Evan G. Greenberg
Chairman and Chief Executive Officer at Chubb
Good morning. We had a very strong third quarter, highlighted by outstanding P&C premium revenue growth globally of 17% and simply excellent underwriting results on both the calendar and current accident year basis, despite elevated catastrophe losses. Our results were powered by double-digit commercial lines growth, strong continued underlying margin expansion, the strength of our reserves and our broad diversification of businesses.
Core operating income in the quarter of $2.64 per share was up 32% with $250 million over prior year to $1.2 billion, while net income of $1.8 billion was up 53% from prior year. For the year on both a net and core operating income basis, we have produced record earnings. Again, it was an active quarter for natural catastrophes. Yet, with over $1.1 billion of cats, we reported a 93.4% combined ratio with P&C underwriting income up 58% to $617 million, which speaks to the underlying strength of our businesses, and again, broad diversification of our company's sources of revenue and earnings, both domestically and globally. Year-to-date, we have produced $2.4 billion in underwriting income for a combined ratio of 90.4% and that includes $2.1 billion of cat losses, and what is shaping up to be another year of sizable weather-related loss events kind of the new normal brought on by climate change and other societal changes.
Speaking again to our underwriting health, on a current accident year ex-cat basis, underwriting income in the quarter was $1.4 billion, up 23% with a combined ratio of 84.8% compared to 85.7% prior year, a quarterly underwriting record. If we exclude the one-time positive adjustment we took last year due to lower frequency of loss because of the COVID-related shutdown, our current accident year combined ratio unaffected improved 2 points. This is more reflective of our margin expansion and we included a simple exhibit in our press release showing the detail. The strength of our balance sheet and conservative approach to loss reserving was again in evidence this quarter as we reported $321 million in favorable prior period reserve development. Net investment income in the quarter was $940 million, up 4.5%. Peter is going to have more to say about cats and prior period development, investment income and book value.
Turning to growth in the rate environment. As I said at the opening, P&C premiums were up nearly 17% globally or 15.5% in constant dollar with commercial premiums up 22% and consumer up 4%. The 17% growth for the quarter and 14.2% for the first nine months, topped last quarters and was the strongest organic growth we have seen again since 2004. Growth in the quarter was broad-based with contributions virtually all commercial P&C businesses globally from our agriculture business to those serving large companies to mid-sized and small and most regions of the world and distribution channels. The robust commercial P&C pricing environment remains on pace in most all important regions of the world with continued year-on-year improvement in rate to exposure on the business we wrote, both new and renewal.
In North America, total P&C net premiums grew over 17% with commercial premium up about 22.5% excluding agriculture, which had a fantastic quarter in its own right with premium growth of over 40%, commercial P&C premiums were up over 16.5% in North America. New business was up 13% for all commercial lines and renewal retention remained strong at over 97% on a premium basis. The 16.5% commercial premium growth is a composite of 15.5% growth in our major accounts and specialty business and over 18% in our middle market and small commercial business, simply a standout quarter for this division.
Overall, rates increased in North America commercial lines by over 12%. Once again, loss costs are currently trending about 5.5% and vary up or down, depending upon line of business. And again, like last quarter, just to remind you, in general, commercial lines loss costs for short-tail classes are trending around 4% though we anticipated this to increase in the future while long-tail loss costs excluding comp are trending about 6%.
Let me give you a better sense of the rate increase movement in North America. In major accounts, which serves the largest companies in America rates increased in the quarter by just over 13%. Risk management-related primary casualty rates were up over 6%. General casualty rates were up about 21% and varied by category of casualty. Property rates were up 12% and financial lines rates were up 17%.
In our E&S wholesale business, rates increased by 16% in the quarter, property rates were up 13%, casualty was up 20% and financial lines rates were up about 21%. In our middle market business, rates increased in the quarter nearly 9.5%. Rates for property were up over 11%. Casualty rates were up about 9.5% excluding workers' comp with comp rates down 2% and financial lines rates were up 18%.
