Chubb CEO hails record Q1 results

Chubb’s CEO Evan Greenberg (pictured) has hailed the company’s record Q1 results, which included double-digit core operating earnings growth, despite the challenges of economic uncertainty and financial market volatility.

It made a net profit of $1.89 billion in the first quarter of 2023, a 3.2% decline on the same period a year earlier. Its core operating income, however, increased to $1.8 billion, a 11.8% increase on the year before.

Its net written premiums on the P&C side increased by 9.3% to reach $9.4 billion. Its combined ration in this part of the business was 86.3%, a small increase on the 84.3% it posted a year earlier.

Greenberg said: “We began the year with a record quarter that included double-digit core operating earnings growth, broad-based double digit premium revenue growth globally, an 86.3% published combined ratio, net investment income up more than 30%, and life insurance segment income that more than doubled, driven by our Asia life operations. In this period of economic uncertainty and financial market volatility, Chubb’s business model, capabilities, and ability to deliver provide both a safe haven and long-term growth opportunity for shareholders. “We grew per share operating earnings 15% on the back of record core operating income. With $1.2 billion in underwriting income and a world-class combined ratio, our P&C underwriting performance was simply excellent in what was an active quarter for natural catastrophes. Excluding CATs, our underlying current accident year combined ratio was a record 83.4%. On the investment side, adjusted net investment income was a record $1.2 billion, up $300 million from prior year. Our investment income continues to grow steadily and contribute to our earning power.”

“Total company net written premiums increased 16.6%, or 18.3% in constant dollars, which included growth of 11% in our P&C business and 129% in our life division. Growth was balanced and broad-based with double digit results in North America, Europe and Asia. By example, commercial P&C premiums in North America and Europe were both up about 12% in constant dollars, and total P&C in Asia grew about 18.5%. In North America, both P&C rate and price increases re-accelerated in the quarter with commercial P&C pricing increasing 11.2%. In our retail international operations, pricing was up about 8%. “In sum, we had a strong start to the year with good momentum heading into the second quarter. Overall, the fundamentals for our business are excellent. Looking forward, we are confident in our ability to continue growing revenue and operating earnings, which in turn drive EPS, through the three engines of P&C underwriting income, investment income, and life income.”