Chubb records a 3.1% dip in Q1 net income

Net profit amounted to $1.89b.

Chubb has earned $1.89b in net profit from the January to March period.

This was 3.1% down from the same quarter of the previous year’s $1.95b. However, core operating income jumped 11.8% to $1.84b.

The net premiums written for property and casualty (P&C) increased by 9.3%, or 11.0% in constant dollars. 

Its commercial lines also saw growth of 11.5%, while consumer/personal lines saw an increase of 9.4%. By region, its Asia segment saw an increase of 18.6%.

The P&C's underwriting income was $1.21 billion, and the combined ratio was 86.3%, inching up from the previous year's ratio of 84.3%. 

However, the current accident year underwriting income, excluding catastrophe losses, climbed 7.2% to $1.48 billion, resulting in a record combined ratio of 83.4%, slightly higher than 83.5% previously.

Pre-tax and after-tax losses due to catastrophes amounted to $458m and $382m, respectively, which were higher than the previous year's losses of $333m and $290m, respectively.

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The net premiums written for Life Insurance saw a substantial surge of 124.4%, or 128.7% in constant dollars, amounting to $1.29 billion, primarily due to the growth of the business in Asia and the acquisition of the Cigna Asian business. 

Additionally, the Life Insurance segment recorded a segment income of $244 million, reflecting an increase of 102%.

Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb said was mainly driven by its Asia life operations.

“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." Greenberg said.