Chubb Ltd Q3 FY2025 Earnings Call

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Chubb Limited Third Quarter 2025 Earnings Call. I would now like to turn the call over to Karen Beyer, Senior Vice President, Investor Relations. Please go ahead.

Thank you, and welcome to our September 30, 2025 Third Quarter 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. Please see our recent SEC filings, earnings release and financial supplement, which are 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'll take your questions. Also with us to assist with your questions today are several members of our management team. And now it's my pleasure to turn the call over to Evan.

Good morning. As you saw from the numbers, we had an excellent quarter. In fact, a record earnings quarter. Core operating income of $3 billion was up 29%, leading to EPS of $7.49 per share, up 31% from a year ago, both supported by record underwriting and investment results as well as solid premium revenue growth. The results put a point on the broad-based and diversified nature of our company geographically, by customer segment and by product area. Most of our businesses in regions of the world contributed. Geographically, that means North America, Asia, Latin America and the U.K., Europe. When I say customer segments that contributed strong growth this quarter, that means globally, both consumer, homeowners and auto, specialty personal lines, life and international A&H. When I say commercial P&C, particularly middle market and small commercial, our E&S business, crop insurance and a broad range of large account casualty and financial lines. And growth was generated by numerous distribution sources, including brokerage, agency, phone-based direct marketing and digital. In short, a wide variety of diverse businesses and geographies are contributing to growth globally. Our balance of business and presence, about half U.S. and half outside, provides a wide range of opportunities, which supports long-term profitable growth. Importantly, it also supports our ability to manage the commercial P&C cycle with discipline, something we are well known for doing. We expect to continue generating superior margin and earnings growth and, in fact, an increase to our return on shareholder equity. In the quarter, record underwriting income on both a published and current accident year ex-cat basis was supported, of course, by a quiet cat quarter. But more importantly, by current underwriting year margin improvement and strong prior period development. Published underwriting income of $2.3 billion was up 55% from a year ago, with a record combined ratio of 81.8%, about 6 percentage points better than a year earlier. Though cat losses were light in the quarter, rest assured, catastrophe risk is alive and well and obviously, by definition, volatile. Remember, the California wildfires in the first quarter and convective storm activity through much of the year. Cat volatility aside, our underlying underwriting results were simply excellent in the quarter. Current accident year underwriting income, excluding cats, was a record $2.2 billion, up 10%, supported by a combined ratio of 82.5%, nearly a full point improvement from the prior year, with most all of it coming from loss ratio improvement. On the invested asset side, for the quarter, adjusted net investment income was a record $1.8 billion, up 8.3%. Our fixed income portfolio yield is 5.1%, and our current new money rate is averaging 5.2%. Our operating cash flow in the quarter was quite strong at $4.5 billion, which is contributing to strong growth in our invested asset, which is up nearly 10% over the last 12 months. Current fiscal, financial and economic conditions favor attractive fixed income and alternative asset portfolio returns for our growing invested asset. Federal budget deficits, inflation and rotation from the dollar support what we believe will be a steeper yield curve as we look to the future, which in turn should support our reinvestment rates and future investment income growth. Tangible book value growth, our primary measure of wealth creation, was 17% per share from a year ago and 6.6% from the previous quarter. Our annualized core operating return on tangible equity in the quarter was 24.5%, simply an outstanding result. Peter is going to have more to say about financial items in a couple of minutes. Turning to growth, pricing and the rate environment. Total company premiums grew 7.5%, with consumer up almost 16% and commercial up 3.3%. Commercial P&C growth this quarter was impacted by two items that benefited North America last year. Our underlying renewable commercial P&C business grew about 5.5%, which is more representative of our run rate. Premiums in our Life Insurance division grew over 24.5%. In terms of the commercial P&C underwriting environment, I would characterize the market globally as in transition. Competition continues to grow, especially large account-related short-tail business, both admitted and E&S. A lot more capital is chasing the property business and prices are softening, while terms and conditions remain steady. On the other hand, middle market and small commercial property is more