The Chubb Corp. has announced that first quarter net income was $664 million, down 6.5 percent from the $710 million reported for the period last year.

John D. Finnegan, chairman, president, and chief executive officer of the Warren, N.J.-based company, noted a “competitive market environment” that exists in the industry, but said he was pleased with the company's results.

Chubb reported operating income, defined as net income excluding after-tax realized investment gains and losses, at $620 million, down two percent from $634 million in the first quarter of 2007.

Net written premiums increased two percent to $2.94 billion from $2.87 billion in 2007.

Chubb noted that the impact of “currency fluctuation on business written outside the United States” accounted for a three percent increase for premiums for the insurance business. The company said that premiums were flat in the United States compared to a 14 percent increase outside the United States.

For reinsurance assumed, Chubb reported a 60 percent decrease in net premiums written – down to $16 million from $40 million in 2007. The company said the decline reflects “the impact of the Chubb Re-Harbor Point transaction completed in December 2005.” Since the creation of Bermuda-based Harbor Point Chubb has been transferring business from Chubb Re to the new venture.

The combined ratio for the first quarter of 2008 was 83.9, compared to 83.4 in the first quarter of 2007.

Property-casualty investment income after taxes for the first quarter was reported at $327 million in 2008, a seven percent increase from $305 million in 2007.

Special Reports /

Chubb First Quarter Profits Down Slightly

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