Chubb Limited today reported net income for the quarter ended June 30, 2023 of $1.79 billion, or $4.32 per share, and core operating income of $2.04 billion, or $4.92 per share. Net income was $1.79 billion, up 50.7%, and core operating income was a record $2.04 billion, up 13.9%. For the six months, net income was $3.69 billion, up 17.2%, and core operating income was a record $3.89 billion, up 12.9%.
- P&C net premiums written of $10.68 billion were up 9.8%, or 10.4% in constant dollars.
- Global P&C premiums, which exclude Agriculture, were up 10.2%, or 10.9% in constant dollars, with commercial lines up 11.1% and consumer lines up 10.5%. North America was up 10.6%, with personal lines growth of 10.8% and growth of 10.5%, or 14.0% excluding financial lines, in commercial lines. Overseas General was up 9.3%, or 10.9% in constant dollars, with growth of 11.9% in commercial lines and 9.5% in consumer lines; Asia Pacific was up 17.4% and Europe was up 10.5%.
- P&C underwriting income was $1.43 billion with a combined ratio of 85.4%. P&C current accident year underwriting income excluding catastrophe losses was $1.63 billion, up 9.4%, leading to a record combined ratio of 83.3%. Global P&C current accident year underwriting income excluding catastrophe losses was a record $1.55 billion, up over 10%.
- Pre-tax and after-tax catastrophe losses were $400 million and $319 million, respectively, compared with $291 million and $241 million, last year.
- Life Insurance net premiums written increased 126.1%, or 127.6% in constant dollars, to $1.27 billion. Life Insurance segment income was $254 million, up 140.3%.
- Pre-tax net investment income was $1.14 billion, up 28.9%, and adjusted net investment income was $1.24 billion, up 30.6%. Both were records.
- Annualized return on equity (ROE) was 13.6% and annualized core operating ROE was 13.8%. Annualized core operating return on tangible equity (ROTE) was 21.0%.\
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: “We had another simply outstanding quarter – in fact, a record, which contributed to a record six months. Our financial performance included double-digit premium revenue and earnings growth supported by world-class P&C underwriting results and an 85.4% combined ratio, record net investment income, and a doubling of our life earnings. For the quarter, core operating income and income per share were up 13.9% and 16.6%, respectively, and for the first six months, they were up 12.9% and 15.8%. Our operating earnings for the quarter topped $2 billion for the first time. We produced an annualized core operating ROE of 13.8%, with a return on tangible equity of 21%.
“Our exceptional underwriting performance was driven by strong P&C premium revenue growth, excellent current accident year underwriting margins with a record combined ratio of 83.3%, favorable prior period reserve development, and a moderate level of catastrophe losses. On the investment side, record adjusted net investment income was up $290 million, or 30.6%, over prior year. Our investment income run rate will continue to grow as we reinvest cash flow at higher rates and compound income.
“Our total company net written premium growth of 16.8% in constant dollars was balanced and broad-based, driven by double-digit growth in our commercial and consumer P&C businesses in North America and internationally, and 127.6% growth in our life business. The Global P&C constant dollar growth rate of 10.9% was the best we’ve seen in the last seven quarters. Global P&C premiums in North America grew 10.6%, with our consumer business up 10.8% and our commercial business up 10.5%, or 14% excluding financial lines. In our Overseas General division, premiums grew 10.9% in constant dollars, with strong growth of 17.4% in Asia and 10.5% in Europe.
“The level of rate increases overall in North America commercial P&C accelerated in the quarter to 8.7%, or 12.6% excluding financial lines, driven by increases in both property and casualty lines of business of 22% and 8.9%, respectively. Price increases, which take into account exposure, were even greater.
“We have a lot of momentum heading into the second half. As I look ahead, we remain confident in our ability to continue the pattern of growth in revenue and earnings, and, in turn, drive double-digit EPS growth.”