Chubb reveals best full year on record as P&C UW profit swells to over 23%

Property and casualty insurer  Chubb has been affected by the risk and uncertainties in the global operating environment but is now “firing on all cylinders”, having generated what it claims as its best full-year financial results on record. The company’s CEO Evan Greenberg (pictured) said it is staying on top of inflation in both pricing and reserving, and reinvesting cash flow at “substantially” higher rates.

The Zurich-based company turned a net profit of $1.31 billion in the fourth quarter and $5.31 billion in the full year 2022. The full year profit was 37.8% lower than the $8.54 billion seen in the prior year. The company said its book value was “unfavourably impacted” by after-tax net realised and unrealised losses of $10.92 billion in its investment portfolio, principally due to the mark-to-market impact from rising interest rates in the fixed income portfolio.

Chubb's full-year consolidated net premiums written were $41.8 billion, up 10.3% on the prior year.

In P&C business, net premiums written were up 7.7% with commercial lines up 11.0% and consumer/personal lines up 8.4%. North America grew 9.7%, with growth of 10.6% in commercial lines and 6.2% in personal lines, and overseas General was up 3.2%, with growth of 11.8% in commercial lines and 10.8% in consumer lines.

The P&C underwriting profit was a “record” $4.56 billion, up 23.2%, leading to a P&C combined ratio of 87.6% compared with 89.1% prior year.

Greenberg, chairman and chief executive officer of Chubb, said: "We had a strong quarter which contributed to the best full-year financial performance in our company's history. Our quarterly results included record net investment income, double-digit premium growth, and an excellent underwriting performance with an 88% combined ratio despite a true-up to our annual agriculture results reflecting a below-average crop year. Per share core operating earnings were $4.05 for the quarter and a record $15.24 for the year. Crop insurance results were 39 cents per share less than expected.

Greenberg expects pricing conditions in commercial P&C to “remain favourable”, with the vast majority of its portfolio getting good risk-adjusted returns. He insisted “we are staying on top of loss cost inflation.”

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