Chubb’s first quarter net income fell 37.9% to $US1.3 billion ($2 billion) as the California wildfires raised catastrophe losses, while the company CEO has criticised “uncertainty and confusion” created by the US government’s approach to trade. 

Total pre-tax net catastrophe losses were $US1.64 billion ($2.57 billion), including $US1.47 billion ($2.3 billion) from the wildfires, compared with $US435 million ($681 million) a year-earlier. The California disaster impact was previously flagged. 

Net premium written rose 3.5% to $US12.6 billion ($19.7 billion), with the figure up 5.7% in constant dollars, while pre-tax net investment income rose 12.2% to $US1.56 billion ($2.44 billion). 

Chairman and CEO Evan Greenberg said $US1.5 billion ($2.3 billion) in core operating income was supported by “excellent underlying underwriting results”, investment income growth and rising life income. 

“We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires,” he said. 

Mr Greenberg highlighted favourable conditions in middle market and small commercial in property and casualty (P&C), while the large account sector has grown more competitive and casualty is firm in response to the loss-cost environment. 

“As I observed at the beginning of the year, about 80% of our global P&C business, commercial and consumer, and our life business have very good growth prospects,” he said. 

“There is a lot of opportunity, though we are mindful of the external environment. There is currently a great deal of uncertainty and confusion surrounding our government's approach to trade, and it's impacting business and consumer confidence as well as our image abroad.” 

The odds of recession have risen substantially, and higher inflation appears “all but certain”, but to what degree is an open question, Mr Greenberg said. 

“We have competing priorities between our stated trade, economic and fiscal objectives, and coherence of policy has yet to emerge. I hope we can reach agreements on trade, reduce or eliminate tariffs and reconcile our priorities quickly,” he said. 

Mr Greenberg says he has confidence in what Chubb can control and expects the company will continue to grow operating income and earnings per share at a double-digit rate, catastrophes and foreign exchange notwithstanding.