disciplined and orderly, though greater competition is beginning to show as expected, particularly in upper middle market. In mid-market, property rates continue to rise, but naturally at a slower pace. Casualty pricing overall, large account, E&S and middle market is also slowing, though it continues to firm in the areas that require rate. It's quite rational. Financial lines remain soft, but we're seeing signs of firming in discrete classes. I'll give you some more color by division. For a change, let's begin this quarter with our international business. Premiums in our Overseas General division were up 9.7% or nearly 7.5% in constant dollars. Consumer was up 15.5% and commercial lines grew nearly 6%. From a region of the world perspective, Asia grew over 14%. Europe grew almost 5% and Latin America grew over 10.5%. Consumer lines grew more than 25% in Asia and more than 12.5% in Latin America. Premiums in our London wholesale business were up over 8.5%. Our international retail and E&S business again illustrates the power of Chubb diversification. In our international retail commercial business, P&C rates were down 1.3% and financial lines rates were down over 8%. Turning to North America. Total P&C premiums were up 4.4%, including over 8% in personal lines and 3.5% growth in commercial. Adjusting for the two nonrecurring items we wrote last year that did not repeat this year, renewable premiums in our North America commercial business grew 6.2%, with P&C lines up 5.8% and financial lines up almost 8.5%. Drilling down, our North America high net worth personal lines business generated more than $1.8 billion in net written premium for the quarter. This business is now almost as large as our North America middle market and major accounts commercial businesses, each with premiums in the quarter of $2.1 billion, again, illustrating our company's diversification. Premium growth for our true high net worth segments was about 11.5%. On the commercial P&C side in North America, premiums in our middle market business, we're the second largest writer in the U.S., grew 4.1% to $2.1 billion. Middle market workers' comp growth was impacted by one of the 24-year items I mentioned, namely an annual retrospective premium exposure adjustment. We make which we make every year in the third quarter. That benefited us much less this year than last. Adjusting for that, we grew middle market almost 7% with P&C lines up 8.6% and financial lines flat. Premiums in Major Accounts and Specialty grew 2.5%, with major up 3.2% and E&S up 6.6%. The Major Accounts division was up 5.6% adjusting for the impact of a large one-off LPT written last year. In North America Commercial, we had a very good quarter for new business. It was up 24% versus prior year, with double-digit growth in major specialty, middle market and small commercial. Our renewal retention rate on a policy count basis was over 86%. Commercial pricing for property and casualty, excluding financial lines and comp was up 4.3%, with rates up 2.4% and exposure change of 1.9%. Property pricing was flat with rates down 3.3% and exposure change of 3.5% and going a step further, property pricing was down 13.5% in large account business in E&S and up 6.2% in Middle Market and Small Commercial. Casualty pricing in North America was up 8% with rates up 7.5% and exposure up 0.5%. Financial lines pricing was down almost 2%. And with workers' comp, primary comp pricing was flat, while large account risk management pricing was up almost 5%. In North America Commercial, there was no change to our selected loss cost trends. In our international life insurance business, which is fundamentally Asia, premiums were up 26.5%. We had a large one-time premium in New Zealand and adjusting for that, growth was up just over 16.5%. In North America, combined insurance company premiums were up 18%. Our Life division produced $324 million of pretax income in the quarter, up over 14%. Chubb's fundamentals and our positioning are excellent. We're performing at a high level, almost anywhere you look in the company. We have broad global diversification and a disciplined, energized and talented team of professionals, whom I couldn't be more proud of to call my colleagues. We are reaping results and planting seeds for the future. Our digital and AI efforts, years in the making, are contributing to growth and beginning to transform the company and how we do business. Our balance sheet, starting with loss reserves, has never been stronger. We estimate that 70% to 80% of our businesses present attractive growth opportunities. And looking forward from all we can see, our performance is enduring. We will maintain superior earnings growth, including double-digit growth in EPS, book and tangible book value and core operating ROE increasing to 14-plus percent over the medium term. In the quarter, we stepped up share buybacks because we are an excellent investment with our stock trading well below intrinsic value. Increased buyback activity will continue, while at the same time, we will continue to build additional capital and our invested assets. I'm going to turn the call over to Peter now, and then we're going to come back and take questions.

