The second quarter of 2020 saw Chubb being hit with net catastrophe losses after tax of $1.51bn, or $3.35 per share, compared to net catastrophe losses of $221m or $0.48 per share reported in the same quarter of 2019
Chubb reported a core operating loss of $254m in Q2 2020. (Credit: mohamed Hassan from Pixabay)
Chubb has reported a net loss of $331m or a net loss of $0.73 per share for the second quarter of 2020 (Q2 2020) owing to the Covid-19 pandemic.
In contrast, the Swiss insurer had reported net income of $1.15bn or $2.5 per share in the second quarter of 2019. During the previous quarter, that is Q1 2020, the insurance group saw its net income drop by nearly 76% at $252m compared to Q1 2019.
For the six months ended 30 June 2020, Chubb’s net loss was $79m or a net loss of $0.17 per share, compared with net income of $2.19bn or $4.75 per share made in the first half of 2019.
The second quarter of 2020 saw Chubb being hit with net catastrophe losses after tax of $1.51bn, or $3.35 per share, compared to net catastrophe losses of $221m or $0.48 per share reported in the same quarter of 2019.
According to the Swiss insurance company, the Covid-19 pandemic brought it $1.15m of losses after tax in the second quarter of this year.
Chubb reported a core operating loss of $254m, or core operating loss of $0.56 per share, in Q2 2020 compared to $1.19bn of core operating income of $1.19bn or $2.6 per share in Q2 2019.
Consolidated net premiums written during the reported quarter grew by 0.1% to $8.4bn compared to the second quarter of 2019.
The Swiss insurer’s property and casualty (P&C) net premiums written in Q2 2020 were down by 0.4% at $7.7bn compared to the same quarter of the previous year.
On the other hand, the global P&C unit of the insurer had net premiums written of $7.27bn in Q2 2020, which is 0.3% less than what was reported in the same quarter of the previous year.
Chubb CEO comments on Q2 2020 results
Chubb chairman and CEO Evan Greenberg said: “It was a difficult quarter for Chubb as the Covid-19 global pandemic, an event of historic proportions, impacted both our earnings and growth, and overshadowed the core underlying strength and vitality of our company.
“The 112.3% P&C combined ratio and core operating loss of 56 cents per share were negatively impacted predominantly by an after-tax Covid-related charge of $1.2 billion, which cost us essentially a quarter of our annual earnings and represents our best estimate of ultimate insurance losses resulting directly from the pandemic and consequent economic crises.”