Chubb has posted a 53.5% increase in third quarter net income from a year earlier to $US1.83 billion ($2.43 billion), lifted by a strong showing from its property and casualty (P&C) arm.

P&C net premiums written went up 16.9% to $US9.9 billion ($13.1 billion) during the period as commercial lines grew 22% to $US7.4 billion ($9.9 billion), while underwriting income surged 57.5% to $US617 million ($821.7 million).

The P&C arm improved its combined ratio to 93.4% from 95.2%.

Catastrophe losses, net of reinsurance and including reinstatement premiums, for the September quarter were $US1.15 billion ($1.53 billion) pre-tax, or $US943 million ($1.26 billion) after tax, compared with $925 million ($1.23 billion) pre-tax, or $797 million ($1.06 billion) after tax, in the prior year. The current quarter included pre-tax net catastrophe losses of $US806 million ($1.07 billion) from Hurricane Ida.

“We continue to capitalise on robust commercial P&C pricing conditions in most regions of the world,” Chairman and CEO Evan Greenberg said.

“Our premium revenue growth in the quarter was broad based with contributions from virtually all of our commercial P&C businesses and year-on-year improvement in rate-to-exposure that is well in excess of loss costs.”

He says the third quarter “illustrates the strengths that come from our underwriting capabilities and the broad diversification of our company’s businesses.”

“In sum, our company is in great shape,” Mr Greenberg said. “We are growing our business, expanding our margins and, as our recent Asia-Pacific transaction announcement demonstrates, investing in our capabilities to position us for continued growth in the future.”

Last month Chubb announced it has a “definitive agreement” with Cigna to acquire its life and non-life businesses in seven Asia-Pacific markets, including New Zealand, for $US5.75 billion ($7.7 billion).

Chubb says the purchase, which is subject to regulatory clearance and customary closing conditions, is complementary to its existing businesses in the region.

The deal advances Chubb’s strategy to expand its Asia-Pacific presence and will add to an “already sizeable” A&H business while strengthening its Asia-based life operations, the insurer said.

The acquisition is expected to close next year.