial intelligence infrastructure cycle.
• The company expects to realize a $460 million gain from the sale of USI Insurance Services to Aon through its partnership with KKR.
• Greenberg indicated that AI-related liability represents an emerging exposure requiring management through model certification standards and governance practices to address risks omitted from current casualty underwriting.
• The company increased its fixed income portfolio duration to five years and reported a new money reinvestment rate of 6.2%.
• Management stated that the $4.5 billion mark-to-market loss on the fixed income portfolio is ephemeral and will amortize as the portfolio is held to maturity.

INDUSTRY GLOSSARY

• Agentic: Pertaining to artificial intelligence systems designed to act autonomously as agents to perform complex business tasks.
• AOCI: Accumulated Other Comprehensive Income, which includes unrealized gains and losses on the investment portfolio.
• Combined Ratio: A measure of underwriting profitability where a ratio under 100% indicates an underwriting profit.
• New Money Rate: The yield earned on newly invested capital in the current interest rate environment.
• PPD: Prior Period Development, which refers to changes in loss reserve estimates for claims that occurred in previous years.
• E&S: Excess and Surplus lines, which cover highly specialized or high-risk insurance needs.

Full Conference Call Transcript

Operator: Thank you for standing by. My name is Jael, and I will be your conference operator today. At this time, I would like to welcome everyone to the Chubb Limited Third Quarter 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' 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. Now I'd like to turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.

Susan Spivak: Thank you, and welcome to our September 30th, 2026 third quarter earnings conference call. Our report today will contain forward-looking statements, including statements relating to the company's performance, pricing and business mix, growth opportunities, and economic and market conditions, which are all 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.chubb.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 will take your questions. Also with us to assist with your questions are several members of our management team. Now it is my pleasure to turn the call over to Evan.

Evan Greenberg: Good morning. As you can see, we had a really strong quarter. Our sources and quality of earnings, starting with world-class underwriting margins, speak to Chubb's excellent competitive profile, including our geographic and business diversification, our growing invested asset, and an enduring culture of underwriting discipline, a hallmark of who we are. These distinguishing attributes have all contributed to a long record of sustainable and growing value creation. P&C underwriting, investment, and life income results led to core operating earnings of $2.98 billion, or a record $7.66 per share. That was down about 2% and up about 1% respectively due to exceptionally light CAT losses last year.

From a more meaningful perspective, looking to the first nine months of the year, core operating income was $8.6 billion, up 21% from the prior year, and core operating EPS was $21.94, up 24.5% from last year. Annualized core operating return on tangible equity was 21.6% for the quarter, and core operating ROE was 14.9%. For the quarter, P&C underwriting income of nearly $2.1 billion led to a combined ratio of 84.1%. We had strong contributions from all of our businesses. Year to date, we have produced record underwriting income of $5.8 billion, up nearly 34%.

Our global P&C ex-CAT combined ratio was a world-class 81.8%, essentially flat with the prior year and included a reduction in our loss ratio and our admin ratio, offset by an increase in acquisition ratio. This speaks to our increasing efficiencies and mix of business. On the investment side of our business, adjusted net investment income was a record $1.89 billion, supported by a materially improved fixed income investment environment and record cash flows. Fixed income-related exposure is 88% of our invested asset, and equity-related is 12%.

Our current and future operating income benefits from a rising interest rate environment, which we have expected for some time given growing fiscal deficits, inflation, and the public and private sector competition for money. We positioned ourselves with that in mind by maintaining a moderate duration and a conservative approach to credit quality. We are a buy and hold investor of a high-quality investment-grade portfolio. Rising rates produced a third quarter mark of $4.5 billion in net realized and unrealized losses. Given our duration and higher reinvestment rates, the mark will amortize away reasonably quickly. It is ephemeral. The third quarter fixed income portfolio yield was 5.2%, and our current new money rate averages 6.2% as of September 30th.

