The Switzerland-based Chubb said that its Q3 2019 net income was unfavourably impacted by mark-to-market losses of $119m
Chubb said that its Q3 2019 net income was down by 11.4% compared to Q3 2018. Photo: courtesy of mohamed Hassan from Pixabay.
Chubb has announced an 11.4% drop in net income for the third quarter of 2019 at $1.09bn, or $2.38 per share, compared to $1.23bn, or $2.64 per share, made in the same quarter in 2018.
The Swiss insurance company said that its Q3 net income was unfavourably affected by mark-to-market losses of $119m. The losses are mainly related to the group’s variable annuity reinsurance portfolio, compared to adjusted realised gains of $165m in the previous year.
Chubb’s core operating income in the third quarter of 2019 that ended 30 September was $1.23bn, or $2.7 per share, in comparison to $1.12bn, or $2.41, per share made in Q3 2018.
The company saw its net premiums written in the P&C business move up by 6.2% to $8bn compared to $7.54bn made in the same quarter in the previous year. . The P&C underwriting income increased by 12.6% to $754m in Q3 2019 compared to $669m in the corresponding quarter of last year.
Chubb said that the P&C combined ratio for the reported quarter was 90.2% compared to 90.9% in Q3 2018 owing to lower catastrophe losses and increased crop insurance losses.
The global P&C unit, which excludes agriculture, had a 6.2% increase in net premiums written, at $7.07bn compared to $6.66bn reported in the same quarter in the previous year. The underwriting income of the global P&C unit moved up by 27.7% from $590m to $753m in the reported quarter.
The global P&C combined ratio of the Swiss insurer after excluding agriculture, was 88.9% compared with 90.9% in Q3 2018.
Chubb CEO comments on Q3 2019 results
Chubb chairman and CEO Evan Greenberg said: “Our third quarter results were highlighted by core operating earnings that were up double-digit over prior year and excellent premium revenue growth in many areas of our company.
“Core operating income of $2.70 per share, up 12%, was driven by strong contributions from underwriting and investment income. Our P&C combined ratio of 90.2% benefited from lower year-on-year catastrophe losses, offset partially by higher losses in crop insurance, another CAT-like risk.
“P&C net premiums written were up over 7% in constant dollars. Growth was distributed broadly across the globe, with net premiums up 6.5% in our North America insurance operations, up circa 10% in Asia and Latin America, and up 8% and 6%, respectively, in the U.K. and on the European Continent.”