Chubb breaks host of records in first quarter

Evan Greenberg, chairman and CEO of Chubb, says the company is “off to a great start” despite a decrease in its net income in the first quarter of this year. Chubb achieved record operating earnings and underwriting results, double-digit commercial premium growth accompanied by rate increases in excess-of-loss cost, as well as growing momentum in its consumer businesses globally.

Consolidated net premiums written in the quarter ended 31 March rose 6% year-on-year, but net income of $1.97 billion was a 14% decrease from $2.3 billion in the same period of 2021. Core operating income, however, grew 44% to $1.6 billion.

Global P&C net premiums written, which exclude agriculture, were up 9%, driven by growth in commercial lines of 12% and consumer lines of 8%. P&C underwriting income increased by 106% to $1.3 billion from $622 million.

The P&C combined ratio was 84.3% compared with 91.8% in Q1 2021, and the current accident year P&C combined ratio, excluding catastrophe losses, was 83.5% compared with 85.2% in the previous first quarter.

Growth is “steadily recovering” in Chubb’s international consumer lines, Greenberg said, with personal lines premiums up 10% and personal accident and supplemental health premiums up nearly 9% in “constant dollars”. Its US high net worth personal lines business had an “excellent” quarter, he added, with growth of over 7%.

On the asset side, adjusted net investment income was slightly more than $900 million for the quarter and, given rising interest rates and widening spreads, Chubb expects this result to "increase from there", Greenberg said.

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