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NEWCASTLE & HOUSTON, July 22, 2025 — TechnipFMC plc (NYSE: FTI) today announced that its Board of Directors has authorized and declared a quarterly cash dividend of $0.05 per share, payable on September 3, 2025 to shareholders of record as of the close of business on the New York Stock Exchange on August 19, 2025. The ex-dividend date is August 19, 2025.

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Important Information for Investors and Securityholders

Forward-Looking Statement 

This release contains “forward-looking statements” regarding our future dividend payment obligations as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Such forward-looking statements are not guarantees of future performance or actions, and involve significant risks, including risks included in our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our latest Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

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About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services. 

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.  

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation. 

Each of our approximately 21,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on X @TechnipFMC. 

Contacts

Investor relations

Matt Seinsheimer
Senior Vice President, Investor Relations and Corporate Development
Tel: +1 281 260 3665
Email: Matt Seinsheimer

James Davis
Director, Investor Relations
Tel: +1 281 260 3665
Email: James Davis

Media relations

David Willis
Senior Manager, Public Relations
Tel:  +44 7841 492988
Email: David Willis

In an interview with OncLive®, Hetty E. Carraway, MD, MBA, outlined changes and challenges in the classification, risk stratification, and management of myelodysplastic syndromes (MDS), which were discussed during the inaugural Bridging the Gaps in Leukemia, Lymphoma, and Multiple Myeloma Meeting.

This includes the incorporation of molecular mutation data into classification systems and the need for a more consolidated set of criteria; current approaches to management of clonal hematopoiesis, particularly for patients with high-risk features; the roles of the newly approved agents imetelstat (Rytelo) and luspatercept-aamt (Reblozyl) in lower-risk MDS; and lessons learned from phase 3 studies of hypomethylating agents (HMAs) in higher-risk MDS.

“[Classification] tools are important for us to use, and it’s important to know when to use them in a patient’s treatment—whether at the time of initial diagnosis or potentially later on at [the time of] relapse,” Carraway, a staff associate professor of medicine at the Cleveland Clinic Lerner College of Medicine of Case Western Reserve University; vice chair of Strategy and Enterprise Development at the Taussig Cancer Institute in the Division of Hematologic Oncology and Blood Disorders at the Cleveland Clinic; and member of the Immune Oncology Program at Case Comprehensive Cancer Center in Ohio, emphasized. “[Although] we have these tools, in reality, there can be challenges in applying them based on the [molecular] data [available] for the patient in front of us.”

Carraway also highlighted current challenges and ongoing innovations in the management of acute myeloid leukemia (AML) in a concurrent article.

OncLive: What tools are currently used for disease classification criteria and risk stratification in MDS?

Carraway: Risk stratification for patients with a diagnosis of MDS is [done] through a scoring system called the International Prognostic Scoring System [IPSS], which has existed for some time. [It was] initially called the IPSS, then revised as the IPSS-R, and is now further refined with the addition of molecular data as the IPSS-M. These risk assessments or tools help us identify [whether a] patient is at low risk or high risk for progression of their MDS to a higher-risk disease, such as AML. If [a patient is at] higher risk, [progression] may occur within the next 6 months to 1 year, and treatment options and recommendations will differ for that patient compared with someone at lower risk.

Many of us have appreciated the IPSS-M because it refines the prognostic scoring system for patients with MDS in ways that the prior IPSS and IPSS-R do not. We also need to have access to molecular data for our patients, which not everyone has. That’s part of why there may be a gap.

What are some of the limitations associated with these classification systems, and how might they be addressed?

One of the current challenges we have, specifically in MDS, is that there is the International Consensus Classification criteria and World Health Organization criteria. We have worked hard as a community to acknowledge that having 2 classification systems is not ideal for our patient population. It is very confusing for patients and can also create challenges when enrolling patients into clinical trials, [as we strive] to unify and establish best practices in terms of requesting and/or requiring one system.

[Another key change] in the classification [of MDS] that is important to highlight is the incorporation of molecular mutation data, which allows us to classify disease based on [the presence of] mutations such as SF3B1 or TP53…rather than relying [solely on] morphology as a tool to define diagnoses. The incorporation of molecular mutations has refined our ability to classify these diseases. We still have not perfectly aligned our classification criteria, but that’s one place where we know and aspire to have momentum.

