Chubb CEO expects wildfire to lose 1.5 billion US dollars: “California is the difficult market for insurance companies” -Chubb (NYSE: CB)

Chub LTD. CBIt is one of the largest domestic property and casualties insurance companies. On Wednesday, the fourth -quarter earning phone call was held on Wednesday, and the future financial impact of the recent California wildfire was resolved.

Details: Chubb CEO Evan Greenberg Expressing condolences to the victim of the wild fire, thanking the first respondent, and opening the phone.

Greenberg said: “We are trying our best to reduce their burden. Our ideas are together with those suffering from suffering. We thank those firefighters and emergency workers who are unremitting efforts.”

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Chubb CEO subsequently estimated that the loss of a net tax of $ 1.5 billion was a net tax of $ 1.5 billion and was recognized in the first quarter.

Piper Sandler Analyst Paul newsome Said that, given that CHUBB is exposed to high -net -worth areas, investors may think that Chubb’s current loss estimation value is online or less than their expectations.

BOFA Securities Analysts have previously expected that the first quarter of the wild fire loses 1.3 billion US dollars. CHUBB’s current estimate exceeds $ 200 million.

Greenberg, chief executive of Chubb, also talked about an analyst’s impact on the influence of California’s trouble in the predicament of California.

Greenberg said that due to the risk of natural disasters, high reconstruction costs and state regulations, California is the “difficult” market for insurance companies. These regulations “suppress the ability to collect fair prices for risks.”

He pointed out that California’s fair plan is the last resort supported by its country and low prices.

Greenberg said: “Frankly speaking, this is an unsustainable model. One or the other, the national citizen paid the price for the scope of the underwriting.”

CEO explained that Chubb has been reducing its contact with affected areas in the “period of time” and reduced its contact to more than 50 %.

Greenberg concluded: “We will not be rewarded after adventure and cannot be adjusted after reasonable risk adjustments.”

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Photo: shutterstock