Chubb Limited has published its third-quarter results in a Form 8-K filing with the SEC, and the company’s release is the source of every figure in this article.
In that release, Chubb states that P&C underwriting income was $2.06 billion, with a combined ratio of 84.1%. The same document reports that For the nine months, net income and core operating income were a record $8.02 billion and $8.60 billion, respectively, up 12.9% and 21.0%; this article follows the release segment by segment and attributes each figure to the Chubb Limited filing.
Group and P&C Net Premiums Written
Chubb Limited filed the results as Exhibit 99.1 to its Form 8-K, and the headline of the third-quarter results release reads “Chubb Reports Third Quarter Per Share Net Income and Record Core Operating Income…”. The release starts its account of premiums at group level, and Chubb Limited is the company that issued it. The filing is public on the SEC website, where it can be consulted in full.
At that level, Chubb reports Consolidated Net Premiums Written of $15.1 Billion, Up 1.9%, with P&C and Life Insurance Up 1.9% and 1.4%. The company gives the property and casualty business its own figure as well, stating that P&C net premiums written were $13.18 billion, up 1.9%.
The life business is reported separately in the release, which says that Life Insurance net premiums written were $1.96 billion, up 1.4%, or 3.7% in constant dollars. Taken together, these are the group, P&C and Life Insurance premium lines that Chubb Limited sets out in its own words for the third quarter.
For readers who follow Chubb’s use of reinsurance, InsuraBeat’s earlier coverage of Chubb’s reinsurance use is available separately.
North America Commercial Down, Overseas General Up
The release then turns to the segments, beginning with North America. For the commercial business, Chubb states that North America Commercial was down 2.7%, or up 1.7% excluding large account property including E&S and financial lines underwriting related exposure changes including additional reinsurance. That statement concerns the North America Commercial segment, which the company names in the release.
Chubb reports on two further North American lines in the same release, naming each one in its own sentence. For personal insurance, the company says that North America Personal was up 5.3%. For agriculture, it says that North America Agriculture was up 5.1%. Both statements come from the same Chubb release.
Outside North America, the release covers Overseas General. Chubb reports that Overseas General was up 6.7%, or 5.2% in constant dollars. The release then breaks the Overseas General result down, stating that Consumer insurance was up 7.2% and commercial insurance was up 6.3%; Latin America, Asia and Europe were up 11.7%, 7.5% and 6.8%, respectively. Those lines belong to the Overseas General segment named in the release.
For readers who follow other insurers’ reporting, InsuraBeat has separate coverage of a Travelers filing for the same reporting period. For readers who follow the broking side of the market, InsuraBeat has separate coverage of a broker’s quarterly earnings.
Underwriting Income, Catastrophe Losses and Prior Period Development
On underwriting, the Chubb release on the SEC website includes a nine-month figure for the P&C business. The company states: For the nine months, P&C underwriting income was $5.79 billion, up 33.7%, and was $6.39 billion, up 6.1%, on a current accident year excluding catastrophe losses basis. That passage concerns P&C underwriting income for the nine months.
Chubb also reports on catastrophe losses in the release. The company states that Total pre-tax net catastrophe losses were $705 million compared with $285 million in the prior year. It reports on prior period development in the same way, stating that Total pre-tax favorable prior period development was $511 million compared with $361 million in the prior year. Chubb describes both items as pre-tax in the release.
Earnings, Life Insurance, Investment Income and Capital Returned
On earnings for the third quarter, the release reports that Net income was $2.84 billion, up 1.5%, and core operating income was $2.98 billion, down 2.2%. On the life side, Chubb states that Life Insurance segment income was $369 million, up 11.4%, or 14.7% in constant dollars, with International Life income up 7.0%, or 10.9% in constant dollars. That passage concerns the Life Insurance segment and International Life.
The release also covers investment income, again with figures stated by Chubb Limited itself. Chubb reports that Pre-tax net investment income was $1.79 billion, up 8.6%, and adjusted net investment income was $1.89 billion, up 6.3%. Those two measures of investment income are both given in the release.
Returns on equity are listed as well. Chubb states that Annualized return on equity (ROE) was 15.3%. The company then adds that Annualized core operating return on tangible equity (ROTE) was 21.6% and annualized core operating ROE was 14.9%. The release thus gives more than one return measure.
The last item in this account of the release concerns capital, a subject Chubb addresses in its own wording. Chubb Limited states that Total capital returned to shareholders in the quarter was $1.57 billion, comprising share repurchases of $1.18 billion at an average purchase price of $344.32 per share and dividends of $393 million. The details of this filing with the SEC are available on the SEC website, together with the full text of the release from Chubb Limited.