The same is true in the AML space, [where] determine whether a leukemia is favorable risk, intermediate risk, or poor risk based on the presence or absence of specific mutations and/or cytogenetic features. Again, it is important for the field to move forward using the most up-to-date tools—by identifying mutations with next-generation sequencing and by a multitude of newer technologies.

Finally, because we now have these tools, [we are also better able] to identify measurable residual disease, which has significant implications. [However, this also raises] questions about [how to treat] patients when disease is detectable even at very low levels.

How is clonal hematopoiesis typically managed, particularly for patients with high-risk features?

We’ve learned [a lot] from some of the work led by Zoey Xie, MD, MS, of Moffitt Cancer Center, [in which she] deliberately and extensively annotated patients with clonal hematopoiesis of indeterminate potential [CHIP] and clonal cytopenia of undetermined significance [CCUS], such that there are scoring systems that we use for patients with CHIP and CCUS.

[Through this] robust, retrospective work, they’ve been able to demonstrate that patients with high-risk CCUS [have a malignancy that] can clinically behave similarly to those with low-risk MDS.

This finding has important implications, particularly because these patients with [high-risk CCUS] are not currently included in ongoing clinical trials. For example, studies in low-risk MDS typically do not include patients with high-risk CCUS in their eligibility criteria. That landscape will likely need to change in the future because of these data.

What still needs to be learned to better determine the risk of clonal hemopoiesis in select patient populations?

We have a close eye on the fact that there are specific mutations that matter, as well as the number of mutations that matter and the degree of cytopenias for patients. As we follow them, we also care deeply about prior exposures. If patients have had prior chemotherapy and/or significant family history, we’re learning about specific mutations [being associated with] better responses to specific drugs. In this space, we also need to make sure that we’re paying attention to cardiovascular risk management for patients. Those themes [will continue to] emerge as we think about therapeutic interventions.

What does the FDA approval of imetelstat for the treatment of patients with lower-risk MDS mean for clinical practice?

Imetelstat is a very important agent for patients who have anemia and/or are transfusion dependent. This agent is impressive in the way patients respond to it in terms of achieving transfusion independence. Some of the challenges with imetelstat involve monitoring patients closely for transfusion dependence initially, as they can develop cytopenias during the early cycles of therapy. [However], patients may later become transfusion independent. [It is important to provide] adequate information to patients so they are aware of this, are adhering to follow-up, and are appropriately supported throughout treatment.

What has been most notable with imetelstat is the degree of transfusion independence that happens and how meaningful the rise in hemoglobin is for patients. It is exciting to have a new agent that we can use. For any community physicians with questions about using this drug, [I’d advise them] to reach out to colleagues who are adept and have used it before.

What questions remain regarding the role of luspatercept in ring sideroblast (RS)–negative, lower-risk MDS?

Based on findings from the [phase 3] COMMANDS study [NCT03682536], luspatercept was FDA approved for patients with anemia [stemming from lower-risk] MDS. In that study, the majority of enrolled patients had SF3B1 mutations and/or the presence of RS. We know that this subset of patients tends to respond well to luspatercept, which is encouraging, and the overall data were impressive.

However, questions remain about the subset of patients who are RS-negative and/or SF3B1-negative, [as fewer] of these patients were enrolled in the trial. Clinicians are [uncertain about] whether they should be using luspatercept or erythropoiesis-stimulating agent [ESA]–based therapy in the frontline setting [for this subgroup]. We just need more patients to be treated.

[Although] a subset analysis from COMMANDS suggested [comparable] responses between luspatercept and ESAs in this [RS-negative] patient population, the [amount] of patient [data collected] was small, so we don’t have the answer to this quite yet.

The other important consideration is dosing. Many patients in the study ultimately required the higher dose of luspatercept at 1.75 mg/kg. The trial protocol mandated a dose escalation from 1.0 mg/kg to 1.33 mg/kg and then up to 1.75 mg/kg, based on hemoglobin response. It is important to ramp up that dose, particularly if the hemoglobin has not reached 11 or 11.5 g/dL. There are remaining questions about whether dose escalation [is necessary] or if we could initiate therapy at 1.75 mg/kg, given that the higher dose was well tolerated and required for many patients. Those are going to be emerging questions that we hope to answer in the future.

