Chubb faces risks from fluctuating interest rates impacting fixed-income investments, potential defaults by borrowers in securities lending and repurchase agreements, uncertainties in loss reserving for claims, including environmental and asbestos-related liabilities, and changes in global financial markets (interest rates, stock markets). The company also faces risks from acquisitions not performing as expected, and from regulatory actions and legal proceedings. There are also risks from policyholder behavior and mortality assumptions.
Financial Upside
Chubb's strong underwriting results, record net investment income, and growth in net premiums written across various product lines and regions (especially Asia) present upside potential. Favorable prior period development and lower catastrophe losses also contribute to positive financial outlook. Increased assets under management and fixed income yields also contribute to the upside.
