10-QPeriod: Q1 FY2019

Chubb Ltd Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 2, 2019For Securities:CB

Summary

Chubb Ltd.'s (CB) first quarter 2019 report shows continued resilience and strategic execution. The company reported net income of $1.04 billion, a slight decrease from $1.08 billion in the prior year period, but demonstrated solid growth in net premiums written, up 2.9% year-over-year (5.1% on a constant-dollar basis), driven by across-the-board segment strength. The P&C combined ratio improved to 89.2% from 90.1%, indicating effective underwriting and expense management. Key operational highlights include a reduction in catastrophe losses and strong favorable prior period development, contributing positively to underwriting results. Investment income also saw a modest increase. The company continued its commitment to returning capital to shareholders through share repurchases totaling $367 million and dividend payments. Chubb's strong balance sheet, with total assets of $171 billion and shareholders' equity of $52 billion, underscores its financial stability and capacity for future growth.

Financial Highlights

35 data points
Beta

Revenue

$7.88B

Net Income

$1.04B

13.2% Net Margin

EPS (Diluted)

$2.25

Total Assets

$171.35B

Cash & Equivalents

$1.27B

Free Cash Flow

$1.32B

Financial Statements
Beta
Revenue$7.88B
Net Income$1.04B
EPS (Basic)$2.27
EPS (Diluted)$2.25
Shares Outstanding (Basic)458.81M
Shares Outstanding (Diluted)461.54M

Key Highlights

  • 1Net income of $1.04 billion for the quarter, slightly down from $1.08 billion in Q1 2018.
  • 2Net premiums written increased by 2.9% (5.1% in constant dollars) to $7.31 billion, with growth across all segments.
  • 3P&C combined ratio improved to 89.2% from 90.1% in the prior year period, reflecting better underwriting performance.
  • 4Catastrophe losses decreased to $250 million pre-tax, down from $380 million in Q1 2018.
  • 5Favorable prior period development contributed $204 million pre-tax.
  • 6Share repurchases totaled $367 million during the quarter.
  • 7Total assets grew to $171.3 billion, with shareholders' equity at $52.4 billion.

Frequently Asked Questions

Chubb reported a net income of $1.04 billion for the three months ended March 31, 2019, compared to $1.08 billion in the same period of the prior year. While slightly lower, this reflects a stable and strong earnings performance given market conditions.

Chubb experienced solid premium growth, with net premiums written increasing by 2.9% year-over-year to $7.31 billion. On a constant-dollar basis, this growth was even stronger at 5.1%, indicating broad-based increases across all business segments.

The P&C combined ratio improved from 90.1% to 89.2%. A combined ratio below 100% indicates an underwriting profit. This improvement suggests that Chubb is effectively managing its claims and expenses relative to the premiums earned, leading to better underwriting profitability.

Catastrophe losses were lower in the first quarter of 2019 ($250 million pre-tax) compared to the prior year ($380 million pre-tax). Additionally, favorable prior period development of $204 million pre-tax provided a positive contribution to earnings. These factors indicate a reduction in the impact of unexpected large losses and favorable adjustments to past loss estimates.