Chubb Ltd (NYSE: CB) posted better than expected core earnings for the fourth quarter of FY 20. Net premiums written were $8.41 billion, which rose over 5% from a year earlier. Net premiums earned were $8.43 billion, up over 6%. The company has reported fourth quarter net income of $2.42 billion versus $1.17 billion prior year. Book and tangible book value per share increased 5.5% and 8.1%, respectively, from September 30, 2020 and now stand at $131.88 and $87.69, respectively. The Global P&C current accident year combined ratio excluding catastrophe losses declined 2.5 percentage points, which reflects 1.1 percentage points of the margin improvement loss ratio-related and the balance expense ratio-related. Commercial lines had a 1.4 percentage point loss ratio improvement, with 1.2 percentage points coming from earned rate exceeding loss cost trend. Consumer lines had a 1.2 percentage point loss ratio improvement, with 1.1 percentage points coming from the impact of the health-related shutdown. The expense ratio increased 1.4 percentage points, including 0.6 percentage point in the acquisition cost ratio due to less consumer and more commercial premium. The remaining 0.8 percentage point improvement reflects 0.5 percentage point from efficiency and 0.3 percentage point from the impact of current operating conditions. The agriculture net premiums written decreased by $34 million. The current accident year combined ratio excluding catastrophe losses decreased 22.8 percentage points, reflecting a more average crop loss year in 2020.
CB in the fourth quarter of FY 20 has reported the core operation income of $3.18, beating the analysts’ estimates for the adjusted earnings per share of $2.82, according to FactSet. The company has generated Operating cash flow of $2.54 billion for the quarter.
Moreover, during the quarter, for North America Commercial P&C Insurance, the current accident year combined ratio excluding catastrophe losses fell 2.5 percentage points, including a 1.2 percentage point decrease in the loss ratio and a 1.3 percentage point decrease in the expense ratio. North America Personal P&C Insurance’s current accident year combined ratio excluding catastrophe losses decreased 2.1 percentage points, including a 1.7 percentage point decrease in the loss ratio and a 0.4 percentage point decrease in the expense ratio. Life Insurance’s net premiums written were $640 million, up 3.0%. Segment income was of $116 million, up $26 million, or 30.4% in constant dollars.
The share repurchases were of total $190 million during the quarter at an average purchase price of $144.33 per share.