Chubb has estimated its first-quarter costs from last month’s Los Angeles wildfires at $US1.5 billion ($2.4 billion) before tax.

“The California wildfire disaster is a terrible tragedy that is still unfolding,” chairman and CEO Evan Greenberg said as the company delivered its annual results.

“Our colleagues have been on the ground from the beginning, endeavouring to assist our policyholders who have lost property, been displaced from their homes and businesses, and had their lives severely disrupted.”

Chubb’s net income rose 2.7% last year to a record $US9.27 billion ($14.9 billion) and the company says it entered this year with “very good momentum”. 

Global property and casualty underwriting income grew 7.1% to $US5.85 billion ($9.4 billion), with a combined operating ratio of 86.6%.

P&C net premium written rose 9.6%, with commercial up 8.7% and consumer up 12.1%. By region, North America was up 8% and “overseas general” increased 11.8% in constant dollars, including a 22.2% rise in Asia-Pacific region.

“Overall market conditions are quite favourable, and we see really good growth opportunity for over 80% of our global P&C business, commercial and consumer, as well as our life business,” Mr Greenberg said. 

The insurance industry is in a period of sustained inflation so “just to stay in place, rates have to move”, he told a call with analysts.

Competition is increasing in shared and large account business, while middle market and small commercial is a growth opportunity, he says.

Pre-tax catastrophe losses last year were $US2.39 billion ($3.8 billion), compared with $US1.83 billion ($2.94 billion) in the previous period. Fourth-quarter losses were $US607 million ($975 million), including $US309 million ($496 million) from Hurricane Milton.