Chubb Limited has reported net income for the quarter ended March 31 of $1.97 billion, down 14 per cent from the $2.3 billion reported in the same period in 2020, largely because of unrealised losses.

But core operating income, net of tax, was $1.64 billion, or $3.82 per share, up 43.6 per cent from $1.14 billion a year earlier.

The P&C combined ratio was 84.3 per cent compared with 91.8 per cent prior year, and the current accident year P&C combined ratio excluding catastrophe losses was 83.5 per cent compared with 85.2 per cent prior year.

Evan G. Greenberg, chairman and CEO of Chubb Limited, said: “We had an excellent start to the year with record operating earnings and underwriting results, double-digit commercial premium growth accompanied by rate increases in excess of loss cost and growing momentum in our consumer businesses globally.

“Core operating income per share of $3.82 was up 52 per cent; P&C underwriting income more than doubled; and our P&C combined ratio was 84.3 per cent – all records.

“Global P&C premiums, which exclude agriculture, increased 10.7 per cent in constant dollars in the quarter, with commercial up 12 per cent and consumer up 8 per cent, though on a published basis growth was impacted by the increased strength of the dollar.

“Commercial premiums, excluding agriculture, increased 10.5 per cent in North America and 13.6 per cent in our international operations. Commercial P&C rates, which increased 8.7 per cent and circa 10 per cent, respectively, in our North America and international businesses, continue to exceed loss costs.

“Agriculture premiums were down in the quarter simply because of a return in premium to the Government based on profitability last year and how revenue and losses are shared – a formulaic process.

“In our international consumer lines, growth is steadily recovering, with personal lines premiums up 10 per cent and personal accident and supplemental health premiums up 8.6 per cent in constant dollars.

“Our US high-net-worth personal lines business had an excellent quarter, with growth of 7.4 per cent.

“On the asset side of the balance sheet, adjusted net investment income was just over $900 million for the quarter.

“Given rising interest rates and widening spreads, we expect investment income to increase from here.

“We are off to a great start to the year, and I remain optimistic and confident in our ability to outperform.”

Highlights include:

Consolidated net premiums earned increased 6.4 per cent, or 8.0 per cent in constant dollars. P&C net premiums earned increased 7.5 per cent, or 9.1 per cent in constant dollars, comprising growth in commercial and consumer lines of 9.9 per cent and 2.2 per cent, respectively, or 11.1 per cent and 4.7 per cent, respectively, in constant dollars.

• Pre-tax net investment income was $822 million compared with $863 million prior year, and adjusted net investment income was $901 million compared with $930 million prior year.

• Total capital returned to shareholders was $1.34 billion, including share repurchases of $1.0 billion, at an average purchase price of $205.53 per share, and dividends of $340 million.

• Total pre-tax and after-tax P&C catastrophe losses were $333 million (4.0 percentage points of the combined ratio) and $290 million, respectively, compared with $700 million (9.1 percentage points of the combined ratio) and $570 million, respectively, last year. The pre-tax catastrophe losses of $333 million comprised approximately 55 per cent in North America P&C Insurance and 45 per cent in Overseas General Insurance.

• Total pre-tax and after-tax favourable prior period development were $240 million (3.2 percentage points of the combined ratio) and $195 million, respectively, compared with $192 million (2.5 percentage points of the combined ratio) and $156 million, respectively, last year.