Chubb Ltd Quarterly Report for Q3 Ended Sep 30, 2020

Summary

Chubb Limited's (CB) third quarter 2020 report shows a solid performance despite the ongoing economic uncertainties. Net income saw a notable increase of 9.4% to $1.194 billion compared to the prior year period. This growth was driven by a 5.3% increase in net premiums written, reaching $9.078 billion, reflecting broad-based growth across most segments, particularly in commercial P&C lines globally. Despite higher catastrophe losses ($932 million), mainly due to severe weather events and the COVID-19 pandemic, the company managed an improved current accident year loss ratio excluding catastrophes. The P&C combined ratio for the quarter was 95.2%, an increase from the prior year's 90.2%, largely attributable to elevated catastrophe losses. The company also reported strong operating cash flow of $3.544 billion.

Key Highlights

• 1Net income increased by 9.4% to $1.194 billion for the three months ended September 30, 2020, compared to $1.091 billion in the prior year.
• 2Net premiums written increased by 5.3% to $9.078 billion for the three months ended September 30, 2020.
• 3The P&C combined ratio was 95.2%, an increase from 90.2% in the prior year, primarily due to higher catastrophe losses ($932 million vs. $234 million).
• 4Current accident year loss ratio excluding catastrophe losses improved to 59.7% for the three months ended September 30, 2020, compared to 62.4% in the prior year.
• 5Operating cash flow was strong at $3.544 billion for the three months ended September 30, 2020, up from $2.205 billion in the prior year.
• 6The company's financial condition remains robust with total assets of $187.786 billion and total shareholders' equity of $56.413 billion as of September 30, 2020.
• 7The company announced a quarterly dividend of $0.78 per share, an increase from $0.75 per share in the prior year.

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