قالب وردپرس درنا توس
Home / Insurance / Chubb shows strong results on double-digit global premium growth

Chubb shows strong results on double-digit global premium growth



Chubb Ltd. made a profit for the second quarter from a loss in the previous year as it showed double-digit premium growth globally, driven by a strong commercial real estate / accident pricing environment.

Chubb's chairman and CEO Evan G. Greenberg told analysts during a salary interview on Wednesday that the company continues to benefit from "a tough or strengthening market" for commercial real estate / damage in most parts of the world. "Based on what we see today, I am convinced that these conditions will continue," he said.

Mr. Greenberg also said during the conversation that cyber is a fundamental issue that is about more than just interest, and that companies should be required to obtain permission from the Treasury to make ransomware payments.

On Tuesday, Chubb reported a net profit of $ 2.27 billion for the second quarter, compared to a net loss of $ 331

million over the same period in 2020. Its catastrophic losses before tax were $ 280 million – mainly from severe weather-related events in the US – against $ 1.81 billion during the same period last year

The insurer's total share of real estate / accidents during the second quarter was 85.5%, compared to 112.3% during the same period in 2020.

Net premiums increased by 14.3% to $ 9.55 billion, while real estate / accident premiums climbed 15.5% globally to $ 8.93 billion. This was driven by an increase of 19.9% ​​in net commercial premiums.

Mr. Greenberg said that Chubb continues to experience a "necessary and robust" pricing environment for commercial properties / accidents with "continued improvement compared to the previous year in exposure rate" on both new and renewal companies. interest rates rose by 13.5%, which was on top of a 14.7% rate hike last year for the same business, which took the two-year cumulative rate hike to more than 30%, he said.

"In North America, interest rates have been rising for almost four years. However, they have exceeded the loss costs for only about two years now, says Greenberg.

In larger accounts in North America, prices increased by approximately 16% during the second quarter, and risk management-related primary accident rates were up by almost 9%, while the general accident rate increased by 27%. Property prices increased by almost 12% and financial lines increased by almost 20%.

In surplus and surplus lines, wholesale prices increased by about 18%. Real estate interest rates rose by about 16.5%, the accident rate increased by about 21% and financial interest rates increased by more than 21%. Property prices increased by more than 10.5%, while the number of claims increased by 11%, excluding employee compensation. The level of employment compensation fell by half a percent and interest rates on financial lines increased by 17.5%.

In Chubb's international general insurance business, the United Kingdom and Australia excelled in raising interest rates, Greenberg said. In the UK, interest rates rose by 18% in the second quarter, while prices in Australia rose by 23%. London's wholesale prices rose by 13% during the quarter.

“The industry starts with a loss ratio that is quite high. In order to achieve a reasonable risk-adjusted return, it must continue to achieve a rate that exceeds the loss cost for a longer period of time, Greenberg tells analysts.

Cyber, like pandemics, has a disaster potential that has no time or geographical limit to it, he said. Chubb is beginning to address this in his insurance, but others have been "slow to respond," Greenberg said.

"While I do not think the government should ban ransomware payments right now, I think we should look at whether we allow cryptocurrency payments," he said.

to make a ransomware payment. "We should remove incentives from the ransomware attacks system that are about money," Greenberg said.

For the first half of 2021, Chubb reported a net profit of $ 4.57 billion, against a net loss of $ 79 million for the same period 2020.

The property / breakdown combination improved to 88.6% for the first half of the year, compared to 101% for the first half of 2020.

Catalog


Source link