Chubb’s Net Income Ticks Downward; Commercial Insurance Produces Gains

Chubb saw its net income dip slightly in the 2019 first quarter, though commercial and other insurance premiums rose at a healthy clip. The insurance giant’s property/casualty combined ratio also improved, and catastrophe losses dropped.

“Chubb had a very good first quarter,” Chubb Chairman and CEO Evan Greenberg said in prepared remarks.

Greenberg noted in particular that the company’s U.S. commercial lines, London wholesale and other international markets came in at “the best we have seen in a number of years.”

Chubb booked $1.04 billion in net income during the 2019 first quarter, or $2.25 per share, versus $1.08 billion in the 2018 first quarter, or $2.30 per share.

The company said its P/C underwriting income reached $712 million, up nearly 11 compared to the same period a year ago, with global P/C underwriting income landing 18.4 percent higher at $639 million.

Consolidated net investment income hit $836 million during Q1, compared to $806 million in the 2018 first quarter. Chubb’s P/C combined ratio was 89.2, versus 90.1 in Q1 2018.

Other result highlights:

• Consolidated gross premiums written surpassed $9.1 billion, up from $8.7 billion over the same period last year. Net premiums written were $7.3 billion, up from $7.1 billion in Q1 2018, while net premiums earned landed at more than $7.1 billion, versus $7 billion in Q1 2017.
• Chubb’s P/C net premiums written hit $6.7 billion in Q1 2019, nearly 3 percent higher than the $6.5 billion achieved a year ago. P/C underwriting income landed at $712 million almost 11 percent higher than the $642 million booked last year.
• North America commercial P/C insurance produced more than $2.9 billion in net premiums written, representing a 5 percent increase over last year’s figure of more than $2.8 billion.
• Chubb said after tax catastrophe losses landed at $201 million, compared to $303 million in the 2018 first quarter.

Source: Chubb