Chubb, like many insurers and reinsurers, took significant catastrophe loss-hits from the hurricanes and earthquakes that struck in August and September. But the insurer kept overall net losses to $70 million, or $0.15 per share.
The results are still a stark difference from a year ago, when Chubb booked $1.3 billion in net income, or $2.88 per share, in the 2016 third quarter.
The big dent in Chubb’s profit came from Hurricane Harvey’s pre-tax catastrophe losses reaching $650 million, another $891 million from Hurricane Irma, and $220 million from Hurricane Harvey. On top of that, another $25 million resulted from the two Mexico earthquakes and another $107 from “other” catastrophe losses. (These numbers were net of reinsurance and included reinstatement premiums.) After tax catastrophe losses surpassed $1.5 billion for the quarter, or $3.27 per share.
“While it was a tough quarter for CATs, it’s the business we’re in,” Chubb Chairman and CEO Evan Greenberg said in prepared remarks. “We experienced a series of significant natural catastrophes, including three hurricanes and two earthquakes, which will likely produce the third $100 billion-plus year for insured catastrophe losses globally for the industry in the last 12 years.”
Greenberg also noted that Chubb ran a 111 overall combined ratio, and that losses were “essentially a quarter of our annual earnings.” He added, however, that the results are “within our tolerance for risk and the amount of loss we would expect for these events.”
Without catastrophe losses, Chubb produced $1.465 billion in operating income, or $3.12 per share, versus $1.463 million, or $3.10 per share in the 2016 third quarter.
Here are some additional Q3 Chubb result highlights: