Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Chubb chairman and CEO Evan Greenberg said the group saw “the best rates and pricing” for more than a year in the first quarter of the year as it revealed a 13% gain in net income to $2.14bn for Q1. Greenberg said p/c pricing in North America exceeded “steady” loss costs, although rates for financial lines are less favourable for the insurer.

“From our large middle market business to small commercial to personal lines, and driven by both property and casualty, we had 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,” Greenberg said.

Announcing results for “a simply excellent quarter”, Greenberg said property/casualty underwriting across the group’s North America and international operations recorded profit of $1.40bn, up 15%, and investment income climbed 26% to $1.39bn.

Global p/c net premiums were up 13% in the first quarter, with an 11% increase in commercial insurance, driven by overseas business where commercial premiums written increased 12%. North America commercial premiums written increased 10% after 13% growth in p/c was offset by an 8% fall in financial lines premiums.

Across all lines, overseas business recorded growth of almost 18% in net premiums, led by a “standout” performance from Asia, up 35% after consolidating the results of its majority shareholding in Chinese insurer Huatai. Latin America premium income recorded growth of 18% and Europe saw a near 9% increase in net premiums written.

Greenberg said commercial p/c lines rates across its international business remained “favourable”, adding that “the portfolio is well priced”.

The group’s p/c business, across domestic and international operations, closed the quarter with a combined ratio of 86%.

The group said its net result and core operating income, up 20% to $2.22bn, were “modestly” impacted by an incremental deferred tax benefit of $55m partially offset by a $30m contribution to the Chubb Charitable Foundation.

“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,” Greenberg said.

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