Chubb posts profit despite claims from Superstorm Sandy

Chubb made a post-tax profit of $102m (£64.5m) in the fourth quarter of last year, despite having to book a large loss from Superstorm Sandy.

The US-based insurer absorbed $882m losses from Superstorm Sandy, a cyclone that caused enormous damage across the east coast of America last year.

It meant the fourth-quarter 2012 performance was some way off the $452m booked in the same period of 2011. The fourth quarter 2012 combined ratio was a loss-making 111.2%, compared with a profitable 89.9% in the comparable 2011 quarter.

Net written premium for the fourth quarter declined 2% to $2.9bn, while property/casualty investment income fell 6% to $296m.

In a post-earnings conference call with analysts on Thursday, Chubb executive vice-president Dino Robusto said: “As we think about storm Sandy within the context of the last several years of increasing weather-related losses, we recognise the need for additional price increases.

“Prior to Sandy, we had implemented mid single-digit rate increases for homeowners in the North East,” he said. “Post Sandy we plan to file for rate increases up to the low teens in some areas of the North East.”

For the full 2012 year, Chubb made a net profit of $1.5bn, down 8% on the $1.7bn it made in 2011. The combined ratio was unchanged at 95.3%.