Chubb has posted record second quarter earnings, driven by strong property and casualty (P&C) results.

Core operating income for the three months to June rose to an all-time high of $US1.79 billion ($2.56 billion), up 10.3% from a year earlier.

However net income fell 46.4% to $US1.22 billion ($1.74 billion), adversely impacted by realised losses of $US565 million ($807 million) after tax, principally due to the mark-to-market impact on private and public equities and from sales in fixed income securities.

P&C underwriting income reached a record $US1.44 billion ($2.06 billion), a rise of 21.1% from the corresponding period last year. The strong P&C results produced an all-time best combined ratio of 84%.

“We are bullish about our future prospects while mindful of the world around us,” Chairman and CEO Evan Greenberg said.

“We are in the risk business. Our momentum and earning power are strong, driven by commercial P&C growth and pricing that remain quite good.”

He says increasing investment income due to rising rates, strong cash flow as well as the addition of Cigna’s life business in Asia will also support overall earnings going forward.

Net premiums written in the June quarter went up 9% to $US9.73 billion ($13.9 billion), driven by surges in commercial and consumer lines.

Commercial P&C net premiums written increased 10.6% to $US7.08 billion ($10.11 billion) and consumer P&C net premiums written achieved a 4.8% rise to $US2.65 billion ($3.79 billion).

Total pre-tax P&C catastrophe losses were $US291 million ($416 million), compared with $US280 million ($400 million) a year earlier.