Chubb reports profit spike in 2016 third quarter

Citing “exceptionally strong” underwriting results, Chubb Ltd. on Tuesday posted third-quarter net income of $1.36 billion, a substantial increase from $528 million in the year-ago quarter.

Net premiums written increased 60.8% to $7.57 billion for the quarter. 

The property/casualty combined ratio for the quarter was 86.0% compared with 85.9% a year ago.

Zurich-based Chubb Ltd. was formed earlier this year when Ace Ltd. closed on a nearly $30 billion acquisition of Chubb Corp., announced July 1, 2015. The insurer said it now expects to realize annualized savings of $800 million by the end of 2018, up from prior estimate of $750 million. Integration and merger-related expenses remain on track, Chubb said.

“Chubb had an excellent quarter with record operating earnings per share and exceptionally strong underwriting results,” Evan G. Greenberg, Chubb chairman and CEO, said in a statement.

For the nine months ended Sept. 30, net income was $2.52 billion, a 17.4% increase over the same period in 2015.
 
Net premiums written for the first nine months of 2016 were $21.21 billion, a 56.3% increase over 2015. The combined ratio was 89.0% compared with 87.2% in the prior-year period.