NU Online News Service, April 22, 1:05 p.m. EDT

The Chubb Corp. says 2011 first quarter net income increased 10 percent over the prior year despite the impact of $270 million from global catastrophe claims.

The Warren, N.J.-based insurer reports a $45 million net income increase, to $509 million. Earnings per share increased 21 cents to $1.35 a share. Net premiums written rose 3 percent, or $94 million, to $2.9 billion.

During a conference call with financial analysts, John D. Finnegan, chairman, president and chief executive officer of the company said the big story is the unusual level of catastrophes around the globe. He added that the company performed extremely well despite the events.

Chubb's combined ratio rose 0.1 points to 93.7.

The company says its personal lines net written premiums increased 2 percent, or $20 million, to $894 million.

Commercial insurance net written premiums increased 7 percent, or $83 million, to $1.3 billion.

The company's specialty insurance business rose 3 percent, or $96 million, to $2.9 billion.

Dino Robusto, executive vice president and president of personal lines and claims, notes that both personal and homeowners lines are seeing single digit rate increases. He adds that the company sees no need to take significant rate increases at this time.

There is evidence of economic improvement from this line as more customers are adding insurance coverage to such items as jewelry to their coverage, he says.

He also says domestic catastrophes from seven weather events cost the company $100 million in losses. Catastrophe losses in Australia will amount to $110 million. The earthquake in New Zealand will cost $25 million. Japan, where he says claims settlement will be slow due to the extent of damage, would amount to $35 million.

 Paul Krump, executive vice president and president of commercial and specialty lines notes that there are overall signs of economic improvement as commercial accounts are purchasing more insurance, such as workers' compensation, as company head counts increase.

However, general specialty is “not seeing many encouraging signs” as the line remains very competitive, Krump observes.