Chubb ploughing through 2023 reinsurance renewals with no change in stance

Chubb is ploughing through the 2023 reinsurance renewals with little or no changes in its programmes that rivals have needed to adapt to the hard reinsurance market, CEO Evan Greenberg (pictured) claimed Wednesday.

“No material change,” Greenberg told his company's Q1 earnings call of the reinsurance stance.

Chubb has been naturally protected from some of the forces that have pushed rivals out of low retentions during the current hard market, having never overused reinsurance cover, he indicated.

“We take a lot of risk net and we really don't buy reinsurance for earnings protection so much,” Greenberg told analysts. “We buy it more for the balance sheet protection.”

“That has been a steady policy of ours and we maintain it regardless of cycle.”

Chubb's ratio of net premiums written to gross premiums written has inched up to 81% in Q4 2022 and Q! 2023 from 79% across the first three quarters of 2022.

Comments follow two sets of major reinsurance renewals in 2023 in which constrained reinsurance capacity has forced major rate increases, a hefty increase in cedent retentions and a shift away from some quota share and all-risk aggregate programs.

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