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 Highlights

37 data points
Beta

Revenue

$8.61B

Net Income

-$70.00M

-0.8% Net Margin

EPS (Diluted)

$-0.15

Total Assets

$167.58B

Cash & Equivalents

$1.09B

Free Cash Flow

$1.77B

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.

Frequently Asked Questions

The primary driver for the decrease in net income was a substantial increase in catastrophe losses, totaling $1.89 billion pre-tax in the third quarter of 2017, primarily due to major hurricanes (Harvey, Irma, Maria) and earthquakes in Mexico. These events significantly impacted underwriting results.

Chubb experienced solid premium growth, with net premiums written increasing by 4.3% to $7.9 billion for the third quarter of 2017 compared to the same period last year. This growth was observed across most of the company's business segments.

Excluding the impact of catastrophe losses and favorable prior period development, the company's P&C combined ratio remained stable at 88.5% for the third quarter of 2017. This indicates that the underlying underwriting operations are performing well.

Chubb continued its share repurchase program, buying back approximately $707 million of its common shares during the first nine months of 2017. This demonstrates the company's commitment to returning capital to shareholders and managing its capital structure.