10-QPeriod: Q2 FY2019

Chubb Ltd Quarterly Report for Q2 Ended Jun 30, 2019

Filed July 31, 2019For Securities:CB

Summary

Chubb Ltd. reported solid financial results for the second quarter of 2019, demonstrating continued premium growth and effective management of underwriting activities. Net income for the quarter was $1.15 billion, a decrease from the prior year's $1.29 billion, influenced by higher catastrophe losses and a less favorable prior period development compared to the same period last year. However, net premiums written across most segments showed positive growth, driven by rate increases and new business. The company maintained a P&C combined ratio of 90.1%, slightly up from 88.4% in the prior year, reflecting the impact of increased catastrophe losses. Despite this, the current accident year combined ratio, excluding catastrophe losses, remained strong. Chubb's investment portfolio continues to perform well, with net investment income increasing, and the company actively managed its capital through share repurchases and dividends, underscoring a commitment to shareholder returns.

Financial Highlights

35 data points
Beta

Revenue

$8.53B

Net Income

$1.15B

13.5% Net Margin

EPS (Diluted)

$2.50

Total Assets

$174.52B

Cash & Equivalents

$1.27B

Free Cash Flow

$1.39B

Financial Statements
Beta
Revenue$8.53B
Net Income$1.15B
EPS (Basic)$2.52
EPS (Diluted)$2.50
Shares Outstanding (Basic)457.22M
Shares Outstanding (Diluted)460.17M

Key Highlights

  • 1Net income for the quarter was $1.15 billion, down from $1.29 billion in Q2 2018, impacted by higher catastrophe losses.
  • 2Consolidated net premiums written increased by 4.1% to $8.3 billion, with positive growth across most segments, particularly in North America Commercial P&C Insurance and Overseas General Insurance.
  • 3The P&C combined ratio was 90.1%, an increase from 88.4% in the prior year, driven by higher catastrophe losses ($275 million vs. $211 million).
  • 4Favorable prior period development was $188 million for the quarter, slightly down from $191 million in the prior year.
  • 5Net investment income increased by 3.8% to $859 million, reflecting higher average invested assets.
  • 6Chubb repurchased approximately $376 million of its common shares during the quarter, demonstrating capital return initiatives.
  • 7The company's investment portfolio remains diversified and predominantly invested in investment-grade fixed income securities.

Frequently Asked Questions

Chubb reported a net income of $1.15 billion for the second quarter of 2019, a decrease from $1.29 billion in the same period of 2018. This decrease was primarily attributed to higher catastrophe losses and less favorable prior period development compared to the prior year.

Consolidated net premiums written increased by 4.1% to $8.3 billion for the second quarter of 2019. This growth was observed across most segments, with notable increases in North America Commercial P&C Insurance and Overseas General Insurance, driven by rate increases and new business.

The P&C combined ratio for Chubb was 90.1% in the second quarter of 2019, up from 88.4% in the prior year's second quarter. This increase was primarily due to higher catastrophe losses ($275 million in Q2 2019 vs. $211 million in Q2 2018).

Net investment income increased by 3.8% to $859 million, benefiting from higher average invested assets. Chubb also demonstrated its commitment to returning capital to shareholders by repurchasing approximately $376 million of its common shares during the quarter.