Excuse me. On the alternative asset side, as was publicly announced in the quarter, Strategic Holdings and our holding company partnership with KKR agreed to sell our investment in USI Insurance Services to Aon. This is expected to result in a realized gain of $460 million on an investment of $740 million. Our invested asset stands at over $175 billion, up from $168 billion a year ago. Life income of $369 million this quarter was up about 11.5% from last year. Year to date, life income is just over $1 billion, up over 9% from a year earlier. Peter's going to have more to say about financial items. Now turning to underwriting, pricing, and growth.

The substantial majority of our businesses are growing, with the balance flat or purposely shrinking due to inadequate pricing or terms. There's nothing new there. In the quarter, we again shed more property and financial lines exposure, which affected growth. The most visible example, again, is in the U.S. North America middle and small commercial grew in the quarter, as did North America personal lines and agriculture. Overseas General had good growth across all major regions of consumer and commercial, particularly middle and small commercial. While North America E&S and major accounts shrank. This pattern of growth again speaks to the breadth of our business and our diversified sources of growth and opportunity globally.

While total P&C premiums were up 1.9%, Overseas General grew 6.7%. North America personal lines was up 5.3%, and agriculture was up over 5%. Agriculture was a meaningful contributor to growth this quarter. North America Commercial was down 2.7%, impacted again by large account and E&S property and financial lines, where we non-renewed certain business and purchased additional reinsurance. The adverse impact on growth was about 4.5 points. With that said, I fully expect North America Commercial growth to improve materially in future quarters. In terms of pricing, the market continues to grow more competitive in commercial P&C across the globe, in particular the U.S. and London.

Beyond property, competitive market conditions are spreading to more casualty lines, where pricing in numerous areas is failing to keep pace with loss costs, which while steady, continue to well outpace general inflation. There is a lot of hungry and extremely naive capacity available. Our broad diversification, including a deep local presence in so many countries and lines of business, leave us relatively well positioned with many areas of opportunity. With that as a baseline, I am going to give you more color on the quarter by division and region. In international P&C, a $17 billion business, our consumer-related businesses, both A&H and personal lines, were up 7.2%, and commercial was up 6.3%.

Latin America grew 11.7%, Asia grew 7.5%, and Europe grew almost 7%. In our London wholesale business, which is about 10% of international P&C, premiums were up 13.5% for the quarter, benefiting in particular from our Gulf war marine-related activities. Turning back to North America, premiums in our $10 billion middle market and small commercial division grew about 1%, with P&C lines up 2.6% or 4%, adjusting for a smaller annual workers' comp-related premium adjustment than we had last year. Middle market financial lines was down 5.9%, or up about 1.8%, adjusted for exposure change from additional use of reinsurance and non-renewal of inadequately priced business.

In our $16 billion major accounts and specialty division, premiums declined 5%, and adjusting for property were up about 1%. Gross premium pricing in North America for commercial property was down 4.2%. Casualty was up 5.7%, and financial lines was up 2.1%. Going a step further, for the business we wrote, property pricing was down 11% in shared and layered major and specialty, and up a little over a 0.5% in mid and small. On the consumer side of North America, our nearly $8.5 billion high net worth personal lines business, a clear market leader in that category, had another really good quarter, with premium growth of almost 5.5%.

Our combined ratio was 60.3%, which speaks to the strength of our risk selection, underwriting, and sophistication in pricing, and of course, a lighter than average quarter for CATs. In our international life insurance business, premiums and deposits rose over 15.5%. The vast majority of our life exposure, as you know, is in Asia, and the majority of growth is coming in North Asia, meaning China, Hong Kong, Korea, and Taiwan, though I would like to call out Thailand as well this quarter. Premiums in our North America Chubb Worksite Benefits business were up over 11.5%.

Our international life division produced $277 million of pre-tax income in the quarter, up 7% from last year, with income up almost 11% year to date. In sum, our global diversification, our presence and capabilities globally, our large and growing invested asset, along with rising interest rates and our operating discipline, provide us with strong margins, continued growth opportunities, and sustainability of value creation. We are a consistent compounder of wealth and an all-weather firm with many sources of opportunity on both the liability and asset side of the balance sheet, and we are patient.

