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Chubb Ltd. reported fourth-quarter net income of $1.31 billion, down 38.7% from the year-earlier period, as results were hurt by net realized losses of $363 million after-tax, principally due to the mark-to-market impact on private equities, the insurer said in its earnings statement released Tuesday after markets closed.
Consolidated net premiums written were $10.2 billion, up 11.9% from the fourth quarter of 2021. Property/casualty net premiums written were up 5.9%, with commercial lines up 10.4%. North America net premiums written increased 9.7%, with growth of 10.8% in commercial lines.
Pre-tax net investment income was $1.05 billion, up 24.8%.
Chubb’s property/casualty combined ratio was 88.0%, compared with 85.5% in the fourth quarter of 2021. Excluding agriculture, it was 85.9%, compared with 85.4% in the year-earlier period, as it included a “true-up” to projected full-year crop insurance results reflecting late season development that produced an underwriting loss of $107 million in North America agriculture.
Fourth-quarter pre-tax catastrophe losses were $400 million, compared with $275 million in the year-earlier period.
Speaking on the insurer’s Wednesday morning earnings call, Chubb Chairman and CEO Evan G. Greenberg said property/casualty premium growth and earnings in the quarter were “balanced and broad-based,” with contributions from virtually all businesses globally.
In North America, growth in commercial lines was led by Chubb’s major accounts and specialties division, which grew 9.1%, followed by middle-market and small commercial business, which grew 8.7%. Retail commercial growth was led by Latin America, with premiums up nearly 13%, Mr. Greenberg said.
Renewal retention for retail commercial businesses was over 96%, Mr. Greenberg said.
In the commercial property/casualty rate environment, pricing conditions continue to be “favorable” in most lines of business, Mr. Greenberg said. He said additional rate is required in most lines “primarily to keep pace with loss costs, which are hardly benign in both long- and short-tail lines.”
For the full year, net income was $5.31 billion, down 38% from $8.54 billion in 2021.
Full-year consolidated net premiums written totaled $41.8 billion, up 10.3%. Property/casualty net premiums written were up 7.7%, with commercial lines up 11.0%. North America was up 9.7%, with growth of 10.6% in commercial lines.
The full-year property/casualty combined ratio was 87.6%, compared with 89.1% in 2021. Property/casualty underwriting income of $4.6 billion was a record and up 23% from 2021, Mr. Greenberg said on the call.
Full-year pre-tax net investment income was $3.74 billion, up 8.3% and a record, Chubb said.