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10-QPeriod: Q2 FY2018

Chubb Ltd Quarterly Report for Q2 Ended Jun 30, 2018

Filed August 1, 2018For Securities:CB

Summary

Chubb Ltd. reported a net income of $1.294 billion for the three months ended June 30, 2018, a slight decrease from $1.305 billion in the prior year period. Total net premiums written increased by 5.7% to $8.0 billion for the quarter. The Property & Casualty (P&C) combined ratio was 88.4%, a marginal increase from 88.0% in the prior year, driven by higher loss ratios due to large structured transactions and catastrophe losses, partially offset by a lower expense ratio. The company experienced an increase in net investment income to $828 million, up 7.4% year-over-year, due to a larger invested asset base and higher yields on short-term investments and other income sources. Chubb also continued its share repurchase program, buying back approximately 2.4 million shares for $324 million during the quarter, demonstrating a commitment to returning capital to shareholders.

Financial Statements
Beta
Revenue$8.51B
Net Income$1.29B
EPS (Basic)$2.78
EPS (Diluted)$2.76
Shares Outstanding (Basic)465.28M
Shares Outstanding (Diluted)468.38M

Key Highlights

  • 1Net income for the quarter was $1.294 billion, a slight decrease of 0.8% compared to the prior year.
  • 2Net premiums written increased by 5.7% to $8.0 billion for the three months ended June 30, 2018.
  • 3The P&C combined ratio was 88.4%, up slightly from 88.0% in the prior year, reflecting higher catastrophe losses and large structured transactions.
  • 4Net investment income grew by 7.4% to $828 million, driven by a larger investment base and improved yields.
  • 5Chubb repurchased approximately 2.4 million shares for $324 million during the quarter.
  • 6Favorable prior period development remained strong, contributing positively to underwriting results.
  • 7The company maintained a solid capital position with total shareholders' equity of $50.97 billion.

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