CATs and FX aside, as I look out over the medium term, I am confident in our ability to continue to outperform and to generate strong growth in operating earnings and EPS, and most important, double-digit growth in tangible book value. I am going to turn the call back over to Peter, and then we are going to come back and we are going to take your questions.

Peter Enns: Thank you, Evan, and good morning. Our third quarter results were driven by strong underlying business performance and continued strength in our investment results. We continue to effectively manage our balance sheet and remain in a financially strong position with book value of $73 billion and excellent liquidity, as evidenced by a record $12.8 billion in adjusted operating cash flow over the last nine months. During the quarter, we issued approximately CHF 400 million of debt at a weighted average cost of 1.1% and an average term of five years. The use of proceeds is for general corporate purposes, which includes the repayment and refinancing of debt.

For the quarter, we returned $1.6 billion of capital to shareholders, including $1.2 billion in share repurchases at an average price of $344.32 and $393 million in dividends. For the first nine months, we have returned about $4.5 billion of capital to shareholders. Book and tangible book value per share excluding AOCI grew 2.6% and 3.5% respectively for the quarter, and tangible book value per share, adjusting for AOCI, was up 15.4% from the prior year. Pre-tax catastrophe losses were $705 million for the quarter, principally from a variety of weather-related events globally and an earthquake in Latin America. CAT losses were $1.7 billion through nine months versus $2.6 billion over the same period last year.

Pre-tax prior period development in the quarter in our active companies was favorable $562 million, comprising $575 million of favorable development in short tail lines and $13 million of unfavorable development in long tail lines. As you know, and Evan has said repeatedly, we are slow to recognize favorable development and quick to recognize unfavorable development. Our corporate runoff portfolio had adverse development of $51 million, predominantly environmental related. Overall, our loss reserves, which are now over $71 billion, are conservatively constructed and remain extremely strong. Our paid to incurred ratio for the quarter and year to date was 80% and 86% respectively.

Our core operating effective tax rate was 19.9% for the quarter, which is near the top end of our previously guided range due to shifts in mix of income and the impact of discrete tax items. We continue to expect our core operating effective tax rate for the full year to be in the range of 19.5%-20%. Effective this quarter, we have excluded the amortization of certain M&A-related intangible assets from our core operating income. This change, which has a de minimis impact on growth and ROE, better represents the true economics of past acquisitions and improves our comparability with peers globally. All prior periods have been recast accordingly. I will now turn the call back over to Susan.

Susan Spivak: Thank you, Peter. At this point, we are happy to take your questions. Operator, first question please.

Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking a question. We do request for today's session that you do restrict yourself to one question and one follow-up. Your first question comes from the line of Meyer Shields of KBW. Your line is open.

Meyer Shields: Great. Thanks so much, and good morning. Evan, I was hoping we could get a little bit more color on the increasing risk that you are transferring to reinsurers.

Evan Greenberg: In what regard?

Meyer Shields: You mentioned that one of the headwinds to North America Commercial growth was more reinsurance purchasing. I was wondering which lines that is focused on.

Evan Greenberg: Well, as you know and I think we discussed it is in financial lines, certain areas of financial lines, and it is in property. In both of those, we took advantage of opportunities to place additional reinsurance, which also gives us the opportunity to maintain presence and provide service and coverage to customers, and at the same time, spread risk. It was in those two areas.

Meyer Shields: Okay, great. That is helpful. Second question, we saw admin expenses actually down year-over-year again in North America Commercial. I was hoping to get a sense as to whether there is anything unusual there, or this is just technology-based efficiencies.

Evan Greenberg: Yeah. Let's put the lens beyond North America. Look at it globally. I think that zoom out of a North America and just look at the company as a whole, North America included. Our operating expense ratio has been trending lower and continues to improve. Our digital transformation programs and other efficiencies are visibly appearing. That's all around employing foundational tech and data and smart layer of technology, algorithmic, large language, and agentic related. We are on track in terms of the medium and longer-term efficiencies and an improvement to our competitive profile, which goes beyond efficiencies that we have described in the past.

Meyer Shields: Thank you.

