Chubb : NA Commercial Lines Rate and Trend Information

Summary of Rate, Economic exposure, Price change and Loss cost trend for

North America Commercial Lines

The following table presents rate, economic exposure change, price change and loss cost trend information for Chubb's North America Commercial lines business for Q1 2021 through Q2 2022.

Included with the table is a formula which shows how these inputs are applied when projecting loss ratios.

Chubb North America Commercial Lines
			Year over Year Changes
	1Q-21	2Q-21	3Q-21	4Q-21	1Q-22	2Q-22
Rate Change	14.5%	13.5%	12.2%	10.5%	8.7%	7.0%
Economic Exposure	-1.8%	0.4%	2.6%	3.4%	3.2%	3.4%
Price Change	12.4%	13.9%	15.1%	14.3%	12.2%	10.7%
Total Loss Cost Change	5.5%	5.5%	5.5%	5.5%	6.0%	6.5%
Components of Loss Cost
Short Tail	4.0%	4.0%	4.0%	4.0%	6.7%	6.8%
Long Tail ex WC	6.0%	6.0%	6.0%	6.0%	6.0%	6.5%
First Dollar WC	4.3%	4.3%	4.3%	4.3%	4.3%	4.3%

• The vast majority of the change in economic exposure supports pricing and therefore ameliorates loss cost. The portion that improves loss ratio is referred to as adjusted economic exposure change in the formula.

- Projected Loss Ratio = (Base loss ratio) x (1+ Loss cost change) / {(1 + Rate change) x (1 + Adjusted economic exposure change)}