(Reuters) – Insurance company Chubb beat estimates for quarterly profit on Tuesday as a rebound in markets helped it post higher returns from its investments.
NYSE-listed shares of the insurer rose nearly 2% in extended trading.
Investment income has recovered for insurers that invest in various asset classes as markets rally.
Chubb’s core operating income rose to $2.04 billion, or $4.95 per share, for the quarter ended Sept. 30, from $1.31 billion, or $3.13 apiece, a year ago.
Analysts on average had expected a profit of $4.44 per share, according to LSEG data.
The company’s adjusted net investment income was $1.31 billion, up 34.2% from the previous year.
Severe winds and hailstorms in multiple states in the U.S. caused Chubb to incur catastrophe losses net of reinsurance of $670 million, from $949 million a year earlier.
Reinsurance broker Gallagher Re pegged global insured losses from natural catastrophes in the first nine months of 2023 at $93 billion, with the United States accounting for 74% of the losses.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Pooja Desai)
