Net income up for Chubb in Q3

Net income for the third quarter of the year was up slightly over the comparable period of 2012 for the Chubb Corporation, which reported $541 million for the period, compared with $533 million last year.

Operating income for the company in Q3 was down slightly to $529 million this past quarter, from $533 million in Q3 of 2012.

The third quarter impact of catastrophes before tax was $92 million in 2013 ($17 million in 2012), the insurer reported.

The combined loss and expense ratio for Q3 improved to 85.7% in 2013 from 86.3% in 2012, while the impact of catastrophes accounted for 3.0 percentage points of the combined ratio in the third quarter of 2013, compared to 0.6 percentage points in the third quarter of 2012, Chubb also noted.

Excluding the impact of catastrophes, the third quarter combined ratio improved to 82.7% in 2013 from 85.7% in 2012.

Net premiums written increased to $3 billion in the third quarter, from $2.91 in the third quarter of 2012. However, property and casualty investment income after taxes for the third quarter declined 6% to $280 million in 2013 from $297 million in 2012.

“Chubb had an outstanding third quarter,” John D. Finnegan, chairman, president and CEO of Chubb noted in a statement on the results.  

“We produced operating income per share of $2.06, the second-highest of any quarter in our history.  Our combined ratio was an excellent 85.7%, reflecting the impact of higher rates and strong underwriting performance in all our business units as well as relatively low catastrophe losses.  

“During the quarter, the market tone in the U.S. remained firm in both our standard commercial and specialty lines business units, where we achieved high-single-digit renewal rate increases and higher retention levels,” he added.

For the first nine months of 2013, the company reported a net income of $1.8 billion, up from $1.4 billion for the first three quarters of 2012.