Chubb Q4 profit down amid higher catastrophe losses

Chubb Ltd. late Tuesday reported fourth-quarter net income of $2.58 billion, down 22% from $3.30 billion in the year-earlier period, as pre-tax catastrophe losses doubled.

Net premiums written increased 4.0% to $12.058  billion as global property/casualty net premiums written, excluding agriculture, were up 6.7% to $10.180 billion.

Property/casualty underwriting income rose 3.8% to $1.58 billion. The insurer’s combined ratio of 85.7% compared with 85.5% in the year-earlier period.

Pretax catastrophe losses were $607 million, including $309 million from Hurricane Milton, compared with $300 million in the fourth quarter of 2023.

Net investment income rose 14% to $1.56 billion.

Evan G. Greenberg, chairman and CEO of Chubb Ltd., on a Wednesday earnings call, first addressed the wildfire situation in California, saying Chubb’s exposure to the still unfolding catastrophe will be approximately $1.5 billion and that this will be a first quarter 2025 event.

Turning to the commercial rate environment, Mr. Greenberg said global property/casualty premiums rose 6.7%, with commercial lines up 6.4% and consumer up 7.5%, adding, “All regions of the world contributed favorably.”

Mr. Greenberg said that “market trends or themes were consistent with those of the previous quarter; property has grown more competitive … while pricing is favorable.” Casualty pricing, he said, “is stable or firming, depending on the class, and overall pricing is ahead of loss cost.”

Financial lines, particularly employment practices liability, “is where more competition is reaching for market share at the expense of current accident year underwriting margin,” Mr. Greenberg said.

“Overall, market conditions are favorable, and we see good growth opportunity” for the global property/casualty business, Mr. Greenberg said.

For full-year 2024, net income rose 2.7% to $9.27 billion.

Net premiums written increased 8.7% to $51.468 billion as global property/casualty net premiums written, excluding agriculture, rose 9.6% to $42.439 billion.

Property/casualty underwriting income climbed 7.1% to $5.85 billion. The combined ratio of 86.6% compared with 85.7% in 2023.

Pre-tax catastrophe losses for 2024 were $2.39 billion, compared with $1.83 billion in 2023.

Net investment income rose 20.1% to $5.93 billion.