Evan Greenberg: By the way, it's impacting underwriting, it's impacting marketing, claims, finance, sales, all areas of the company. It's impacting broadly across the globe.

Operator: Thank you. Your next question comes in the line of Matthew Heimermann of Citi. Your line is open.

Matthew Heimermann: Hi, good morning, everybody. Evan, I would appreciate your perspective on the current debate related to coverage for AI liability, which from my perspective seems quite nuanced. The brokers seem to suggest the status quo is quite reasonable. Maybe more specifically, how to think about the utility of new standalone rates and forms versus simply incremental changes to language or sub-limits in existing forms versus no changes at all?

Evan Greenberg: Yeah. Thank you for that question. AI liability, it is all over the papers generally. It is emerging as a topic beyond the insurance industry. AI liability is a growing and emerging exposure that is not contemplated in casualty underwriting really to date. It needs to be understood, it needs to be managed, and it needs to be addressed. That is what we call underwriting, and that is what the insurance company does. In managing the risk, I imagine we are going to have a combination of coverage clarifications, ultimately exclusions, and separate AI-related liability coverages. This will all emerge along with underwriting and pricing to discern between risks. AI-related liability exposures will vary between insureds and type of insureds.

Frankly, when you think beyond that, to assist business generally and add to greater certainty overall in the liability environment as it emerges, I can imagine a regimen around model certification standards emerging. I can imagine best practices in management and governance of AI and agentics emerging quickly and evolving from there. These will be tools that will also assist in insurance underwriting. While that is a mouthful, I think that gives you all the elements of how the industry will approach and address AI liability. As an industry, we have to put our arms around this.

Frankly, we have had to do this with emerging liabilities over the last 50 years, and there is a pretty good template to follow.

Matthew Heimermann: Thank you for that. There are a number of follow-ups I would love to explore on that, but I think in the interest of time and other topics, I wonder, you or Peter could clarify just in the Asia life production this quarter, was there anything either in the quarter or the prior year quarter that was impacting the comps there? Just relative to whatever you think the underlying expectation for us should be with historically it has been pretty strong production.

Peter Enns: Yeah, in the third quarter, sorry, it's Peter. In the third quarter of 2025, there was an acquisition of effectively a closed block of business in New Zealand. We disclosed that the impact is approximately 8%, so the production really is more like 10.5% on a comparable basis for net written premium, which we think is more at a normal level.

Evan Greenberg: It was well over $100 million last year, I believe. It's very large.

Peter Enns: We disclosed that.

Evan Greenberg: We're glad to disclose.

Operator: Thank you. Your next question comes from the line of Brian Meredith of UBS. Your line is open.

Brian Meredith: Yeah, thank you. Evan, first question. I am wondering if you could unpack your comments about the improving growth in North America Commercial a little bit. Is it because the headwinds on property are going away, or are there really now emerging opportunities in the North America Commercial business?

Evan Greenberg: I think it is a combination of both. The negative impact from the actions that we have taken will diminish. Areas of opportunity, the impact of those will increase. Middle and small commercial in particular. Our advantages from product breadth, local geography, massive capabilities up and down the chain, from largest companies to small business, and our data and technology and the power of it, that continues to emerge in spite of and, of course, in context of soft market. So, I see it between diminishing headwinds and our own opportunities.

Brian Meredith: Great. Thanks. My follow-up question, I am just curious, Evan, can we get your perspective on some of this alternative capital that continues to come into the industry, particularly as it relates to casualty sidecars and some of these broker facilities? Is this something you see having an impact on market conditions here and then going forward?

Evan Greenberg: Well, of course. What drives cycles? What drives cycles in insurance is supply-demand. Sidecars and broker facilities, blind follow facilities, more MGAs with capital behind them other than professional insurance and frankly, a lot with professional insurance behind it. This is all throwing out of balance the supply relative to demand, and it is a lot of very naive capacity. Even where it is other than traditional insurance, it is investor capital. There are two brands of it to me.

