Alex Scott: Hi, good morning. First one I had was just to see if you could give us some context for where court reopening is that? And just sort of the timing of how the backlog is progressing? And maybe even how that’s informing some of the analytics and things you’re doing around loss costs?
Evan Greenberg: Look frequency of loss and casualty is just has been on March where it’s rising and reverting to the mean of pre-COVID. It varies by line of business in some lines of business, the frequency of loss is still below pre-COVID and some others, it has reverted to pre-COVID trend. So it varies. And — but overall, frequency has been increasing, and that’s a proxy that — and that’s been going for a while. So that’s a little bit of yesterday’s news that the courts — they’ve been reopened over a year or so. There you go. And the lawyers are all active.
Alex Scott: Got it. And then maybe a little bit more of a housekeeping question for you. But on the Life Insurance segment, I mean, should we think about LDTI moving the run rate up or down at the margin, just a little difficult to tell from the outside because we only have a couple of quarters of Cigna and so not too long of track record to look at under the recasted financials.
Peter Enns: Alex, the way I would think about it is, and you pointed out between Cigna coming online purchase gap and LDTI, there’s been movement in the numbers. The first quarter of this year, things are settling and we think are representative of a run rate going forward.
Alex Scott: Got it. Thank you.
Evan Greenberg: You’re welcome.
Operator: Your next question is from the line of Brian Meredith with UBS. Your line is open.
Brian Meredith: Thanks. Can I just quickly clarify something. I get a bunch of questions on it. The 7.6% growth rate that you mentioned, that’s premium growth for the remainder of your minimum premium growth you expect for the remainder of the year. Is that correct in North America commercial?
Evan Greenberg: It’s — I gave you a feeling of a forward view that I would expect it to be no less than that. And then I gave you a breakdown to the 7.6% that was 11% in P&C lines and was negative in financial lines.
Brian Meredith: Yes, makes sense. So it’s premium growth, great.
Evan Greenberg: That was not radar trend or anything. That was premium.
Brian Meredith: That’s what I thought. That’s what I thought. I just wanted to clarify. Sorry, I was going to get a bunch of questions on it. The second question, I’m just curious, I’m trying to kind of do some mental math here on this, and that can be dangerous, but looking at your 11% and change pricing in North America commercial versus the 7.6% premium growth, was there something going on with mix or something would cause pricing to be greater than the premium growth?
Evan Greenberg: There’s always something going on with max.
Brian Meredith: So is it a mix issue or something going on?
Evan Greenberg: And remember, I gave you, I gave you P&C growth versus financial lines growth. And I didn’t give you any more than — I’m not going to go deeper than that. And then I gave you rate and trend and you have renewal retention rate, I gave you that. New business varied by area. So the — is there anything more to it really? Not really. Now in property, and I should say this to you, as you ask it. In property where you see the rate, rate includes — because we can measure it so accurately. The change in terms and conditions, so of deductible changes, that’s worth rate. And so you could exceed this exposure actually go down there. And if you’re following me. Done so, that also when you want to roll around math in your brain that may help you a little bit.
Brian Meredith: That’s really, really helpful. And then can I just one follow-up. Cyber market. Can you just tell us kind of what your thoughts are there now in the cyber market. Is that an attractive market at this point from a pricing and what’s happened with term condition in the last couple of years?
Evan Greenberg: Yes. The terms and conditions, there’s a lot of noise in particular, it’s around cat exposure and war and definitions of war or I think war is a misnomer. It’s hostile actions by nation states. And that would be more of the term and conditions of what’s going on. But beyond that, the cyber loss environment is not benign. Ransomware frequency of loss and severity is picking up, it was temporarily down. Cyber pricing and underwriting has responded to the external environment, I think, reasonably well. And if it maintains discipline, then I’m not concerned. But I would assume that all cyber underwriters see what we see in terms of the loss environment, and you’re going to be aware of it. But other than that, it’s — I think, reasonably disciplined in underwriting and pricing.
Brian Meredith: Thank you.
Evan Greenberg: You’re welcome.
Operator: Your next question is from the line of Ryan Tunis with Autonomous Research. Your line is open.
Ryan Tunis: Hi, guys. Good morning. Yes, I mean, I guess, just taking a step back, it’s a life related question. I’m just curious, like over the past, call it, five years or so, if you could — just kind of walk us through how your thought process has evolved? We appreciate that business a little bit more. I guess it comes from a place where the Cigna deal, it felt like a nice little financial acquisition, but I didn’t think it was going to put you in Singapore for seven weeks. So you’re clearly more enthusiastic about this business. So yes, how has your thinking evolved to really think that’s a growth hedging for Chubb?
Evan Greenberg: Yes. First, I want to take a step back on that and say, Asia is on my mind. It’s not simply the life business. Half of the business is P&C, that is robust. Asia itself, I don’t hold me in the number. I have it in my head, but it’s roughly a $10 billion region for us. Important, it’s massive, region and scale. It’s the greatest — it has the greatest growth potential economically. I think, of any region in the world over the next decade, two decades. So it has a volatility to it, naturally. India, China, Southeast Asia, the dynamism of developed Asia, Korea, Japan. It’s just — it’s massive. Australia is part of Asia to us, back to the Australians. And it’s non-life and life. And I look at it as one organization, it’s Chubb.
The way they work together is awesome. We began our life business about a decade — I began it over a decade ago. I mean, heck, I was pounding on the door of Vietnam to get one of the few life licenses they gave out in 2002. 2003, I was banging on that door. And we’ve been at it since growing organically and then through acquisition and the Cigna just turbocharged it. At the same time in our non-life business. We are growing from dust and A&H business that could have been incubated in a life company or a nonlife company. Cigna’s to a large degree A&H business. Our Life business is a combination of agency distribution on direct marketing and the direct marketing is non-life and life. And the life products themselves are much more back to the future.
It’s because Asia is different and their traditional life products that have much better ROE characteristics to them. They have very low guarantees. They have traditional savings. They have a lot of risk element to them that we like, A&H, in particular, whether it’s dread disease or hospital cash. Very limited basic medical. The customer buys along with savings and savings rates are high in Asia. You have a very young population. The youngest in the world and a growing labor force. And it’s combined with a very family-oriented culture and ethic and that drives long-term savings. And you have low social safety net. And so private insurance means more. That all plays to life and to non-life. And frankly, operating my office from there and I’m going to be out of both Hong Kong and Singapore is simply there is such opportunity, and I travel back and forth have for decades a few times a year, but this is just to be more insightful and deeper about it in terms of strategy as we go forward.
And my colleagues, many of them will do the same — global company.
