Chubb reports $2.3bn profit for first quarter
Chubb Limited achieved net income of $2.3 billion, or $5.07 per share, in the first quarter, compared to $252 million for the same period last year.
Its core operating income was $1.14 billion, or $2.52 per share, down from $1.22 billion a year ago.
Net catastrophe losses per share were $1.26, up from 44 cents in the prior year. The P&C combined ratio was 91.8 per cent, up from 89.1 per cent.
Evan Greenberg, chairman and chief executive officer of Chubb Limited, said: “Chubb had another very good quarter with excellent commercial premium revenue growth globally, double-digit renewal rate change in our commercial P&C businesses, and further expansion of our underwriting margins.”
“Our commercial P&C businesses globally continued to capitalise on favourable underwriting conditions. . . . From what we can see, I am confident these market conditions will endure. Frankly, they are a continued and rational response to the loss environment and years of industry underpricing.”
“Our organisation is focused, energised and mission-driven. We are leaning into the current favourable underwriting conditions, growing exposure and expanding margins. We have all of the capabilities in place to grow our company profitably while increasing shareholder value.”
Pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, were $700 million and $570 million, respectively, compared with $237 million and $199 million, respectively, prior year. The current quarter included $657 million pre-tax of storm losses in the US.
Chubb reported its book and tangible book value per share decreased 0.4 per cent and 0.6 per cent, respectively, from December 31, and now stand at $131.37 and $87.16, respectively.
It said book value was unfavourably impacted by total after-tax net realised and unrealised losses of $737 million, including a $1.1 billion loss in the investment portfolio, principally due to rising interest rates, partially offset by a gain of $275 million in the company’s variable annuity reinsurance portfolio.