Chubb Ltd. reported net income for the first quarter of $ 1.97 billion, a decrease of 14.2% from $ 2.30 billion over the same period last year.
Net property / accident premiums increased 7.1% to $ 8.613 billion in the first quarter, as commercial real estate / accident premiums rose 7.9% to $ 6.157 billion, Chubb said in his earnings report released on Tuesday after the stock market closed.
Total net premium income increased by 6.2% to $ 9.199 billion.
Net premiums written in North America increased 6.8% in the first quarter to $ 5.281 billion, and commercial premiums increased 6.7% to $ 3.934 billion.
Chubb’s total expense ratio for the first quarter improved to 85% from 91.9% in the first quarter of 2021. Net investment income decreased by 4.8% to $ 822 million from $ 863 million during the same period last year.
Evan G. Greenberg, chairman and CEO of Chubb, noted the decline in investment income, said on Wednesday during a results conversation with analysts that rising interest rates should strengthen future profits.
“Given rising interest rates and rising spreads, we expect investment income to increase from here,” Greenberg said.
Global property / accident premiums were led by a 12% increase in commercial premiums, Greenberg said. Commercial property / accident premiums for North America excluding agriculture rose by 10.5%, he said.
Total prices on North America’s commercial lines increased by 8.7%, with real estate by 9.1%, general accidents by 15.5% and financial lines by 13.9%.
When it comes to commercial real estate / accidents, “the level of interest rate hikes remains strong and naturally dampens when individual portfolios achieve adequacy,” Greenberg said. “Overall, interest rate hikes remain above observed and estimated loss costs,” he added.