Global property and casualty (P&C) insurer Chubb has reported Q2 2024 P&C underwriting income of $1.42 billion with a combined ratio of 86.8%, despite a rise in pre-tax catastrophe losses, net of reinsurance, to $580 million.
In the second quarter of 2024, Chubb’s P&C underwriting income increased 0.5% year-on-year as the combined ratio improved by 1.4 percentage points in spite of elevated catastrophe losses.
The P&C segment’s current accident year underwriting income excluding catastrophe losses for the quarter was $1.81 billion, up 11.1%, with a current accident year combined ratio excluding cats of 82.8%.
For the first six months of 2024, P&C underwriting income was $2.82 billion, an increase of 6.8%, and was $3.43 billion, up 10.7%, on a current accident year excluding catastrophe losses basis.
The improved P&C underwriting performance is impressive given the higher level of net catastrophe losses, which increased by $180 million in the quarter to $580 million, and increased from $858 million in H1 2023 to $1.02 billion in H1 2024.
Additionally, Chubb booked pre-tax favorable prior period development of $192 million in the quarter, slightly down on last year’s $200 million.
Within P&C, net premiums written (NPW) increased 10.3% year-on-year to $11.8 billion compared with $10.7 billion in Q2 2023.
Turning to the insurer’s Global P&C segment, which excludes Agriculture, NPW increased by more than 11% year-on-year to $11 billion, with commercial insurance up 9.6% and consumer insurance up 15.2%. The segment’s underwriting result strengthened by 3.4% to $1.4 billion, as the combined ratio weakened by 1 percentage point to 86.3%.
Chubb’s Global Reinsurance segment also performed well in the quarter, with NPW increase of 40.3% to $411 million from Q2 2023’s $293 million, and included a 12.5 percentage point benefit related to a large structured transaction.
The company’s Life Insurance NPW reported for Q2 2024 was $1.6 billion, an increase of 24.5% from the comparative quarter’s $1.3 billion. Segment income was $276 million, up 8.7% from Q2 2023’s $254 million. Within life, collectively net premiums written and deposits collected were $2.13 billion, an increase of 27.4% year-on-year.
Group-wide, Chubb has reported Q2 2024 NPW of $13.4 billion, an increase of almost 12% on last year’s $12 billion.
On the asset side of the balance sheet, pre-tax net investment income hit $1.47 billion, an increase of 28.2%, and adjusted net investment income was $1.56 billion, up 25.9%. Both were records, explains the firm.
All in all, Chubb has reported net income for the second quarter of 2024 of $2.23 billion, up 24.3% from $1.79 billion in the comparative quarter. Core operating income was $2.2 billion, up 7.5% from last year’s $2 billion.
For the six month period, net income was $4.37 billion, up 18.7% on last year, and core operating income was a record $4.41 billion, up 13.5% year-on-year.
Evan G. Greenberg, Chairman and Chief Executive Officer, Chubb, commented: “We had another great quarter which contributed to record six-month results. Per-share core operating income in the quarter was up 9.3% while record year-to-date operating income was up 15.7%. Our P&C underwriting results in the quarter were simply excellent in spite of a higher level of catastrophe losses, highlighted by a published combined ratio of 86.8%, and supported by record ex-CAT current accident year underwriting income of $1.8 billion and a combined ratio of 83.2%. Adjusted investment income topped $1.5 billion, up nearly 26% and a record, and we grew life segment income about 11.5% in constant dollars with international life up over 15%. We produced double-digit premium revenue growth across the globe with strong results in our North America P&C, International P&C, and Life Insurance divisions.
“Commercial P&C underwriting conditions are favorable, with property naturally more competitive and casualty pricing firming in the areas that need it. We see this trend in casualty enduring. Loss-cost inflation in short- and long-tail lines remained steady. Consumer P&C underwriting and growth conditions are quite attractive, and we are growing at a double-digit pace our market-leading high-net-worth personal lines business in North America while we are pursuing a broad set of opportunities in A&H and personal lines across the globe.
“Total company net premiums increased 11.8%, with Global P&C up 11.2% and Life Insurance up 24.5%. Premiums in North America were up 8% and consisted of 12.3% growth in high-net-worth personal insurance and 6.7% growth in commercial, with P&C lines up 8.7% and financial lines down about 3%. For the rest of the world, our premiums were up more than 15.5%, with commercial up 13.3% and consumer up over 19%. Asia-Pacific, Latin America, and the Continent of Europe were up 32.9%, 13.7%, and 10.8%, respectively.
“In summary, we had a great quarter, and, again, our results reflect the strength, breadth and depth globally of the company. We are confident in our ability to continue growing our operating earnings at a superior rate through P&C revenue growth and underwriting margins, investment income, and life income.”
