Total net premiums written rose 1 percent to $3.06 billion from $3.02 billion one year ago. Premiums for the insurance business grew 3 percent?up 1 percent in the United States and 7 percent overseas?while premiums for the reinsurance assumed business fell 12 percent.

The insurer's investment income also improved, to $313.4 million, compared with $277.7 million one year ago.

"Chubb had an outstanding quarter, with the best combined ratio in more than 30 years," said Chubb's Chief Executive Officer John Finnegan. "Highlighting the quarter was the continued excellent performance of our commercial insurance lines and ongoing significant improvement in homeowners insurance."

Commenting on the current softening prices, Mr. Finnegan also observed that in this more competitive market environment, "we have maintained underwriting discipline and strict expense vigilance in order to protect and enhance our profitability."

He also forecasted that Chubb's first-quarter results put the company in a position of "achieving or exceeding" its operating earnings guidance for full-year 2005.

Chubb's first-quarter profit was "significantly above expectations," observed Lehman Brothers, a New York-based investment research firm.

Lehman Brothers analyst Jay Gelb said the results reinforce his view that the insurer can beat expectations through 2005.