Evan Greenberg, Chairman and Chief Executive Officer of Chubb, has described US commercial, London wholesale and certain other international markets as the “best we have seen in a number of years.”
His remarks come as the global insurer today posted a $1 billion net income for the first quarter of 2019, as well as a core operating income of $1.2 billion, a 6.7% increase from the same quarter a year previous.
“We grew premiums globally over 5% in constant dollars and took advantage of an improved pricing environment,” explained Greenberg.
In addition, Greenberg made clear the firm’s ambitions to grow its presence globally and secure its position in the market.
“As announced in the quarter, following government approval, we are increasing our ownership stake in Huatai Insurance Group in China, which converts the company to a foreign invested enterprise and is a major milestone on the path to our goal of majority ownership,” Greenberg said.
“In the quarter, we also signed a 15-year exclusive distribution agreement with Banco de Chile”
Meanwhile, P&C underwriting income was up 10.9% at $712 million, or 14.5% in constant dollars, while Global P&C underwriting income was $639 million, up 18.4%, or 23.0% in constant dollars.
P&C net premiums written were $6.7 billion, up 2.9%, or 5.1% in constant dollars, while P&C combined ratio was 89.2% compared with 90.1% prior year.
P&C current accident year combined ratio excluding catastrophe losses was 88.5% compared with 87.6% prior year.
Pre-tax catastrophe losses were $250 million, or $201 million after-tax, in the quarter, compared with $380 million, or $303 million after-tax, prior year.
Net investment income was $836 million pre-tax, and adjusted net investment income was $882 million pre-tax, in line with previous guidance.
Annualised ROE and core operating ROE were 8.1% and 9.2%, respectively. Annualised core operating return on tangible equity was 15.1%.
In regards to their global reinsurance operations, net premiums written increased 4.4%, or 6.4% in constant dollars.
The combined ratio was 76.8% compared with 69.5% the prior year.
The current accident year combined ratio excluding catastrophe losses was 81.5%, compared with 77.0% the prior year, primarily due to a shift in mix of business.