Chubb Reports Increased Quarterly Profit Driven by Investment Gains

Chubb's Financial Performance Overview

Feb 3 (Reuters) - Insurance company Chubb posted a rise in fourth-quarter profit on Tuesday, driven by growth in investment returns and lower catastrophe losses.

Investment Returns and Catastrophe Losses

Insurance spending has continued to rise even as businesses and individuals rein in other expenses, reflecting efforts to guard against climate-related disasters and emerging risks such as cyber threats.

Comparison with Competitors

The insurer's pre-tax net investment income rose 8% to a record $1.69 billion in the reported quarter.

Travelers' Performance

Insurers typically allocate a portion of their capital across different asset classes, including fixed-income securities and equities, with returns often mirroring broader market trends.

Catastrophe losses were $365 million on a pre-tax basis, compared with $607 million a year earlier.

Catastrophe losses remain a key source of volatility for U.S. insurers, largely tied to hurricanes, wildfires and other severe weather, with both the timing and intensity of such events having a material impact on results.

Last month, property and casualty insurance giant Travelers beat Wall Street estimates for fourth-quarter profit, propelled by stronger underwriting performance and higher investment returns.

The company's core operating income, net of tax, rose to $2.98 billion, or $7.52 per share, in the three months ended December 31. That compares with $2.45 billion, or $6.02 per share, a year earlier.

(Reporting by Ateev Bhandari and Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)