Chubb has reported that Q2 net income jumped 50.7% to $1.79 billion compared to the same quarter last year, while P&C underwriting income was $1.43 billion with a combined ratio of 85.4%, in what Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb described as, “another simply outstanding quarter.”
Chubb’s core operating income in Q2 was $2.04 billion, up 13.9% from last year and a record for the company.
For the first six months of 2023, Chubb’s net income was $3.69 billion, up 17.2%, and core operating income was a record $3.89 billion, up 12.9%.
Meanwhile, Chubb’s P&C net premiums written in Q2 of $10.68 billion were up 9.8% compared to the same period last year.
P&C underwriting income in Q2 was $1.43 billion (down slightly at 1.1%) with a combined ratio of 85.4%, compared to 84% in the same quarter last year.
P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 9.4%, leading to a record combined ratio of 83.3%. Global P&C current accident year underwriting income excluding catastrophe losses was a record $1.55 billion, up over 10%.
Chubb also disclosed that pre-tax and after-tax catastrophe losses were $400 million and $319 million, respectively, compared with $291 million and $241 million, last year.
Elsewhere, Q2 Life Insurance net premiums written increased 126.1%, or 127.6% in constant dollars, to $1.27 billion.
According to Chubb, the Life Insurance segment income was $254 million, up 140.3%.
The firm’s Q2 Pre-tax net investment income was $1.14 billion, up 28.9%, and adjusted net investment income was $1.24 billion, up 30.6%. Both were records, Chubb said.
Annualised return on equity (ROE) was 13.6% and annualised core operating ROE was 13.8%. Annualised core operating return on tangible equity (ROTE) was 21.0%
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented, “We had another simply outstanding quarter – in fact, a record, which contributed to a record six months. Our financial performance included double-digit premium revenue and earnings growth supported by world-class P&C underwriting results and an 85.4% combined ratio, record net investment income, and a doubling of our life earnings.
“For the quarter, core operating income and income per share were up 13.9% and 16.6%, respectively, and for the first six months, they were up 12.9% and 15.8%. Our operating earnings for the quarter topped $2 billion for the first time. We produced an annualized core operating ROE of 13.8%, with a return on tangible equity of 21%.
“Our exceptional underwriting performance was driven by strong P&C premium revenue growth, excellent current accident year underwriting margins with a record combined ratio of 83.3%, favorable prior period reserve development, and a moderate level of catastrophe losses.”
Greenberg continued, “On the investment side, record adjusted net investment income was up $290 million, or 30.6%, over prior year. Our investment income run rate will continue to grow as we reinvest cash flow at higher rates and compound income.
“Our total company net written premium growth of 16.8% in constant dollars was balanced and broad-based, driven by double-digit growth in our commercial and consumer P&C businesses in North America and internationally, and 127.6% growth in our life business.
“The Global P&C constant dollar growth rate of 10.9% was the best we’ve seen in the last seven quarters. Global P&C premiums in North America grew 10.6%, with our consumer business up 10.8% and our commercial business up 10.5%, or 14% excluding financial lines. In our Overseas General division, premiums grew 10.9% in constant dollars, with strong growth of 17.4% in Asia and 10.5% in Europe.
“The level of rate increases overall in North America commercial P&C accelerated in the quarter to 8.7%, or 12.6% excluding financial lines, driven by increases in both property and casualty lines of business of 22% and 8.9%, respectively. Price increases, which take into account exposure, were even greater.”
He concluded, “We have a lot of momentum heading into the second half. As I look ahead, we remain confident in our ability to continue the pattern of growth in revenue and earnings, and, in turn, drive double-digit EPS growth.”