There is one brand where they are cleverly going to make a trade, even in casualty sidecars, and they are going to try to pass, or they have it arranged to pass the tail back to the carrier that is fronting it, who is going to end up holding the trash. They may make a turn. On the other hand, I think a lot of that clever capital does not understand the pricing versus the loss cost environment. I do not think they are going to end up making the turn that they think they might make.

We have been living in a world where the cost of money is cheap, and there is a lot of money looking for absolute return, not risk-adjusted. As you know, generally, the world is beginning to change that way. In the meantime, a lot of it has found its way or a fraction of it has found its way into insurance as sort of an alternative investment asset class. It has different forms now than we have seen to some degree in the past, but the themes are the same.

Operator: Thank you. Your next question comes from the line of Bob Huang of Morgan Stanley. Your line is open.

Bob Huang: Hi, good morning. I would like to kind of unpack a little bit about your commentaries around Overseas General insurance. Noticed that several countries when you called out were in Asia for the quarter, specifically Thailand and such. Just given the prolonged conflict in Iran and just oil price volatility has been fairly long-lasting so far, can you maybe help us think about your view on Asia opportunities, and has that changed over the year so far in 2026? Just curious how you think about the go forward there first.

Evan Greenberg: Yeah. Bob, thank you. First of all, the countries that I cited, that was in the life business. I did not cite countries in Overseas General P&C.

Bob Huang: Right. Sorry. Yep.

Evan Greenberg: But if I did, I would cite those, plus even a larger number of countries. I just returned with my colleagues from two weeks in Asia. We were through Southeast Asia, China, and Korea. Let me help you with your model. There are two regions of the world that are really growing right now more exceptionally. That is North America, particularly the United States, and Asia. When you look at the growth in Asia, Southeast Asia, Korea, Taiwan, a lot of it is tied to the U.S. capital investment sort of super cycle that we are in as we build out AI and AI-related infrastructure and invest to remake our economy that way. Asian countries are a beneficiary of that.

They are all tied into the supply chain. Asia is growing. I see sustainability. It varies by country. The dynamism that I see and the opportunity that presents for Chubb's business, rising middle class, digitization, growth of small and mid-sized businesses. I was in Vietnam. It is a beehive of development. Thailand, overall, though it has its own idiosyncrasies related to domestic credit and maybe underperforms the region, Thailand is still very solid. Singapore, Malaysia is growing well. Taiwan. Our business in Hong Kong and China, in spite of a soft domestic environment, P&C and life is growing double digit. The Korean economy is growing between 3% and 4% right now.

Again, tied to the supply chain of the United States in particular. I am bullish on Asia right now, on both medium and longer term, and shorter term. Of course, it has a certain volatility signature to it. Emerging markets do. But overall, our presence, our capabilities, the breadth of our business, the depth of it through countries, I am very optimistic for Chubb in Asia.

Bob Huang: I really appreciate that. Maybe just pivot a little. I know you talked about cyber liabilities, but if we were to think about data center investments, data center constructions, AI build-out, can you maybe help us talk about your exposure there? Just maybe the thoughts on the risk maybe the insurance industry is taking on. Just curious your thoughts there, if possible. Thank you.

Evan Greenberg: Well, let's unpack it in a couple ways. Right now, in the cycle of data center development, particularly hyperscalers and medium-sized, we are more in the construction phase, with the operation phase more in front of us than behind us. That is to come. A lot of projects announced. As you know, only a percentage of those are actually shovel in the ground right now. And delays due to a combination of things, permitting, energy, labor, supply chain, et cetera. But we are quite active. We are quite active in the physical property-related construction. We are active in marine, surety. It is a huge opportunity for us in surety.

We have written quite a bit, but more important, it is the pipeline of what is outstanding to bind because you do not really bind until the shovel goes in the ground. And that is in front of us, as I said, with many projects that are delayed. When you think about values, and I think you are alluding to that in concentration of exposure, we manage it technically no differently than we manage any other concentration of exposure. We manage how much we could imagine that we would have as a loss from a single event, and we imagine that across perils.

So, it is technical, it is engineering, and I am comfortable with the way that Chubb is approaching this.

