CHUBB SWINGS TO RECORD OPERATING INCOME AS CAT LOSSES PLUMMET

Global re/insurer Chubb swung to record core operating income of $1.62bn for the second quarter from a year-earlier loss of $254m, largely reflecting a $1.53bn, 85% decline in catastrophe losses. The group swung to record operating income per share of $3.62 from a loss of 56¢, beating analysts’ forecast of $2.96 in income. The group’s property/casualty segment, which accounts for 95% of total gross written premiums, saw its combined ratio improve by 26.8 points to 85.5% as it swung to underwriting income of $1.19bn from a loss of $929m. Gross written premiums grew 19% to $11.21bn, driven by strong commercial pricing. Net income for the quarter was $2.27bn compared to a net loss of $331m. For the first six months of the year, Chubb swung to net income of $4.57bn from a loss of $79m, as the property/casualty segment swung to underwriting income of $1.81bn from a loss of $151m. Six-month results also reflected a positive $1.78bn swing in realised gains. The segment’s combined ratio improved by 2.2 points to 85.3%, while its gross written premiums grew 14.3% to $21.10bn.