Chubb’s second quarter net profit improves dramatically to $ 2.27 billion

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Global insurance company Chubb reported second quarter 2021 net profit of $ 2.27 billion, down from a net loss of $ 331 million a year earlier, as disaster-related losses declined significantly by a year over year.

Along with the strong improvement in net income, Chubb’s operating income also rose in the second quarter of 2021, reaching $ 1.6 billion from a loss of $ 254 million a year earlier.

In its property and casualty business, net premiums written (NPW) jumped 15.5% for the quarter. The segment produced a Q2 2021 combined ratio of 85.5%, which is a huge improvement over the 112.3% reported for the same period in 2020.

For the second quarter of 2021, catastrophic claims before tax, net of reinsurance and including reinstatement premiums, totaled $ 280 million, a significant reduction from the $ 1.81 billion in Chubb cat claims announced for the second quarter of 2020.

In fact, excluding catastrophic claims, and current year property & casualty underwriting loss hit a record $ 1.2 billion, up 27%, driven by a current year property & casualty combined ratio excluding catastrophic claims of 85.4%.

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On the company’s asset side, Chubb reported pre-tax net investment income of $ 884 million, up 7% from the previous year.

Looking at Chubb’s performance in the first half of 2021, net income totaled $ 4.57 billion, compared to a net loss of $ 79 million for the first half of 2020. Basic operating income also improved in the first half of 2021, reaching $ 2.76 billion compared to $ 966 million for the period of the previous year.

In the first half of 2021, the combined property and casualty ratio strengthened to 88.6%, against 101% a year earlier.

Evan G. Greenberg, Chairman of the Board and Chief Executive Officer (CEO) of Chubb, said, “Chubb has simply had an exceptional quarter, highlighted by record operating and underwriting results. We have had the best P&C premium revenue growth in the world in over 15 years, driven by our P&C business activities and supported by strong and ongoing P&C business pricing. Operating profit for the quarter was $ 1.62 billion Where $ 3.62 per share.

“Our combined published and current year ratios of 85.5% and 85.4%, respectively, reflect a 200 basis point improvement in technical margin, almost entirely related to the loss ratio. Technical result for the year of occurrence during $ 1.2 billion was up 27%, while on the other side of the balance sheet, adjusted net investment income in the quarter of $ 945 million was also a record and up almost 9.5% from the previous year.

“Net P&C premiums written increased 15.5% globally, with non-agriculture commercial premiums up nearly 21%. As a perspective, we have experienced double-digit average growth in commercial property and casualty insurance over the past 10 quarters, and growth in the second quarter and year-to-date was the strongest since 2004. In In North America, we increased our commercial property and casualty premiums by over 16%, while in our international operations premiums increased 33% on a reported basis, or 24% in constant dollars. Growth during the quarter was widespread. The net written premiums in our consumer lines remain affected by the effects of the pandemic on travel and other business and consumer-related activities, but are starting to improve and, in fact, have risen 5.6% in the past. during the quarter.

“We are capitalizing on a strong commercial property and casualty pricing environment in most major regions of the world. Overall rates have increased in our North America and international commercial property and casualty businesses by 13.5% and 16%, respectively, and significantly exceeded claims costs. From everything we see today, I have no doubts that these market conditions will continue.

“Our business is running at full speed – we are growing our business while continuing to increase our underwriting margins. We will continue to outperform and deliver strong and sustainable shareholder value. “

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