Chubb Records 13.3% Uptick in Q1 Net Income on Underwriting

Chubb started 2024 off with first quarter net income up 13.3%, compared to the same time a year ago, to about $2.1 billion.

The first three months of 2024 followed a year Chubb CEO Evan G. Greenberg called the “best in our company’s history.” He called the first quarter “simply excellent.”

P/C underwriting income was up 15.4% to $1.4 billion on earned premium growth and underwriting margins. Consolidated net premiums written were up 14.1% to $12.2 billion.

“The P/C underwriting environment in North America overall is quite favorable, financial lines aside, with pricing exceeding loss costs, which remained steady,” said Greenberg, in a statement. “From our large middle market business to small commercial to personal lines, and driven by both property and casualty, we saw the best rates and pricing overall that we have seen in the last four to five quarters. It was also one of the best quarters for large account casualty rates and pricing.”

The combined ratio for P/C operations was 86 compared to 86.3 last year during the same period. The combined ratio for North America P/C was 85.6 compared to 86.1.

North America Commercial P/C operations recorded a Q1 combined ratio of 85.9 compared to 83.2 a year ago. The uptick was due to catastrophe losses and lower favorable prior year development. However, in North America Personal P/C, the combined ratio improved 6.5 points to 87.4 on higher favorable prior year development. Net premiums were up 12.3% for the personal insurance operations.

Greenberg said North America operations saw record new business of $1.2 billion in Q1 and renewal retention of 84.7%.

Chubb said total pretax prior development was $207 million compared to $196 million in Q1 2023.

Pretax net investment income for the first three months of 2024 was up 25.7% to about $1.4 billion.