July 24, 2009 by Canadian Underwriter
The Chubb Corporation [NYSE: CB] saw its 2009 Q2 profits increase to US$551 million, compared to US$469 million in 2008 Q2, even though it wrote less premium than it did during the same period last year.
Total net written premiums for 2009 Q2 accounted for US$2.8 billion, a decline of 7% from premiums of US$3 billion in the second quarter of 2008.
Excluding the effect of foreign currency translation, premiums were down approximately 3% in the second quarter of 2009. Premiums were down 5% in the United States and down 12% outside the U.S. (up 3% in local currencies).
The second quarter combined loss and expense ratio was 85.9% in 2009, compared to 88.5% in 2008.
Catastrophe losses in 2009 Q2 accounted for 1.5 percentage points of the combined ratio. In the second quarter of 2008, catastrophe losses accounted for 5.4 points of the combined ratio.
“Chubb performed very well across the board in underwriting, investments and earnings, and this is reflected in our strong return on equity and in the significant increase in our book value per share,” said John D. Finnegan, chairman, president and CEO of Chubb. “These results were achieved through our focus on underwriting discipline, our conservative investment philosophy and our strong capital position, all of which continue to differentiate Chubb in the marketplace.
“We also saw a continuation of the positive momentum in commercial and specialty premium rate increases that we have seen in recent quarters.”