Chubb Ltd Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Chubb Ltd. reported solid financial results for the first quarter of 2023, with total revenues of $11.1 billion, a 14.8% increase year-over-year. Net income was $1.9 billion, a slight decrease of 3.2% from the prior year, impacted by market risk benefit losses and Cigna integration expenses, though partially offset by record net investment income and growth from the acquired Cigna Asia business. Net premiums written surged by 16.6% to $10.7 billion, driven by strong performance across most lines of business, particularly in commercial P&C and the life insurance segments, bolstered by the Cigna acquisition. The company's P&C combined ratio improved slightly to 86.3% from 84.3% in the prior year, with the current accident year combined ratio remaining stable, indicating continued underwriting discipline despite increased catastrophe losses and lower favorable prior period development. Shareholders' equity saw a significant increase of $2.5 billion during the quarter, reflecting strong net income and substantial unrealized gains on investments due to falling interest rates. Chubb demonstrated a commitment to returning capital to shareholders, with $772 million returned through share repurchases and dividends.

Key Highlights

• 1Total revenues increased by 14.8% to $11.1 billion.
• 2Net premiums written grew by 16.6% to $10.7 billion, with the Cigna acquisition contributing significantly.
• 3Net income was $1.9 billion, a slight decrease of 3.2% year-over-year, impacted by market risk benefit losses.
• 4Net investment income reached a record $1.1 billion, up 34.7% due to higher reinvestment rates.
• 5The P&C combined ratio was 86.3%, an improvement from 84.3% in the prior year, despite higher catastrophe losses.
• 6Shareholders' equity increased by $2.5 billion, driven by net income and unrealized investment gains.
• 7Total capital returned to shareholders was $772 million through dividends and share repurchases.

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