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10-QPeriod: Q3 FY2017

Chubb Ltd Quarterly Report for Q3 Ended Sep 30, 2017

Filed November 1, 2017For Securities:CB

Summary

Chubb Limited reported a net loss of $70 million for the third quarter of 2017, a significant shift from the $1.36 billion net income in the same period last year. This was heavily impacted by substantial catastrophe losses, totaling $1.89 billion pre-tax, primarily from Hurricanes Harvey, Irma, and Maria, and earthquakes in Mexico. Despite these catastrophe losses, the company's P&C combined ratio, excluding catastrophes and favorable prior period development, remained stable at 88.5%. Net premiums written showed growth across most segments, up 4.3% year-over-year, indicating continued underlying business strength. The company continued its share repurchase program, buying back approximately $707 million in shares through the first nine months of 2017. The company's financial position remains solid, with total assets of $168 billion and shareholders' equity of $50 billion as of September 30, 2017. The company also has a robust liquidity position and access to a $1.0 billion credit facility.

Financial Statements
Beta
Revenue$8.61B
Net Income-$70.00M
EPS (Basic)$-0.15
EPS (Diluted)$-0.15
Shares Outstanding (Basic)466.37M
Shares Outstanding (Diluted)466.37M

Key Highlights

  • 1Net loss of $70 million for Q3 2017, compared to a net income of $1.36 billion in Q3 2016, largely due to significant catastrophe losses.
  • 2Total pre-tax catastrophe losses were $1.89 billion, mainly from Hurricanes Harvey, Irma, and Maria, impacting the P&C combined ratio to 110.8%.
  • 3Net premiums written increased by 4.3% to $7.9 billion for the quarter, showing continued underlying business growth across most segments.
  • 4P&C combined ratio, excluding catastrophe losses and favorable prior period development, was a stable 88.5% for Q3 2017.
  • 5Share repurchases totaled $707 million for the first nine months of 2017, demonstrating a commitment to returning capital to shareholders.
  • 6Total assets stood at $168 billion and shareholders' equity at $50 billion as of September 30, 2017, indicating a strong financial position.
  • 7Net investment income increased by 9.8% to $813 million for the quarter, reflecting a growing invested asset base and higher yields.

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