Chubb Weathers Catastrophe Losses, Reports Q3 Profit

October 22, 2010

The Chubb Corp. reported that net income in the third quarter of 2010 was $572 million, compared to $596 million in the third quarter of 2009

Operating income was $537 million in the third quarter of 2010 compared to $552 million in the third quarter of 2009.

The impact of catastrophes in the third quarter of 2010 was $58 million pre-tax, compared with $22 million pre-tax in the third quarter of 2009.

Net written premiums for the third quarter of 2010 were up 1 percent to $2.7 billion. Foreign currency translation did not have a significant effect on premiums, which were flat in the U.S. and up 6 percent outside the U.S. (up 4 percent in local currencies).

The third quarter combined loss and expense ratio was 86.2 percent in 2010, compared to 85.4 percent in 2009. The impact of catastrophes in the third quarter of 2010 accounted for 2.1 percentage points of the combined ratio, compared to 0.8 points in the third quarter of 2009. Excluding catastrophes, the combined ratio for the third quarter improved to 84.1 percent in 2010 from 84.6 percent in 2009.

The expense ratio for the third quarter was 31.7 percent in 2010 and 31.2 percent in 2009.

Property and casualty investment income after taxes for the third quarter was $317 million, unchanged from 2009.

Net income for the third quarter of 2010 reflected net realized investment gains of $54 million pre-tax ($0.11 per share after-tax), compared to $69 million pre-tax ($0.13 per share after-tax) in the third quarter of 2009.

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