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Chubb first-quarter profits soar

Chubb’s Bermuda office just outside Hamilton (File photograph)

Chubb Limited has reported first-quarter net income of $2.14 billion, up 13.3 per cent from the comparative period last year, as consolidated net premiums written of $12.2 billion represented a 14.1 per cent increase.

Book value was unfavourably impacted by after-tax net realised and unrealised losses of $622 million in the company's investment portfolio, principally because of the mark-to-market impact in the fixed-income portfolio.

Net income and core operating income were impacted modestly by two one-time items: an incremental deferred tax benefit of $55 million, or $0.14 per share, related to the Bermuda tax law enacted in December 2023, partially offset by a contribution to the Chubb Charitable Foundation of $30 million ($24 million after tax), or $0.06 per share.

Evan G. Greenberg, chairman and chief executive officer of Chubb Limited, said: "We began the year with a simply excellent quarter. Core operating income was up double digit, driven by P&C underwriting income up over 15 per cent with a published combined ratio of 86 per cent, investment income up more than 23 per cent, and life insurance income up almost 10 per cent.

“We produced double-digit premium revenue growth from across the globe with strong results in our commercial and consumer P&C and Asia life businesses.

"Core operating income and EPS were up over 20 per cent, to $2.2 billion, and up nearly 23 per cent, to $5.41, respectively. Earnings modestly benefited from two one-time items that partially offset each other. Adjusting for these, core operating income grew over 18.5 per cent, with operating EPS up nearly 21 per cent to $5.33.

“Our sources of earnings were well balanced and of an enduring quality: P&C underwriting income of $1.4 billion, driven by strong earned premium growth and great underwriting margins; adjusted net investment income of nearly $1.5 billion; and life segment income of $268 million.

"Total company net premiums written increased over 14 per cent in the quarter, with total P&C up 12.5 per cent and life insurance up over 26 per cent. Global P&C premiums, which exclude agriculture, increased 13.3 per cent, with commercial lines up over 11 per cent and consumer lines up 19.3 per cent.

“Premiums in North America were up over 10 per cent, while in our international retail P&C business, premiums in Asia, Latin America and the Continent of Europe were up 34.7 per cent, 17.5 per cent, and 12.3 per cent, respectively. Life Insurance premiums and deposits were up over 39 per cent, driven, again, by our business in Asia.“

Mr Greenberg noted: "The P&C underwriting environment in North America overall is quite favorable, financial lines aside, with pricing exceeding loss costs, which remained steady.

“From our large middle-market business to small commercial to personal lines, and driven by both property and casualty, we saw the best rates and pricing overall that we have seen in the last four to five quarters. It was also one of the best quarters for large-account casualty rates and pricing.“

For more on Chubb’s first-quarter results, see Related Media

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Published April 23, 2024 at 6:35 pm (Updated April 23, 2024 at 7:19 pm)

Chubb first-quarter profits soar

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