Operator: Thank you. Your next question comes from the line of[crosstalk].

Evan Greenberg: We are a leader across the board globally in data center development. We have the broadest capabilities.

Operator: Your next question comes from the line of Ryan Tunis of Cantor. Your line is open.

Ryan Tunis: Thanks. Good morning. North America Commercial, I understand, about a point of underlying loss ratio deterioration year to date. Is it fair to attribute that magnitude to the impact of pricing versus loss trend, or is there anything else going on there?

Evan Greenberg: No, I wouldn't say that. It's the reduction in property. Period.

Ryan Tunis: So there's a mix shift element?

Evan Greenberg: That's all it is. You've seen the reduction in property, and so property as a percentage is down. That's the whole loss ratio difference.

Ryan Tunis: I guess relatedly, just as a follow-up. Overseas General, we're not seeing a deterioration dynamic so far year to date. So just curious on color around the stability there, just given the pricing environment.

Evan Greenberg: Well, there is no one pricing environment in Overseas General. Overseas General insures the world. It's throughout Europe. It's throughout the U.K. Europe is more stable than the U.K. is. Our growth in middle and small commercial business throughout the globe. Latin America goes to a different beat than Europe or the U.K. does, and it varies by country. And again, it's more middle and small commercial for us there. And then the same with Asia Pacific. That's one part of the story. But the other part of the story, which I think is more important, is the balance between consumer and commercial within Overseas General. Consumer is growing more quickly.

The size of the consumer business relative to the commercial business. Large account is only a piece, and when you get the balance, which most of Overseas General and commercial is mid and small, and then you get to the consumer side, which is half the business, it's accident and health, which grew. By the way, globally, our A&H business grew at about 6% this quarter. It's personal lines overseas, which is everything from automobile insurance in Mexico, where we're the number three writer insuring over 2 million autos, to insuring cell phones and computers in Asia, and automobile in Thailand and Malaysia, and homeowners and high net worth insurance in Australia and the U.K.

It's a variety of opportunities in a huge world out there where we have fabulous capability. To our direct marketing business in Asia and Latin America, we're the largest direct marketers of insurance, digitally and by phone, of consumer businesses up and down the chain as I explained it, from lower middle income people to middle income.

Operator: Your next question comes the line of Andrew Kligerman of TD Cowen. Your line is open.

Andrew Kligerman: Hey, good morning. High net worth personal lines, again, a spectacular quarter, premiums up over 5%, combined reported at 60%. Any changes, Evan, in the competitive landscape with these types of returns, with AI coming into the picture? Do you see these kinds of results as sustainable over the intermediate to long term?

Evan Greenberg: I do. High net worth is, and the business we do, it's not about the price you charge as much as it is about the richness of the coverage and the services you provide. It's about the complexity of those coverages. It's really like selling a small commercial or middle-sized commercial account in the management of it. This is not something you buy over the internet or some agentic shops for you for insurance. This is far more bespoke, and it is a trust business. It is an agent-driven business and relationship business between the customer and us. This is not a trade. These are our customers, our long-term clients. I start with that.

Yes, there are always cyclical competitive pressures that emerge because cat reinsurance becomes cheaper, per risk insurance becomes cheaper. Excuse me. Competitors may employ more of that to chase business at a cheaper price on the margin. But overall, I see steady as she goes with some variability now and again. That's it.

Andrew Kligerman: Got it. Just moving over to reserve adequacy and prior year development was also spectacular. But in the long-term lines, I think Peter called out $13 million adverse. Could you share with us any color on the, say, 2021-2025 accident years and just your general confidence going forward in longer tail lines and how adequate those reserves are?

Evan Greenberg: Yeah. Thank you for that question. Look, as Peter said, I've repeated it ad nauseam, we're slow over the years. We're slow to recognize favorable development but very quick to recognize adverse. Casualty underwriting is not for optimists. As you know, the stinger is in the tail in development. The more recent accident years, while they may be developing more favorably, they're green. We wouldn't touch them. While the development that we did see was in more older accident years, think more 2019-2022. By the way, the amount was reasonably modest. When I look at our overall reserves as a percentage, it was very small. I think that maybe gives you the kind of color you're looking for.

