The Swiss insurer’s core operating income for Q3 2020 was $907m, compared to $1.23bn in Q3 2019

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Chubb recovers from a net loss in Q2 2020 to post $1.2bn net income in Q3 2020. (Credit: mohamed Hassan from Pixabay)

Chubb has reported a 9.4% increase in its net income for the third quarter of 2020 (Q3 2020) at $1.19bn compared to $1.09bn in the same quarter of the previous year.

The Swiss insurer was hit with a net loss of $331m in the second quarter of 2020.

Chubb’s net income per share in Q3 2020 was up by 10.5% to $2.63 compared to $2.38 in Q3 2019.

For the nine months ended 30 September 2020, Chubb’s net income was $1.11bn, or $2.46 per share, in comparison to $3.28bn, or $7.13 per share, reported for the first nine months of 2019.

Chubb reported a core operating income of $907m or $2 per share in Q3 2020 compared to $1.23bn or $2.7 per share in Q3 2019. This marked a 26.6% reduction in core operating income for the reported quarter compared to the same quarter of the previous year.

According to the insurer, its catastrophe losses in Q3 2020 were $797m after-tax, compared with $191m after tax in the prior-year quarter.

Net premiums written in Q3 2020 by Chubb

The insurer’s consolidated net premiums written in Q3 2020 were $9.1bn, which is an increase of 5.3% compared to the prior-year quarter.

Its property and casualty (P&C) net premiums written in Q3 2020 were up by 5.7% at $8.46bn compared to the same quarter of the previous year.

The global P&C unit of the insurer had net premiums written of $7.48bn in Q3 2020, which is 5.78% more than what was reported in Q3 2019.

Chubb chairman and CEO Evan Greenberg said: “In the third quarter, Chubb performed well despite a challenging environment that included the continued struggle by many nations to address the impact, both health and economic, of the COVID-19 pandemic, as well as a record number of natural catastrophes for the insurance industry globally.

“We experienced our share of the CATs with $925 million in net pre-tax losses. Yet, we still published a 95% combined ratio, supported by significant underlying underwriting margin improvement.

“The P&C current accident year combined ratio excluding catastrophes was 85.7% versus 89.5% prior year, with underwriting income up 44% in constant dollars. Of the 3.8 percentage points of increased margin, 2.7 points were from an improvement in the loss ratio.”