Turning to our international general insurance operations. Commercial P&C premiums grew 20.5% on a published basis or 16% in constant dollar. International retail commercial P&C grew nearly 17% or 12% in constant dollar, while our London wholesale business grew over 31%. Retail commercial P&C growth varied by region with premiums up almost 28% in our European Division, Asia Pacific was up 15.5%, while Latin America commercial lines grew about 6.5%.
Internationally, like in the U.S. in those markets where we grew, we continued to achieve improved rate to exposure across our commercial portfolio. In our international retail commercial P&C business, rates increased in the quarter by 15%, property rates were up 11%, financial lines up 33% and primary and excess casualty up 7% and 11% respectively. And in our London wholesale business rates increased in the quarter by 11%, property up 13%, financial lines up 14%, marine up 8%.
Outside North America, loss costs are currently trending about 3% though that varies by class of business and country. Consumer lines growth globally in the quarter continue to recover from the pandemic's ongoing effects on consumer-related activities. Our international consumer business grew almost 10% in the quarter on a published basis or 5% in constant dollar, and breaking that down a little further, international personal lines grew almost 11% on a published basis, while international A&H grew over 8.5% or just 5% in constant dollar.
Latin America had a particularly strong quarter in consumer with personal lines and A&H premiums up 18.5% and 17.5% respectively, powered by both our traditional and digitally-focused distribution relationships. Net premiums in our North America high net-worth personal lines business were up just over 1%, adjusted for non-renewals in California and COVID related auto-renewal credit, we grew 3% in the quarter. Our true high net-worth client segment, the heart of our business, grew 11% in the quarter. Overall, retentions remained strong at 95.7% and we achieve positive pricing, which includes rate and exposure of 14% in our homeowners portfolio. The severity trends in personal lines in the U.S. remain elevated.
Lastly, in our Asia-focused international life insurance business, net premiums plus deposits were up over 52% in the quarter, while net premiums in our Global Re business were up over 22%. In sum, we continue to capitalize on broad-based and favorable market conditions and improving economic conditions. All of our businesses did well or are improving from agriculture to all forms of commercial P&C globally, both retail and wholesale, serving large companies to middle market and small to our improving global personal lines and A&H businesses to our Asia life businesses, to our Global Re business. In one sentence, both growth and margin expansion are two trends that will continue.
In the quarter, as you saw, we announced the definitive agreement to acquire the life and non-life insurance companies that house the personal accident supplemental health and life insurance businesses of Cigna and Asia-Pacific for $5.75 billion in cash. As you saw or can see from our Investor Presentation these operations generate approximately $3 billion in premium revenue, have favorable underwriting margins and are not exposed to the P&C cycle. This highly complementary transaction advances our strategy to expand our presence in the Asia-Pacific region, including our company's Asia-based life company presence and add significantly to our already sizable global A&H business.
Upon completion of the transaction, which we expect during 2022, Asia Pacific share of Chubb's global portfolio will represent approximately 20% of the company. For many years, we have admired Cigna's business in Asia including its people, product innovation, distribution and management capabilities. The underlying economics and value creation of the transaction are very attractive, and these businesses will contribute to our company strategically for decades to come. The transaction once again demonstrates our patience in advancing our strategies and confirms our consistent and disciplined approach to holding capital for risk and growth, both organic and inorganic.
Our company has considerable earning power and a patient hand to deploy capital effectively over time. We return excess of what we need to shareholders in the form of dividends and share repurchases, while we continue to build future revenue and earnings generation capabilities. In conclusion, this was another excellent quarter of growing our business and our exposures, expanding our margins and investing in our future. All in a period with substantial cats, which are not unexpected. My management team and I have never been more confident in our ability to continue to outperform and deliver strong sustainable shareholder value.
I'll now turn the call over to Peter, and then we will be back to take your questions.