Chubb Limited has posted a second quarter profit of more than $1.3 billion — up more than 79 per cent on the same period last year.

The figure is equivalent to $2.77 per share, compared to the $1.54 per share on profit of $726 million in the second quarter of 2016.

Investment income, excluding a purchase accounting adjustment of $85 million, was a record $855 million.

Chubb Limited was created after Ace Limited acquired Chubb Corp. in January 2016,

The insurer and reinsurer’s operating income totalled $1.18 billion, an increase of 11.4 per cent and equal to $2.50 per share. That compared to operating income of $1.05 billion and $2.25 per share in the same period in 2016.

The firm also reported net premiums written of $7.58 billion and $7.05 billion for consolidated and property and casualty business respectively.

Evan Greenberg, CEO of Chubb, formed from a takeover of Chubb by Ace last year, said: “Chubb’s strong earnings this quarter were driven by world-class underwriting results and record investment income.

“After tax operating income per share increased 11 per cent with operating earnings up 13 per cent year to date.

“We had book and tangible book value per share growth in the quarter of 2.7 per cent and 4.3 per cent respectively and produced an operating return on equity of around 10 per cent.”

Mr Greenberg added that the firm’s 88 per cent property and casualty combined ratio — more than two points up on the prior year — was “truly distinguishing” given continued soft market conditions.

He said: “We benefited from a substantial improvement in both our expense ratio and our loss ratio as a result of merger-related efficiencies and underwriting actions as well as lower catastrophe costs. Total property and casualty underwriting income was up 20 per cent.

“Although the commercial property and casualty market is soft around the globe, the trend for pricing improved for the business we wrote with rates flat or the rate of decline substantially slowing in most classes, while in some particularly stressed areas we achieved rate.

“Our premium revenue growth continued to trend better as we projected and was our best since the merger.

“We wrote less new business in line with our underwriting discipline while renewal retentions were steady.”

Mr Greenberg said: “Overall, we are in excellent shape with our integration-related efficiency efforts and are now increasing the total annualised run-rate savings we will achieve by the end of 2018 to $875 million, up from $800 million.”