Insurance giants Chubb Ltd reported record operating income for the third quarter of $1.356 billion.

The figure is equivalent to $2.88 per share and is up by more than 51 per cent from the $897 million, or $2.74 per share, for the same period last year.

Chubb Ltd, which was formed after Ace acquired US insurer The Chubb Corporation in January this year and took the Chubb name, posted net income for the quarter to the end of September of $1.36 billion, or $2.88 per share, up more than 157 per cent on the same quarter in 2015.

The figure for the same quarter in 2015 was $528 million or $1.62 per share.

Evan Greenberg, chairman and CEO of Chubb, said: “Chubb had an excellent quarter with record operating earnings per share and exceptionally strong underwriting results.

“Our after-tax operating income of $2.88 per share, up 5 per cent over the prior year, indicates the accretive nature of our merger, which is going well and is on track.”

Consolidated and property and casualty net premiums totalled $7.6 billion and $7 billion respectively for the quarter — up by 60.8 per cent and 67 per cent.

On an “as if” basis, net premiums written were down 3.4 per cent in constant dollars and unfavourable foreign currency movements “negatively impacted” premium growth by 1.1 per cent.

Mr Greenberg said: “The P&C combined ratio of 86 per cent was simply world class.

“For the quarter, our annualised operating return on equity was 12 per cent, while book value and tangible book value per share grew 2.4 per cent and 5.5 per cent respectively.”

He added: “Previously contemplated merger-related underwriting actions that we took select portfolios of business, particularly a greater use of reinsurance, reduced P&C net premium growth in the quarter by about 4.5 points while improving our risk-reward profile.”

Mr Greenberg said a competitive market and “relatively weak” global economic conditions had hit premium revenue in the quarter as new business which met the firm’s standards was difficult to find.

But he added: “We will trade revenue for underwriting discipline all day long. We believe growth will improve as the impact from the underwriting actions dissipates and the power and capabilities of the new Chubb gain more steam.

“We are already seeing evidence of the effect our enhanced capabilities is having on revenue generation.”