Insurer and reinsurer Chubb has reported a net loss of $331 million for the second-quarter of 2020, compared with net income of more than $1.1 billion in the same period last year, as net catastrophe losses reached $1.51 billion as a result of the COVID-19 pandemic.
As previously announced, Chubb’s performance in Q2 suffered from the impacts of COVID-19 catastrophe losses and unfavourable prior year reserve development of $52 million.
The re/insurer has reported a core operating loss of $254 million in Q2 2020 against core operating income of $1.195 billion a year earlier.
For the first-half of the year, Chubb has announced a net loss of $79 million, compared with net income of more than $2.1 billion in H1 2019. Core operating income reached $966 million in H1 2020 against $2.365 billion a year earlier.
The P&C combined ratio totalled 101% in H1 2020 versus 89.6% in H1 2019, driven by the significant impacts of the COVID-19 pandemic on the company’s performance through the first half of the year.
Commenting on the firm’s results, Chairman and Chief Executive Officer (CEO), Evan Greenberg, said: “It was a difficult quarter for Chubb as the COVID-19 global pandemic, an event of historic proportions, impacted both our earnings and growth, and overshadowed the core underlying strength and vitality of our company.
“The 112.3% P&C combined ratio and core operating loss of 56 cents per share were negatively impacted predominantly by an after-tax COVID-related charge of $1.2 billion, which cost us essentially a quarter of our annual earnings and represents our best estimate of ultimate insurance losses resulting directly from the pandemic and consequent economic crises. Underlying our reported results, the P&C current accident year combined ratio excluding catastrophes was 87.4% versus 88.9% prior year, with current accident year underwriting income up 18% in constant dollars.
“In sum, our company is very strong, operating at a high level around the globe, while our balance sheet is in excellent shape. I’m proud of all of my colleagues, especially our essential underwriting, claims and loss prevention teams, who never paused during the economic shutdown and height of the pandemic. They have and continue to serve our customers and distribution partners with distinction and represent the Chubb brand, which is all about service. I also want to thank our technology group which has kept us operating seamlessly during the work from home conditions.”
