Chubb breaks records in Q2 earnings
However, the P&C giant enjoyed record core operating income of $1.79 billion, or $4.20 per share, in the quarter, up from $1.62 billion, or $3.62 per share, in Q2 2021. This marks the end of a successful six months (H1 2022) for Chubb, with its core operating income reaching a record $3.43 billion, up 24.0% from H1 2021.
Chubb’s P&C underwriting income was a record $1.44 billion, up 21.1% from Q2 of 2021, leading to a P&C combined ratio of 84.0%, compared with 85.5% in the prior year quarter. The current accident year P&C combined ratio (excluding catastrophe losses) is 83.5%, compared to 85.4% in the prior year. Through H1 2022, Chubb’s P&C underwriting income was $2.72 billion (another record), and the P&C combined ratio was 84.2%.
“We had an outstanding quarter that reflects the strong momentum in our company: record operating earnings, underwriting and investment results, and double-digit premium revenue growth in constant dollars,” said Chubb chairman and CEO Evan Greenberg. “Commercial P&C pricing changes remained strong and exceeded both our actual observed and future projected loss cost trends.”
As indicated by Greenberg, Chubb saw strong growth in commercial P&C business globally, as well as growing momentum in consumer businesses. P&C net premiums written were up 9.0% in the quarter, or 11.0% in constant dollars, driven by growth in commercial lines of 12.1% and consumer lines of 8.0%.
In North America, P&C net premiums written were up 10.9%, driven by growth in commercial lines of 12.6% and consumer lines of 5.4%. Meanwhile, Chubb’s overseas general P&C net premiums written were up 5.7%, or 12.4% in constant dollars, including growth in commercial lines of 13.0% and consumer lines of 11.6%.
The insurer also enjoyed record pre-tax net investment income of $888 million and record adjusted net investment income of $950 million.
“We are bullish about our future prospects while mindful of the world around us,” Greenberg added. “We are in the risk business. Our momentum and earning power are strong, driven by commercial P&C growth and pricing that remain quite good; increasing investment income due to rising rates and strong cash flow; accelerating consumer lines growth globally; and life company revenue and earnings which will benefit from the addition of Cigna’s business in Asia. Together, these will continue to drive strong EPS growth.”