Chubb profit surges on double-digit premium growth

Chubb Ltd.’s fourth-quarter profit soared to $3.30 billion, up 151.7% from the year-earlier period on double-digit premium growth and a billion-dollar tax provision.

The insurer reported Tuesday after markets closed that property/casualty net premiums written rose 12.5% to $10.146 billion and total net premiums written increased 13.4% to $11.596 billion.

Investment income grew 30.2% to $1.37 billion, and the company realized in the quarter a one-time tax benefit of $1.14 billion related to the enactment of Bermuda’s new income tax law.

Pre-tax catastrophe losses dropped to $300 million from $400 million in the fourth quarter of 2022, and Chubb’s property/casualty combined ratio improved to 85.5% from 88.0%.  

Evan G. Greenberg, chairman and CEO, said on Chubb’s Wednesday morning earnings call that “the pattern was the same” in its North America and international divisions as commercial property/casualty rate increases exceeded loss cost trends.

Mr. Greenberg added that Chubb is confident in its ability to continue double-digit growth “through P&C revenue growth and underwriting margins.”

For all of 2023, net income rose 72.1% to $9.028 billion.

Property/casualty net premiums written increased 9.9% to $41.896 billion, while consolidated net premiums written rose 13.5% to $47.361 billion.

Chubb’s yearly combined ratio improved to 86.5% from 87.6% in 2022, and net investment income jumped 31.9% to $4.94 billion.