Chubb Ltd (NYSE:CB) stock rose 4.08% (As on Feb 2, 11:43:50 AM UTC-4, Source: Google Finance) after the company reported lower profit for the quarter, but profit for the year more than doubled and company officials pointed to 2022 as a year for further growth and margin improvement. Fourth-quarter profit fell to $2.14 billion, or $4.95 a share, from $2.42 billion, or $5.34 a share, a year earlier. Operating income, which excludes realized investment gains and losses, rose to $1.65 billion, or $3.81 a share, from $1.44 billion, or $3.18 a share, a year earlier. The analysts surveyed by FactSet expected about $3.22 a share in profit and $3.29 a share in operating profit. Net premiums written rose to $9.15 billion from $8.41 billion a year earlier. The insurance company ended the year at a $8.54 billion profit, more than double the 2020 profit of $3.53 billion. Chubb reported a record $1.27 billion in underwriting income, up 30.7%.

Moreover, P&C combined ratio was 85.5%, compared with 87.6% prior year. P&C current accident year underwriting income excluding catastrophe losses was $1.40 billion, up 31.8%. P&C current accident year combined ratio excluding catastrophe losses was a record 83.9%, compared with 86.4% prior year. Fourth quarter consolidated net premiums written were up 8.8%. P&C net premiums written were up 9.6%, driven by growth in commercial lines of 12.9%. Total North America P&C net premiums written were up 8.7%, including growth in commercial lines of 11.2%. Overseas General P&C net premiums written were up 10.2%, including growth in commercial lines of 15.0% and consumer lines of 3.2%. Further, adjusted net investment income topped $900 million for the quarter and contributed to a record $3.7 billion for the year. With the Fed finally accepting that inflation is a reality that is not going away, interest rates are rising and will continue to rise, and spreads should begin to widen, particularly if the Fed begins to shrink their balance sheet as they should. That will begin to benefit our fixed income investment portfolio, which has a four-year duration. Every 100 basis points of portfolio yield for us produces about $1.2 billion of additional investment income.

Meanwhile, during the quarter, Chubb had entered into agreements with several shareholders to buy additional ownership interests in Huatai Group, a Chinese financial services holding company that, subject to regulatory approval of all outstanding agreements, would bring Chubb’s total aggregate ownership to 86.1%.