Chubb and Travelers profits up despite catastrophes

US insurers Chubb and Travelers have both posted increases in first-quarter profits despite the string of catastrophe losses so far this year.

Chubb made a net profit of $509m in the first quarter of 2011, up 10% on the $464m it made in Q1 2010. Travelers’ profit increased 30% to $839m in Q1 2011 from $647m in Q1 2010.

Chubb’s combined ratio increased slightly to 93.7% from 93.6%, while Travelers’ combined ratio improved by 1.7 points to 94.7% from 96.4%.

Both firms reported lighter catastrophe losses in Q1 2011 compared with the same period last year. Chubb put its combined 2011 catastrophe losses, including events in the US, Australia, New Zealand and Japan, at $270m before tax. This compared with $344m in Q1 2010. Travelers said its catastrophe bill had fallen by $285m.

Travelers’ net written premiums increased 4% to $5.4bn in Q1 2011 from $5.3bn in Q1 2010. Chubb’s net written premiums increased 3% to $2.9bn from $2.8bn.

Wile Travelers’ overall NWP was up, international net written premiums were down 22% because of underwriting actions at its Lloyd’s operation, which were designed to improve risk and reward in catastrophe-exposed lines.