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Chubb’s third-quarter profit soars 53.5%

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Evan G. Greenberg

Chubb Ltd. Tuesday reported third-quarter net income of $1.83 billion, up 53.5% from $1.19 billion in the year-earlier quarter, as double-digit commercial lines premium growth drove results.

Net premiums written increased 16.9% to $9.9 billion, as underwriting income jumped 57.5% to $617 million.

“The robust commercial pricing environment remains on pace in almost all regions of the world,”  Chubb Chairman and CEO Evan G. Greenberg told analysts during an earnings call Wednesday.

Commercial net premiums written grew 22% to $7.430 billion and the insurer’s combined ratio improved to 93.4% from 95.2% a year earlier, even as catastrophe losses increased to $1.15 billion from $925 million in the third quarter of 2020.

North America property/casualty net premiums written were up 17.1% and global property/casualty growth was 17%, Mr. Greenberg said.

New business and solid retentions also helped drive the quarter. Mr. Greenberg said new business was up 13% and retentions remained around 97%.

Major accounts and specialties business increased 15.5%, while middle-market and small-business accounts grew more than 18%, he said.

Overall rates in North America increased by more than 12%, Mr. Greenberg said. In major accounts, rates grew by just over 13%. General casualty rates were up about 21%, and financial lines rates were up 17%.

The third quarter included pre-tax losses from Hurricane Ida of $806 million in what Mr. Greenberg called “an active quarter for natural catastrophes.” He said this is shaping up to be another year of sizable weather-related events, something he called “kind of the new normal.”

Despite the elevated cat losses, Mr. Greenberg said Chubb’s 14.2% organic growth through three quarters was “the strongest organic growth since 2004.”

Net investment income in the third quarter rose 3.1% to $866 million.

Mr. Greenberg was bullish on Chubb’s prospects for the near term, saying, “Growth and margin expansion are two trends that will continue.”

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