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Sep 30, 2022
Chubb Q3 2022 Earnings Report
Chubb's Q3 2022 performance was marked by growth in core operating income and premiums, offset by catastrophe losses and investment losses.
Key Takeaways
Chubb Limited reported a decrease in net income but an increase in core operating income for the third quarter of 2022. The company's P&C business saw premium growth, but results were impacted by significant catastrophe losses, particularly from Hurricane Ian. The acquisition of Cigna’s Asia business drove substantial growth in the Life Insurance segment.
Net income decreased to $812 million, or $1.94 per share, compared to $1.83 billion, or $4.18 per share, in the prior year.
Core operating income increased by 15.1% to $1.33 billion, or $3.17 per share, up 20.1% compared to the prior year.
Consolidated net premiums written increased by 14.4%, or 17.3% in constant dollars, with P&C up 11.2%.
The P&C combined ratio was 93.1%, including catastrophe losses of $1.2 billion, with $975 million from Hurricane Ian.
Chubb
Chubb
Chubb Revenue by Segment
Chubb Revenue by Geographic Location
Revenue by Segment
Overseas General Revenue
CapyFin.comLife Insurance Revenue
CapyFin.comRevenue by Geographic Location
Overseas General Revenue
CapyFin.com Forward Guidance
Chubb anticipates continued EPS growth, driven by P&C business growth and underwriting margins, increased investment income, and contributions from life insurance businesses in Asia.
Positive Outlook
- Capitalizing on rising interest rates with an average reinvestment rate of 5.8%.
- Adjusted net investment income reached a record $1.1 billion, up over 12%.
- Commercial P&C pricing remained strong and exceeded loss costs.
- Focus on managing inflation through pricing and reserving strategies.
- Expectations for continued healthy EPS growth.
Challenges Ahead
- Operating in a challenging economic and geopolitical environment.
- Strength of the dollar impacted published growth.
- Book value per share and tangible book value per share decreased from June 30, 2022.
- After-tax foreign currency movement further reduced book value and tangible book value.
- Net income in the quarter was adversely impacted by realized losses of $502 million after tax.
Revenue & Expenses
Visualization of income flow from segment revenue to net income