Chubb achieved record earnings in the fourth quarter, underpinned by strong commercial premium growth.

Core operating income advanced 14.5% to a record $US1.65 billion ($2.3 billion) from a year earlier and property and casualty (P&C) underwriting earnings also scaled new peaks, up 30.7% to $US1.27 billion ($1.78 billion).

However net income dropped 11.5% to $US2.14 billion ($3 billion).

“With double-digit commercial premium growth and continued underwriting margin expansion, Chubb finished the year with record quarterly earnings and underwriting results, which contributed to one of the best years in our company’s history,” Chairman and CEO Evan Greenberg said.

He says P&C premiums rose 9.6% in the December quarter, with commercial up 13% and consumer up over 2%.

Chubb’s North America commercial premiums increased 11% and in its international operations they grew 15%.

“Commercial P&C rates increased 10.5% and 13%, respectively, in North America and Overseas General and we expect rates to continue to exceed loss costs for some time to come,” Mr Greenberg said.

“In our international consumer lines, growth is slowly recovering and gaining momentum.”

The P&C combined ratio for the December quarter improved to 85.5% from 87.6%.

For the full year to December, Chubb posted a record $US3.7 billion ($5.2 billion) in P&C underwriting income. Net income also set a new high of $US8.54 billion ($11.9 billion).

Full-year P&C net written premiums improved 13% as the business enjoyed its strongest organic growth in more than 15 years, driven by commercial lines growth of 17.7%.