Chubb’s premiums, profit up in Q3

Chubb Ltd. posted third-quarter net income of $2.32 billion, up 13.8% from the year-earlier period as property/casualty net premiums written rose 5.4% to $13.8 billion.

Global property/casualty net premiums written, which excludes agriculture, rose 7.6% to $10.9 billion, with commercial premiums up over 8%, the insurer said in its earnings statement released Tuesday after markets closed.

Premiums in North America were up 7.8%, including 7.2% growth in commercial, with property/casualty lines up 9.9% and financial lines down about 5%.

Property/casualty underwriting income rose 11.7% to $1.46 billion as the insurer’s  combined ratio improved to 87.7% from 88.4% in the year-earlier period.

Net investment income rose 14.8% to $1.51 billion.

Pre-tax catastrophe losses were $765 million, including $250 million from Hurricane Helene, compared with $670 million in last year’s third quarter.

Pricing in the commercial property/casualty markets remained similar to prior quarters, according to Evan G. Greenberg, chairman and CEO of Chubb.

“Market trends were consistent with those of the previous quarter. Overall conditions are favorable in both property, which is incrementally more competitive in certain areas, and casualty, which is incrementally firmer,” Mr. Greenberg said on a Wednesday morning earnings call.

Loss cost inflation remains steady and within what Chubb has contemplated in its pricing and reserving, Mr. Greenberg said. “Pricing for both remains ahead of loss costs; property has become more competitive in the large account and E&S segments, while middle-market property pricing was in fact up over prior quarter,” Mr. Greenberg said.

Chubb’s property book is “well priced” with terms and conditions steady from prior quarters, he said.

Casualty “is firming in areas that need rate,” with casualty rate and price up over the year-earlier quarter, Mr. Greenberg said, adding that Chubb sees this trend “enduring.”

Financial lines in North America were down about 5%, according to Mr. Greenberg.

The Chubb CEO added that the insurer wrote $1.2 billion of new business in the quarter, up 18% over the year-earlier period.