Chubb Reports 61% Rise In Quarterly Profit

Overall, the p-c underwriting income for the quarter was $178.4 million?more than double the $70.1 million in p-c underwriting income reported a year earlier.

Investment income from the p-c insurance units also rose, to $221.8 million from $198 million one year ago. Overall, pretax income from p-c insurance units was $455.1 million, up from $308.9 million reported a year ago.

Chubb's chief executive officer John Finnegan, commenting on the first quarter, said the results reflect higher premium prices and favorable loss experience, including unusually low commercial property losses. "We continued to enjoy double-digit premium growth by attracting new customers, securing rate increases when needed, and retaining a high percentage of our existing customers, all while maintaining underwriting discipline," Mr. Finnegan said.

Going forward, Chubb expects the rest of 2004 results to continue to benefit from higher earned premiums and favorable terms and conditions, Mr. Finnegan forecast.

Looking at Chubb's individual p-c business lines and their first-quarter results, Chubb Commercial Insurance had 13 percent premium growth, with an 82.8 combined ratio, improving from an 86.5 combined ratio a year ago.

Chubb Specialty Insurance reported 14 percent net premium growth, with a combined ratio of 97.9, improving from 99.2 a year earlier. Meanwhile Chubb's Executive Protection net written premiums rose 6 percent in the quarter, and Financial Institutions net premiums grew 5 percent during the first quarter.

For the other specialty lines, first-quarter premiums were up 37 percent, boosted by 76 percent growth at Chubb Re. The combined ratio for the other specialty lines was 84.3.

In personal lines, Chubb Personal Insurance had 9 percent premium growth, with a 99.9 combined ratio, improving from a 103.6 combined ratio one year ago. Catastrophes accounted for 11.5 points of the combined ratio in the first quarter, compared to 10.9 points a year earlier.

The homeowners line rose 9 percent. The combined ratio was 109.6, which included 20 percentage points of catastrophe losses. Homeowners results were affected by the winter freezes in the Northeast, where Chubb has a significant market presence.

Chubb's personal automobile insurance rose 9 percent with a 96.2 combined ratio, while other personal lines?including valuable articles, excess liability and yacht insurance?grew 8 percent and had a combined ratio of 77.

Chubb is a property and casualty insurer for personal and commercial customers worldwide through 8,000 independent agents and brokers. The company is a major insurer of high-value homes and valuables. For full-year 2003, Chubb reported net income of $808.8 million, compared with net profit of $222.9 million reported in 2002, when the company took a $741 million pretax charge for asbestos and environmental loss reserves.