Chubb(US:CB)2021-07-28 16:00Financial Performance - Net income for the quarter was $2.3 billion, compared to a net loss of $331 million in the prior year period, driven by record underwriting results and net investment income [184]. - Total revenues for the quarter were $9.7 billion, up 7.6 percent from the prior year, with net premiums earned increasing by 8.4 percent [182]. - Shareholders' equity increased by $986 million in the quarter, reflecting net income and unrealized gains on investments, despite $2.3 billion returned to shareholders [191]. - The company reported a net income of $317 million for Q2 2021, a significant increase from a net loss of $62 million in Q2 2020 [274]. - The company reported pre-tax net gains of $854 million for the three months ended June 30, 2021, while for the six months ended June 30, 2021, pre-tax net losses were $476 million [280]. Underwriting Performance - The P&C combined ratio improved to 85.5 percent from 112.3 percent in the prior year period, indicating better underwriting performance [187]. - The loss and loss expense ratio decreased to 58.7% for the three months ended June 30, 2021, compared to 85.2% in the same period of 2020 [211]. - The combined ratio for Q2 2021 was 83.1%, down from 117.3% in Q2 2020, indicating improved underwriting performance [222]. - The CAY loss ratio excluding catastrophe losses was 50.9% for the three months ended June 30, 2021, compared to 46.8% in the same period of 2020 [261]. - The P&C combined ratio was reported at 102.6%, with a loss and loss expense ratio of 81.5% [304]. Premiums and Growth - Consolidated net premiums written increased by 14.3 percent to $9.5 billion, with P&C net premiums written up 15.5 percent, reflecting growth in both commercial and consumer lines [188]. - Net premiums written for the three months ended June 30, 2021, increased to $9,546 million, a 14.3% rise compared to $8,355 million in the same period of 2020 [195]. - Commercial P&C lines saw a 20.2% increase in net premiums written for the three months ended June 30, 2021, totaling $5,612 million, up from $4,670 million in 2020 [195]. - Net premiums written increased by $565 million, or 15.2%, for Q2 2021, and by $977 million, or 14.0%, for the first half of 2021, driven by strong premium retention and positive rate increases [226]. - The North America Personal P&C Insurance segment reported net premiums written of $1.363 billion for Q2 2021, a 2.6% increase from $1.327 billion in Q2 2020 [232]. Catastrophe Losses - Total pre-tax catastrophe losses were $280 million, significantly lower than $1.8 billion in the prior year period, which included substantial COVID-19 related losses [185]. - Catastrophe losses for the three months ended June 30, 2021, were $280 million, significantly lower than $1,807 million in the same period of 2020 [202]. - Catastrophe losses for Q2 2021 were $165 million, significantly lower than $1.273 billion in Q2 2020, which included substantial COVID-19 related claims [224]. - Catastrophe losses gross of related adjustments totaled $(1,781) million, indicating significant impact from catastrophic events [298]. - The company actively manages catastrophe risk, setting limits based on probable maximum loss (PML) and purchasing reinsurance accordingly [338]. Investment Income - Net investment income rose to $884 million from $827 million in the prior year, primarily due to higher income from private equity partnerships [190]. - Net investment income for Q2 2021 was $535 million, a 5.3% increase from $509 million in Q2 2020 [222]. - Net investment income increased by 7.0% to $884 million for the three months ended June 30, 2021, and by 3.5% to $1,747 million for the six months ended June 30, 2021, primarily due to higher income from private equity partnerships and increased dividends on public equities [313]. - The total mark-to-market gain on private equity was $736 million for the three months ended June 30, 2021, compared to a loss of $200 million in the same period of 2020 [315]. - The fair value of total investments increased by $2.5 billion during the six months ended June 30, 2021, reaching $122.04 billion, driven by strong operating cash flow and positive equity market returns [317]. Shareholder Returns - The company plans to implement a one-time incremental share repurchase program of up to $5.0 billion through June 30, 2022 [191]. - The company repurchased $2.44 billion of common shares in the first half of 2021, with a remaining share repurchase authorization of $65 million through December 31, 2021 [357]. - An annual dividend of up to $3.20 per share was approved for the following year, representing an increase of $0.08 per share over the prior year [360]. - The company maintained $1.4 billion in repurchase agreements outstanding as of June 30, 2021, with various maturities over the next nine months [355]. - Chubb Limited received dividends of $1.8 billion from its Bermuda subsidiaries during the six months ended June 30, 2021 [348].