Chubb Ltd. reported fourth-quarter net income of $1.31 billion, down 38.7% year-over-year, as earnings were negatively impacted by net realized losses of $363 million after tax, primarily due to the retail market impact. shares, the insurance company said in its earnings statement released on Tuesday after markets closed.
Group net premium income was $10.2 billion, up 11.9% from Q4 2021. Property/Casualty net income increased 5.9%, with 10.4% for commercial offerings. North America net premium income increased 9.7%, with growth of 10.8% in commercial lines.
Net investment income before tax was $1.05 billion, an increase of 24.8%.
Chubb’s total expense ratio was 88.0%, compared to 85.5% in the fourth quarter of 2021
. Excluding agriculture, it was 85.9%, compared to 85.4% last year, as it included a true-up to forecast full-year crop insurance results that reflecting late-season developments that produced an insured loss of $107 million in North American agriculture.The fourth quarter’s pretax catastrophe losses were $400 million, compared to $275 million a year earlier.
Chubb Chairman and CEO Evan G. Greenberg, speaking on the insurer’s earnings call Wednesday morning, said property/casualty premium growth and results for the quarter were “balanced and broad-based,” with contributions from virtually all businesses globally.
In North America, growth in commercial lines was led by Chubb’s large accounts and specialty division, which grew 9.1%, followed by middle market and small commercial business, which grew 8.7%. Retail commercial growth was led by Latin America, with premiums up nearly 13%, Mr. Greenberg.
Renewal retention for commercial retail businesses was over 96%, Greenberg said.
In the commercial property/casualty environment, pricing continues to be “favorable” across most industries, Greenberg said. He said additional charges are required in most lines “primarily to keep pace with loss costs, which are hardly benign in both long and short lines.”
For the full year, net income was $5.31 billion, down 61% from $8.54 billion in 2021.
Full-year consolidated net premiums were $41.8 billion, an increase of 10.3%. Net premium income for property/casualty increased 7.7%, with 11.0% for commercial offerings. North America was up 9.7%, with 10.6% growth in commercial lines.
The overall total property/casualty ratio for the full year was 87.6%, compared to 89.1% in 2021. Property/casualty revenue of $4.6 billion was a record and up 23% from 2021, Greenberg said on the call .
Full-year net investment income before taxes was $3.74 billion, up 8.3% and a record, Chubb said.
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