Chubb first quarter profit down 49%
US insurance giant Chubb has recorded a 49% decrease in first-quarter net profit after poor investment results adversely affected generally sound underwriting.
Chubb earned $US341 million ($475 million) in net profit for the quarter, against $US664 million ($926 million) in the first quarter last year. Net realised investment losses of $US266 million ($371 million) contributed to the lower result.
Overall net written premium decreased 7% to $2.7 billion ($3.8 billion), including a 5% decline in the US and 12% in foreign markets.
Chubb’s combined ratio stayed profitable at 88.1%, compared to 83.9% in the same quarter last year.
“Chubb continued to perform well in a difficult economic and investment environment,” CEO John Finnegan said.
“We were especially pleased by the continued improvement in premium rates. Our commercial and professional liability US renewal rate changes were both positive for the first time in five years.”
Chubb earned $US341 million ($475 million) in net profit for the quarter, against $US664 million ($926 million) in the first quarter last year. Net realised investment losses of $US266 million ($371 million) contributed to the lower result.
Overall net written premium decreased 7% to $2.7 billion ($3.8 billion), including a 5% decline in the US and 12% in foreign markets.
Chubb’s combined ratio stayed profitable at 88.1%, compared to 83.9% in the same quarter last year.
“Chubb continued to perform well in a difficult economic and investment environment,” CEO John Finnegan said.
“We were especially pleased by the continued improvement in premium rates. Our commercial and professional liability US renewal rate changes were both positive for the first time in five years.”