Record Q4 at Chubb Ends Historic, ‘Blowout Year’

Record fourth quarter 2023 net income of $3.3 billion, a huge increase over net income of about $1.3 billion during the same period a year ago, ended what Chubb CEO Evan G. Greenberg called a “blowout year.”

Last year was the “best in our company’s history,” Greenberg added. Net income for the full year was up about 72% versus the prior year to about $9 billion.

Net income included a large, one-time tax benefit related to Bermuda income tax law, Chubb said. Without the benefit, Q4 net income was about $2.2 billion.

P/C underwriting income was also a record, said Chubb, at about $1.5 billion during the last three months of 2023—with a combined ratio of 85.5. Full-year P/C underwriting income came in at about $5.5 billion—20% more than the year prior. The combined ratio improved 1.1 points to 86.5.

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“In the quarter, continuing the trend we experienced all year, commercial P/C rates and price increases across the majority of our global portfolio were strong and exceeded loss costs, which were stable. Pricing in our P/C lines was up 12.4% in North America and 10.1% in our international retail business, while financial lines pricing globally continued to decrease led by public D&O,” Greenberg added in a statement. “At year-end, our loss reserves were in an exceptionally strong position – as strong as they have ever been.”

In Q4, P/C net premiums were up 12.5% to about $10 billion as consumer lines were up 20% and commercial P/C was up 10%. In North America, P/C premiums were up 9.4%. For Asia and both Europe and Latin America, P/C premiums in Q4 increased 37.2% and 15.4%, respectively.

Planned underwriting actions in large-account primary and excess casualty led to North America commercial P/C premium growth overall of 4.4%, with growth of 1.4% in Chubb’s major accounts division.