Good morning. As you have just heard, we had another strong quarter that produced 9-month records in our three primary sources of earnings. Our results were supported by $4.5 billion of adjusted operating cash flows and exceptional balance sheet strength, including all-time highs in both book value of nearly $72 billion and cash and invested assets that exceeded $168 billion. There are a few capital-related matters I'd like to touch on. First, we returned $1.6 billion of capital to shareholders during the quarter, including $385 million in dividends and $1.2 billion in share repurchases. Secondly, we issued approximately $2.2 billion of debt at a weighted average cost of 4% and an average term of about 12 years. Book and tangible book value per share, excluding AOCI, grew 2.8% and 3.8%, respectively, for the quarter and 10.4% and 14.8% from the prior year. Our core operating return on tangible equity and core operating ROE were 24.5% and 16.3%, respectively, for the quarter. Pretax catastrophe losses were $285 million for the quarter, principally from weather-related events split 86% U.S. and 14% international, and $2.6 billion through 9 months versus $1.8 billion over the same period last year. Pretax prior period development in the quarter in our active companies was favorable $422 million, comprising $460 million of favorable development in short-tail lines and $38 million of unfavorable development in long-tail lines. Our corporate runoff portfolio had adverse development of $61 million, mostly environmental related. Our paid-to-incurred ratio for the quarter was 83% and 87% year-to-date. Turning to investments. Our A-rated portfolio, which had an average book yield of 5.1% for the quarter, increased over $7.5 billion from the prior quarter. The increase reflects strong operating cash flow as well as positive mark-to-market and favorable FX, partially offset by shareholder distributions. Adjusted net investment income was $1.78 billion, which was above our previously guided range by approximately $40 million due to higher-than-projected private equity income as well as higher call premium and strong cash flows into the portfolio. To give you a bit more color this quarter, approximately 87% of investment income was generated by our fixed income portfolio, which is relatively predictable and growing steadily. The balance of our investment income is from private investments and other sources, which while growing more quickly are more variable from quarter-to-quarter. We now expect adjusted net investment income in the fourth quarter to be between $1.775 billion and $1.81 billion next quarter. International Life premiums written growth in the quarter of 26.5% included a favorable one-time large transaction of $126 million, without which growth would have been 16.6%. The contribution from this transaction to Life Insurance segment income was de minimis. Our core operating effective tax rate was 20.5% for the quarter, which is above our previously guided range due to shifts in mix of income by tax jurisdiction, in particular, related to prior period development and catastrophe losses. As a result, we expect our core operating effective tax rate for this full year to be in the range of 19.5% to 20%. I'll now turn the call back over to Karen.

Thank you. At this point, we'll be happy to take your questions.

Your first question comes from the line of David Motemaden with Evercore.

It happens once a year, so it's not too bad. But Evan, I have a question about the ROE outlook increasing to over 14% from 13% in December. Can you discuss the factors contributing to that and where you see potential for that additional point? Is it related to net investment income, underwriting, or a combination of both? Could you help me understand the contributing factors?

I'll help you think about this conceptually. We are moving towards a return on equity of over 14%. This is significant because we have strong and growing earning power, which we anticipate will continue. Our earnings are increasing, driven by three main areas: underwriting, life income, and investment income from our assets. The growth in underwriting spans both commercial and consumer property and casualty, and it's quite diverse in non-life sectors, including accident and health. Our life earning power also shows growth, and our investments in alternative assets are expanding. We believe each of these areas will sustain their growth moving forward. As earnings increase, our capital base will naturally grow with it, and we see ourselves trading below intrinsic value. As earnings grow sustainably, our intrinsic value will also shift upwards. We plan to buy back shares above previous trends, as demonstrated this quarter, while also continuing to grow our investment assets, which will further enhance our earning power. That summarizes our outlook effectively.

