Chubb Sees Improvements In Quarter

The company reported net premiums written increased 22 percent, or $483.8 million, going from $2.2 billion to $2.7 billion for the first quarter of 2003. Premiums earned increased $469.8 million, or 25 percent, from $1.9 billion in 2002 to $2.33 billion.

Chubb reported its overall combined ratio improved by .6 percentage point, from 95.9 percent to 95.3 percent. The improvement was helped by a 9.2 percentage point drop in its combined ratio for commercial insurance, going from 95.7 percent in the first quarter of 2002 to 86.5 percent in 2003.

"It's really a question of doing what the others don't," said one executive during an analyst conference call today.

During the call, company management said the improvement in the combined ratio was helped by its niche underwriting in commercial lines, producing better margins for Chubb than other companies have enjoyed.

The company reported an increase in its personal lines combined ratio, going from 97.4 percent in 2002 to 103.6 percent. Executives said that this was due to adverse weather conditions suffered this past winter in the East affecting homeowners and auto insurance policyholders.

In response to an analyst's question about Chubb's exposure to professional liability risks, executives said they were confident the company would face no exposure because policy terms do not cover fines for illegal activity.

The question came in the wake of a $1.4 billion settlement announced earlier this week between Wall Street financial firms and regulators over security fraud violations.

Chubb also reported it has resolved outstanding issues with its reinsurers over Sept. 11 claims. As a result of the resolution, Chubb said its net cost estimate of $645 million remained intact.