In your clinical practice, what are the most important considerations when utilizing HMAs for patients with high-risk MDS?

It is important for patients with high-risk MDS to embark on therapy to delay progression to higher-risk disease, such as AML. All these patients, if they are transplant eligible, need to obtain a transplant consult quickly so that, if appropriate, we can quickly work in conjunction with the transplant team. For some patients with high-risk disease, we also begin to consider [whether there is] a role for HMAs in the post-transplant setting. [There are] unanswered questions in that space, and we are eager to address them through ongoing and future studies of HMAs.

In terms of lessons learned, we know that HMAs are important for [patients with] high-risk MDS to stay on. From some of the recent phase 3 studies, even those that ultimately failed [to meet their primary end points], we learned that maintaining patients on a 28-day treatment cycle is critical. Supporting patients adequately so that they can remain on treatment, whether through transfusions or prophylactic antibiotics, better serves them, particularly if they’re able to tolerate and be supported through their cytopenias.

What is one key action item regarding clinical outcomes associated with HMAs?

One of the key areas of ongoing refinement in the management of patients with high-risk MDS is the definition and requirements of complete remission [CR]. In patients with acute leukemias with CRs, there aren’t as robust hemoglobin requirements, so moving the needle with regard to remissions there is important. With regard to HMA-based therapy, we do want to have control of the blast percentage in our patients with high-risk MDS. [The therapeutic goal] remains to reduce bone marrow blast percentage and restore normal hematopoiesis, including neutrophil, hemoglobin, and platelet production. Making sure that our patients are supported [enough to] remain on therapy in a consistent manner, and that they are given the transfusion support that they need, helps them get through the therapy to optimize their quality of life and decrease their toxicities.

• Net income was $2.97 billion, up 33.1%, and core operating income was a record $2.48 billion, up 12.9%.
• P&C net premiums written were $12.39 billion, up 5.2%, or 5.8% in constant dollars.
  • Global P&C net premiums written, which exclude Agriculture, were up 5.8%, or 6.4% in constant dollars.
    • North America was up 5.3%, including growth of 9.1% in personal insurance and 4.1% in commercial insurance. Middle market and small commercial were up 8.5%, with P&C lines up 10.2% and financial lines up 2.7%, and major accounts retail and specialty were up 1.5%, including property-related lines down 4.2%, casualty up 12.0% and financial lines up 4.4%.
    • Overseas General was up 8.5%, or 10.2% in constant dollars, including growth of 15.3% in consumer insurance and 6.8% in commercial insurance; Latin America, Asia, and Europe, were up 17.3%, 12.7% and 8.2%, respectively.
  • North America Agriculture was down 3.3%, driven by lower commodity prices.
• P&C underwriting income was a record $1.63 billion, up 15.0%, with a combined ratio of 85.6%. P&C current accident year underwriting income excluding catastrophe losses was a record $2.01 billion, up 11.4% over prior year, with a combined ratio of 82.3%.
• Life Insurance net premiums written were $1.80 billion, up 14.1%, or 17.3% in constant dollars, and segment income was $305 million, up 10.4%, or 15.3% in constant dollars.
• Pre-tax net investment income was a record $1.57 billion, up 6.8%, and adjusted net investment income was $1.69 billion, up 7.9%.
• Annualized return on equity (ROE) was 17.6%. Annualized core operating return on tangible equity (ROTE) was 21.0% and annualized core operating ROE was 13.9%.

ZURICH, July 22, 2025 /PRNewswire/ — Chubb Limited (NYSE: CB) today reported net income for the quarter ended June 30, 2025 of $2.97 billion, or $7.35 per share, and core operating income of $2.48 billion, or $6.14 per share. Book value per share and tangible book value per share increased 6.1% and 8.0%, respectively, from March 31, 2025 and now stand at $174.07 and $112.64. Book value was favorably impacted by after-tax net realized and unrealized gains of $1.54 billion in Chubb’s investment portfolio and $700 million of foreign currency gains. Book value per share and tangible book value per share excluding AOCI increased 3.4% and 4.5%, from March 31, 2025.

