Chubb expands as commercial P&C rates rise
Chubb is expanding the property/casualty (P&C) business as it takes advantage of price increases.
Net premiums written in P&C rose 5.6 percent year on year in the second quarter of 2018 to $7.5 billion. At the same time, global P&C net premiums written, which exclude agriculture, increased 6.1 percent to $7.1 billion over the period.
The US commercial and personal lines divisions as well as the Asia and Latin America P&C operations generated double-digit growth. Chubb has introduced a number of growth initiatives for example in the North American and international middle market and small commercial divisions. The insurer is also investing in its digital efforts to improve the firm’s competitive profile.
"We are taking advantage of market conditions that continue to improve in the US and some territories outside the US with commercial P&C price increases this quarter in those locations the best we've seen in some time,” said CEO Evan Greenberg. “We wrote more new business while renewing our customers at record retention levels. In sum, our organization is running on all cylinders and we're optimistic about our ability to continue to perform at a high level," Greenberg added.
The P&C combined ratio was 88.4 percent in the second quarter compared with 88.0 percent prior year. The P&C current accident year combined ratio excluding catastrophe losses was 88.1 percent compared with 87.5 percent prior year. P&C underwriting income was up 2.1 percent year on year at $824 million.
Overall, net income for the quarter ended June 30, 2018 was barely changed at $1.29 billion compared to $1.31 billion in the same period a year ago. Core operating income was $1.25 billion after $1.18 billion in the second quarter of 2017.
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