Chubb’s Q4 Soars With Strong P/C Premium Gains

Chubb has plenty to celebrate about its 2019 fourth quarter. The property/casualty insurer enjoyed a large jump in net income due mostly to rate hikes and P/C underwriting gains.

Chubb’s catastrophe losses also declined. One sour note: The insurer reported large agriculture underwriting loss due to crop yield shortfalls.

Chubb Chairman and CEO Evan Greenberg said in prepared remarks that the overall results reflect Chubb’s “strongest growth in over five years.”

Net income for the 2019 fourth quarter hit nearly $1.2 billion, or $2.57 per share, versus $355 million, or $0.76 per share over the same, year-ago quarter. For the full year, Chubb’s net income surpassed $4.4 billion, 12.4 percent higher than the $3.96 billion booked in 2018.

Consolidated net investment income grew to $858 million, an improvement from the $848 million booked in the 2018 fourth quarter.

Chubb’s Q4 P/C combined ratio was 92.7, improved from 93.1 in the 2018 fourth quarter.

Here are other Q4 and full-year result highlights:

• Consolidated gross premiums written in Q4 landed at $9.9 billion compared to more than $9.2 billion in Q4 2018. Net premiums written were just under $8 billion for the 2019 fourth quarter versus $7.4 billion the year before.
• Q4 P/C net premiums written reached $7.4 billion, a 9 percent rise over the same period the year before. At the same time, P/C underwriting for the quarter grew 12 percent year-over-year, to $533 million.
• After-tax catastrophe losses for the 2019 fourth quarter hit $353 million, an improvement over the $506 million in Q4 2018.
• Agriculture pre-tax underwriting losses landed at $23 million for Q4, producing a 105.4 combined ratio. The line booked $161 million in pre-tax underwriting income over the same period the year before. Chubb blamed the swing on crop shortfalls stemming from poor growing conditions.

Greenberg said that Chubb started 2020 “in excellent shape and with a lot of momentum.”

Source: Chubb