Chubb posts $1.2bn in cat losses for Q3

Chubb has reported almost $1.2 billion of catastrophe losses for the third-quarter of 2022, with $975 million attributed to Hurricane Ian.

Chubb’s combined ratio for its P&C unit was, however, a year-on-year improvement, to 93.1 percent from 93.4 percent. That contrasted with Chubb’s global reinsurance underwriting business, Chubb Tempest Re, which reported a combined ratio of 148.4 percent and an underwriting loss of $123 million.

Net income was $812 million versus $1.83 billion in the prior year, but core operating income was $1.33 billion, up 15.1 percent.

For the nine months, net income was $4.00 billion versus $6.40 billion, but core operating income was a record $4.76 billion, up 21.4 percent.

Evan Greenberg, chairman and chief executive officer of Chubb Limited, said: "The broad-based strength of the company globally was clearly evident in the quarter, with core operating income up 15% and per share earnings of $3.17 up 20%. All major areas of our business contributed. We produced simply excellent underwriting results despite an active catastrophe quarter. We had record investment income, which is and will be a growing source of earnings; double-digit P&C premium revenue growth in constant dollars, which was well balanced between commercial and consumer lines; and life insurance premiums that more than doubled with the closing of our acquisition of Cigna's business in Asia.

"P&C underwriting income of $710 million was up 15% and led to a combined ratio of 93.1%, which included pre-tax catastrophe losses of $1.2 billion, with $975 million from Hurricane Ian. For the year, record underwriting income of $3.4 billion was up more than 40% or over $1 billion, with an 87.5% combined ratio, an improvement of nearly three points over prior.”

Consolidated net premiums written, which include P&C and life insurance, grew over 17% in constant dollars.