Chubb Reports Year-End, 4Q Results Up; Premium Volume Grows 5% for 2004

February 2, 2005

The Chubb Corporation reported that its net income in the fourth quarter 2004 jumped to $467.6 million compared to $72.3 million in the fourth quarter 2003.

Property/casualty net premiums written in the fourth quarter of 2004 grew 5 percent to $3.08 billion.

The fourth quarter combined loss and expense ratio was 90.6 percent in 2004 and 104.0% in 2003. Excluding the asbestos reserve strengthening in both years, the combined ratio for the fourth quarter was 88.1 percent in 2004 and 94.8 percent in 2003. Catastrophe losses for the quarter were $11.1 million in 2004, compared to $32.5 million in 2003.

For the year ended Dec. 31, 2004, net income was $1.55 billion compared with $808.8 million for the year ended Dec. 31, 2003.

Property/casualty net premiums written in 2004 increased 9 percent to $12.05 billion. Excluding Chubb Re, premiums increased 8 percent. The combined ratio for 2004 was 92.3 percent — the best combined ratio achieved since Chubb was incorporated in 1967.

Excluding the asbestos reserve strengthening, the combined ratio was 91.7 percent. In 2003, the combined ratio was 98.0 percent including the asbestos reserve strengthening and 95.5 percent without it. Catastrophe losses for the year (excluding the $80 million World Trade Center reserve release in the second quarter of 2004) were $349.6 million in 2004, compared to $294.0 million in 2003. The expense ratio for the year was 29.2 percent in 2004 and 30.4 percent in 2003.

“An excellent fourth quarter capped off an outstanding year for Chubb, with significant profit improvement achieved through superior underwriting, better expense control and higher investment income,” said John D. Finnegan, chairman, president and CEO. “We benefited from substantially improved results at Chubb Personal Insurance and continued excellent performance at Chubb Commercial Insurance.”

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