Operator: Your next question comes from the line of Tracy Benguigui of Wolfe Research. Your line is open.

Tracy Benguigui: Morning. The market yield rose to 6.2% from 5.5% in June, and you extended your duration five years from 4.8 years. That's remarkable. I'm wondering what your expectations are on adjusted net investment income going forward. I thought I would ask since this is the second quarter we stopped getting guide for that. Thanks.

Peter Enns: Tracy, it's Peter, as you just said, we're not providing specific guidance. The way I'd frame it is, the reinvestment environment, as Evan said in his speech, is much more attractive. When you look at this quarter's results, how I'd frame it as we had extremely strong performance of fixed income-related net investment income and alternative, in particular, PE was actually less than what might be normal. As you know, it's very volatile, that specific asset class. So over time, we're confident that will continue to return well. With that as the backdrop, I think you can have a perspective around certainly the fixed income piece of this continuing to grow.

Tracy Benguigui: Thank you. Maybe just a quick follow-up. I know Brian had touched on this in the beginning of the questions about the North America Commercial growth improving materially in future quarters. Maybe you could just unpack the glide path there. I am wondering how much of the finishing line you have reached in terms of the underwriting actions you are taking in financial lines and large account property. Thank you.

Evan Greenberg: Nice try, Tracy. I gave as much as I am going to give on that.

Operator: Thank you. Your next question comes from the line of Gregory Peters of Raymond James. Your line is open.

Gregory Peters: Good morning, everyone. Stepping back to the technology piece. It seems like with some rising frequency, we keep hearing about security protocols being violated, breaching of data security, et cetera. You are managing a global enterprise. Your data assets are unique and special to your company. Maybe you could just give us some perspective on how you are managing the data security as large language models and these other tools are out there, and how are you protecting your data assets?

Evan Greenberg: Yeah. Look, we're employing all of the best practices around governance and management of not simply our data, but the tools that we employ at the smart layer, which is algorithmic, but more to the point, large language model and agentic, and how we control and limit what they can do, where they can do it, how they can do it, how we instruct for it. Then protecting our own perimeter and multiple layers of detection and defense against third party or external use of agentics and AI that could imperil Chubb's own data or systems. We invest significantly in this. We pay very close attention to it. It's fundamental to how we think.

By the way, to give you a sense, it's evolved over a long period of time. Think about actuarial models. Before AI, we've always had to employ model management for a regulatory point of view, and for our own use to create governance and management over the efficacy of those models. Traditional math. As those evolve past algorithmic and to AI-related, we have used the same template and the same governance processes. We've improved the tools, we've improved the techniques that we use, and the automation and humans in the loop to manage all of that. It continues, the harnesses and our ability to provide instruction precisely all continues to evolve.

Gregory Peters: I guess, it's kind of building on the comments you've made. As I think about everything that's going on and the new money rates jumping up over 100 basis points from where you were, where it currently is in your book yield. You mentioned naive capital, there's these facilities, there's these casualty sidecars. Do you think it's possible that we could be pivoting to an environment where we're sort of cash flow underwriting on casualty and longer tail liability business, considering these inflationary pressures and higher interest rates?

Evan Greenberg: I think only on the margin. When I look at loss cost inflation versus new money rates, and I look at pricing, it's not hard for me to work out the math. You're not cash flow underwriting at a 10% or 12% interest rate.

Operator: Thank you. Your next question comes from the line of David Motemaden of Evercore ISI. Your line is open.

David Motemaden: Hey, thanks. Good morning. Just a question on North America Commercial. Evan, you have talked a bit this call and in the Qs just on how the property growth or the mix change from property is driving the margin or the loss ratio deterioration there. I guess with that drag, I guess, abating a little bit, how should we think about the margin trajectory from here?

Evan Greenberg: I do not give guidance on margins. But I feel very good about our margins, and I feel, as you saw in the commentary, our sustainability of value creation, which includes margin, I feel very good about it. But I am not going to give you more than that, David.

