US-based insurer Chubb has reported a 10% drop in profit to $US2.1 billion ($2.63 billion) for last year – still one of the highest results in its history.

President and CEO John Finnegan says Chubb achieved renewal rate rises while maintaining high retention levels across the business. Low catastrophe losses and a strong underwriting performance contributed to a record fourth quarter.

Annual net premium written grew 3% to $US12.59 billion ($15.8 billion) and claims and expenses gained 7% to $US6.99 billion ($8.77 billion).

The combined operating ratio was 88.3% last year, compared with 86.1% in 2013. Chubb forecasts a ratio of 89-90% this year.

Chubb also announced a $US1.29 billion ($1.66 billion) share buyback, which Mr Finnegan says reflects the company’s strong capital position.