Chubb has reported its annual and Q4 results for 2022.
The insurer saw net income of US$5.3 billion (CA$7.1 billion) for the full year, down from US$8.5 billion in 2021.
The insurer released its results on Tuesday, reporting consolidated net written premiums of US$41.8 billion. Property and casualty (P&C) net premiums were up 7.7%, or 10.3% in constant dollars.
While net income was down, P&C underwriting income saw a “record” year, at US$4.6 billion, the insurer said in a press release. So too did core operating income, at US$6.5 billion, up 15.9%.
Its P&C combined ratio improve in 2022, at 87.6% compared to 89.1% in 2021.
Chubb saw its investment portfolio face an unrealized loss position of US$7.3 billion, versus an unrealized gain position of US$2.3 billion at December 2021.
For Q4 2022, Chubb reported net income of US$1.3 billion and core operating income of US$1.7 billion.
“Net income in the quarter was adversely impacted by adjusted net realized losses of US$363 million after tax, principally due to the mark-to-market impact on private equities,” Chubb said in a press release.
Fourth quarter pre-tax catastrophe losses were US$400 million, up on Q4 2021’s US$275 million.
Chubb CEO Evan Greenberg hailed a “strong quarter” for the insurer.
“Our quarterly results included record net investment income, double-digit premium growth, and an excellent underwriting performance with an 88% combined ratio despite a true-up to our annual agriculture results reflecting a below-average crop year,” Greenberg said.
Pricing conditions in P&C “remain favourable”, according to the CEO, and the insurer expects future published growth to improve with the dollar weakening.
“In P&C, North America grew 9.7%, and so did Overseas General in constant dollars while declining 1.3% on a published basis, impacted by the strongest U.S. dollar in 20 years,” Greenberg said.
The insurer is off to a “strong start” in 2023, according to Greenberg.
“While there’s certainly plenty of risk and uncertainty in the operating environment globally – economic and geopolitical, from what we know and can control, ’23 should be a good year in terms of growth and earnings,” he said.
