Tornadoes and storms in the US ate into Chubb’s profit in the second half of the 2010/11 financial year, but the group is seeing signs of healthier pricing in its standard commercial lines in the US and more catastrophe-exposed areas of the world.

Chairman and CEO John Finnegan says Chubb produced very good results this quarter, “even though Chubb and the industry both experienced record second-quarter US catastrophe losses”.

Chubb’s net income fell 5% to $US928 million ($855 million) and catastrophes cost $US599 million ($552 million) pre-tax, mainly from the Australian floods, earthquakes in New Zealand and Japan, and US tornadoes and storms.

The combined ratio was 94.3% compared to 92.0% in 2010. Premiums increased 2% in the US and 12% outside the US.