Chubb’s saw its net income dip slightly and its P/C combined ratio nudge higher during the 2019 second quarter, but price increases led to solid premium gains.
“This quarter was about growth and pricing and we have good momentum,” Chubb Chairman and CEO Evan Greenberg said in prepared remarks. “Our organization is executing at a high level and we are confident in our ability to outperform.”
The insurer reported approximately $1.2 billion in net income, or $2.50 per share, during Q2, compared to $1.3 billion, or $2.76 per share over the same period a year ago. Chubb’s P/C combined ratio was 90.1, up from 88.1 in the 2018 second quarter but still healthy.
Other result highlights:
- Net investment income hit just under $860 million, up from $828 million in Q2 2018.
- Gross premiums written surpassed $10.3 billion during the quarter, up from $9.9 billion in the 2018 first quarter.
- Net premiums written came in above $8.3 billion, compared to $8 billion a year ago.
- P/C net premiums written reached $7.8 billion, up 4.2 percent from the same period a year ago.
Greenberg noted that the insurer saw premiums rise 6 percent in its North America Commercial Insurance operations and 9 percent in its Overseas General division, and that “market-firming” is starting to go global.
“We benefited from an improved pricing and underwriting environment, flight to quality from commercial insurance buyers and our various global growth initiatives,” Greenberg said. “Pricing continued to tighten in the quarter while spreading to more classes and segments of business, particularly in the U.S. and London wholesale market. We’re also seeing early signs that market-firming conditions are spreading to more territories around the world.”