Catastrophe Losses Hinder Chubb Q1 Net Income

First quarter net income at Chubb Ltd. fell several percentage points to about $1.9 billion as catastrophe losses evened gains in premiums written.

P&C underwriting income was about $1.21 billion, down 5.5% from about $1.28 billion the prior year first quarter. The total P&C combined ratio came in at 86.3 for Q1, up two points from Q1 2022. Excluding catastrophe losses, Q1 P&C underwriting income was up 7.2% to about $1.48 billion and the combined ratio was relatively flat compared to the prior year, at 83.4.

The North America personal P&C segment turned in a Q1 combined ratio of 93.9 – 10.4 points higher than the year before. Half of the increase, Chubb said, was caused by higher catastrophe losses in the quarter. Catastrophe losses for the first three months were $458 million pre tax and $382 million after tax, compared to $333 million and $290 million, respectively, during the same time a year ago.

The remaining increase in the personal P&C combined ratio was mostly due to a release of reserves from Q4 2022 to account for loss activity “attributable to the indirect effects of COVID-related economic slowdown.”

Q1 consolidated net premiums written were up 16.6% to $10.7 billion. Net premiums in North America P&C were up 11.3% to about $5.88 billion.

Core operating income was up 11.8% to $1.84 billion.

“In sum, we had a strong start to the year with good momentum heading into the second quarter,” said Evan G. Greenberg, chairman and CEO. “Overall, the fundamentals for our business are excellent.”

Topics Catastrophe Profit Loss Chubb