Chubb’s NA commercial premiums decline as competition increases

Chubb reported third-quarter net income of $2.84 billion, up 1.5%, while core operating income fell 2.2% to $2.98 billion as catastrophe losses increased. Core operating earnings per share rose 0.8% to $7.66.

Consolidated net premiums written increased 1.9% to $15.14 billion. North America commercial premiums declined 2.7% to $5.51 billion, reflecting reduced property and financial lines exposure, additional reinsurance and nonrenewals.

“While the market continues to grow more competitive in commercial P&C across the board, particularly in the U.S. and London, the substantial majority of our underwriting businesses grew in the quarter, with the balance flat or purposely shrinking due to inadequate pricing or terms.” – CEO Evan Greenberg.

North America personal lines premiums rose 5.3% to $1.91 billion, while Overseas General premiums increased 6.7% to $3.94 billion. Life insurance premiums grew 1.4% to $1.96 billion.

P&C underwriting income fell 8.8% to $2.06 billion, with the combined ratio increasing to 84.1% from 81.8%. Pre-tax catastrophe losses rose to $705 million from $285 million, partly offset by favorable prior-period reserve development of $511 million, compared with $361 million.

The current accident year combined ratio excluding catastrophes was nearly unchanged at 82.6%, versus 82.5%. Net investment income increased 8.6% to a record $1.79 billion.

For the first nine months, core operating income increased 21% to $8.60 billion. Chubb revised its definition of core operating income this quarter to exclude certain purchased-intangible amortization expenses and restated prior-period comparisons.