For the six months ended June 30, 2025, net income was $4.30 billion, or $10.63 per share, and core operating income was $3.97 billion, or $9.82 per share. Book value per share and tangible book value per share increased 9.0% and 12.2%, from December 31, 2024. Book value was favorably impacted by after-tax net realized and unrealized gains of $2.37 billion in Chubb’s investment portfolio and $1.00 billion of foreign currency gains. Book value per share and tangible book value per share excluding AOCI increased 4.4% and 6.1%, from December 31, 2024.

For the six months ended June 30, 2025 and 2024, the tax expenses (benefits) related to the table above were $55 million and $(76) million, respectively, for adjusted net realized gains and losses and other; $(16) million and nil for market risk benefits gains and losses; and $937 million and $960 million for core operating income.

Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: “We had a great second quarter. Most all of our businesses and regions of the world contributed to record quarterly results, illustrating the distinctive, diversified nature of our company. Our balance of business, geographically by customer segment and product, is a distinguishing feature of our company.

“We produced a record $2.5 billion in core operating income, up nearly 13% from a year ago, with operating EPS up 14%, driven by record underwriting and strong investment income, and double-digit growth in life income. In the quarter, tangible book value growth, our primary measure of shareholder wealth creation, was 23.7% per share from a year ago, while our annualized core operating return on tangible equity was 21% for the quarter.

“Record underwriting income on both a published and current accident year basis was supported by good premium growth and underwriting margin improvement. We produced underwriting income of $1.6 billion, up 15% from a year ago, leading to a combined ratio of 85.6%, more than a percentage point better than last year and supported by a 1.5-point improvement in the current accident year loss ratio. Adjusted investment income of nearly $1.7 billion was up almost 8%.

“Global P&C premiums grew 5.8%, or 6.4% in constant dollars. Premiums in North America were up 5.3%, excluding agriculture, with 9.1% growth in personal insurance and 4.1% growth in commercial. In our Overseas General division, premiums were up 10.2% in constant dollars, with commercial business up about 7% and consumer lines up more than 15%. Our international regions all performed well, with Asia up 12.7%, Latin America up 17.3% and Europe up 8.2%.

“The commercial P&C underwriting environment for large account retail and E&S property-related business has grown much more competitive with rates dropping though terms and conditions remain steady. On the other hand, in the middle market and small commercial P&C segment, where we are a market leader, property market conditions remain disciplined and orderly. Casualty continues to firm in all areas that require rate – retail and E&S, both large account and middle-market. We are disciplined underwriters, and our growth patterns reflect market conditions. As I observed at the beginning of the year, about 80% of our businesses globally have good growth prospects, and we are capitalizing on a wide range of opportunities. I have great confidence in our ability to grow revenue and operating income at a superior rate, CATs and FX notwithstanding.”

Operating highlights for the quarter ended June 30, 2025 were as follows:

• Consolidated net premiums earned increased 6.8%, or 7.7% in constant dollars. P&C net premiums earned increased 5.7%, or 6.3% in constant dollars.
• Operating cash flow was $3.55 billion and adjusted operating cash flow was $3.23 billion.
• Total pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $630 million (5.5 percentage points of the combined ratio) and $510 million, compared with $580 million (5.4 percentage points of the combined ratio) and $482 million, last year. Total North America P&C Insurance and Overseas General pre-tax catastrophe losses were $372 million and $252 million, respectively, compared with $423 million and $157 million, last year.
• Total pre-tax and after-tax favorable prior period development were $249 million and $196 million, compared with $192 million and $167 million, last year.
• Total capital returned to shareholders was $1.06 billion, comprising share repurchases of $676 million at an average purchase price of $289.12 per share and dividends of $388 million.

Details of financial results by business segment are available in the Chubb Limited Financial Supplement. Key segment items for the quarter ended June 30, 2025 are presented below:    

• North America Commercial P&C Insurance: The combined ratio and the current accident year combined ratio excluding catastrophe losses increased 0.6 percentage points and 0.4 percentage points, respectively, with the underlying loss ratio flat and an increase in the expense ratio primarily reflecting one-off benefits in the prior year and a change in the mix of business.
• North America Personal P&C Insurance: The current accident year combined ratio excluding catastrophe losses decreased 6.4 percentage points, including loss ratio improvement (5.4 points) and expense ratio improvement (1.0 point).
• North America Agricultural Insurance: Net premiums written declined 3.3% due to lower commodity prices in the company’s crop insurance business.
• Overseas General Insurance: The current accident year combined ratio excluding catastrophe losses was relatively flat reflecting loss ratio improvement offset by changes in mix of business to higher consumer lines.
• Life Insurance: Net premiums written were $1.80 billion, up 14.1%, or 17.3% in constant dollars, with growth of 17.8% in International Life and 18.1% in Combined Insurance North America. International life segment income was $239 million, up 3.2%, or 8.5% in constant dollars.

