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

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

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

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

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

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

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

Although renewal rates were down 1 percent for CCI, it retained 87 percent of premiums during the quarter--one of the highest retention rates in many years, said John Degnan, chief operating officer, during a conference call.

Chubb said it recorded 2010 third-quarter net realized investment gains of $54 million compared to $69 million during the same time a year ago.

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

o Paul J. Krump will become president of commercial and specialty lines. Mr. Krump was executive vice president and chief underwriting officer.

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

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

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

Special Reports /

Chubb Corp. 3Q Net Income Down Slightly On Cats, Investments

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