Chubb upped commercial P&C growth in Q2 on accelerating rate

Chubb accelerated premium growth in commercial P&C, then held the line on key loss and expense ratios, which, combined with new weight in global life insurance, led to a 512% increase in net profits to $1.8 billion in Q2.

Net written premium growth at 16.8% in constant dollars proved “balanced and broad-based,” CEO Evan Greenberg (pictured) said of double-digit growth in North America commercial & retail P&C plus the massive add-on of Cigna's global life operations.

Global P&C growth of 10.9% in constant FX set a seven-quarter record including North America consumer business up 10.8% and commercial business up 10.5%, or 14% excluding financial lines.

Rate increases accounted for a heady portion of growth. North America commercial P&C accelerated to an 8.7% pace of rate growth, or 12.6% excluding financial lines. Mark commercial property up 22% and casualty up 8.9%.

“We have a lot of momentum heading into the second half,” Greenberg said. “As I look ahead, we remain confident in our ability to continue the pattern of growth in revenue and earnings, and, in turn, drive double-digit EPS growth.”

By line, net written premium grew 19.1% adjusted for property and other short-tail lines, just over 14% for commercial multi-perk and commercial casualty but shrank 2.3% for financial lines and 1.6% for workers compensation. Personal lines rose 9.2%.

P&C loss and expense ratios held the line, with all component readings with arm’s length of prior year period. Mark the Q2 combined ratio up 1.4 percentage points from Q2 2022.

Chubb showed little sign of the dramatic increase in cat loss seen at some rivals. $400 million in Q2 for 4.1 combined ratio points.

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