Global re/insurer Chubb has reported a 2020 fourth quarter net income of $2.42 billion, up from $1.17 billion in the prior year quarter.
Meanwhile, core operating income was $1.44 billion versus $1.04 billion prior year.
Q4 pre-tax catastrophe losses were $314 million compared with $430 million in the prior year period.
P&C underwriting income was $969 million, up 81.8%, leading to a P&C combined ratio of 87.6% compared with 92.7%.
The P&C current accident year combined ratio excluding catastrophe losses was 86.4% compared with 90.0%.
Fourth quarter P&C net premiums written were up 5.4%, while Global P&C net premiums written, which exclude Agriculture, were up 6%.
Commercial P&C rate increases in the quarter averaged 16.5% in North America Insurance and 18.5% in Overseas General Insurance, exceeding loss cost trends by 11.5 percentage points and 15.5 percentage points, respectively.
Fourth quarter pre-tax net investment income was $847 million compared with $858 million prior year, and adjusted net investment income was $924 million compared with $917 million. Operating cash flow was $2.54 billion.
“We are off to a good start in ’21 with both growth and the level of commercial P&C rate increases resembling the underwriting conditions of the fourth quarter,” said Evan Greenberg, Chairman and Chief Executive Officer of Chubb.
“With our leadership energized and our people focused, and given our full range of capabilities to bring to bear for our clients and business partners, we are confident in our ability to continue growing revenue and expanding underwriting margins.”
Full-year net income was $3.53 billion versus $4.45 billion prior year, and core operating income was $3.31 billion versus $4.64 billion prior year.
After-tax catastrophe losses for the year were $2.78 billion, compared with $966 million prior year, and included COVID-19 losses of $1.19 billion. The majority of the charge remains as incurred but not reported (IBNR).
Full-year consolidated net premiums written were $33.82 billion, up 4.8%. P&C net premiums written were up 4.8%, or 5.4% in constant dollars, comprising 9.3% positive growth in commercial P&C lines globally and 2.5% negative growth in consumer lines primarily from outside North America.
– Full-year P&C combined ratio was 96.1% compared with 90.6% prior year. The P&C current accident year combined ratio excluding catastrophe losses was 86.7% compared with 89.2% prior year.