Chubb's net income falls as premiums rise

Chubb’s net income for the fourth quarter of 2011 fell $168m (£107m) to $452m, compared to $620m for the same period in 2010.

The insurer’s Q4 shares for 2011 were worth $1.60 each, compared to $2.02 each for the same period in 2010.

Operating income fell to $460m for the last quarter from $519m in 2010.

The insurer defines operating income as net income excluding after-tax realised investment gains and losses.

Operating income per share fell 4% to $1.63 from $1.69.

Net written premiums for Q4 last year increased 4% to $3bn from $2.9bn. Premiums were up 3% in the USA and up 6% outside the USA.   

The fourth-quarter combined loss and expense ratio was 89.9% in 2011 and 87.0% in 2010. The impact of catastrophes on the combined ratio was 0.4 percentage points in the fourth quarter of 2011. 

Losses from catastrophes that occurred in the fourth quarter were partially offset by a downward revision of estimated losses from Hurricane Irene and other catastrophes that occurred earlier in the year. 

The impact of catastrophes in the fourth quarter of 2010 was 1.4 points. Excluding the impact of catastrophes, the combined ratio was 89.5% in 2011 and 85.6% in 2010. The expense ratio for the fourth quarter was 30.6% in 2011 and 30.9% in 2010. 

During the fourth quarter of 2011, Chubb repurchased six million shares of its common stock at a total cost of $396m or an average cost of $66.10 per share.