US P&C leader Chubb edges back to double digit growth, trims loss ratio

US P&C insurer  Chubb managed double digit top-line growth and a light compression of P&C combined ratios in the second quarter before Q2 market losses halved earnings on the bottom line.

“Our momentum and earning power are strong,” CEO Evan Greenberg said in comment to the results release, citing commercial P&C growth and pricing that remain “quite good.”

“Commercial P&C pricing changes remained strong and exceeded both our actual observed and future projected loss cost trends,” Greenberg said.

Gross written premium of $13.05 billion was up 10 percent year on year or 11.9 percent in fixed currency terms. After reinsurance, group net premiums written (NPW) were up 7.9 percent.

In P&C, NPW were up 9 percent, or 11 percent in constant dollars, driven by growth in commercial lines of 12.1 percent and consumer lines of 8 percent. Growth measured 10.9 percent in North America on 12.6 percent growth for commercial lines and 5.4 percent for consumer.

P&C underwriting income rose 21.1 percent to $1.4 billion as  Chubb hacked 1.5 percentage points (pps) off the P&C combined ratio to 84 percent vis-a-vis the prior year period. Loss expenses rose at an 8 percent annual rate, below the rate of top-line growth.

Excluding catastrophe and restricted to the current accident year, the gain looked even stronger. P&C underwriting income rose 23.5 percent as the combined ratio fell 1.9 percentage points to 83.5 percent.

Cat losses for the quarter of $291 million (pre-tax) accounted for 3.2 pps of the Q2 2022 combined ratio, within sight of the prior year's $280 million or 3.4 pps.

As throughout the industry, net income spoiled the picture as Q2 market mayhem delivered $565 million losses after tax. That left the group with net income of $1.22 billion versus $2.27 billion the year prior.

“We are bullish about our future prospects while mindful of the world around us,” Greenberg said by way of outlook. “We are in the risk business.”

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