📋 Tender Overview
Chubb Limited announced global net catastrophe loss estimates for the second quarter of 2020 of 1807 million pre-tax or 1510 million after tax. These estimates include COVID-19 global pandemic losses of 1365 million pre-tax or 1157 million after tax and other natural catastrophe losses of 312 million pre-tax or 249 million after tax primarily attributable to severe weather-related events in the U.S. as well as civil unrest-related losses in the U.S. of 130 million pre-tax or 104 million after tax. The COVID-19 losses represent the companys best estimate of ultimate insurance losses resulting directly from the pandemic and consequent economic crises.The COVID-19 pre-tax loss estimate comprises short-tail losses of 605 million generated primarily from entertainment and commercial property-related business interruption and accident and health AH products including travel insurance products losses of 553 million related to liability insurance products including professional liability directors and officers employment practices professional liability etc. workers compensation and other liability-related products and losses of 107 million related to insurance credit exposures including surety political risk and trade credit. Substantially all of the losses for liability and credit-related insurance products are classified as incurred but not reported IBNR reserves. The loss estimate also includes a 100 million IBNR provision to account for the additional uncertainty in the estimates around the companys property casualty and credit-related exposures given this unprecedented event.The COVID-19 estimate does not include a credit for potentially lower current accident year losses from a decrease in exposures except for a modest benefit for certain casualty claims-made classes. Seventy-one percent of the COVID-19 estimate relates to the companys North America Commercial PC Insurance segment and 28 to the Overseas General Insurance segment.These catastrophe loss estimates are net of reinsurance include reinstatement premiums and comprise losses generated from the companys commercial and personal property and casualty AH and life insurance businesses as well as its reinsurance operations globally.In addition to the COVID-19 loss estimate the company will reduce its net written premiums in the second quarter by approximately 184 million to reflect its estimate of the exposure adjustments on its in-force policies that have and will result from the impact of economic contraction.Separately as part of its second quarter review of legacy exposures for molestation the company expects to recognize unfavorable prior period development for U.S. child molestation including reviver statute-related claims of 259 million pre-tax or 205 million after tax. The reserve development represents the companys best estimate of ultimate loss based on current information.
