Chubb has reported a modest drop in net income despite lower catastrophe losses in the second quarter.

Net income was $US404 million ($386 million) in the June quarter, down 3.6% from second quarter 2011.

In the six months to June, net income was $US910 million ($869 million), down 1.9% from the first half of last year.

The impact of catastrophes was $US223 million ($213 million) before tax for the quarter – 32% lower than last year.

The company says catastrophe losses during the quarter mainly came from severe hail and windstorms in 13 US catastrophe events.

The cost of catastrophes for the six months to June 30 was $US247 million ($236 million) – 58.8% lower than last year.

The combined ratio was 93.8% for the quarter, compared with 94.9% last year. For the six months to June, the combined ratio was 92%, compared with 94.3% last year.

Net written premiums increased 4% in personal insurance and 3% in commercial insurance but decreased 6% in specialty insurance in the quarter.

CEO John Finnegan says Chubb produced strong second-quarter results despite the catastrophe losses.

“We are also encouraged by the continued upward momentum of rate increases in all our businesses,” he said.