Chubb Limited has reported fourth-quarter net income of $2.42 billion, more than doubling its income for the same period a year ago.

The company said it had profit of $5.34 per share. Earnings, adjusted for non-recurring gains, came to $3.18 per share.

The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.87 per share.

Core operating income for the quarter was $1.44 billion, compared to $1.04 billion for the same three months in 2019.

For the year, the global insurer reported profit of $3.53 billion, or $7.79 per share, compared to $4.45 billion in 2019.

Evan Greenberg, chairman and chief executive officer of Chubb, said: “Chubb had an excellent fourth quarter finish to the year, highlighted by very strong earnings, resulting from continued underwriting margin improvement and double-digit commercial lines premium growth globally.

“The pricing environment was the strongest we’ve seen since rates in certain classes began to rise about three years ago. Commercial rate increases averaged 16.5 per cent and 18.5 per cent, respectively, in our North America and international businesses. I expect the favourable underwriting conditions to continue.”

He added: “We are off to a good start in ‘21 with both growth and the level of commercial P&C rate increases resembling the underwriting conditions of the fourth quarter. With our leadership energised and our people focused, and given our full range of capabilities to bring to bear for our clients and business partners, we are confident in our ability to continue growing revenue and expanding underwriting margins.”

In the fourth quarter, Chubb’s P&C underwriting income was up 82 per cent, with a published combined ratio of 87.6 per cent, compared to 92.7 per cent in the prior year.