Commodity base prices
Chubb Limited’s (CB) North America Agricultural Insurance division’s income rose from $62.0 million in 1H16 to $113.0 million in 1H17, reflecting a substantial increase of 82.3%.
The rise in the division’s underwriting income and net investment income led to the rise in the division’s income. The division’s net investment income in 1H17 stood at $12.0 million compared to $10.0 million in 1H16, reflecting a 20% increase.
Chubb’s North America Agricultural Insurance division generated underwriting income of $116.0 million in 1H17 compared to $67.0 million in 1H16, which implies an increase of 73.1%.
This trend resulted from an increase in the division’s net premiums written from $439.0 million in 1H16 to $464.0 million in 1H17, implying a 5.9% increase.
In the company’s 2017 policy pricing, the rise in the commodity base prices led to an increase in the division’s net premiums written in 1H17. However, the company’s Agribusiness unit grew in 1H17, which contributed to the rise in the division’s net premiums written.
Chubb’s North America Agricultural Insurance division reported a marginal decline in its policy acquisition cost ratio from 8.2% in 1H16 to 7.2% in 1H17, reflecting lower direct commissions.