Chubb 2006 1Q results “most profitable in history”

The Chubb Corporation [NYSE: CB] has reported a 2006 1Q net income of US$672 million, compared to US$470 million in IQ 2005.
The 2006 1Q combined loss and expense ratio improved to 82.9% in 2006 from 89.4% in 2005.
“This was by far the best combined ratio and most profitable quarter in Chubb’s history, as all three of our insurance businesses made substantial contributions to the bottom line,” Chubb chairman, president and CEO John D. Finnegan said in a press release.
Chubb reported that “catastrophes had virtually no impact on the combined ratio in the first quarter of 2006.”
Catastrophe losses of US$21 million were offset by a US$20 million reduction in reinsurance reinstatement premium costs related to Hurricane Katrina, the company reported in a press release. “In the first quarter of 2005, catastrophe losses were US$20 million and accounted for 0.6 points of the combined ratio. The expense ratio for the first quarter was 29.1% in 2006 and 28.8% in 2005.”
Net written premiums for the first quarter of 2006 declined 4%, to US$2.9 billion. Premiums for the insurance business declined 1%. Premiums for the Reinsurance Assumed business declined 46%, reflecting the impact of the Chubb Re-Harbor Point transaction completed on Dec. 15, 2005.
Property and casualty investment income after taxes for the first quarter increased 11% to US$279 million in 2006 from US$252 million in 2005.