Chubb has said its reported net income for Q1 2022 was $1.97bn, after falling from $2.3bn in the previous year.
Other figures released by the insurer were that P&C combined ratio was 84.3% compared to 91.8% prior year, and the current accident year P&C combined ratio excluding catastrophe losses was 83.5% compared to 85.2% prior year. Book and tangible book value per share decreased 4.4% and 6.8%, respectively, from December 31, 2021 and now stand at $133.82 and $87.93, respectively.
The firm said that book value was unfavourably impacted by after-tax net realised and unrealised losses of $3.57bn in the company’s investment portfolio, principally due to the mark-to-market impact from rising interest rates in its fixed income portfolio. The mark-to-market impact resulted in an unrealised loss position of $1.58bn by March 31, 2022, compared with an unrealised gain position of $2.26bn at December 31, 2021.
Evan G. Greenberg, chairman and CEO of Chubb, said that the firm was off to a great start to the year and he remained optimistic and confident in its ability to perform.
He added: “We had an excellent start to the year with record operating earnings and underwriting results, double-digit commercial premium growth accompanied by rate increases in excess of loss cost, and growing momentum in our consumer businesses globally. Core operating income per share of $3.82 was up 52%, P&C underwriting income more than doubled, and our P&C combined ratio was 84.3% – all records.”
Greenberg said that global P&C premiums, excluding agriculture, increased 10.7% in constant dollars over the quarter, with commercial up by 12% and consumer up by 8%.
He went on: “Commercial premiums excluding agriculture increased 10.5% in North America and 13.6% in our international operations. Commercial P&C rates, which increased 8.7% and circa 10%, respectively, in our North America and international businesses, continue to exceed loss costs. Agriculture premiums were down in the quarter simply because of a return in premium to the government based on profitability last year and how revenue and losses are shared – a formulaic process.”
Greenberg said that international consumer lines show recovering growth, with personal premium lines up 10%. Personal accident and supplemental health premiums, he added were up 8.6% in constant dollars. US high net worth personal lines was up by 7.4%.
He added: “On the asset side of the balance sheet, adjusted net investment income was just over $900 million for the quarter. Given rising interest rates and widening spreads, we expect investment income to increase from here.”
