The global insurance giant Chubb has reported its Q1 2023 financial results, beginning the year strong with double-digit core operating earnings growth and double-digit premium revenue growth globally.
Among the key figures posted by the insurer, Chubb revealed a dip in its net income which came in at US$1.89 billion compared to US$1.95 billion last year. Core operating income was up 11.8% to a record US$1.84 billion.
P&C net premiums rose 9.3% in the quarter, with commercial lines up 11.5% and consumer/personal lines up 9.4%. North America saw a spike of 11.3%, with growth of 11.7% in commercial lines and 9.9% in personal lines. Meanwhile, Overseas General increased 6%, with growth of 10.8% in commercial lines and 8.6% in consumer lines; Asia was up 18.6% and Europe was up 10.1%.
P&C underwriting income for the period came in at US$1.21 billion with a combined ratio of 86.3% compared with 84.3% prior year. P&C current accident year underwriting income excluding catastrophe losses stood at US$1.48 billion, up 7.2%, leading to a record combined ratio of 83.4% compared with 83.5% prior year.
Chubb revealed that its pre-tax and after-tax catastrophe losses stood at US$458 million and US$382 million, respectively, compared with US$333 million and US$290 million, respectively, last year.
Commenting on the results seen, Chubb CEO and chairman Evan G. Greenberg highlighted the insurer’s 86.3% published combined ratio and the spike seen in its net investment income.
“In this period of economic uncertainty and financial market volatility, Chubb’s business model, capabilities, and ability to deliver provide both a safe haven and long-term growth opportunity for shareholders,” he said. “We grew per share operating earnings 15% on the back of record core operating income.
“With US$1.2 billion in underwriting income and a world-class combined ratio, our P&C underwriting performance was simply excellent in what was an active quarter for natural catastrophes. Excluding CATs, our underlying current accident year combined ratio was a record 83.4%.”
He added that total company net written premiums increased 16.6%, which included growth of 11% in its P&C business and 129% in its life division. Growth was balanced and broad-based, he said, with double-digit results in North America, Europe and Asia. Meanwhile, in Chubb’s retail international operations, pricing was up about 8%.
“In sum,” Greenberg said, “we had a strong start to the year with good momentum heading into the second quarter. Overall, the fundamentals for our business are excellent. Looking forward, we are confident in our ability to continue growing revenue and operating earnings, which in turn drive EPS, through the three engines of P&C underwriting income, investment income, and life income.”
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