Chubb breaks records in Q2 as hardening drives strong 2021 numbers

Chubb delivered an impressive set of half-year figures buoyed by record second-quarter core operating profit and underwriting results, on the back of its best P&C global revenue growth for 15 years as the market continued to harden. The insurer said the second-quarter P&C pricing environment was “strong” in all important regions around the world, with overall rates up 16% in international business and 13.5% in North America. The insurer believes the hardening will continue. “Chubb had simply an outstanding quarter, highlighted by record core operating earnings and underwriting results. We produced the best P&C premium revenue growth globally in over 15 years, powered by our commercial P&C businesses and supported by continued robust commercial P&C pricing,” said Chubb’s chairman and CEO Evan G Greenberg. “We are capitalising on a strong commercial P&C pricing environment… From everything we see today, I am confident these market conditions will continue,” he added. Chubb’s net income rebounded to $4.57bn in the first half of 2021 from a loss of $79m in the prior-year period. Core operating income was $2.76bn, compared with $966m in H1 2020. The half-year combined ratio improved to 88.6% compared to 101% a year earlier, with the current accident-year P&C combined ratio excluding cat losses at 85.3%, versus 87.5% at the midway point last year. P&C underwriting delivered a profit of $1.19bn from a loss of £929m in the first half of last year. Gross written premiums rose to $22.4bn in H1 from $19.8bn. These numbers were boosted by strong second-quarter numbers. Net income was up to $2.27bn after a loss of $331m in Q2 2020. Chubb delivered a record core operating profit of $1.62bn from a loss of $254m. P&C net written premiums were up 15% globally to $9.55bn, powered by commercial lines and the best organic P&C growth since 2004. The quarter's result comprised 20.7% growth in commercial lines excluding agriculture. P&C premiums grew by 33% in international business and 16% in North America. Chubb’s second-quarter P&C combined ratio was 85%, compared with 112.3% in the same period last year. The P&C current accident-year underwriting income, excluding catastrophe losses, was up 27% to a record $1.2bn. This was driven by a P&C current accident-year combined ratio excluding catastrophe losses of 85.4%, compared with 87.4% in the prior year. The combined ratio for international business was 83.9%, from 107.1% in the second quarter of last year. Chubb’s pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, were $280m and $226m respectively in the quarter. This compares with $1.81bn and $1.51bn in Q2 2020. Record pre-tax net investment income was up 7% to $884m in Q2. For the half year, it rose to $1.75bn from $1.69bn. “Our company is firing on all cylinders – we are growing our business while we continue to expand underwriting margins. We will continue to outperform and deliver strong, sustainable shareholder value,” said Mr Greenberg.

Chubb breaks records in Q2 as hardening drives strong 2021 numbers

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