The Chubb Corporation reported that net income in the second quarter of 2006 was $598 million, or $1.41 per share, compared to $495 million, or $1.23 per share, in the second quarter of 2005.
Operating income, which the company defines as net income excluding after- tax realized investment gains and losses, increased to $571 million from $461 million in the second quarter of 2005. Operating income per share increased 18 percent to $1.35 from $1.14.
The second quarter combined loss and expense ratio improved to 85.2 percent in 2006 from 88.3 percent in 2005. Catastrophe losses for the second quarter of 2006 were $80 million, accounting for 2.7 percentage points of the combined ratio. In the second quarter of 2005, catastrophe losses were $21 million and accounted for 0.7 points of the combined ratio. The expense ratio for the second quarter was 28.5 percent in 2006 and 28.0 percent in 2005.
“Chubb had another outstanding quarter,” said John D. Finnegan, chairman, president and CEO. “Each of our three major business units contributed substantially to earnings, and the specialty business reached a milestone in its recovery by achieving a combined ratio below 90 percent.”
Second quarter net written premiums for insurance business increased 3 percent to $3.0 billion. Premiums for reinsurance assumed business declined 51 percent, reflecting the impact of the Chubb Re Harbor Point transaction completed in Dec. 2005. Total net written premiums declined 1 percent to $3.1 billion.
P/C investment income after taxes for the second quarter increased 10 percent to $288 million in 2006 from $261 million in 2005.
Topics Profit Loss
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