Chubb’s Q3 net income soared more than 58 percent year-over-year, as premium gains continued their double-digit climb.
“Chubb had a very strong third quarter, highlighted by outstanding premium revenue growth globally and simply excellent underwriting results,” Chubb Chairman and CEO Evan Greenberg said in prepared remarks.
The insurer’s Q3 net income reached $1.83 billion during the quarter, or $4.18 per share. That compares to just under $1.2 billion, or $2.63 per share. Year over year, the results reflect a nearly 59 percent improvement.
Greenberg said P/C net premiums written grew 17 percent, at the company’s strongest level of organic growth since 2004. Global commercial lines growth during the quarter helped fuel that result.
One small chink in the armor: Chubb reported higher catastrophe losses. They came in at $1.15 billion pre-tax and $943 million after tax, net of reinsurance and including reinstatement premiums. In the 2020 third quarter, those numbers were $925 million and $797 million, respectively. But P/C underwriting income of $617 million, up 58 percent, more than countered the catastrophe loss increase.
Greenberg said that Chubb is continuing to capitalize on “robust commercial P/C pricing conditions” in most places globally. The results: commercial lines grew 22.5 percent in North America and more than 20.5 percent in Chubb’s international operations.
Interestingly, Chubb’s international consumer lines business is recovering from the pandemic’s ongoing effects on consumer activity, Greenberg said. Results in this sector: premiums were up almost 10 percent in the quarter, or 5 percent in constant dollars.
Chubb’s P/C combined ratio was 93.4 during Q3, compared to 95.2 in the 2020 third quarter. Its global P/C combined ratio, excluding agriculture, was 94, versus 95.5 a year ago.
Here are additional Q3 result highlights:
- Consolidated gross premiums written reached $13 billion, compared to $11.2 billion a year ago.
- Consolidated net premiums written reached $10.5 billion, versus $9 billion in the 2020 third quarter.
- P/C net premiums written came in at $9.9 billion, an increase over nearly $8.5 billion last year.
- Commercial P/C net premiums written grew nearly 21 percent, and they increased just under 2 percent on the consumer side.
- Consolidated net investment income hit $866 million during the quarter, up from $840 million last year.