@The Hartford.
The latest Q3 investment results for North American insurers showed interest rate falls have not hit their returns as of yet but that expected hits from the recent powerful hurricanes that affected the southeast US would likely cause Q4 issues.
The insurance giant Chubb said its pre-tax net investment income was $1.51 billion, up 14.7%, and adjusted net investment income was $1.64 billion, up 15.9% for Q3 2024.
“Our P&C underwriting results in the quarter were excellent, though
it was an active quarter for industry wide catastrophe losses."
“Both were records,” it said, which it also said for its Q2 results.
Overall net income for the quarter was $2.32 billion and the pre-tax catastrophe losses were $765 million, which included $250 million from Hurricane Helene, compared with $670 million last year.
“Our P&C underwriting results in the quarter were excellent, with strong contributions from all divisions, though it was an active quarter for industry wide catastrophe losses,” said Evan G. Greenberg, Chairman and CEO. “We published a combined ratio of 87.7% with P&C underwriting income up over 11.5%. On an ex-CAT current accident year basis, underwriting income of $2 billion led to a world-class combined ratio of 83.4%. On the other side of the balance sheet, we manage an invested asset of $151 billion and generated adjusted investment income in excess of $1.6 billion, up nearly 16%.”
The Hartford said its Q3 results showed net income available to common stockholders of $761 million, which was an improvement from $645 million in third quarter 2023, and was primarily driven by earned premium growth in both Commercial and Personal Lines, as well as lower net realised losses and higher net investment income.
Net investment income was $659 million, before tax, compared with $597 million in Q3 2024, and was primarily driven by higher yields on the company’s fixed income portfolio and a higher level of invested assets.
Los-Angeles-based Mercury Corp said its net realised investment gains in Q3, net of tax, was $90.4 million compared to a loss of $71.1 million in 2023.
Net realised investment gains before tax were $156 million and a loss of $61 million for the nine months ended September 30, 2024, and 2023, respectively.
Net investment income includes interest income earned on cash of approximately $6.8 million and $5.1 million for the three months ended September 30, 2024, and 2023, respectively.
Net premiums written were $1.422 billion.
Liberty Mutual Holdings said its net written premium for the three months and nine months ended September 30, 2024, were approximately $12 billion and $34 billion, respectively.
Estimated losses related to Hurricane Helene, which are reflected in the estimated Q3 information, were approximately $550 million, pre-tax.
Losses related to Hurricane Milton are still developing and will be reflected in Q4. The current estimate for the event is $250 million - $350 million pre-tax.
Net income for the Q3 and the nine months ended September 30, 2024, were approximately $900 million and $3 billion, respectively.
Massachusetts-based The Hanover Insurance Group, said in its press release that for Q3 its investment income was $91.8 million, which was up 9.0% from the prior-year quarter. This was “primarily due to higher bond reinvestment yields; net investment income from fixed maturities up 15.4% from the prior-year quarter” it said.
"Markel Group said that its operating revenue
grew 37% for the quarter."
Net income was $102.1 million for Q3 compared to net income of $8.6 million in the prior-year quarter. Operating income was $111.3 million in Q3, compared to operating income of $6.8 million in the prior-year quarter. The company reported net and operating return on equity of 15% and 14.4% for the Q3, and 13.2% and 12.8% for the first nine months of 2024, respectively.
Elsewhere, Markel Group, said that its operating revenue grew 37% and 15% for the quarter and nine months ended September 30, 2024, respectively, as well as significant growth in operating income, which was driven by its investments.
Net investment income within the Investments segment of the business increased 22% and 29% for Q3 nine months ended September 30, 2024, respectively, reflecting higher interest rates and increased investment holdings in 2024 compared to 2023.
Travelers has already released its results for Q3, which showed that fixed income returns were going strong and that the recent cuts by the Fed had yet to filter through.
There were also few signs of any slowdown with most companies reporting favourable overall results that should be good news for the wider economy just a week out from the election.
