Chubb Ltd. on Tuesday reported third-quarter net income of $ 1.83 billion, up 53.5% from $ 1.19 billion in the previous quarter, as double-digit growth in commercial lines premiums boosted sales results.
Net premiums written rose 16.9% to $ 9.9 billion, as underwriting income jumped 57.5% to $ 617 million.
“The strong trade pricing environment continues to exist in nearly every region of the world,” Chubb chief executive officer Evan G. Greenberg told analysts on a earnings conference call on Wednesday.
Net commercial written premiums increased 22% to $ 7.430 billion and the insurer’s combined ratio improved to 93.4% from 95.2% a year earlier, even as claims related to catastrophes increased to $ 1.15 billion from $ 925 million in the third quarter of 2020.
P&C net written premiums in North America increased 17.1% and global P&C growth was 17%, Greenberg said.
New business and strong retentions also helped boost the quarter. Mr Greenberg said new business was up 13% and retentions remained around 97%.
The large accounts and specialties business grew 15.5%, while the accounts of medium and small businesses grew by more than 18%, he said.
Overall rates in North America have increased by more than 12%, Greenberg said. Among large accounts, rates rose by just over 13%. General accident rates increased by around 21% and financial line rates increased by 17%.
The third quarter included Hurricane Ida pre-tax losses of $ 806 million in what Greenberg called “an active quarter for natural disasters.” He said it was shaping up to be another year of significant weather events, which he called “kind of a new normal”.
Despite the high cat losses, Greenberg said Chubb’s 14.2% three-quarter organic growth was “the strongest organic growth since 2004”.
Third quarter net investment income increased 3.1% to $ 866 million.
Mr. Greenberg was optimistic about Chubb’s near-term outlook, saying: âGrowth and margin expansion are two trends that will continue.