Got it. That's helpful. And then maybe just following up, excess capital, I think in the past, you guys have talked about it as a drag on the ROE. I guess how can we think about that today? I think last time you spoke about it, it was, I think, a 2-point drag. Any way you could size that today for us?

Yes, everyone is migrating, including me. I don't see it as excess capital since it contributes positively to our return on equity as we invest in assets that aren't tied to insurance underwriting activities. That would be considered surplus capital. We are achieving excellent returns on our alternative investments as we expand that in our invested assets. So that's my perspective. To directly address your question, it's a 2-point impact or more than 2 points.

Your next question comes from the line of Gregory Peters with Raymond James.

As I review your third quarter results and year-to-date performance, the growth in your overseas general segment is quite surprising to me. I'm interested in understanding this better because there's been much discussion about pricing pressure affecting larger multinational companies, yet it appears that your business, whether in London wholesale or commercial insurance in the overseas general sector, is exceeding the performance of your competitors. Could you provide more insights on this?

I want to clarify your understanding. The majority of our overseas general business is primarily focused on middle market, small commercial, and consumer segments, including personal lines like automobile and homeowners insurance, depending on the territory. We approach this business selectively and discuss it openly. Our Accident & Health business is significant in Asia and Latin America, with a strong digital presence through direct marketing, agency, and brokerage. In the U.K. and Europe, our operations are well diversified, particularly in the middle market and large accounts. The large account segment covers regions such as the U.K., parts of Europe, and Australia. It's important to adopt this perspective rather than thinking solely about crowded London markets and E&S responsibilities. In this large account sector, property is becoming increasingly competitive, similar trends are appearing in parts of the middle market as well. My main concern regarding underpricing currently lies particularly in the property area, whereas most casualty lines are adequately priced, or the market is adjusting to ensure pricing adequacy. Financial lines are fluctuating at the lower end, so buyers should be cautious.

Great. I guess the second question unrelated but important is just around the expense ratio. If I look at the year-to-date results on the PC consolidated policy acquisition ratio is up a little bit. Maybe the admin administrative expense ratio is holding in line. But I'm just curious what the moving parts are.

Yes, yes. The acquisition is simply the mix of business. More middle market, small and consumer lines, they run a more favorable loss ratio.

Your next question comes from the line of Ryan Tunis with Cantor Fitzgerald.

One thing that surprised me is that North America E&S, likely referring to Westchester, is still up 7% this quarter. You mentioned a transitioning market, and I expected the growth there to be a bit lower. Could you provide some insights into what's driving the strong growth rate?

Yes, without giving away competitive secrets, property shrank, and it shrank significantly as it should. I mean, we gave up rate, and we gave up exposure where we can't get paid adequately price to model for catastrophe, we're simply going to walk away, and we are. On the other hand, there are areas of casualty that grew, and we are large in small quietly in small commercial E&S. We have a very large and growing completely digital capability, and that contributes very well to growth. And then we have a few program areas like you'll notice we're in the pet insurance business, and those areas contribute to growth as well. It's diversification again and balance. And it's not achieved overnight. It's what you just patiently do, and then it bears fruit over time.

And I guess the second one, just a broad one, Evan. Just from where you're sitting, like on the commercial side globally, in what ways are you seeing the macro impact your business, if at all?

Yes, there's an unpredictable element. Currently, I’m not observing a significant effect from the macro environment. The U.S. is performing well overall, and despite some slowdown in labor and payroll growth, the economy remains strong. This trend is reflected in the recent adjustments to payroll numbers. Europe shows sluggish economic growth, which seems to be persisting. Asia, however, has fared reasonably well, although performance differs by country. Korea is experiencing a slowdown, but it hasn't significantly affected our business growth due to the nature of our products and distribution. Thailand is facing challenges, while Singapore is performing well, and Australia is also doing quite well economically. There's some volatility, but I'm not seeing a major impact.

Your next question comes from the line of Matthew Heimermann with Citi.

Evan, I wonder if you could talk maybe about the inorganic growth opportunities in Asia. And in particular, I guess, the impression I'm getting from what's happening in the market there is there might actually be a lot more sellers than there have been historically as people think about where they are strategically, whether they have scale, distribution, et cetera. So I'd just be curious if you have any comments or color in that regard.

