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Chubb’s Overseas General Insurance Posted a Decline in Income

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Division’s income

Chubb Limited’s (CB) Overseas General Insurance division reported a marginal rise in net premiums written from ~$1.9 billion in 3Q16 to ~$2.0 billion in 3Q17 for a 1.2% increase.

Chubb’s Overseas General Insurance division reported a substantial fall in its income from $530.0 million in 3Q16 to $131.0 million in 3Q17, for a fall of 75.3%. This division reported a 52% year-over-year (or YoY) rise in the losses and loss expenses from $843.0 million in 3Q16 to $1.3 billion in 3Q17.

Chubb reported a net income margin of ~12.4% over the last 12 months (or LTM). Its peers (XLF) Travelers Companies (TRV), Aspen Insurance Holdings (AHL), and CNA Financial Corporation (CNA) reported net income margins of ~8.5%, ~-7.1%, and ~9.7%, respectively, on an LTM basis.

Region-wise contribution

Of the total net premiums written of ~$2.0 billion in 3Q17, Chubb’s Overseas General Insurance division garnered $691.0 million from Europe while Asia contributed $681.0 million.

Latin America contributed $514.0 million while this division earned $77.0 million from other regions in 3Q17.

Net investment income, catastrophe losses

Chubb’s Overseas General Insurance division generated net investment income of $164.0 million in 3Q17 compared to $152 million in 3Q16, implying a YoY increase of 7.9%.

This division reported pretax catastrophe losses of $326.0 million in 3Q17 while in 3Q16, it posted losses of $20.0 million.

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