Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Property pricing remains extremely strong |
| Looking forward, we are confident in our ability to continue growing revenue and operating earnings globally, which in turn drive EPS through the three engines of P&C underwriting income, investment income, life income |
| We constantly search and research environments around the world where it can suit our approach to underwriting and we can bring a distinct advantage to the marketplace and build a franchise of size that has a competitive advantage |
| Once again, our premium revenue growth was well spread and broad-based, with excellent results in our commercial and consumer businesses in both our North American and international operations |
| Personal lines growth in Latin America rebounded sharply with premiums up 43% on the back of growth in our Mexican auto portfolio where we're taking significant rate actions to reflect the loss cost environment |
| And for the first nine months, we have produced record operating income of $5.9 billion, or $14.27 per share, up 27.5% |
| In the quarter, our underwriting performance was driven by a combination of strong earned premium growth, excellent underwriting margins, which included an ex-cat current accident year combined ratio of 84.3%, or 83% excluding agriculture, favorable prior period reserve development in both North America and Overseas General and relatively average cat losses compared to our expected |
| Our very large middle market division had its best quarter of the year with premium growth of 16.3% and middle market financial lines up 1.5% |
| Our positive reserve development speaks to the strength of our reserves and our reasonably cautious or conservative approach to reserving |
| On the asset side, record-adjusted net investment income of $1.4 billion was up $361 million, or 34% over prior year |
| We have very strong liquidity, and our investment income run rate will continue to grow as we reinvest our cash flow at higher rates |
| At the same time, the industry, and Chubb included, are improving our ability to manage the risk and to underwrite and provide risk management capabilities around these exposures |
| Within our international consumer, our A&H and personal lines divisions both had strong quarters, with premiums up 16.5% and over 40%, respectively |
| In summary, we had a simply outstanding quarter, contributing to outstanding year-to-date results |
| Consolidated net premiums for the company increased over 9% in the quarter, made up of 8.4% growth in our P&C business globally and about 15% in our Life division |
| And frankly, I think it is a well-served market |
| We have a -- not a -- it's pretty big niche, high net worth in the United States, and our capabilities and our insights are just so specially built for that, that we have a real true franchise advantage |
| In terms of the commercial P&C rate environment, rates and price increases in property and casualty lines, in aggregate, remained strong in the quarter in both North America and our international divisions, while decreases in financial lines in North America continued |
| We are growing exposure in a thoughtful and balanced way, mindful of risk environment and underwriting conditions, which are favorable in many areas of our business |
| We continued to achieve improved rate to exposure across our international commercial portfolio, with pricing up 9.3%, rates up 5.7%, and exposure change of 3.4% |
| North America's loss ratio year-on-year has improved almost half of it from what is a really world-class to begin with |
| Europe and Asia Pac had strong orders with growth of 14.2% and 10.2%, respectively |
| Our performance was marked by double-digit global P&C premium growth, world-class P&C underwriting results, including an 88.4% combined ratio, record net investment income, and strong life operating income, all leading to record operating earnings per share |
| And at the same time, law enforcement and those like our industry are gaining better tools and better insight |
| And so, we have put much more capital or taking more exposure on the insurance side where we've got great transparency, we've got great distribution reach, we've got underwriting expertise up and down the food chain from personalized to small commercial to large industrial commercial, the E&S, across North America, across the globe |
| Book value per share, excluding AOCI, increased 2.6% and 7% for the quarter and year-to-date, respectively, reflecting outstanding results for both periods |
| Operating cash flow was a record $4.7 billion, reflecting our record investment income and strong premium collections |
| As you kind of pointed out, really attractive combined ratios that you're printing and in the industry in general |
| On the consumer side, our high-net-worth personal lines business had another excellent quarter, with premiums up over 9.5%, with strong retention and new business growth |
| So, we just had better data to be able to adjust this year in the quarter than we -- in the third quarter than we did last year where it really emerged very late, I think tail end of harvesting |
| Statement |
|---|
| And so, we've been very, very cautious and we've shrunk our market share significantly |
| This quarter, we recognized an unrealized loss on our portfolio of $2.2 billion after-tax, reflecting rising interest rates |
| While it's currently benign, there is a concern that it may be picking up |
| By the nature of this growing season, for instance, winter wheat -- you know that in the third quarter, and winter wheat, as an example, is under pressure this year relatively |
| As I've said for years, we generally strive to recognize bad news early and are slow to recognize good news |
| For the quarter, we had pre-tax catastrophe losses of $670 million, principally from weather-related events and wildfires in North America |
| So, we're hearing from some executives that they're voicing concern about medical loss environment looking ahead |
| There has been a few very notable cyber breaches within consumer sector, casino, gaming, and more recently, a cybersecurity firm also had a pretty serious headline breach |
| In the quarter, rates and pricing for North America financial lines, in aggregate, were down 4.8% and 3.8%, respectively |
| California had storm events and et cetera that revealed losses earlier |
| Some would suggest it's over-served |
| In agriculture, crop premiums were lower than last year due to the timing of when we recognized them |
| But if I just look at year-to-date, and this definitely isn't a Chubb-specific phenomenon, but I'll cite Chubb stats, reserve release levels running, let's just say, 50% below last year, 50% below even Chubb's like historical five years looking at our model |
| Our corporate run-off lines had adverse development of $61 million, principally related to environmental exposures |
| Tangible book value per share, excluding AOCI, decreased 4.2% for the quarter with 7.5 percentage points coming from the dilutive impact of consolidating Huatai |
| Obviously, the net premium written growth is coming in just as you said it would, Evan, but I'm looking at the gross premium written growth and that decelerated a bit to 3% from 9% last quarter |
| And when you fall behind on casualty, it's very painful |
| Other than that, we've got plenty of handles to pull in Chubb, and we remain patient and cautious |
| I know that we've talked about the cyber losses coming through |
| Just given their recent renewed caution, so to speak, on the U.S |
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