Chubb’s core operating income also experienced significant growth, up 20.3% from the same quarter last year, totaling $2.22 billion. The insurer noted that both net income and core operating income were affected slightly by an incremental deferred tax benefit of $55 million due to Bermuda tax law changes, partially offset by a $30 million donation to the Chubb Charitable Foundation.
Consolidated net premiums across the group increased by 14.1% to $12.2 billion. In the P&C sector, net premiums written rose 12.4% to $10.6 billion, with Global P&C (excluding agriculture) seeing a 13% increase to $10.3 billion.
P&C underwriting income reached $1.4 billion, a 15.4% increase, while the P&C combined ratio stood at 86%. Chubb reported pre-tax and after-tax P&C catastrophe losses, net of reinsurance and including reinstatement premiums, of $435 million and $347 million respectively, compared with $458 million and $382 million in the same period last year.
The insurer highlighted pre-tax and after-tax favorable prior period development of $207 million and $168 million, respectively, compared with $196 million and $149 million in the previous year.
In Chubb’s global reinsurance segment, net premiums written rose 29.7% to $359 million, driven by continued growth in property catastrophe-exposed business.
Life insurance net premiums written increased by 26.3% to $1.63 billion, with segment income up 9.8% compared to Q1 2023. Life insurance net premiums written and deposits collected increased 39.4% to $2.23 billion.
In the first quarter of 2024, pre-tax net investment income reached $1.39 billion, a 25.7% increase, while adjusted net investment income grew 23.5% to $1.48 billion.
Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb, commented, saying: “We began the year with a simply excellent quarter. Core operating income was up double-digit, driven by P&C underwriting income up over 15% with a published combined ratio of 86%, investment income up more than 23%, and life insurance income up almost 10%. We produced double-digit premium revenue growth from across the globe with strong results in our commercial and consumer P&C and Asia life businesses.
“Core operating income and EPS were up over 20%, to $2.2 billion, and up nearly 23%, to $5.41, respectively. Earnings modestly benefited from two one-time items that partially offset each other. Adjusting for these, core operating income grew over 18.5%, with operating EPS up nearly 21% to $5.33. Our sources of earnings were well balanced and of an enduring quality: P&C underwriting income of $1.4 billion, driven by strong earned premium growth and great underwriting margins; adjusted net investment income of nearly $1.5 billion; and life segment income of $268 million.
“Total company net premiums written increased over 14% in the quarter, with total P&C up 12.5% and Life Insurance up over 26%. Global P&C premiums, which exclude Agriculture, increased 13.3%, with commercial lines up over 11% and consumer lines up 19.3%. Premiums in North America were up over 10%, while in our international retail P&C business, premiums in Asia, Latin America, and the Continent of Europe were up 34.7%, 17.5%, and 12.3%, respectively. Life Insurance premiums and deposits were up over 39%, driven, again, by our business in Asia.
“North America’s growth consisted of 12.3% in personal insurance, an outstanding result for our Chubb Personal Risk Services business, and about 9.5% growth in commercial, with P&C lines up 13% and financial lines down about 7.5%. Record new business of over $1.2 billion and strong policy count renewal retention of 84.7% add to the excellent results of our North America division and speak to the favorable market tone and our operating capability.
“The P&C underwriting environment in North America overall is quite favorable, financial lines aside, with pricing exceeding loss costs, which remained steady. From our large middle market business to small commercial to personal lines, and driven by both property and casualty, we saw the best rates and pricing overall that we have seen in the last four to five quarters. It was also one of the best quarters for large-account casualty rates and pricing.
“In our Overseas General division, both our consumer and commercial businesses performed well in the quarter. Asia was a standout, with consumer premiums up 46% and commercial premiums up 23%, supported by the consolidation impact of Huatai in China. Retail commercial P&C lines pricing across our international business was favorable and our portfolio is well priced.
“In sum, we had a very strong start to the year. Looking forward, we are confident in our ability to continue growing operating earnings at a rapid pace through P&C revenue growth and underwriting margins, investment income, and life income.”
