Chubb’s net income was essentially flat during the 2018 second quarter, but Chairman and CEO Evan Greenberg said the insurer continues to thrive, citing growth in P/C net premiums written and strong results in the U.S., Asia and Latin America.
Net income was just under $1.3 billion, or $2.76 per share during Q2 2018, versus just over $1.3 billion or $2.77 per share, over the same period last year. P/C net premiums written were more than $7.4 billion, 5.6 percent higher than the $7 billion generated during the 2017 second quarter. Chubb’s P/C combined ratio came in at 88.4, a slight uptick from 88 in Q2 2017. Net investment income grew 4 percent.
“Our organization is running on all cylinders and we’re optimistic about our ability to continue to perform at a high level,” Greenberg said in prepared remarks.
Greenberg said that Chubb gains from the scale it now has. (Chubb and ACE merged in 2015 in a deal worth nearly $30 billion).
“We are benefiting from contributions that are only possible because of the scale and capabilities created by today’s Chubb,” Greenberg said. “This includes a number of growth initiatives, by example, in our North American and international middle market and small commercial divisions, and the level of investment we are making in our digital efforts to improve our competitive profile.”
Some highlights from Chubb’s Q2 2018 results:
- North America Commercial P&C Insurance saw a 4 percent increase in net premiums written, to $3.3 billion from $3.2 billion in the 2017 second quarter. Broken down further, net premiums written for middle market and small commercial grew 4.4 percent, year-over-year. The combined ratio was 85 for Q2 2018, versus 85.2 in Q2 2017.
- North America Personal P&C Insurance experienced a 6.4 percent jump in net premiums written, from more than $1.2 billion in Q2 2017 to over $1.3 billion in the quarter that just ended. The combined ratio dipped to 88.6, from 89.6 a year ago.
- North America Agricultural Insurance came in at $388 million in net premiums written during the 2018 second quarter, down 3.7 percent from $403 million over the same time in Q2 2017.
- Overseas General Insurance produced nearly $2.2 billion in net premiums written during the quarter, up 9.6 percent from $2 billion in the 2017 second quarter. The combined ratio: 88.9 for Q2 2018, compared to 87.3 in the 2017 second quarter.