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Sep 30, 2020
Chubb Q3 2020 Earnings Report
Chubb's net income and core operating income decreased, impacted by significant catastrophe losses, but supported by underwriting margin improvement.
Key Takeaways
Chubb reported a decrease in core operating income despite growth in P&C net premiums. The company experienced significant catastrophe losses but saw improvement in underlying underwriting margins.
Net income was $1,194 million, up from $1,091 million in the prior year.
Core operating income was $907 million, down from $1,236 million in the prior year.
Catastrophe losses were $925 million pre-tax, significantly higher than $232 million in the prior year.
P&C net premiums written increased by 6.4% in constant dollars, driven by commercial P&C growth.
Chubb
Chubb
Chubb Revenue by Segment
Chubb Revenue by Geographic Location
Revenue by Segment
North America P&C Revenue
CapyFin.comNA Commercial P&C Revenue
CapyFin.comNA Personal P&C Revenue
CapyFin.comNA Agricultural Ins. Revenue
CapyFin.comOverseas General Revenue
CapyFin.comRevenue by Geographic Location
Overseas General Revenue
CapyFin.com Forward Guidance
Chubb expects to continue capitalizing on the underwriting environment to grow EPS through both revenue growth and improved margins.
Positive Outlook
- Strong and continuously improving underwriting conditions in most all regions of the world.
- Growing exposures across the portfolio where they can get paid adequately to assume the risk and volatility.
- Achieving rates that exceed loss costs, leading to margin improvement.
- Expectation for global A&H and international personal lines divisions to begin to recover sometime in 2021.
- North America high net worth personal lines business benefiting from a flight to quality and grew about 3% in the quarter.
Challenges Ahead
- Continued struggle by many nations to address the impact of the COVID-19 pandemic.
- Record number of natural catastrophes for the insurance industry globally.
- Global pandemic continues to depress consumer activity.
- Premiums declined in global A&H and international personal lines divisions.
- High catastrophe losses impacted the combined ratio.
Revenue & Expenses
Visualization of income flow from segment revenue to net income