Chubb points to 4% rate increase, hardening U.S. market

First Travelers commented on rate increases, now Chubb. From Thursday’s conference call transcript, Paul Krump, executive vice president and president of commercial and specialty lines:

We are encouraged that [Chubb Commercial Insurance] CCI’s average renewal rates were up 4% in the United States, up from the 2% renewal increase we reported in the second quarter of this year. And even more encouraging sign is that month over month, average rate increases accelerated through July, August and September. Retention for the third quarter was 85% and our new-to-lost business ratio was 1:1, both are down moderately from the second quarter. With respect to CCI’s United States renewal rates, more good news is that we’re seeing increases not only in property but across-the-board, including general liability, workers compensation, excess umbrella, package and commercial auto. Approximately 80% of the CCI business we renewed in the United States in the third quarter was flat or had positive rate increases. That compares to about 70% in the second quarter of this year and 60% in the first quarter.

In markets outside the United States, CCI renewal rates in the third quarter were down slightly, largely unchanged from the second quarter. The exception is those geographic areas that have experienced recent catastrophes where we continue to secure substantial property rate increases.

Details as always available here.

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