Chubb said first quarter 2022 net income fell to $1.97 billion compared with $2.3 billion during the same time a year ago but property/casualty underwriting income during the period shot up 106% to a record $1.3 billion.
The P/C combined ratio for the first quarter was 84.3 compared with 91.8 the prior year. The P/C underwriting income and combined ratio results were each records, Chubb said.
CEO Evan Greenberg said Chubb achieved “double digit commercial premium growth accompanied by rate increases in excess of loss cost, and growing momentum in our consumer businesses globally.” Commercial premiums increased 10.5% in North America and 13.6% in international operations. Results excluded the agriculture business, which returned $161 million of premium to the federal government under a profit-sharing agreement, Chubb said.
Net premiums written in global P/C went up 8.8% versus the first quarter 2021.
“In our international consumer lines, growth is steadily recovering, with personal lines premiums up 10% and personal accident and supplemental health premiums up 8.6% in constant dollars. Our U.S. high net worth personal lines business had an excellent quarter, with growth of 7.4%,” Greenberg added in a statement.
Net investment income was $822 million, a drop from $863 million during the first quarter the prior year.
First quarter pretax P/C catastrophe losses were $333 million compared with $700 million for the first quarter 2021. Catastrophe losses included $138 million from storms in Australia and $65 million from Colorado wildfires.
During a conference call with financial analysts, Greenberg said Chubb’s incurred losses from the Russian-Ukraine war are “de minimis,” adding that the conflict is a “human tragedy of epic proportions with profound geopolitical implications.” The CEO said losses may develop over time but the war will “not represent a meaningful event for Chubb.”
CFO Peter Enns said the company’s Russian entities have been separated operationally and deconsolidated; therefore, Chubb’s financial results during the first quarter include a realized loss of $87 million.
Asked if Chubb has seen any cyber claims tied to the conflict, Greenberg said Russia has for a number of years been a threat to the U.S., especially when it comes to ransomware. The risk “hasn’t abated and it hasn’t increased from what we see,” he said.
“There are certain changes of patterns that I won’t go into but, overall, it was a hostile environment and it continues to be,” Greenberg said. “We haven’t seen anything systemic.”
