Chubb results improve in 2006

WARREN, N.J.--Net written premiums for Chubb Corp. fell marginally in 2006, but the insurer reported a significantly improved profit and combined ratio vs. 2005.

The insurer's net income ballooned 38.4% to nearly $2.53 billion for the year ending Dec. 31, 2006, from nearly $1.83 billion in 2005.

Warren, N.J.-based Chubb reported nearly $11.98 billion of net written premiums last year, a 2.5% drop from $12.28 billion in 2005. Premiums grew 1% from U.S. business and 4% for non-U.S. business, but premiums for assumed reinsurance shrank 57%, Chubb reported.

Underwriting losses and the cost of producing business improved markedly, however, as Chubb's combined ratio improved to 84.2% in 2006 from 92.3% the year before.

Catastrophes accounted for 1.4 percentage points of the 2006 combined ratio and 5.6 points in 2005, according to Chubb.