Chubb Ltd. late Tuesday said second quarter net income was about $1.22 billion, more than a 46% fall from $2.27 billion in net income logged during the same period a year ago.
The insurer said it lost $565 million after tax on private and public equities, and from the sale of fixed income securities during the second quarter. Unfavorable foreign exchange movement in Q2 negatively impacted net premiums written growth by 2 percentage points and core operating income by $34 million, Chubb said.
However, the insurance business remained strong during Q2 as underwriting income jumped over 21% to a record $1.44 billion compared to the same time period in 2021. Total P&C net premiums written were $9.73 billion, a 9% increase from Q2 2021. Commercial P&C premiums were up 10.6% (or about 12% in constant dollars, which compares dollar values from one period to another) to about $7.1 billion; consumer P&C was up 4.8% (or 8% in constant dollars) to $2.65 billion, Chubb said.
“Commercial P&C pricing changes remained strong and exceeded both our actual observed and future projected loss cost trends,” said Evan G. Greenberg, CEO, in a statement. “Commercial premiums increased 12.5% in North America, or 8.7% excluding agriculture, and 13% in our international operations in constant dollars. On the consumer side, our international business continued to pick up momentum, with constant dollar growth of 11.6%, while our U.S. high net worth business grew 4.7% on the back of record new business and strong pricing.”
Chubb booked a combined ratio of 84, also a record, in Q2 compared to 85.5 a year ago. Pre-tax catastrophe losses were $291 million, compared with $280 million in 2021.
Was this article valuable?
Here are more articles you may enjoy.