We must be talking to different people because, frankly, I haven't noticed that kind of chatter or many sellers in Asia. Most seem to be happy to make a go of it. So I'm not noticing that. I know one thing, I got a dance card that's pretty full. Our plate is very full with organic growth opportunities across consumer, across small, mid, in particular, commercial, variety of distribution and a whole lot of countries. So we're just flat out busy growing organically right now and building capability and reaping what we have. So I haven't really noticed much of that.

I appreciate that. The other question I have is if you're open to discussing it. There's been a lot of talk about a historically wholesale broker expanding into the U.S. retail market and some significant shifts in business away from them, especially in the London wholesale market. I'm curious, considering the health of the market and regulatory scrutiny, should we be concerned about this behavior?

No. I wouldn't. It speaks to a market economy. People make choices. They have their own choice to make. I'm not going to second guess their own analysis and the strategic outcome of that. That broker is doing what they're doing with their eyes wide open, I assume. And they look at the positive and they look at the negative, and they must see that the positives outweigh the negative. That's their choice to make. And it's every other broker's choice to react. I'm glad there isn't regulation that somehow impacts the ability of the market to make rational choices each on their own. Let's have a dynamic market. A dynamic market is, by definition, messier.

Your next question comes from the line of Tracy Benguigui with Wolfe Research.

Evan, you said that your balance sheet starting with your reserves have never been stronger. I'm wondering if you could share with us where your reserves sit relative to your central estimate. And any comments about this quarter's North America Commercial Lines favorable reserve development, which was slightly down this quarter versus prior quarters?

No, I will not share any details about our reserve position and strength beyond what I just mentioned. That information is proprietary. More details on our reserves will be included in the upcoming 10-Q, and you can refer to those. I believe my statement that our reserves have never been stronger stands on its own.

Got it. Okay. Can you talk a few minutes about your small to middle market commercial business? I mean I recognize you have strong field operations. Legacy Chubb has built that over 100 years. But I'm wondering if you could discuss where you win business. Is it more by offering a cyber package policies given you're a leader there?

No, I would say that's a specialty add-on. We are the second largest writer in the United States for middle market customers. Starting with that, we have a vast amount of data, a wide range of products, and the capability to deliver through our branch operations, increasingly supported by technology. In our industry, we are pioneers and inventors of the concept of industry practice, which others are trying to imitate. We offer tailored products and suites designed by industry, emphasizing true underwriting and product differentiation across customer segments. We categorize the middle market into large, middle, and lower middle market segments, which targets different buyer profiles. The lower middle market resembles small commercial, and we focus on delivering to customers, whether they are small or lower middle market, in a fully digital manner. Our extensive suite of products meets all customer needs, and we are improving our marketing capabilities to segment by geography, identifying the areas where our offerings are most appealing. The growing effectiveness of our software and team enhances our ability to generate submission activity and achieve a superior close ratio. This encapsulates Chubb's approach to middle market and small commercial operations, and we are expanding this strategy globally.

Your next question comes from the line of Brian Meredith with UBS.

Evan, I was hoping you could just give us a little update on the global A&H business. Kind of what's the outlook there? I know it's been seeing some declining revenues here year-to-date and in the quarter. What's going on with the business?

