Chubb(US:CB)2020-10-30 17:04Financial Performance - Net income for the three months ended September 30, 2020, was $1,194 million, a 9.4% increase compared to $1,091 million in the prior year period[230]. - Total revenues for the three months were $9,464 million, a 4.6% increase from $9,045 million in the prior year[235]. - The total after income tax for the three months ended September 30, 2020, was $797 million[268]. - The company reported total assets of $188 billion and shareholders' equity of $56 billion as of September 30, 2020[229]. - The company reported a pre-tax net gain of $463 million for the nine months ended September 30, 2020, driven by market volatility and a $1,542 million gain in the investment portfolio, partially offset by impairments and foreign exchange losses[346]. Premiums and Underwriting - Consolidated net premiums written reached $9.1 billion, reflecting a 5.3% increase, or 6.0% in constant dollars[232]. - Net premiums written increased by $326 million, or 9.4%, for the three months ended September 30, 2020, and by $813 million, or 8.2%, for the nine months ended September 30, 2020[276]. - Net premiums earned increased by $438 million and $1,332 million for the three and nine months ended September 30, 2020, respectively, reflecting growth in net premiums written[249]. - The P&C combined ratio was 95.2%, up from 90.2% in the prior year, with catastrophe losses contributing 11.3 percentage points[233]. - The underwriting loss for Q3 2020 was $126 million, a 12.2% increase from $112 million in Q3 2019, while YTD underwriting loss rose to $556 million from $294 million, reflecting an 89.2% increase[337]. Catastrophe Losses - Pre-tax net catastrophe losses amounted to $925 million, primarily due to severe weather-related events and wildfires[230]. - Catastrophe losses for the nine months ended September 30, 2020, amounted to $2,950 million, significantly higher than $759 million for the same period in 2019[256]. - Catastrophe losses for the three months ended September 30, 2020, were $305 million, compared to $83 million for the same period in 2019, representing a significant increase[293]. - Catastrophe losses through September 30, 2020, included $1,378 million related to the COVID-19 pandemic, severe weather-related events, and civil unrest-related losses in the U.S.[258]. - Catastrophe losses, net of related adjustments, amounted to $(925) million[362]. Investment Income - Net investment income decreased by 3.8% to $840 million from $873 million in the prior year[235]. - The total investment portfolio generated net realized gains of $89 million and net unrealized gains of $638 million in Q3 2020, compared to losses of $109 million and $705 million respectively in Q3 2019[343]. - The gross investment income for the nine months ended September 30, 2020, was $2,658 million, compared to $2,698 million for the same period in 2019[380]. - The total mark-to-market gain on private equity for the three months ended September 30, 2020, was $436 million, compared to $34 million for the same period in 2019[381]. - Net investment income for Q3 2020 was a loss of $19 million, a 30.2% improvement from a loss of $28 million in Q3 2019[337]. Expense Ratios - The loss and loss expense ratio increased to 69.2% for the three months ended September 30, 2020, compared to 63.1% for the same period in 2019[266]. - The policy acquisition cost ratio decreased by 0.4 percentage points to 18.0% for the three months ended September 30, 2020, and to 18.8% for the nine months ended September 30, 2020[252]. - The administrative expense ratio decreased to 8.0% for the three months ended September 30, 2020, down from 8.7% in 2019, and to 8.6% for the nine months ended September 30, 2020, down from 9.2% in 2019[253]. - The policy acquisition cost and administrative expense ratio was 21.2%[362]. - The administrative expenses decreased by $3 million in Q3 2020 primarily due to lower advertising and travel-related costs, but increased by $3 million YTD due to COVID-19 impacts and higher legal expenses[338]. Market and Strategic Outlook - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[364]. - Future guidance indicates a focus on maintaining a combined ratio below 90% while enhancing premium growth through innovative insurance solutions[364]. - The company anticipates that positive cash flows from operations will be sufficient to cover cash outflows under most loss scenarios in the near term[415]. - The company’s catastrophe reinsurance program was renewed effective April 1, 2020, with no material changes in coverage from the previous program[412]. - The company has agreements with a third-party bank provider to enhance cash management efficiency through international multi-currency notional cash pooling programs[415].