Net income up for Chubb in Q3, cat losses fall

Chubb Corp. reported Friday a third quarter net income of $594 million, up from $541 million in the same period of 2013.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $522 million in the third quarter of 2014 compared to $529 million in the third quarter of 2013.

The impact of catastrophes for Q3 also dropped this year to $74 million before tax, from $92 million before tax in the third quarter of 2013.

The third quarter combined loss and expense ratio was 85.8% in 2014 (85.7% in 2013). Excluding the impact of catastrophes, the third quarter combined ratio was 83.4% in 2014 (82.7% in 2013).

Net written premiums increased 5% in the third quarter of 2014 to $3.2 billion.

Property and casualty investment income after taxes for the third quarter declined to $270 million in 2014 from $280 million in 2013.

“Chubb had an outstanding third quarter,” John D. Finnegan, Chubb’s chairman, president and CEO commented in a statement on the earnings.

“Our combined ratio was an excellent 85.8%, reflecting strong underwriting performance in all our business units as well as relatively low catastrophe losses. We are also pleased that in the third quarter we once again achieved mid-single-digit increases in our U.S. rate change metrics, as well as high retention levels in all of our businesses.”

In Chubb Personal Insurance net written premiums increased 6% in the third quarter of 2014 to $1.2 billion. Net written premiums for homeowners insurance increased 4%, while for personal automobile, net written premiums increased 3%. Other personal lines premiums were up 13%.

Chubb Commercial Insurance net written premiums were up 4% in the third quarter of 2014 to $1.3 billion, while in Chubb Specialty Insurance net written premiums increased 5% in the third quarter of 2014 to $701 million.

For the first nine months of 2014, net income was $1.5 billion, down from $1.8 billion in the same period of 2013.

The impact of catastrophes in the first nine months of 2014 was $419 million before tax, compared to $347 million before tax in the first nine months of 2013.

The combined ratio for the first nine months was 89.6% in 2014 compared to 86.4% in 2013.