Chubb Limited has reported a 149.2% increase in net income for the first quarter of 2017 ending March 31, from US$439 million in Q1 2016 to US$1.09 billion in the most recent quarter.
Operating income was US$1.17 billion, up 15.3% from US$1.02 billion in Q1 2016, while P&C underwriting income was US$783 million, up 28% from US$612 million in the first quarter of 2016, Chubb said in a statement on Tuesday announcing its latest financial results.
Looking at combined ratio, the first quarter saw a combined ratio of 87.5% in Q1 2017, down from 90% in the same quarter last year.
Consolidated and P&C net premiums written (NPW) were US$6.7 billion and US$6.2 billion, respectively, up 11.9% and 12.9%. NPW for global P&C (excluding agriculture) were US$6.13 billion in Q1 2017, up from US$5.42 billion in Q1 2016, while global P&C (excluding agriculture) underwriting income was US$690 million in the most recent quarter compared to US$559 million in Q1 2016.
“Chubb had a very good quarter,” Evan G. Greenberg, chairman and chief executive officer of Chubb, commented in the statement. “Our underwriting income growth was driven by combined ratios that were simply excellent in the quarter on both a calendar and accident-year basis in spite of elevated natural catastrophe losses and a one-time reserve charge related to the change in the Ogden discount rate in the [United Kingdom]. Our underwriting margins are benefiting in particular from expense efficiencies generated from the merger” of Chubb and ACE Ltd., he noted.
For North America Commercial P&C Insurance, NPW in the most recent quarter were US$2.74 billion, up from US$2.30 billion in Q1 2016, the statement said. The segment’s combined ratio was 84.8% in Q1 2017, compared with 86.1% in Q1 2016. North America Personal P&C Insurance NPW were US$984 million in Q1 2017, up from US$871 million in Q1 2016; the segment’s combined ratio dropped from 97.5% in Q1 2016 to 84.2% in Q1 2017.
Overseas General Insurance saw NPW of US$2.20 billion, compared with US$2.04 billion in the same quarter last year. Its combined ratio increased from 91.4% in the first quarter of 2016 to 95.3% in Q1 2017, Chubb added.
NPW for North America Agricultural Insurance decreased 4.6% in the most recent quarter. The current accident year combined ratio excluding catastrophe losses was 74.6%, compared with 80.6% in Q1 2016.
For global reinsurance, NPW decreased 0.9%. The combined ratio was 82.1%, compared with 77.3%. The current accident year combined ratio excluding catastrophe losses was 77% compared with 78.5%.
Total pre-tax and after-tax catastrophe losses for the quarter were US$206 million (3.3 percentage points of the combined ratio) and US$164 million, respectively, compared with US$258 million (4.3 percentage points of the combined ratio) and US$204 million, respectively, last year.
Overall, Greenberg said, “the market is soft and companies are chasing volume in spite of a difficult underwriting environment. Our premium revenue growth was in line with our expectations and benefited from strong business retentions and growth in new business over prior year, which was constrained nonetheless due to competitive P&C conditions globally.”
Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and approximately 31,000 employees, the company provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance.