Chubb released positive second quarter results, driven by gains in its commercial property/casualty business and related rate hikes in the sector.
The company called it a “record quarter” with “robust” numbers.
The company said it had its best property/casualty premium revenue growth globally in more than 15 years, led by its commercial P/C businesses. Operating earnings in the quarter were $1.62 billion.
Net income for the quarter reached $2.27 billion versus a $331 million net loss a year ago as the coronavirus pandemic was taking hold globally.
Chubb’s property/casualty combined ratio was 85.5 during this year’s Q2, compared with 112.3 in the 2020 second quarter. That improvement was almost entirely loss ratio-related, the company said.
“Our company is firing on all cylinders – we are growing our business while we continue to expand underwriting margins,” boasted Evan Greenberg, Chubb’s chairman and CEO.
Property/casualty net premiums written rose 15.5% globally overall during the 2021 second quarter, and are up 12.6% overall for the first six months of the year. Commercial lines net premiums written grew nearly 21 percent during Q2, excluding agriculture, which saw an 11 percent gain. P/C consumer lines produced a jump of 5.6 percent in net premiums written.
Chubb grew its commercial P/C premiums in North America by more than 16%, while premiums in its international operations jumped 33%. North America commercial P/C insurance saw its biggest premium gains with middle market and small commercial clients.
Pre-tax and after-tax catastrophe losses, net of reinsurance and including reinstatement premiums, reached $280 million, respectively, for the second quarter. That compares to $1.8 billion and $1.5 billion, respectively, over the same period last year.
Regarding the gains in commercial insurance, Greenberg noted that the company has had double-digit commercial P/C growth on average over the past 10 years and both the second quarter and year-to-date growth were the strongest since 2004.
“We are capitalizing on a strong commercial P/C pricing environment in most all-important regions of the world,” Greenberg said.
Consumer lines remain affected by the pandemic, with travel and other business and consumer-related activity down. But Chubb said it is beginning to see improvement in consumer lines with net premiums written up 5.6% in the quarter.
The insurer also saw record investment income. Adjusted net investment income hit $945 million, rising 9.4% from the year ago.
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