January 27, 2016 by Canadian Underwriter
ACE Ltd. and The Chubb Corp. reported net written premiums in property & casualty of $15.715 billion and $12.633 billion respectively in 2015, while the combined ratios for ACE and Chubb were 87.4% and 87.2% respectively.
Zurich, Switzerland-based ACE changed its name to Chubb Ltd. on completion Jan. 14 of its $28.3-billion acquisition of Chubb, which was based in Warren, N.J. prior to the acquisition. Chubb reported Tuesday financial results of “legacy ACE” and “legacy Chubb” for the three months and full year ending Dec. 31.
“Legacy ACE” had a slight drop in p&c net premiums written in 2015, from $15.787 billion in 2014. All figures are in United States dollars. The combined ratio improved 0.3 points from 87.7% in 2014.
“Legacy Chubb” had net written premiums in P&C of $12.592 billion in 2014. Its combined ratio in 2015 improved 0.5 points from 88.3% in 2014.
In the last quarter of 2015, legacy ACE had net premiums written of $3.6 billion, down from $3.8 billion in 2014 but up 1.7% from $3.57 billion on a constant dollar basis. The Q4 combined ratio was 87.7% last year, a 0.8-point improvement from 88.5% in Q4 2014.
Also in the most recent quarter, legacy Chubb reported net premiums written of $3.047 billion, down from $3.138 billion in Q4 2014.
Legacy Chubb’s combined loss and expense ratio deteriorated 2 points, from 84.3% in 2014 to 86.3% in the latest quarter. Its underwriting income for the full year was $1.593 billion in 2015 and $1.402 billion in 2014.
Legacy ACE’s underwriting income was $1.93 billion last year, up 1.7% from $1.898 billion in 2014 and up 8% from $1.787 billion in 2014 on a constant dollar basis.
The acquisition – originally announced July 1 – was approved by shareholders of both firms in late 2015. Under the agreement, ACE bought each Chubb share for $62.93 cash and 0.6019 ACE shares.
The combined firm continues to be led by chairman and chief executive officer Evan Greenberg.
At the time the acquisition was announced, the firm said the Warren, N.J. headquarters of legacy Chubb would “house a substantial portion of the headquarters function” for the combined firm’s North American division. ACE said at the time it would also “continue to maintain a significant presence in Philadelphia, where its current North American Division headquarters is based.