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Mar 31, 2020
Chubb Q1 2020 Earnings Report
Reported a decrease in net income per share and an increase in core operating income per share, with consolidated net premiums written up.
Key Takeaways
Chubb Limited reported a decrease in net income and an increase in core operating income for the quarter ended March 31, 2020. The company's results were affected by financial market volatility, but underwriting results remained strong with a P&C combined ratio of 89.1%.
Net income was $252 million, a decrease from $1,040 million in the prior year, while core operating income increased to $1,220 million from $1,170 million.
P&C net premiums written increased by 9.1%, or 9.5% in constant dollars, reaching $8.0 billion.
The P&C combined ratio was 89.1%, nearly unchanged from 89.2% in the prior year.
Pre-tax catastrophe losses amounted to $237 million, including $13 million related to the COVID-19 global pandemic.
Chubb
Chubb
Chubb Revenue by Segment
Chubb Revenue by Geographic Location
Revenue by Segment
NA Agricultural Ins. Revenue
CapyFin.comOverseas General Revenue
CapyFin.comRevenue by Geographic Location
Overseas General Revenue
CapyFin.com Forward Guidance
The company anticipates that the COVID-19 global pandemic will have a meaningful impact on revenue as well as net and core operating income in the second quarter and potentially future quarters due to an increase in insurance claims and recessionary economic conditions.
Positive Outlook
- Company is operating day to day at a very high level globally.
- Company is confident Chubb will weather this difficult time and emerge stronger.
- The company's balance sheet and liquidity remain strong.
- Chubb is doing its job to support its customers, employees and business partners.
- The company grew P&C premiums globally 9.3% in constant dollars.
Challenges Ahead
- The coronavirus is delivering a severe blow to the global economy.
- The length and depth of the economic impact are unknown.
- The pandemic will have a major impact on the global insurance industry in terms of both losses and revenue.
- Chubb expects its premium growth momentum to be impacted as insurance exposures in important areas shrink.
- There will be an increase in insurance claims due to both the pandemic and recessionary economic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income