Chubb has reported record investment returns and excellent underwriting contributed to the company’s best financial year ever.

It included a fourth quarter net income of $1.31 billion and core operating income of $1.70 billion for the quarter to December 31.

But full-year net income was $5.31 billion versus $8.54 billion for the prior year.

For the full year 2022, Chubb said there were record results for core operating income, core operating earnings per share and investment income.

The company highlighted the record net investment income, double-digit premium growth, and excellent underwriting performance despite the below-average crop year in the North American crop insurance business.

Evan G. Greenberg, chairman and chief executive officer of Chubb Limited, commented: “We had a strong quarter which contributed to the best full-year financial performance in our company’s history.

“Our quarterly results included record net investment income, double-digit premium growth, and an excellent underwriting performance with an 88 per cent combined ratio despite a true-up to our annual agriculture results reflecting a below-average crop year.”

He said: “Consolidated net premiums, P&C and life together, increased 12 per cent in the quarter, or 16 per cent in constant dollars, to $10.2 billion.

“P&C premium growth of 9.8 per cent was broad-based globally with good contributions from our commercial and consumer businesses, up 10.4 per cent and 8.1 per cent, respectively.

“Life premiums, reflecting the addition of the Cigna Asia business, were up over 100 per cent.

“We are off to a strong start in the new year and are firing on all cylinders. While there’s certainly plenty of risk and uncertainty in the operating environment globally – economic and geopolitical, from what we know and can control, ’23 should be a good year in terms of growth and earnings.”

Chubb said core operating income was up three per cent to $1.70 billion ($4.05 per share, up 6.3 per cent).

Pre-tax net investment income was $1.05 billion, up 24.8 per cent, and adjusted net investment income was $1.12 billion, up 23.6 per cent.

Pre-tax and after-tax catastrophe losses were $400 million, compared with $275 million last year.

Net income in the quarter was adversely impacted by realised losses of $363 million after tax principally due to the mark-to-market impact on private equities.