Chubb profit drops; Hurricane Ian drives catastrophe losses

31 October 2022

Chubb net income dropped 56% to $US812 million ($1.3 billion) in the third quarter mainly due to “mark-to-market” impacts, but the insurer reported a strong underwriting result despite Hurricane Ian catastrophe losses of $US975 million ($1.5 billion).

Chairman and CEO Evan Greenberg says property and casualty underwriting income rose 15% to $US710 million ($1.1 billion) and the combined operating ratio was 93.1% compared to 93.4% a year earlier.

Total pre-tax catastrophe losses of $US1.2 billion ($1.87 billion) were slightly higher than $US1.1 billion ($1.7 billion) in the year earlier period, which included Hurricane Ida.

“We produced simply excellent underwriting results despite an active catastrophe quarter,” Mr Greenberg said.

The quarter featured record investment income, double-digit property and casualty premium revenue growth in constant dollars, balanced between commercial and consumer lines, and life premiums that more than doubled with the closing of the acquisition of Cigna’s business in Asia, he said.

Chubb says commercial pricing, which includes rate and exposure, increased 8.5% in North America and about 11% in the international operations, in constant dollars.

“Commercial P&C pricing remained strong and continued to exceed our loss costs. We are focused on inflation and staying on top of it in terms of both pricing and reserving,” Mr Greenberg said.

Chubb says net investment income was a record $US979 million ($1.5 billion) compared with $US866 million ($1.4 billion) in the prior year period.

“While we are operating in a challenging economic and geopolitical environment, we are optimistic about our prospects given the strengths and momentum of our businesses,” Mr Greenberg said.