All comparisons are with the same period last year unless otherwise specifically stated. Please refer to the Chubb Limited Financial Supplement, dated June 30, 2025, which is posted on Chubb’s investor relations website, investors.chubb.com, in the Financials section for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio, and debt and capital.

Chubb Limited will hold its second quarter earnings conference call on Wednesday, July 23, 2025, at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at investors.chubb.com or by dialing 877-400-4403 (within the United States) or 332-251-2601 (international), passcode 1641662. Please refer to the Chubb website under Events and Presentations for details. A replay will be available after the call at the same location. To listen to the replay, please click here to register and receive dial-in numbers.

In this release, business activity for, and the financial position of, Chubb acquisitions are reported at 100%, as required, except for core operating income, net income, book value, tangible book value, ROE, per share data, and certain other key metrics, which include only Chubb’s ownership interest and exclude the non-controlling interest.

Prior period core operating income and related metrics have been redefined to reflect the definition of core operating income adopted in Q1 2025, which excludes the non-recurring tax benefit related to the enactment of Bermuda’s income tax law in 2023. Refer to “Regulation G – Non-GAAP Financial Measures” below for more information.

About Chubb
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb employs approximately 43,000 people worldwide. Additional information can be found at: www.chubb.com.

Regulation G – Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Adjusted net investment income is net investment income excluding the amortization of the fair value adjustment on acquired invested assets from certain acquisitions of $4 million in both Q2 2025 and Q2 2024, and including investment income of $115 million and $91 million in Q2 2025 and Q2 2024, from partially owned investment companies (private equity partnerships) where our ownership interest is in excess of 3% that are accounted for under the equity method. The amortization of the fair value adjustment on acquired invested assets was $6 million and $9 million for the six months ended June 30, 2025 and 2024, and the investment income from private equity partnerships was $222 million and $177 million for the six months ended June 30, 2025 and 2024. The mark-to-market movement on these private equity partnerships are included in adjusted net realized gains (losses) as described below. We believe this measure is meaningful as it highlights the underlying performance of our invested assets and portfolio management in support of our lines of business.

Adjusted net realized gains (losses) and other, net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives and realized gains and losses on underlying investments supporting the liabilities of certain participating policies related to the policyholders’ share of gains and losses. The crop derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains (losses) from these derivatives are reclassified to adjusted losses and loss expenses. The realized gains and losses on underlying investments supporting the liabilities of certain participating policies have been reclassified from net realized gains (losses) to adjusted policy benefits. We believe this better reflects the economics of the liabilities and the underlying investments supporting those liabilities. Other includes integration expenses and the amortization of fair value adjustment of acquired invested assets and long-term debt related to certain acquisitions. See Core operating income, net of tax for further description of these items.

P&C underwriting income (loss) excludes the Life Insurance segment and is calculated by subtracting adjusted losses and loss expenses, adjusted policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income (loss) and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest expense, amortization expense of purchased intangibles, integration expenses, amortization of fair value of acquired invested assets and debt, income tax expense, adjusted net realized gains (losses), and market risk benefits gains (losses).

P&C current accident year underwriting income excluding catastrophe losses is P&C underwriting income adjusted to exclude P&C catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. References in this release to “current accident year” metrics exclude catastrophe losses and prior period development, unless stated otherwise.

