Global insurer Chubb has reported net income of $1.22 billion for the second quarter of 2022, after falling from $2.27 billion in the previous year.
According to the insurer the net income in the quarter was adversely impacted by realised losses of $565mn after tax, principally due to the mark-to-market impact on private and public equities and from sales in fixed income securities.
Despite this, Chubb reported “record operating earnings, underwriting and investment results”, according to Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited.
As part of these “record” numbers, the company reported $1.44bn in P&C underwriting income, which was up 21.1%, this quarter, compared to the $1.19bm reported in Q1 2021.
These results led to a P&C combined ratio of 84.0% – also a record -, an improvement compared with last year’s 85.5%.
P&C current accident year underwriting income excluding catastrophe losses was a record $1.49bn, according to Chubb, up 23.5%, from $1.20bn in the same period last year.
This led to a P&C current accident year combined ratio excluding catastrophe losses of 83.5%, compared with 85.4% prior year.
The company’s consolidated net premiums written were up 7.9%, this was the same case for the property and casualty (P&C) segment.
P&C net premiums written were up 9.0%, to $9.73bn from $8.93bn in Q2 2021, driven by growth in commercial lines of 10.6% and consumer lines of 4.8%.
The North America P&C net premiums written were up 10.9%, according to the insurer, this was driven by growth in commercial lines of 12.6% and consumer lines of 5.4%.
Additionally, overseas General P&C net premiums written were up 5.7%, including growth in commercial lines of 13.0% and consumer lines of 11.6%.
The current accident year P&C combined ratio excluding catastrophe losses was 83.5% compared to 85.4% prior year.
Chubb believes it is useful to exclude catastrophe losses, according to the company: “they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance.”
Greenberg commented: “We had an outstanding quarter that reflects the strong momentum in our company: record operating earnings, underwriting and investment results, and double-digit premium revenue growth in constant dollars.
“Core operating income per share was $4.20, up 16%; P&C underwriting income topped $1.4 billion, up over 21%, with a combined ratio of 84%; and adjusted net investment income was $950 million – all were records.”
Other highlights reported in Chubb’s Q2 2022 results include the completion of the company’s acquisition of Cigna’s accident and health (A&H) and life business for $5.36 billion.
Additionally, Chubb reported that the company’s total pre-tax and after-tax P&C catastrophe losses were $291mn and $241mn , respectively, compared with $280mn and $226mn, respectively, last year.
Pre-tax net investment income was $888mn and adjusted net investment income was $950mn, according to the insurer, they both were records.
Greenberg added: “We are bullish about our future prospects while mindful of the world around us. We are in the risk business.
“Our momentum and earning power are strong, driven by commercial P&C growth and pricing that remain quite good; increasing investment income due to rising rates and strong cash flow; accelerating consumer lines growth globally; and life company revenue and earnings which will benefit from the addition of Cigna’s business in Asia. Together, these will continue to drive strong EPS growth.”
