Chubb Q2 2019 profits slip slightly; CEO Greenberg highlights improved pricing environment

The second quarter of 2019 was about "growth and pricing" for Chubb chief executive officer Evan Greenberg, who noted that the company benefited from an improved pricing and underwriting environment.

The property/casualty insurer reported net income for the quarter ended June 30, 2019 of $1.15 billion, or $2.50 per share, which is slightly down compared with $1.29 billion, or $2.76 per share, for the same quarter last year.

Gross written premiums for the group rose to $10.35 billion for the second quarter, compared with $9.93 billion in the same period of 2018.

The P&C combined ratio was 90.1 percent, up from 88.4 percent prior year.

"Chubb had a very good second quarter, with core operating income of $2.60 per share, excellent underwriting results and strong premium revenue growth," said Greenberg.

"We benefited from an improved pricing and underwriting environment, flight to quality from commercial insurance buyers, and our various global growth initiatives. Pricing continued to tighten in the quarter while spreading to more classes and segments of business, particularly in the U.S. and London wholesale market. We're also seeing early signs that market-firming conditions are spreading to more territories around the world."

He added: "Our P&C combined ratio was 90.1% and our current accident year combined ratio excluding catastrophe losses was 88.9% – both world-class. Book and tangible book value per share increased 3.2% and 4.7%, respectively, in the quarter, benefiting from both earnings and unrealized gains from falling interest rates. P&C net premiums written were up 6% in constant dollars, with strong growth of 6% in our North America commercial insurance operations and 9% in our Overseas General division.

"In sum, this quarter was about growth and pricing, and we have good momentum. Our organization is executing at a high level and we are confident in our ability to outperform."

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