Yes, that's right. The decline came from North America. We faced a situation with a large customer where we couldn't reach an agreement. The pricing did not align with our standards. Therefore, we mutually decided to part ways, and this change at the end of last year has affected the A&H business in North America throughout the year. It’s an isolated incident. On the international front, our business is expanding at approximately 7.5%, particularly in Asia and Latin America, which presents multiple growth opportunities. Our travel-related business is experiencing rapid growth since it is entirely digital. We're able to deliver services through airlines and large travel agencies, enhancing our product offerings and allowing for digital claims settlement, which has provided significant growth potential. Our direct marketing efforts are not limited to phone calls but also include digital direct-to-consumer initiatives. We have over 200 platform partners, including major players like Nubank in Latin America and Grab in Asia, allowing us to reach customers through embedded solutions and new engagement methods such as click-to-engage or click-to-call, blending voice and digital to sell higher-ticket products. This vibrant strategy has ample growth potential in both non-life and life segments, with A&H representing 60% to 70% of our business. Looking ahead, I anticipate growth in Asia and Latin America, while Europe remains relatively stable. We expect growth to pick up in North America as well. To clarify, when I mention that the combined area saw an 18% increase, that refers to worksite marketing, primarily in A&H along with some risk-based life insurance, including dread disease and hospital cash products, serving as additional indicators of our A&H business. We have a long-standing appreciation for the A&H sector.

And the second question, maybe you could talk a little bit about the reinsurance business. Obviously, a big decline in premium this quarter. What are you seeing in that marketplace? Are you seeing terms and conditions loosening up? And any crystal ball as to what do you think 1/1 may look like?

I see it positively as a buyer. Our reinsurance business has always been approached more as a trade. We understand the current dynamics and view it as part of the overall trend of property softening. We are not going to pursue property catastrophe unless we feel the pricing is right, and we adhere strictly to our pricing model. There is no impulsive decision-making based on observing a couple of quarters with low catastrophe activity, leading us to think something has changed. We remain disciplined and will engage in business when we believe it is adequately priced, and we will reduce our exposure when it isn't. This approach is exemplified by our track record.

Your next question comes from the line of Meyer Shields with KBW.

Peter, you mentioned that the more volatile components of investment income are growing faster. I was hoping to get a little bit more color in terms of the underlying thought process and maybe targeted allocations.

I'm sorry, say that again.

Peter mentioned that non-fixed income investment income is more volatile but is growing faster than the fixed income component. I would like to explore your thoughts on this and where you see it heading over time.

Yes. I'll hand it over to Peter in a moment, but we need to be cautious about the volatility. It's not about increased volatility in its nature. Rather, it's a matter of realized gains compared to interest rate income from fixed investments, essentially comparing fixed income to equity. That's all. Please go ahead, Peter.

We previously mentioned that we are increasing our allocation to private investments, including private equity, which provides a higher current yield. This means that income will grow more rapidly over time. As Evan pointed out, there will be quarterly fluctuations due to distributions and realizations. However, the current return from this will contribute more to our adjusted net investment income, and the overall internal rate of return is significantly higher, which will accelerate the compounding of book value.

So think of alternatives as producing, and we've used our long-term partnership with KKR as an example. It will provide a coupon yield of about 7% to 7.5%. However, it also has an internal rate of return of over 15%. Therefore, it includes a terminal value component. You can see that fluctuation, as you typically would in present value.

Okay. Fantastic. That's very helpful. One quick other question. We've had 2 consecutive quarters in North America Personal with solid top line growth and declining administrative expenses on a year-over-year basis. Is that something that can persist? Is that technology-driven?

I like the pattern. I think we like to continue patterns that we find that we like. It is part of our strategy. As we digitize, as AI over time matures more within the company, we expect our growth of expense, the growth rate to decline as revenue grows. And over time, we expect the total employee population to decline as revenue grows. And both technology and AI in various forms at different parts of the process of conducting our business continue to mature and continue to take hold sort of business by business. So it takes time, but we're seeing results. It's not a futuristic as we're harvesting now.

Your next question comes from the line of Andrew Kligerman with TD Cowen.

So Evan, I thought the print that you put out in property casualty was literally the best in the world. You had under 82% combined. Net written premium growth was around 5%, but would have been higher were it not for some one-offs. And I appreciate your commentary about the broadness of the business, the geography, the product, the account size and other items. But diverse companies often mess up. And you gave a good description on your middle market commentary and why that's so good. But how does Chubb stay ahead on tech, on data, on underwriters? Like what is it that keeps you ahead and doesn't mess up this incredible performance that you've been doing quarter after quarter?

