Evan Greenberg: Yes. It’s — first of all, let’s not think of it as book. It’s an asset management business, that $100 billion. We have an asset management company that does retail, does mutual fund and very large institutional money management including state pension money. The vast majority of it is fixed income. We underwrite the credit exposure extremely carefully, you don’t chase yield. We do it in a conservative way the way we’ve been fiduciary managers of our policyholders’ money. It’s how we treat investors’ money. And China is a lower interest rate environment now. Equity market with a lot of volatility, not a lot of confidence in the economic short-term, medium-term future among business and consumer. So it’s not the best time to be managing and trying to grow an asset management business.
But all of our thinking and plans of that in mind and like everything else, it’s a moment in time when the country returns to more rapid growth, when confidence begins to come back because government addresses and manages sentiment and the economy a bit differently than they are today, which I think, over time, they’ll be forced to. This is a great franchise to have. And by the way, if you look at its rankings, it’s outstanding performance rankings in the marketplace, for its collapse of fixed income. And secondly, in its size relative to other asset managers in China. It’s actually — it’s in that upper midsize category. It’s a pretty cool asset.
Yaron Kinar: Thank you very much.
Evan Greenberg: And its capital light.
Operator: Thank you. Your next question comes from the line of Bob Huang with Morgan Stanley. Please go ahead.
Bob Huang : Hi, good morning. My first question is regarding your workers’ comp business. You mentioned that your loss trend is about 4.6%. Is it possible to maybe unpack that a little bit between severity frequency and as well as wage growth trend? And then are there any severity stress points that we should pay attention to?
Evan Greenberg: No. We’re not going to unpack it between frequency and severity. It’s running very steady. We recognize a higher medical loss trend. We adjusted for that and disclose that a quarter or two ago. Workers’ comp is behaving in a very steady way.
Bob Huang: Okay. Got it. Thank you. My second question kind of is more of a geopolitical risk related question. Obviously, a large portion of your business Overseas, still performing very strong. But it feels like geopolitical risk really hasn’t improved so far versus 2023. Is it possible to kind of give an update in terms of how you think about the risk associated in your business in Asia and Europe and how you think about the broader opportunities outside the U.S.?
Evan Greenberg: Well, I don’t think the geopolitical risk for Europe and our business in the EU. I don’t think they have a political risk, geopolitical risk exposure any greater fundamentally than we do in the United States. And so if you’re concerned for Europe in a significant way, then you better be concerned right here at home in America. When I get to Asia, I don’t believe that the United States and China are going to war. And I think all sides seek a stability. And so while there is OEs tail risk, in Asia related to North Korea, related to Taiwan, in particular, I think it’s more risk at this moment around someone making a mistake. By the way, I’m going to leave you with this. The mental model, if there is a conflict in Taiwan, where there is a conflict to do with North Korea, it is hard to believe it will confine itself to a small geography.
We then have a major global issue. And I think those were in leadership position on all sides are acutely aware of us and they too, care about their children and their grandchildren.
Bob Huang: Okay, thank you very much for that. Really appreciate it.
Operator: Your next question comes from the line of Elyse Greenspan with Wells Fargo. Please go ahead.
Elyse Greenspan : Hi, thanks. Good morning. My first question is on North America commercial. You guys saw a good level of exiting your loss ratio improvement in the quarter. I was just wondering if there was any prior quarter true-up for the prior quarters of the year or any benefit of favorable non-CAT weather. Or was it just good core underwriting results?
Evan Greenberg: No, there was no true-up current accident year true-up that distorted the quarter whatsoever. It’s steady. And the improvement is a combination of change of mix of business, which, frankly, at least, I would think you’d notice that everywhere because it’s the more property levered portfolios are lower that current accident year. Ex-CAT is going to become number one. And then number two, beyond mix, it’s rate in excess of loss cost across most of the business earning its way through.
Elyse Greenspan: Thanks. And then on the tax rate side, Peter, I know you said you gave us guidance for ’24. But what about in 2025 when the Bermuda tax rate goes up? How should we think about that impacting the tax rate at Chubb?
Peter Enns: Yes, it’s too complicated and early to know in terms of how the Bermuda law will interact with whatever gets adopted at OECD, Switzerland and the U.S., we really don’t have any visibility on it.
Elyse Greenspan: Okay. And then one more for you. In your press release, you pointed to growing operating earnings at a double-digit pace. I’m assuming that’s a comment if we adjust for the one-off tax benefit in the quarter that you expect operating earnings can grow double digits in ’24. Is that how we should take that comment?
Evan Greenberg: Yes, Elyse.
Elyse Greenspan: Thank you.
Operator: Your next question comes from the line of Brian Meredith with UBS Financial. Please go ahead.
Brian Meredith : Yes, thanks. I appreciate. A couple here. Just first, Evan, is this possible to get with the benefit of including Huatai was this quarter on consolidated premiums? I know you gave it last quarter and maybe on the Overseas as we get a sense of kind of the true kind of organic run rate of the business?
Evan Greenberg: I’m sorry, Brian, you’re kind of breaking up on. I am not able to hear it.
Brian Meredith: Huatai, the benefit that, that had of including it in premium growth in the quarter?
Evan Greenberg: Huatai had a premium benefit in the quarter. We didn’t disclose it. We disclosed it last quarter and said from here, it’s just in there. It was from memory, it’s just a couple of points. We’ll take it offline with you, but it wasn’t — we’ll have more color in the 10-K MD&A on a couple of lines.
Brian Meredith: Great. That’s helpful. And then my second question, maybe bigger picture here. The trucking business in the U.S., I mean, we continue to see some really bad kind of severity in the long-haul trucking business. Is there any solution to that? Or is it simply just getting enough rate?
