Insurer Chubb's Q1 profit rises on strong investment returns, underwriting

Insurance company Chubb CB posted a rise in first-quarter profit on Tuesday, helped by higher returns from its investments and stronger underwriting.

The insurance sector has benefited from the growing hopes of a soft landing for the economy and a tight labor market, which has revived spending on insurance policies.

Chubb's net written premiums rose 14.1% to $12.22 billion in the first quarter, from $10.71 billion a year ago.

A market rally has also helped insurance firms that invest a portion of their profits across asset classes rake up higher returns.

Chubb's pre-tax net investment income rose to $1.39 billion from $1.11 billion in the year-ago period.

The company reported a current accident year combined ratio, excluding catastrophe losses, of 83.7%, compared with 83.4% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.

The insurer's core operating income rose to $2.22 billion, or $5.41 per share, for the quarter ended March 31, from $1.84 billion, or $4.41 apiece, a year ago.