Chubb (CB) risk factors, FY2025 10-K

Other

1. 01Our results of operations or financial condition could be adversely affected by the occurrence of natural and man-made disasters
2. 02If actual claims exceed our loss reserves, our financial results could be adversely affected
3. 03The effects of emerging claim and coverage issues on our business are uncertain
4. 04The failure of any of the loss limitation methods we use could have an adverse effect on our results of operations and financial condition
5. 05We may be unable to purchase reinsurance, or if we successfully purchase reinsurance, we are subject to the possibility of non-payment
6. 06Our net income and shareholders' equity may be volatile because certain products sold by our life insurance businesses expose us to future policy benefit (FPB) reserve and market risk benefits changes that are directly affected by market and other factors and assumptions
7. 07Payment of obligations under surety bonds could have an adverse effect on our results of operations
8. 08Our exposure to various commercial and contractual counterparties, our reliance on brokers, and certain of our policies may subject us to credit risk
9. 09Since we depend on a few brokers and agents for a large portion of our revenues, loss of business provided by any one of them could adversely affect us
10. 10Our investment performance may affect our financial results and our ability to conduct business
11. 11We may require additional capital or financing sources in the future, which may not be available or may be available only on unfavorable terms
12. 12We may be required to post additional collateral because of changes in our reinsurance liabilities to regulated insurance companies, or because of regulatory changes that affect our companies
13. 13The amount of capital that our insurance subsidiaries have and must hold to maintain their financial strength and credit ratings and meet other requirements can vary significantly from time to time and is sensitive to a number of factors, some of which are outside of our controlNew
14. 14U.S. and global economic and financial industry events and their consequences could harm our business, our liquidity and financial condition, and our stock price23% rewritten
15. 15A decline in our financial strength ratings could affect our standing among distribution partners and customers and cause our premiums and earnings to decrease. A decline in our credit ratings could increase our borrowing costs and impact our ability to access capital markets
16. 16Our ability to pay dividends and make payments on indebtedness may be constrained by our holding company structure
17. 17Swiss law imposes certain restrictions on our ability to repurchase our shares
18. 18Our operating results and shareholders' equity may be adversely affected by currency fluctuations28% rewritten
19. 19We may from time to time face challenges resulting from changes in applicable law and regulations in particular jurisdictions, or changes in approach to oversight of our business from insurance or other regulators23% rewritten
20. 20Evolving privacy, data security, and artificial intelligence (AI) regulations could adversely affect our business
21. 21Our worldwide operations, particularly in developing nations, expose us to global geopolitical developments that could have an adverse effect on our business, liquidity, results of operations, and financial condition
22. 22A failure in our operational systems or infrastructure or those of third parties, including due to security breaches or cyber-attacks, could disrupt business, damage our reputation, and cause losses
23. 23We use analytical models to assist our decision-making in key areas, such as underwriting, claims, reserving, and catastrophe risks, but actual results could differ materially from the model outputs and related analyses
24. 24We could be adversely affected by the loss of one or more key executives or by an inability to attract and retain qualified personnel
25. 25Operational risk from internal system and process failures, human errors and misconduct may be difficult to detect and prevent and could adversely affect our business, results of operations, and financial condition
26. 26The continually changing landscape, including competition, technology and products, and existing and new market entrants could reduce our margins and adversely impact our business and results of operations
27. 27Insurance and reinsurance markets are historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates
28. 28The integration of acquired companies may not be as successful as we anticipate55% rewritten
29. 29Historically, our Bermuda operations had not been subject to Bermuda income tax. However, on December 27, 2023, the Government of Bermuda enacted a 15 percent corporate income tax (Bermuda CIT) effective January 1, 202554% rewritten
30. 30The Organization for Economic Cooperation and Development (OECD), European Union (EU), Swiss Federal Council, and other jurisdictions have passed measures that have changed long standing tax principles that could increase our taxes70% rewritten
31. 31There are provisions in our charter documents that may reduce the voting rights and diminish the value of our Common Shares
32. 32Applicable laws may make it difficult to effect a change of control of our company
33. 33Shareholder voting requirements under Swiss law may limit our flexibility with respect to certain aspects of capital management
34. 34Chubb Limited is a Swiss company; it may be difficult to enforce judgments against it or its directors and executive officers
35. 35Shareholders may be subject to Swiss withholding taxes on the payment of dividends