Chubb’s Q3 Profit Jumps 79%
The Chubb Corp. reported $533 million net profit for its third quarter, up 78.8 percent from $298 million reported during the same period one year ago.
The quarterly results, released on Oct. 25, got a boost from significantly lower catastrophe (CAT) losses as well as continued rate increases. The third-quarter CAT losses before tax were $17 million, compared to the $420 million losses reported during the same period a year ago.
Overall net written premiums for the third quarter were $2.9 billion, up 1.2 percent from $2.88 billion one year ago. The combined ratio for the quarter was 86.3 percent, improving from 102.6 percent one year ago. Property and casualty investment income after taxes was $297 million, down 7 percent from $321 million a year ago.
The Commercial Insurance segment’s average U.S. renewal rate in the third quarter rose by 8 percent — representing the sixth consecutive quarter of rate hikes for the commercial segment. The Commercial Insurance segment achieved U.S. renewal rate hikes in each line of business during the third quarter. Workers’ comp rates rose the most, with a low double-digit average, followed by monoline property, general liability, package, excess umbrella, auto, boiler and marine. The commercial insurance segment continued to achieve broad-based pricing improvement, with around 90 percent of renewals receiving rate hikes in the third quarter, in line with the 2012 second quarter.
For the Specialty Insurance segment, the average renewal rates for Chubb’s professional liability lines in the U.S. rose by 8 percent. Increases were led by private company D&O, which had average rate hikes in the mid teens, followed by employment practices liability, crime, not-for-profit D&O, public D&O, errors and omissions, and fiduciary.
In the Personal Insurance segment, Chubb said it’s in the process of filing homeowners insurance rate increases. While they vary by state, the rate hikes are generally in the mid-single digit and above, with targeted effective dates in the next two quarters.