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What Happened with Chubb’s Life Insurance Division?



Fall in income

In 1H17, Chubb Limited’s (CB) Life Insurance business reported income of $114.0 million in 1H17 compared to $134.0 million in 1H16, reflecting a 14.9% decline. The 14.9% fall in the division’s underwriting income in 1H17 compared to 1H16 led to the decline in the division’s income in 1H17. The division’s underwriting income in 1H17 stood at $120.0 million compared to $141.0 million in 1H16.

Chubb Limited’s (CB) Life Insurance division collected deposits of $626.0 million in 1H17 compared to $475.0 million in 1H16 on investment contracts and universal life. These deposits increased as more deposits have been collected from Taiwan. These deposits play a crucial role in the growth of this division.

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Chubb Limited’s total revenues on a trailing-12-month (or TTM) basis stood at ~$32.4 billion. On the other hand, its peers (IYF) RenaissanceRe Holdings Limited (RNR), Allstate (ALL), and Everest Re Group (RE) reported total revenues of ~$1.8 billion, ~$37.8 billion, and ~$6.1 billion, respectively, on a TTM basis.

Net premiums written

In 1H17, the net premiums written in Chubb’s Life Insurance division stood at ~$1.05 billion. In 1H16, the division reported ~$1.04 billion, implying a 0.4% rise. This increase resulted from growth in the company’s Asian International Life division, which forms part of the company’s Life Insurance division.

The company’s Accident and Health Program business, which also forms part of the Life Insurance division, reported growth that led to an increase in the division’s net premiums written in 1H17.

However, growth in the division’s net premiums written in 1H17 was negatively affected by its Life Reinsurance business.


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