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Jun 30, 2022
Chubb Q2 2022 Earnings Report
Chubb's second quarter performance was marked by record core operating income and a strong P&C combined ratio.
Key Takeaways
Chubb Limited reported a decrease in net income but a record core operating income for the second quarter of 2022. The P&C combined ratio was a record 84.0%, and P&C net premiums written were up 9.0%. The company also completed the acquisition of Cigna’s accident and health (A&H) and life business.
Net income was $1.22 billion, while core operating income reached a record $1.79 billion.
Consolidated net premiums written increased by 7.9%.
P&C underwriting income was a record $1.44 billion, resulting in a record P&C combined ratio of 84.0%.
Pre-tax net investment income was $888 million, and adjusted net investment income was $950 million, both records.
Chubb
Chubb
Chubb Revenue by Segment
Chubb Revenue by Geographic Location
Revenue by Segment
Overseas General Revenue
CapyFin.comRevenue by Geographic Location
North America P&C Revenue
CapyFin.comOverseas General Revenue
CapyFin.com Forward Guidance
Chubb is optimistic about its future prospects, driven by commercial P&C growth and pricing, increasing investment income, accelerating consumer lines growth, and the addition of Cigna’s business in Asia.
Positive Outlook
- Commercial P&C growth and pricing remain strong.
- Investment income is increasing due to rising rates and strong cash flow.
- Consumer lines growth is accelerating globally.
- Life company revenue and earnings will benefit from the addition of Cigna’s business in Asia.
- These factors will continue to drive strong EPS growth.
Challenges Ahead
- Unfavorable foreign currency movement negatively impacted P&C net premiums written growth by 2.0 percentage points.
- Strength of the dollar impacted published growth.
- Net income in the quarter was adversely impacted by realized losses of $565 million after tax, principally due to the mark-to-market impact on private and public equities and from sales in fixed income securities.
- Book value was unfavorably impacted by after-tax net realized and unrealized losses of $4.91 billion in the company’s investment portfolio, principally due to the mark-to-market impact from rising interest rates in the fixed income portfolio.
- The company is mindful of the world around us.