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July 22 (Reuters) – Insurance company Chubb reported a rise in second-quarter profit on Tuesday, helped by improved underwriting performance and investment returns.

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Stronger underwriting reflects an insurer’s ability to price risk effectively, bolstering profits despite higher claims.

The insurer’s net investment income surged 6.8% to a record $1.57 billion during the reported quarter.

Chubb’s global P&C (property and casualty) net premiums written, excluding agriculture, increased 5.8% to $11.66 billion for the three months ended June 30.

“We produced a record $2.5 billion in core operating income, up nearly 13% from a year ago, with operating EPS up 14%, driven by record underwriting and strong investment income, and double-digit growth in life income,” Chubb CEO Evan Greenberg said.

Chubb reported a property and casualty combined ratio of 85.6%, compared to 86.8% a year earlier. A ratio below 100% indicates the insurer earned more in premiums than it paid out in claims.

The company’s core operating income, net of tax, rose to $2.48 billion, or $6.14 per share, in the quarter, compared with $2.20 billion, or $5.38 per share, a year earlier.

Reporting by Ateev Bhandari and Prakhar Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi

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