David Motemaden: Thanks. Yeah, worth a shot.

Evan Greenberg: And by the way, you would be well-served, as others would, not to simply over-obsess about North America Commercial and consider all of that in the round as one company, and then imagine all the handles to pull.

David Motemaden: Yep. No, I hear you on that. Maybe just following up here. The growth has moderated a bit just for the company overall, still solid, but it has slowed a bit. Capital return, if I look at it's unchanged year-on-year roughly, at least on the buyback. How are you thinking about capital allocation here, and just given the current market environment?

Evan Greenberg: Peter is going to answer a part of that, and then I'm going to come back and actually answer probably another part.

Peter Enns: David, we've been pretty consistent around preserving capital for risk and opportunity. If you look back over the last while, and it hasn't really changed this year, you saw our buyback ticked up this quarter. We've been returning in the range of 50%, and that's not a rule we have, it's an outcome. But look, we look at the investment environment and think it's really, really strong.

And so we think about our capital in terms of return to shareholders, but we also think about how we can deploy it in our insurance business, and in particular right now in our investment business, which includes both the current, of course, fixed income environment as well as our alt strategy, which is very differentiated.

Evan Greenberg: I think that said it all.

Operator: Thank you. Your next question comes from line of[crosstalk].

Evan Greenberg: I want to add this. We are getting paid to hold the capital and money doesn't burn a hole in our pocket. There is no event on the horizon related to acquisition or any of that we know is speculated. We actually enjoy the invested asset and the growth of it, and the accretion to shareholder value that it produces. It is a major part of our business, is our investment business.

Operator: Your next question comes from the line of Alex Scott of Barclays. Your line is open.

Alex Scott: Hey, good morning. I had one on casualty. Since we're seeing casualty pricing come under a little bit more pressure, and I think maybe for a few quarters been under a loss cost trend, any specific actions that may need to be taken there? I'm just trying to understand if we need to consider that in the context of some of the growth discussion from earlier.

Evan Greenberg: We're underwriters. We write up and down the chain, large companies to small companies, all kinds of industries, all kinds of casualty, from primary to excess, to professional, to construction. So more types of casualty for more types of industries and more geographies than you probably can imagine. As underwriters, we're conscious of the risk environment, of the loss cost environment, which we then match to terms and pricing, and we're nimble. I think that probably answers your question. I'm not sure what you're asking me beyond that.

Alex Scott: Yeah, no, that's helpful. Thanks for that.

Evan Greenberg: You're welcome.

Alex Scott: Second question, also growth related. I heard the comments on small commercial and that continuing to be a good growth focus for you. Could you give us a taste of some of the things you're doing, whether it's an expansion of distribution, just any taste of what will propel that growth?

Evan Greenberg: Yeah. It's small commercial, it's lower middle market, it's middle market. A combination of a very local geographic reach within countries, because that's how it's done, whether it is in North America or frankly, it's in Malaysia. It's the breadth of product. It's our industry practices, which is a real secret sauce for Chubb, where coverages and the amalgamation of coverages are tailored for different industries to their specific needs. To industry experts that we have that represent those industries.

That plus technology, the amount of data that we have that give us insight into risk selection and pricing, and then the technology to enable the local reach in relationship and a compelling proposition to both quote it quickly, issue it with few questions, service it quickly, match to the human-to-human of agent-to-company relationship on a local basis. That is who Chubb is. The opportunity in that and the scale advantages that we have around that give us for data and for knowhow that we can spread around from whether it's the West Coast of the United States to the Southwest of the United States, or spreading from Asia to Europe or United States to Europe.

Our ability to do that and the scale advantage to invest in technology and use data to inform broadly, that is a whole market advantage for Chubb that is enduring.

Operator: Thank you. That's all the time that we have today for questions. I will now pass it back over to Susan for closing remarks.

Susan Spivak: Thank you everyone for joining us today. If you have any follow-up questions, we will be around to take your calls. Enjoy the day. Once again, thank you. Bye-bye.

Operator: This concludes today's conference call. You may now disconnect.