Chubb has reported an increase in profitability for the third quarter of 2020 compared to the same period in the previous year, with the hardening market offsetting the challenging circumstances presented by the global pandemic and an active Atlantic hurricane season.
Chubb reported net profit of $1.19 billion in Q3 2020, up from $1.09 billion in the same period of 2019.
Catastrophe losses, net of reinsurance and including reinstatement premiums, were $925 million pre-tax, compared with $232 million in Q3 2019.
The combined ratio for the property and commercial (P&C) business was 95.2 percent, compared with 90.2 percent in Q3 2019. Net written premiums for the business were $8.5 billion, up 6.4 percent in constant dollars compared with the previous year.
Evan Greenberg, chairman and chief executive officer of Chubb, said the re/insurer had “performed well despite a challenging environment” characterised by COVID-19 and a record number of natural catastrophes.
“We experienced our share of the CATs with $925 million in net pre-tax losses. Yet, we still published a 95 percent combined ratio, supported by significant underlying underwriting margin improvement,” he said.
Greenberg said the current commercial P&C market is responding to prolonged industry underpricing of risk and the loss cost and interest rate environment. “I believe the favorable trend will endure,” he predicted. “Where we can get paid adequately to assume the risk and volatility, we are growing our exposures across the portfolio while achieving rates that exceed loss costs, and that means margin improvement.”
Chubb, Evan Greenberg, Results