How did Chubb's underwriting performance change in the first quarter of 2018 compared to the prior year?

Chubb's P&C combined ratio increased to 90.1% from 87.5% year-over-year. This was primarily driven by higher catastrophe losses, which rose to $380 million pre-tax compared to $206 million in the prior year. Despite this, the current accident year P&C combined ratio, excluding catastrophe losses, improved slightly to 87.6% from 88.0%, indicating improved underlying underwriting performance.

What was the impact of catastrophe losses on Chubb's results?

Catastrophe losses were a significant factor in the first quarter of 2018, totaling $380 million pre-tax. These losses were higher than the $206 million experienced in the same period of the prior year and contributed to the increase in the P&C combined ratio. The most significant catastrophe events impacting the company during the quarter were Northeast winter storms and California mudslides.

How did Chubb's investment income perform during the quarter?

Net investment income increased by 8.2% to $806 million, compared to $745 million in the first quarter of 2017. This growth was primarily attributed to a larger invested asset base and higher earnings on short-term investments. The average yield on invested assets remained stable at 3.4%.

What actions did Chubb take regarding its debt and capital structure?

In March 2018, Chubb issued €1.8 billion ($2.2 billion) in Euro-denominated senior notes, consisting of €900 million of 1.55% notes due 2028 and €900 million of 2.5% notes due 2038. This issuance strengthened the company's capital position. Additionally, Chubb redeemed $1.0 billion of its unsecured junior subordinated capital securities in April 2018.

CB 10-Q Quarterly Report Q1 FY2018 — Revenue, Net Income, EPS

Summary

Chubb Ltd. reported net income of $1.082 billion for the first quarter of 2018, a slight decrease from $1.093 billion in the prior year period. Net premiums written saw a healthy increase of 5.9% to $7.1 billion, driven by growth across most segments, particularly in North America Commercial P&C and Overseas General Insurance. The company experienced higher catastrophe losses ($380 million pre-tax) compared to the previous year, contributing to a P&C combined ratio of 90.1%, up from 87.5% year-over-year. However, the current accident year P&C combined ratio, excluding catastrophe losses, improved slightly. Net investment income rose by 8.2% to $806 million, benefiting from a higher invested asset base and improved short-term investment earnings. Financially, total assets grew to $168.8 billion and shareholders' equity remained strong at $51.3 billion. The company issued new Euro-denominated senior notes totaling €1.8 billion ($2.2 billion) in March 2018, strengthening its capital position. While integration expenses decreased significantly, the company continues to focus on operational efficiency and underwriting profitability amidst a challenging catastrophe environment.

Financial Highlights

36 data points

Beta

Revenue

$7.83B

Net Income

$1.08B

0.1% Net Margin

EPS (Diluted)

$2.30

Total Assets

$168.78B

Cash & Equivalents

$1.99B

Free Cash Flow

$551.00M

Financial Statements

Beta

Revenue	$7.83B
Net Income	$1.08B
EPS (Basic)	$2.32
EPS (Diluted)	$2.30
Shares Outstanding (Basic)	465.70M
Shares Outstanding (Diluted)	469.47M

Key Highlights

1Net income for the quarter was $1.082 billion, a slight decrease of 1.1% compared to $1.093 billion in the prior year.
2Net premiums written increased by 5.9% to $7.1 billion, reflecting growth across most business segments.
3P&C combined ratio increased to 90.1% from 87.5% in the prior year, primarily due to higher catastrophe losses ($380 million pre-tax vs. $206 million).
4Net investment income grew by 8.2% to $806 million, supported by a larger invested asset base.
5Total assets increased to $168.8 billion, and total shareholders' equity stood at $51.3 billion.
6The company issued €1.8 billion ($2.2 billion) in senior notes in March 2018, enhancing its capital structure.
7Chubb integration expenses significantly decreased to $10 million from $111 million in the prior year.

Chubb Ltd Quarterly Report for Q1 Ended Mar 31, 2018

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions