US-based global insurer Chubb’s 2012 profit has fallen 12% after a catastrophe-hit fourth quarter.

Its full-year net income was $US1.5 billion ($1.46 billion), down from $US1.7 billion ($1.65 billion) in 2011.

But the full-year combined ratio was 95.3%, the same as in 2011.

In the fourth quarter, net income was $US102 million ($99 million), down from $US452 million ($439 million) in the previous corresponding period. The combined ratio was 111.2%.

The company says its fourth quarter results were adversely affected by $US882 million ($856 million) in costs related to Superstorm Sandy, including losses of net reinsurance recoverable and reinsurance reinstatement premium costs.

Chairman, President and CEO John Finnegan says helping people recover from catastrophes is a key part of Chubb’s business.

“Although Sandy had a severe impact on Chubb’s fourth-quarter results, the very strong underlying performance of our business units, reflected in our excellent 81.5% combined ratio excluding catastrophes, enabled us to generate an operating profit in the quarter,” he said.

For the full year, net written premiums increased 1% to $US11.9 billion ($11.5 billion).

Property/casualty investment income after taxes in 2012 declined 5% to $US1.2 billion ($1.16 billion) in 2012.

Net written premiums in personal lines increased 4% to $US4.1 billion ($4 billion), while increasing 2% to $US5.2 billion ($5 billion) for commercial lines.

In specialty lines, net written premiums declined 6% to $US2.6 billion ($2.5 billion).

Chubb expects a combined ratio between 89% and 91% in 2013, with an increase in net written premiums of 2% to 4%.