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Chubb reports loss after tough quarter

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Chubb has reported a second-quarter loss of $US331 million ($462 million) due mainly to coronavirus-related losses flagged last month.

The result marked a turnaround from a year-earlier profit of $US1.15 billion ($1.61 billion).

“It was a difficult quarter for Chubb as the COVID-19 pandemic, an event of historic proportions, impacted both our earnings and growth, and overshadowed the core underlying strength and vitality of our company,” Chairman and CEO Evan Greenberg said.

The property and casualty combined operating ratio deteriorated to 112.3% from 90.1% as performance was hit by an after-tax COVID-related charge of $US1.2 billion ($1.7 billion).

The division’s net premium written fell 0.4% to $US7.7 billion ($10.7 billion), despite a 9.1% rise in commercial lines, due to virus impacts and weakness in the consumer operations.

“Our consumer businesses, including accident and health, travel and personal lines, were heavily impacted given the pandemics effects on consumer activity and net premiums declined over 6%,” Mr Greenberg said.

Chubb says it is growing its exposures and share in commercial markets to take advantage of improving conditions, with rates in many classes rising in North America and in international operations.

“These hard or hardening market conditions are spreading globally to more territories and classes at varying speeds, a rational response to prolonged overly competitive industry market conditions and the loss cost environment,” Mr Greenberg said.

For the half year, Chubb reported a loss of $US79 million ($110 million) compared with a profit of $US2.19 billion ($3.06 billion) a year earlier.