The Chubb Corporation reported 2008 fourth-quarter net income of $407 million, or $1.13 per share, a 37 percent decrease from net income of $650 million, or $1.68 per share in the 2007 period. The decrease was due mainly to investment losses, management said.

For the year, the Warren, N.J.-based insurer reported a net income of $1.8 billion, or $4.92 per share, down from $2.8 billion, or $7.01 per share in 2007. Net realized investment losses, including impairments, were $371 million before tax, Chubb said, while net income for 2007 included net realized investment gains of $374 million before tax.

Commenting on the results for the year, John D. Finnegan, chairman, president and chief executive officer, said in a statement, "While net income was adversely affected by continued turmoil in capital markets, the relatively modest size of our investment losses reflects the successful execution of our conservative philosophy in managing our $39 billion portfolio."

For the fourth quarter, Chubb said net realized investment losses, including impairments, were $250 million before tax, stemming primarily from the company's equity and alternative investments.

Net written premiums declined 4 percent in the fourth quarter to $2.9 billion compared to the fourth quarter of 2007. Chubb said currency fluctuation accounted for the decrease.

In general, Mr. Finnegan said in a conference call he was pleased with underwriting performance for the quarter, noting that all three business units--personal, commercial and specialty insurance--contributed favorably to the company's results.

Personal insurance accounted for $939 million in net written premium for the quarter, up 2 percent from $917 million in the previous year's fourth quarter; commercial accounted for $1.2 billion, down 7 percent from $1.3 billion; and specialty accounted for $776 million, down 2 percent from $794 million.

The total combined ratio for the quarter was 84.3, a .5 deterioration from 83.8 in the fourth quarter of 2007.

Mr. Finnegan said in the conference call that the quarter saw favorable loss development and benign cat activity.

For the year, Chubb reported $11.8 billion in net written premiums, down slightly from $11.9 billion in 2007. The combined ratio for the year was 88.7, a 5.8 deterioration from 82.9 in 2007.

Mr. Finnegan said, "Chubb's operating income for all of 2008 was $2 billion, the third-highest achieved in any year in the corporation's history, thanks to significant contributions from all three business units. This result was achieved in the face of high catastrophe losses for the year, deepening distress in many sectors of the global economy as well as declining insurance rates for the past four years. It is testimony to the unique strengths of Chubb's franchise and our ability to earn a strong underwriting profit in a variety of economic circumstances."

For the year, Chubb said catastrophes accounted for 5.1 points of the combined ratio, compared to three points in 2007.

Special Reports /

Chubb 4Q Results Down 37 Percent On Investment Losses

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