Core operating income relates only to Chubb income, which excludes noncontrolling interests. It excludes from Chubb net income the after-tax impact of adjusted net realized gains (losses) and other, which include items described in this paragraph, and market risk benefits gains (losses). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and market risk benefits gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. In addition, we exclude the amortization of fair value adjustments on purchased invested assets and long-term debt related to certain acquisitions due to the size and complexity of these acquisitions. We also exclude integration expenses, which include legal and professional fees and all other costs directly related to acquisition integration activities. The costs are not related to the ongoing activities of the individual segments and are therefore included in Corporate and excluded from our definition of segment income. We believe these integration expenses are not indicative of our underlying profitability, and excluding these integration expenses facilitates the comparison of our financial results to our historical operating results. Additionally, we exclude the non-recurring tax benefit from the Bermuda Economic Transition Adjustment enacted in 2023 and adjusted in 2024 and subsequent years’ amortization of the related deferred tax asset, which we believe provides investors with a better view of our operating performance, enhances the understanding of the trends in the underlying business, improves comparability between periods and provides increased transparency compared to the prior presentation of the non-recurring tax benefit. References to core operating income measures mean net of tax, whether or not noted.

Core operating return on equity (ROE) and Core operating return on tangible equity (ROTE) are annualized non-GAAP financial measures. The numerator includes core operating income (loss), net of tax. The denominator includes the average Chubb shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, current discount rate on future policy benefits (FPB), and instrument-specific credit risk on market risk benefits (MRB), all net of tax and attributable to Chubb. For the ROTE calculation, the denominator is also adjusted to exclude Chubb goodwill and other intangible assets, net of tax. These measures enhance the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity and tangible equity excluding the effect of these items as these are heavily influenced by changes in market conditions. We believe ROTE is meaningful because it measures the performance of our operations without the impact of goodwill and other intangible assets.

P&C combined ratio is the sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding the life business and including the realized gains and losses on the crop derivatives, as noted above. 

P&C current accident year combined ratio excluding catastrophe losses excludes the impact of P&C catastrophe losses and PPD from the P&C combined ratio. We believe this measure provides a useful evaluation of our underwriting performance and enhances the understanding of the trends in our P&C business that may be obscured by these items.

Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of Chubb’s Life Insurance and North America Agricultural Insurance segments. The agriculture insurance business is a different business in that it is a public sector and private sector partnership in which insurance rates, premium growth, and risk-sharing is not market-driven like the remainder of Chubb’s P&C insurance business. We believe that these measures are useful and meaningful to investors as they are used by management to assess Chubb’s global P&C operations which are the most economically similar. We exclude the North America Agricultural Insurance and Life Insurance segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Tangible book value per common share is Chubb shareholders’ equity less Chubb goodwill and other intangible assets, net of tax, divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.

Book value per share and tangible book value per share excluding accumulated other comprehensive income (loss) (AOCI), excludes AOCI from the numerator because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates and foreign currency movement, to highlight underlying growth in book and tangible book value.

Adjusted operating cash flow is Operating cash flow excluding the operating cash flow related to the net investing activities of Huatai’s asset management companies as it relates to the Consolidated Investment Products as required under consolidation accounting. Because these entities are investment companies, we are required to retain the investment company presentation in our consolidated results, which means, we include the net investing activities of these entities in our operating cash flows. Chubb has elected to remove the impact of net investing activities of consolidated investment companies from our operating cash flow as they may distort a reader’s analysis of our underlying operating cash flow related to the core insurance company operations. These net investing activities are more appropriately classified outside of operating cash flows, consistent with our consolidated investing activities. Accordingly, we believe that it is appropriate to adjust operating cash flow for the impact of consolidated investment products.

Life Insurance and International life insurance net premiums written and deposits collected includes deposits collected on universal life and investment contracts (life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with U.S. GAAP. However, we include life deposits in presenting growth in our life insurance business because life deposits are an important component of production and key to our efforts to grow our business.

See the reconciliation of Non-GAAP Financial Measures on pages 27-33 in the Financial Supplement. These measures should not be viewed as a substitute for measures determined in accordance with GAAP, including premium, net income, book value, return on equity, and net investment income.

NM – not meaningful comparison

Cautionary Statement Regarding Forward-Looking Statements: 
Forward-looking statements made in this press release, such as those related to company performance, pricing, growth opportunities, economic and market conditions, and our expectations and intentions and other statements that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency and severity of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, loss of key employees or disruptions to our operations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve them, as well as management’s response to these factors, and other factors identified in our filings with the Securities and Exchange Commission (SEC). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

SOURCE Chubb