Chubb has revealed its financial results for the quarter ended June 30.
The company recorded a net income of $1.79 billion, equivalent to $4.32 per share, and a core operating income of $2.04 billion, or $4.92 per share. Book value per share and tangible book value per share saw a slight increase of 0.6% and 0.2%, respectively, from the previous quarter, standing at $128.75 and $78.97.
During the first six months of 2023, Chubb achieved a net income of $3.69 billion, or $8.84 per share, and a core operating income of $3.89 billion, or $9.32 per share, the company reported.
The book and tangible book value per share demonstrated significant growth of 5.7% and 8.9%, respectively, compared to the end of 2022. Book value was positively influenced by after-tax net realized and unrealized gains of $472 million in the company's investment portfolio. However, changes in discount rates on long-duration contracts and net losses from market risk benefits led to realized and unrealized losses of $286 million.
“We had another simply outstanding quarter – in fact, a record, which contributed to a record six months,” said Evan G. Greenberg, chairman and CEO of Chubb. “Our financial performance included double-digit premium revenue and earnings growth supported by world-class P&C underwriting results and an 85.4% combined ratio, record net investment income, and a doubling of our life earnings.
“For the quarter, core operating income and income per share were up 13.9% and 16.6%, respectively, and for the first six months, they were up 12.9% and 15.8%.”
“Our operating earnings for the quarter topped $2 billion for the first time,” Greenberg said. “We produced an annualized core operating ROE of 13.8%, with a return on tangible equity of 21%.”
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The company's total net written premium growth was 16.8% in constant dollars, with double-digit growth in its commercial and consumer P&C businesses in North America and internationally. The Global P&C constant dollar growth rate of 10.9% was the best in the last seven quarters.
“Our exceptional underwriting performance was driven by strong P&C premium revenue growth, excellent current accident year underwriting margins with a record combined ratio of 83.3%, favorable prior period reserve development, and a moderate level of catastrophe losses,” Greenberg said. “On the investment side, record adjusted net investment income was up $290 million, or 30.6%, over prior year. Our investment income run rate will continue to grow as we reinvest cash flow at higher rates and compound income.”
Chubb said it remains confident in its ability to sustain revenue and earnings growth and is committed to driving double-digit EPS growth in the future.
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