Chubb Q1 profit declines, premiums written increase
Reprints
Chubb Ltd. reported first-quarter net income of $1.97 billion, down 14.2% from $2.30 billion in the year-earlier period.
Property/casualty net premiums written increased 7.1% to $8.613 billion in the first quarter, as commercial property/casualty premiums rose 7.9% to $6.157 billion, Chubb said in its earnings statement released Tuesday after the close of markets.
Total net premiums written increased 6.2% to $9.199 billion.
Net premiums written in North America grew 6.8% in the first quarter to $5.281 billion, with commercial premiums rising 6.7% to $3.934 billion.
Chubb’s first-quarter combined ratio improved to 85% from 91.9% in the first quarter of 2021. Net investment income fell 4.8% to $822 million from $863 million in the year-earlier period.
Noting the decline in investment income, Evan G. Greenberg, chairman and CEO of Chubb, said Wednesday during an earnings call with analysts that rising interest rates should bolster future earnings.
“Given rising interest rates and widening spreads, we expect investment income to increase from here,” Mr. Greenberg said.
Global property/casualty premiums were led by a 12% increase in commercial premiums, Mr. Greenberg said. Commercial property/casualty premiums for North America excluding agriculture rose 10.5%, he said.
Overall rates in North America commercial lines were up 8.7%, with property rising 9.1%, general casualty up 15.5%, and financial lines up 13.9%.
In commercial property/casualty, “the level of rate increase remains strong and is naturally moderating as individual portfolios achieve adequacy,” Mr. Greenberg said. “In aggregate, rate increases remain in excess of observed and projected loss costs,” he added.
