Chubb reports solid Q1 results with net income of $656 million

The Chubb Corp. has released its first quarter earnings, reporting $656 million for the three months ending March 31, up from $506 million in the same quarter last year.

The company’s operating income, which is defines as net income excluding after-tax realised investment gains and losses, was $566 million for this past quarter, up from $469 million in Q1 2012.

Its combined ratio was 84.6% compared with 90.2% in the first quarter of last year. Chubb noted that its estimated overall gross and net losses from Superstorm Sandy remains unchanged from previous reported estimates ($570 million after tax), although it has shifted some estimated commercial lines losses to personal lines.

Net written premiums for the quarter totaled $3.1 billion, up 3% in the United States and 6% outside the U.S.

Underwriting income was $485 million for the quarter, versus $303 million in 2012. Property and casualty investment income after taxes for the first quarter declined 6% to $288 million in 2013 from $308 million in 2012.

“Chubb is off to a great start in 2013,” John D. Finnegan, its chairman, president and CEO commented in a statement on the earnings.  

“Operating income per share of $2.14 and net income per share of $2.48 were both the highest of any quarter in Chubb’s history,” he said.

“Our combined ratio was an outstanding 84.6%, reflecting the impact of higher rates, strong underlying underwriting performance and low catastrophe losses.  

We are also encouraged by the renewal rate increases we continued to obtain in all of our business units,” he added.