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Chubb increases reinsurance buying amid broader P&C market softening

CEO Evan Greenberg said U.S. primary casualty loss costs are rising about 6.0% to 7.0% per year, while excess is up 9.5% to 12.0%.

Reported · Written up by our desk · Reinsurance

Chubb is buying more reinsurance this year, with CEO Evan Greenberg attributing the decision to a competitive and softened market environment where it “makes sense” to do so, according to remarks made during the company’s second-quarter earnings call.

Greenberg also said ceded premiums have risen as Chubb uses more reinsurance, and he pointed to softening in the property and casualty market that has extended beyond property risks into casualty lines, particularly E&S, where discipline may have weakened.

He warned that pricing in parts of casualty is not keeping pace with loss costs, noting that U.S. primary casualty loss costs have been rising at roughly 6.0% to 7.0% per year, and excess loss costs at about 9.5% to 12.0% per year.

On property pricing, Greenberg said property pricing was down about 6.0% overall, with rates down 10.5% and exposure up 5.2%, and he added that the pricing on business Chubb chose to give up or pass on was down around 40%.

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