Chubb Corp. reports a jump in third-quarter net income of nearly80 percent, as the company benefited from a significant drop incatastrophe losses compared to the same period last year.

During 2011's third quarter Chubb booked $420 million incatastrophes losses, pretax. That total plummeted to what CEO JohnD. Finnegan called an “unusually low” $17 million for the thirdquarter this year.

The Warren, N.J.-based insurer's third-quarter net income standsat $533 million—up from $298 million a year ago.

During a conference call Finnegan says Chubb “continued toachieve rate increases in all of our businesses.”

“These positive factors [low catastrophes losses and more rate]were more than enough to offset the continuing effects of achallenging global economic environment and the impact of lowinterest rates,” he adds.

Net premiums at Chubb Commercial Insurance were up 2 percent inthe third quarter. Renewal rate increases in the quarter were up 8percent—the sixth straight quarter of rate increases at CCI,reports Paul Krump, president of commercial and specialtylines.

Krump adds that Chubb Specialty Insurance saw third-quarter netpremiums decline 4 percent. Professional liability renewal rates inthe U.S. were up 8 percent in the third quarter.

During the company's second-quarter call, Finnegan said Chubbwas getting rid of some underperforming professional liability accounts.

Krump updates, “While professional liability submissions haveincreased, we remain steadfast in quoting prices to potential newcustomers that will earn an adequate return. We are willing toaccept a decline in new professional liability business and overallgrowth as we re-profile the book.”

Net premiums written at Chubb Personal Insurance increased 3percent during the third-quarter and the combined ratio drasticallyimproved to 82.8 from 115.6 for the 2011 third quarter, caused bycatastrophe claims.

Dino Robusto, president of commercial lines, says premiums grew3 percent in homeowners' insurance business and the combined ratiowas a profitable 76.2 compared to 126.1 a year ago.

However, as a whole, Finnegan says Chubb “from an overallperspective, we're not rate adequate.”

The company is benefitting from low catastrophe losses andfavorable reserve development of $145 million for the thirdquarter, he explains.

Each line is different and there may be some that are adequate,but overall, “you'd have to say that on an accident-year basis witha full [catastrophe] load and normal weather-related activity,we're not at target [returns on equity] for the book as a whole,”Finnegan says.