I've been the CEO of this company for 21 years. We have built a culture, a discipline and an ability to monitor and survey our discipline and the way we work at an extremely granular level on a real-time basis. And culture here means the higher you go, the harder you work. It's an inverted pyramid, and it is a privilege. And if you don't feel that way and you need a 'different work-life balance,' then this may not be the place for you. The people who embrace this, the management team, we've been together some 15 years, some 20 years, some 25 years. We've been together decades. We've all grown up with the same ethos of how to run and discipline and manage a business. And we're fundamental builders. We love what we do. And so it's granular. You look at the results, but it's the result of those macro results of granular effort across hundreds of businesses in dozens of countries with a management structure that can discipline and drive it on a daily basis. And we are all traveling and on the ground tirelessly to examine and know our businesses. We love it. We love what we do. And frankly, I've been asked this question of enduring, and that's why I started with it for over 20 years. How are you guys going to keep repeating it? And by the way, you can lose it. You can lose it quickly if you start laying back or getting a little complacent or starting to believe your own stuff that is written about you that you're so great. We're not. We act like we're chased every day. This company has only $60-some-odd billion of revenue in a $4 trillion industry. We've got the world in front of us, and that's what drives us, period.

Very helpful. If I could follow up, I know you prefer not to discuss the specifics of your position and strength in reserves. However, could you provide some insight into the casualty development for the quarter? Was it adverse or favorable? Were there any notable trends by vintage? How did it evolve in commercial property and casualty in the third quarter?

Yes. It was overall casualty development was $38 million negative, and that was $104 million in the U.S. and negative and $66 million positive internationally.

Your next question comes from the line of Alex Scott with Barclays.

I appreciated your response regarding the culture. However, my question revolves around achieving the 14% plus ROE. A straightforward DuPont analysis indicates that the ROE drag, whether it's due to excess capital or a lower equity premium, presents the most significant opportunity for a quicker increase in ROE. But that wasn’t your initial focus in the response. I’m curious about your perspective. Do you believe there are actions you can take in underwriting life income to grow the business? Do you think attaining that 14% ROE plus is achievable without heavily relying on buybacks or inorganic strategies?

Yes, we expect to continue to grow income. I've outlined the components of this growth, which includes increasing our earning power. We will keep building our invested assets and will manage our income effectively, not just focusing on loss reserves. As a result, our capital will increase. Additionally, we plan to boost our buybacks. We will pursue both strategies as long as our trading remains below intrinsic value, and it is currently well below that threshold.

Got it. Very helpful. And then I wanted to go to the Chubb Personal Lines business. I mean, it's been doing really well with the amount of growth. Just interested in your views on how you think that would be impacted, if at all, if we see competition heating up and maybe areas of the market where that has more of an impact like direct-to-consumer, et cetera?

Yes. And I think you're referring to high net worth North America? Or are you thinking globally? Or what do you think...

Yes, more in North America.

In North America, competition is certainly a factor. There are competitors who price significantly lower than Chubb. If price becomes an issue for our customers, we are willing to provide them with contacts for cheaper alternatives. However, our focus is on service and the comprehensive nature of our products. When customers have claims with Chubb, our strong reputation remains intact. Our capabilities in risk engineering and the extensive coverage we offer set us apart. It's not only about how quickly we process claims, but also about the depth of coverage that we provide during those situations. Our ability to underwrite clients regardless of their location and the types of homes they have is a key advantage. We offer a wide range of coverage options, from fine arts and jewelry to high limits on casualty and marine insurance globally. No one else matches this. We’ve established ourselves in the market, yet we remain eager and open to improvement. As competition intensifies, particularly in areas affected by catastrophic events, we recognize that we can't cover every possibility. We're not aiming to dominate a market segment like the entire cat market. There is definitely space for others to enter and secure their own share, priced appropriately for the risks involved. In this dynamic, competition fluctuates; it often revolves around pricing rather than the quality of coverage and service we deliver. Our franchise is resilient, and I take great pride in that.

Thank you, everyone, for joining us today. If you have any follow-up questions, we'll be around to take your call. Enjoy the day. Thank you.

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.