Chubb Ltd. the profit dumped $ 355 million for the fourth quarter of 2018, a decrease of more than 75% over the same period last year, when insurance losses exceeded expectations, but the insurer's business executives expressed optimism about rates increasing across multiple lines.
A large commercial and personal line insurance insurer in the United States, Chubb, suffered from wind disturbances and fires that led to disaster disaster losses of $ 1.6 billion, more than twice as much as the insurance company had planned during the quarter, said Evan G. Greenberg, Chairman and CEO of Chubb, at a Wednesday conference that discussed the results.
The tax service tax increased to $ 7.35 billion, an increase of 4.2% over the corresponding period last year. Chubb's combined ratio deteriorated to 93.1
Mr. Greenberg said rising interest rates led to improved investment income, which increased by 6.4% to $ 848 million for the fourth quarter.
Insurance prices also increased in the fourth quarter, he said.
In North America, interest rates were about 2.5% overall, and "renewal price changes, including exposure, were about 4%," Greenberg said. Prices for the risk management industry increased by less than 1%, but increased accident rates increased by 10%, real estate growth increased by 12% and public liability insurance interest rates increased by 8.5%.
Some international interest rates also increased, and Chubb saw premium increases in several regions, Greenberg says: "We benefited from our growth initiatives and improved price environment in some markets, especially in London and Australia."
Total international retail sales increased by 4%, "the best in a while, but concentrated in some countries and industries," he said. For example, international real estate rates increased by 5%, professional lines increased by 7% and Chubb's London-based wholesale business prices increased by 10%.
For the full year, Chubb's profit rose 2.6% to $ 3.96 billion and net premiums written increased to $ 30.58 billion, up 4.6% over 2017. Chubb's 2018 combined ratio improved to 90.6% compared to 94.7% in 2017.