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Mar 31, 2021
Chubb Q1 2021 Earnings Report
Reported a strong first quarter with growth in commercial P&C lines and underwriting margin expansion.
Key Takeaways
Chubb Limited reported a significant increase in net income, driven by excellent commercial premium revenue growth and underwriting margin expansion. The company's core operating income remained strong despite an active quarter for natural catastrophes.
Net income was $2.30 billion, a significant increase from $252 million in the prior year.
Core operating income was $1.14 billion, compared to $1.22 billion in the prior year.
P&C net premiums written increased by 9.7% globally, with commercial P&C lines up by 15.6%.
The P&C combined ratio was 91.8%, compared to 89.1% in the prior year, but the current accident year combined ratio excluding catastrophe losses improved to 85.2%.
Forward Guidance
Chubb is focused on capitalizing on favorable underwriting conditions, growing exposure, and expanding margins to increase shareholder value.
Positive Outlook
- Capitalizing on favorable underwriting conditions.
- Growing exposure.
- Expanding margins.
- Increasing shareholder value.
- Seeing early signs of recovery in consumer lines.
Challenges Ahead
- Consumer lines globally remain impacted by the pandemic’s effects on travel and other business and consumer-related activity.
- Book value was unfavorably impacted by total after-tax net realized and unrealized losses of $737 million.
- Rising interest rates negatively affected the investment portfolio.
- The P&C combined ratio increased compared to the prior year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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