Chubb Ltd (NYSE: CB) stock rose over 1.3% on 24th July, 2019 (As of 9:50 am GMT-4; Source: Google finance) after the company though the company posted better than expected results for the second quarter of FY 19 it had strong underwriting results and premium revenue growth in the latest quarter as the property and casualty insurance company focused on growth and pricing. The company has reported a profit for the second quarter of $1.15 billion, down from $1.29 billion, or $2.76 a share, a year earlier. Core operating income was $1.2 billion, compared with $1.3 billion for the same quarter last year.
CB in the second quarter of FY 19 has reported the adjusted earnings per share of $2.60, which is in line with the analysts’ estimates for the adjusted earnings per share of $2.60, as per analysts polled by FactSet. Net premiums written, an important measure of revenue growth, rose 4.1% to $8.3 billion, ahead of the consensus forecast of $7.78 billion.
Moreover, Total pre-tax and after-tax catastrophe losses were $275 million (3.8 percentage points of the combined ratio) and $221 million, respectively, compared with $211 million (3.0 percentage points of the combined ratio) and $173 million, respectively, last year.
The net investment income was $859 million pre-tax and adjusted net investment income was $902 million pre-tax. Operating cash flow was $1.4 billion. Share repurchases totaled $376 million during the quarter at an average purchase price of $145.65 per share, and $743 million through June 30, 2019 at an average purchase price of $139.27 per share. Net loss reserves increased $754 million, or $831 million in constant dollars.
The company haRealized mark-to-market gains on private equities of $237 million after-tax, which are not a component of the company’s core operating income, would have increased core operating income by $0.51 per share and annualized core operating ROE by 1.8 percentage points compared to the reported 9.3%. Other companies record these gains within core operating income.
Additionally, for North America Personal P&C Insurance, the current accident year combined ratio excluding catastrophe losses was 81.7%, compared with 79.3% prior year, an increase of 2.4 percentage points comprising a 1.6 percentage points increase in the loss ratio and a 0.8 percentage point increase in the expense ratio, reflecting a favorable commission adjustment in the prior year that did not recur in the current quarter. For Global Reinsurance, the net premiums written increased 0.2%, or 1.3% in constant dollars. The combined ratio was 87.7% compared with 79.3% prior year. The current accident year combined ratio excluding catastrophe losses was 81.7%, compared with 83.5% prior year.
In Life Insurance, the net premiums written increased 2.5%, or 4.3% in constant dollars, reflecting growth in Combined Insurance North America supplemental accident and health business and growth in the Asian international life operations. Segment income was $96 million, up 24.5%. International life insurance segment income was $42 million, up 62.7%, and Combined Insurance North America segment income was $43 million, up 14.3%.