Summary
Chubb Limited reported a strong second quarter for 2021, with net income significantly improving to $2.265 billion, a substantial recovery from the $331 million net loss in the same period of the prior year. This turnaround was driven by robust underwriting results, record net investment income, and increased income from partially-owned companies. The company experienced broad-based growth in net premiums written across its Property & Casualty (P&C) segments, up 14.3% year-over-year, reflecting positive rate increases outpacing loss cost trends and strong retention. Key drivers of the improved performance include a substantial decrease in catastrophe losses, which were significantly lower than the prior year's COVID-19 related claims and other natural disasters. Favorable prior period development also contributed positively to underwriting results. The P&C combined ratio improved to 85.5% from 112.3% in the prior year. The company also announced a substantial increase in its share repurchase program, signaling confidence in its financial position and commitment to returning capital to shareholders.
Financial Highlights
32 data points| Revenue | $9.66B |
| Net Income | $2.27B |
| EPS (Basic) | $5.09 |
| EPS (Diluted) | $5.06 |
| Shares Outstanding (Basic) | 445.09M |
| Shares Outstanding (Diluted) | 447.95M |
Key Highlights
- 1Net income surged to $2.265 billion for Q2 2021, a significant improvement from a net loss of $331 million in Q2 2020.
- 2Consolidated net premiums written increased by 14.3% to $9.546 billion, driven by broad-based growth across commercial and personal P&C lines.
- 3The P&C combined ratio improved to 85.5% from 112.3% in the prior year, indicating strong underwriting performance.
- 4Catastrophe losses were significantly lower at $280 million (3.4% of combined ratio) compared to $1.807 billion (23.9% of combined ratio) in the prior year, which included substantial COVID-19 related claims.
- 5Favorable prior period development contributed $268 million to underwriting results in Q2 2021, a turnaround from unfavorable $75 million in Q2 2020.
- 6Shareholders' equity increased by $986 million in the quarter, supported by net income, despite significant capital returns to shareholders.
- 7The company announced a one-time incremental share repurchase program of up to $5.0 billion through June 30, 2022.