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Chubb profit tumbles

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Chubb has posted an 11.4% decline in third quarter net profit to $US1.09 billion ($1.58 billion).

Earnings took a hit from mark-to-market losses of $US119 million ($172.3 million) linked mostly to its variable annuity reinsurance portfolio. In the corresponding period last year, the insurer logged in $US165 million ($238.9 million) in adjusted realised gains.

The core property and casualty (P&C) business did well with net premiums written up 6.2% to $US8.01 billion ($11.6 billion) during the September quarter.

Underwriting income surged 12.6% to $US754 million ($1.09 billion) and the combined ratio improved to 90.2% from 90.9%.

Pre-tax catastrophe losses decreased to $US232 million ($335.9 million) from $US450 million ($651.5 million).

“Growth was distributed broadly across the globe…We benefitted from an improved pricing and underwriting environment and a flight to quality from commercial insurance buyers who are more often choosing Chubb,” Chairman and CEO Evan Greenberg said.

“Pricing continued to firm in the quarter – in many cases at double or greater the rate of the first quarter – with rate increases accelerating and spreading to more classes of business.

“We are also benefitting from our many product, customer and distribution-related growth initiatives in the US, Asia and Latin America.”