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Member, Beacon International Group, Ltd.
Chubb Corp.'s fourth-quarter 2013 net income soared to $569 million compared with $102 million in the same period a year earlier when it was hit by Superstorm Sandy losses, the Warren, N.J.-based insurer said Thursday.
Net written premiums increased 4.5% over the prior-year period to $3.04 billion in the fourth quarter of 2013. The insurer's fourth-quarter 2013 combined ratio was 85.5%, an improvement from 111.2% in the final quarter of 2012, where Sandy-related losses hurt the bottom line.
“Chubb had an excellent fourth quarter and an outstanding 2013,” John D. Finnegan, chairman, president and CEO, said in the statement. “Our combined ratio in the quarter was a very strong 85.5%, once again reflecting the impact of higher rates and strong underwriting performance in all of our business units.”
The tone of the U.S. market “remained firm, and we achieved mid- to high-single-digit changes in our rate increase metrics in all of our business units,” Mr. Finnegan said in the statement.
For all of 2013, Chubb said its net income increased to $2.3 billion from $1.5 billion the previous year.
Net written premiums increased 3.0% to $12.22 billion in 2013. The combined ratio was 86.1% in 2013, compared with 95.3% in 2012. Catastrophe losses accounted for 3.4 percentage points of the combined ratio in 2013 and 9.6 points in 2012, Chubb said in its statement.
In its guidance for 2014, Chubb said it sees net written premiums increasing 2% to 4% and a combined ratio of 89% to 90%.