Income down but combined ratio and low catastrophes help
Chubb reported full year net income of $2.2bn or $6.18 per share, compared to $1.8bn with operating income at $2.2bn compared with $2.0bn in 2008.
Total net written premiums in 2009 decreased 6% to $11.1bn from $11.8bn in 2008. Excluding the effect of currency fluctuation, premiums were down 4%. Premiums were down 6% in the US and down 6% outside the US (up 3% in local currencies).
The combined ratio in 2009 was 86.0%, compared to 88.7% in 2008.
Catastrophes accounted for 0.8 percentage points of the combined ratio in 2009 and 5.1 points in 2008. Excluding the impact of catastrophes, the combined ratio was 85.2% in 2009 and 83.6% in 2008.
Property and casualty investment income after taxes declined 3% in 2009 to $1.3m.
Q4 figures
Net income in the fourth quarter of 2009 was $695m up from $407m. Operating income was $569m, the same as in the fourth quarter of 2008. Net written premiums for the fourth quarter were $2.8bn, a decline of 4%. Excluding currency fluctuation, premiums were down 5%.
The fourth quarter combined loss and expense ratio was 84.7% in 2009 and 84.3% in 2008. The impact of fourth quarter catastrophe losses on the combined ratio was negligible in both 2009 and 2008.
The bottom line
“We had a terrific fourth quarter, capping off another excellent year for Chubb,” said John Finnegan, chairman, president and chief executive officer.
“Chubb’s operating income per share for 2009 was $6.14, the second-highest of any year in the corporation’s history, driven by contributions from all three business units, all of which had combined ratios below 90% for both the fourth quarter and the full year.
“Given the difficult economic conditions that prevailed in 2009, we believe these results continue to distinguish Chubb and are clear evidence of our commitment to sustained bottom-line profitability.”
