Chubb 'firing on all cylinders' to capitalise on robust commercial P&C market
Property/casualty insurer Chubb is "firing on all cylinders" to capitalise on growth prospects in a robust commercial P&C pricing environment that its chief executive Evan Greenberg (pictured) believes is here to stay. The company has swung back to profit after plunging to a massive loss in the prior year quarter.
Chubb generated a strong net profit of $2.27 billion in the second quarter of 2021, versus a net loss of $331 million in Q2 2020. For the first six month of 2021, its net profit jumped to $4.57 billion, compared with a net loss of $79 million in the prior year period.
The insurer's gross premiums written rose to $11.86 billion Q2 2021, compared with $10.04 billion in the same quarter of 2020. The GWP for the six months ended June 30, 2021 came in at $22.4 billion, up from $19.8 billion reported in H1 2020.
The insurer highlighted that it saw the best organic P&C growth in over 15 years as net premiums written soared 15.5 percent globally for the quarter and 12.6 percent for the first six months, powered by commercial lines.
The P&C combined ratio also improved to 88.6 percent for the six months of 2021, compared with 101 percent in the prior year.
Greenberg, chairman and CEO of the company said that " Chubb had simply an outstanding quarter, highlighted by record core operating earnings and underwriting results. We produced the best P&C premium revenue growth globally in over 15 years, powered by our commercial P&C businesses and supported by continued robust commercial P&C pricing."
He noted that Chubb is "capitalising on a strong commercial P&C pricing environment in most all important regions of the world. Overall rates increased in our North America and international commercial P&C businesses by 13.5% and 16%, respectively, and were well in excess of loss costs. From everything we see today, I am confident these market conditions will continue."
Greenberg concluded saying that the company "is firing on all cylinders – we are growing our business while we continue to expand underwriting margins. We will continue to outperform and deliver strong, sustainable shareholder value."
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