Chubb net income jumps 157%

Chubb, which has substantial re/insurance operations in Bermuda, reported net income jumped 157% to $2.04 billion in the third quarter as the company rode continued strong property and casualty underwriting performances.

The company said P&C underwriting income in the quarter was $1.31 billion, up 83.8%, with a combined ratio of 88.4%. P&C current accident year underwriting income excluding catastrophe losses was a record $1.78 billion, with a combined ratio of 84.3%.

Global P&C underwriting income, which excludes Agriculture, was $1.20 billion, up 117.2%, with a combined ratio of 87.6%. Global P&C current accident year underwriting income excluding catastrophe losses was a record $1.66 billion, with a combined ratio of 83.0%.

Even Greenberg, chairman and CEO, said: "In aggregate, rates and price increases in our commercial P&C lines of business remained strong in the quarter globally.

“Pricing was up 13.9% in North America and 11.7% in our international business. Financial lines pricing was down in North America and up modestly overseas.

“In North America and Overseas General, P&C pricing exceeded loss cost trends, which were stable in the quarter. We are vigilant and disciplined and are staying on top of loss cost inflation.

"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."

Chibb said agriculture net premiums written declined 11.7%, primarily reflecting the timing of premium recognition this year versus last year. For the nine months, agriculture net premiums written increased 2.3%.
Agriculture underwriting income was $105 million, with a combined ratio of 93.2% in the quarter, bringing the year-to-date combined ratio to 91.7%. The combined ratio in the quarter increased 2.6 percentage points, as the company trued up its loss estimates to reflect its projected profit and loss for the current crop year.

Life Insurance net premiums written increased 14.9%. International life insurance net premiums written were $1.21 billion, up 19.7%. Life Insurance segment income was $288 million. The consolidation of Huatai Life contributed 14.8 percentage points growth to International Life net premiums written.