Chubb Ltd (NYSE: CB) stock fell 0.9% on 24th October, 2018 (as of 11:37 AM GMT-4; Source: Google finance). For Global Reinsurance, the net premiums written decreased 14.3%, or 14.7% in constant dollars, for the third quarter of 2018 principally due to higher reinstatement premiums collected in the prior year relating to the 2017 natural catastrophes. The combined ratio was 86.7% compared with 187.4%. The current accident year combined ratio excluding catastrophe losses was 82.8%, compared with 82.2%.
Tthe company reported 1.3% rise in net premiums earned and operating cash flow was $1.7 billion. Share repurchases has totaled $379 million, or approximately 2.8 million shares, during the third quarter and $703 million, or approximately 5.2 million shares, through September 30, 2018. Net loss reserves has increased $269 million adjusted for foreign exchange.
For North America Commercial P&C Insurance, net premiums written in the middle market and small commercial divisions increased 3.6%. This growth reflects a 5.2% increase in P&C lines and an increase of 0.2% in financial lines. Net premiums written in the small commercial division increased 29.8%. For North America Personal P&C Insurance, the current accident year combined ratio excluding catastrophe losses was 83.2% compared with 77.5%, principally reflecting increasing frequency and severity of homeowners losses, primarily non-catastrophe water and fire losses. For Life Insurance, the segment income was $78 million, up 22.6%. International life insurance income was $29 million, up $16 million, which included a favorable reserve development of $8 million in the current quarter. Combined Insurance North America contributed segment income of $37 million, up 1.5%, and net premiums written increased 5.8%.
Meanwhile, a federal appeals court has overturned a lower court ruling in favor of a Chubb Ltd. unit in a case in which Rockaway Beach, New York-based Madelaine Chocolate Novelties Inc. was denied coverage for damage caused by Hurricane Sandy’s storm surges. Madelaine, which had an all-risk policy with Chubb Ltd. unit Great Northern, filed claims for more than $40 million in property damage and $13.5 million in business income loss, according to court papers. Great Northern paid Madelaine just under $4 million, but denied the balance of the claim, based on its policy’s flood exclusion provision, according to court papers. Madelaine filed suit against the insurer, and the U.S. District Court in Brooklyn ruled in Chubb’s favor, holding the policy unambiguously excluded damage caused by storm surges.