Chubb earnings jump 13.3%
Chubb, which has substantial operations in Bermuda, recorded a 13.3% jump in net income in the first quarter of 2024, as the company's property and casualty underwriting income rose by 15.4%.
The re/insurer said net income was $2.14 billion while core operating income rose 20.4% to $2.22 billion.
The company also recorded a $55 million deferred tax benefit related to the Bermuda Corporate Income Tax which comes into effect in 2025. The company also recorded a contribution of $30 million to the Chubb Charitable Foundation.
The company said global property & casualty net premium written were up 13.3% with solid growth across most lines and regions.
P&C underwriting income was $1.4 billion, up 15.4%, with a combined ratio of 86.0%. P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 10.3%, with a combined ratio of 83.7%.
Life Insurance net premiums written were $1.63 billion, up 26.3%, and segment income was $268 million, up 9.8%. Life Insurance net premiums written and deposits collected were $2.23 billion, up 39.4%.
Pre-tax net investment income was $1.39 billion, although book value was unfavourably impacted by after-tax net realized and unrealized losses of $622 million in the company's investment portfolio, principally due to the mark-to-market impact in the fixed-income portfolio.
"We began the year with a simply excellent quarter," said Evan G. Greenberg, chairman and chief executive officer of Chubb. "Core operating income was up double-digit, driven by P&C underwriting income up over 15% with a published combined ratio of 86%, investment income up more than 23%, and life insurance income up almost 10%.
"We produced double-digit premium revenue growth from across the globe with strong results in our commercial and consumer P&C and Asia life businesses."
He added: "The P&C underwriting environment in North America overall is quite favourable, financial lines aside, with pricing exceeding loss costs, which remained steady. From our large middle market business to small commercial to personal lines, and driven by both property and casualty, we saw the best rates and pricing overall that we have seen in the last four to five quarters. It was also one of the best quarters for large-account casualty rates and pricing.
"In our Overseas General division, both our consumer and commercial businesses performed well in the quarter. Asia was a standout, with consumer premiums up 46% and commercial premiums up 23%, supported by the consolidation impact of Huatai in China. Retail commercial P&C lines pricing across our international business was favourable and our portfolio is well priced.
"In sum, we had a very strong start to the year. Looking forward, we are confident in our ability to continue growing operating earnings at a rapid pace through P&C revenue growth and underwriting margins, investment income, and life income."
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