NU Online News Service, Oct. 22, 11:10 a.m. EDT

The Chubb Corporation reported a slight drop in third-quarternet income while recording higher pre-tax catastrophe losses andlower net realized investment gains.

Chubb said it earned $572 million during the 2010 third quartercompared to $596 million in the 2009 third quarter.

Pre-tax catastrophe losses during the third quarter this yearwere $58 million, up from $22 million at the same time last year.Catastrophes added 2.1 points to the corporation's combined ratioof 86.2 in the third quarter. It was 85.4 last year.

The uptick in overall combined ratio was caused by performancein Chubb Personal Insurance (CPI), where catastrophes impacted theratio by 3.7 points to 85.4 in the third quarter compared to 81.6during the 2009 third quarter.

Net written premiums in personal insurance increased 4 percentto $980 million.

In Chubb Commercial Insurance (CCI) and Chubb SpecialtyInsurance, net written premiums were flat at $1.1 billion and $669billion, respectively, for the third quarter as the combined ratioin each line of business decreased slightly year-to-year.

Although renewal rates were down 1 percent for CCI, it retained87 percent of premiums during the quarter--one of the highestretention rates in many years, said John Degnan, chief operatingofficer, during a conference call.

Chubb said it recorded 2010 third-quarter net realizedinvestment gains of $54 million compared to $69 million during thesame time a year ago.

The corporation also announced shifts in management to followMr. Degnan's retirement at the end of the year.

o Paul J. Krump will become president of commercial andspecialty lines. Mr. Krump was executive vice president and chiefunderwriting officer.

o Dino E. Rubusto is to become president of personal lines. Hewas executive vice president and chief administrative officer.

o Harold L. Morrison will take on the duties of chiefadministrative officer while continuing as executive vice presidentand chief global field officer.

John J. Finnegan, chairman, president and chief executiveofficer, said Mr. Degnan will remain with Chubb as a part-timeconsultant, although the details have not been finalized.