Evan G. Greenberg
Executive Chairman & CEO at Chubb
Good morning. As you saw from the numbers, we had another great quarter. We produced core operating EPS of $5.38, up 9.3%. Premium revenue growth reflects strong results in our businesses around the world. North America P&C, International P&C and life insurance demonstrates the broad-based diversified strength of our company. Our underwriting results were simply excellent. We published a combined ratio of 86.8. We grew investment income within 25% and life segment income was up 8.7%, with International Life up double digit. Core operating income for the quarter was $2.2 billion, bringing year-to-date operating earnings to $4.4 billion, up 13.5%, and a record six-month result. P&C underwriting income in the quarter of $1.4 billion was essentially flat as a result of higher cat losses globally.
As you know, it was an active quarter for the industry. Our losses of $580 million compared with $400 million prior year, and they were in line with our modeled expectations, while last year's second quarter losses were light. On an ex-cat current accident year basis, underwriting income of $1.8 billion was up over 11% with a combined ratio of 83.2. Both were record underwriting results.
Investment income topped $1.5 billion, up nearly 26% and a record as well. At June 30, our reinvestment rate is averaging 5.9%, and our fixed income portfolio yield is 4.9% versus 4.5% a year ago. Our liquidity is very strong, and investment income will continue to grow as we reinvest cash flows at higher rates. Our invested asset now stands at $141 billion, and we expect it to continue growing.
Life segment income of $276 million was right in line with our plan. Our annualized core operating ROE for the quarter was 13.03%, with a return on tangible equity of over 21%. Peter will have more to say about financial items.
Turning to other matters, growth, pricing and the rate environment, consolidated net premiums for the company increased 11.8% in the quarter, or 12.3% in constant dollars. We are a large, diversified global insurer, and our growth this quarter is again a reflection of who we are. Growth was broad based geographically by product and customer segment, both commercial and consumer, from North America Commercial to North America consumer, international commercial, Asia, Europe and Latin America to international consumer, particularly Asia and Latin America.
In terms of the commercial P&C rate environment, overall conditions remain favorable in both property, which is naturally more competitive, and casualty, which is firming in those classes that require rate. Loss cost inflation remains steady and within what we have contemplated in our pricing and our reserving. Property has become more competitive as more capital is entered. Our book is well priced and terms and conditions remain steady. Casualty is firming in the areas that need rate, and we see this trend in casualty enduring, and I'm going to give you some more color by division.
So, let's start with North America. Premiums, excluding agriculture, were up 8% and consisted of 12.3% growth in personal lines and 6.7% growth in commercial. With all P&C lines including comp up 8.7% and financial lines down about 3%. We wrote over $1.3 billion of new business, which is a record, and our renewal retention on a policy count basis was 90%. Both speak to the reasonably disciplined tone of the market and our excellent operating performance.
Premiums in our major accounts and specialty division increased 6.5%, with P&C up about 8% and financial lines down 2.5%. Our E&S business grew about 8.5%. Premiums in our middle market division increased about 7.5% with P&C lines up almost 11% and financial lines down 4.5%. Again, the underwriting environment in North America is generally favorable and rational, financial lines aside. P&C pricing excluding financial lines and comp was up 8.3% with rates up 5.5% and exposure change of 2.7%. Financial lines pricing was down 3.2% with rates down about 3.5% and exposure up 0.3%, and workers comp, which includes both primary and large account risk management compensation, pricing was up 4.2% with rates up 1.6% and exposure up 2.6%, and breaking down P&C pricing further, property pricing was up 5.3% with rates up about 1.1% and exposure change of 4.2%. Large accounts shared and layered in E&S property pricing was flat to down, while in the middle market rates continue to rise about 7%. We are big in all three and again all three are priced adequately.
Casualty pricing in North America was up 11.7% with rates up 9.9% and exposure up 1.6%. Lost costs in North America remains stable in line -- and in line with what we contemplate in our loss picks. Loss costs for P&C excluding financial lines and comp are trending at 7.3%, with short tail classes up 5.3% in casualty excluding comp at 8.6%. We are trending our first dollar work comp book at 4.6%.
As I said, when it comes to financial lines, the underwriting environment in a number of classes is simply not smart. We are trading growth for a reasonable underwriting margin. We are trending financial lines loss costs at just over 5%.
On the consumer side of North America, our high net-worth personal lines business had another outstanding quarter with premium growth of over 12%, including new business growth of 30%. Premium growth for our true high net worth segments, the group that seeks our brand for the differentiated coverage and service we are known for, grew 17%. These numbers are really impressive when you consider our high net-worth personal lines division is almost a $7 billion business. Our homeowners pricing was up 14.6% in the quarter while the loss cost trend remains steady at 10.5%.
Turning to our international general insurance operations, net premiums were up over 16.5% in constant dollar. Our international commercial business grew nearly 14% while consumer was up almost 21%. Asia Pacific led the way with premiums up 36%, and excluding China's contribution, premiums were up over 9%. Latin America had a strong quarter with premiums up about 12%, and Europe retail grew over 9% with the [Indecipherable] of 11%. 41% of our overseas general division's premium is consumer, both ANH and personal lines, and it's growing at a good clip. In the quarter, premiums in our international ANH business were up over 10.5%, led by Asia Pacific and Europe.
Our international personal lines business had another excellent quarter with growth of 32% led by Asia PAC and Latin America. We continue to achieve positive rate to exposure across our international commercial portfolio with retail, property and casualty lines pricing up 6.1 and financial lines pricing down 4.1.
Loss cost inflation across our international retail commercial portfolio is trending at 5.8% with P&C lines trending 6.1% and financial lines trending 4.8%. In our international life insurance business, which is fundamentally Asia, premiums were up 31.7% in constant dollar. Excluding China, life premiums were up almost 10%. Depending on the country, growth was driven by tied agency, brokerage, bank assurance and direct marketing distribution channels.
International life earnings grew over 15% in the quarter, constant dollar. Lastly, global Re had a strong quarter with premium growth exceeding 40% and a combined ratio of 72.7%. Growth was property driven, both risk and cash, and in the quarter, we wrote more one-off structured transactions which contributed to our growth.
In summary, as you can see, we had a great quarter and again our results reflect the strength, the breadth and the depth globally of the company. We are confident in our ability to continue growing our operating earnings at a superior rate through P&C revenue growth and underwriting margins, investment income and life income. I'm going to turn the call over to Peter, then we're going to come back and take your questions.
