Claims bite into Chubb’s local bottom line

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8 February 2010

Large property losses sustained in Victoria’s Black Saturday bushfires cut into the bottom line for Chubb’s Australian operations last year, in contrast to a benign natural catastrophe period for the group globally.

The insurer’s Australian MD Mark Lingafelter says the gross combined ratio for the business locally was 100%.

“And we were very pleased to be able to grow our gross written premium by 8% last year,” he told insuranceNEWS.com.au.

Mr Lingafelter says increasing claims activity in financial lines also took a toll on the bottom line, although he declined to disclose further details.

The parent company has announced an 18% lift in full-year net profit at $US2.2 billion ($2.5 billion) for 2009.

Catastrophes accounted for 0.8% of last year’s 86% combined ratio compared with 5.1% of the 88.7% figure in 2008.

Net written premium for the year was down 6% to $US11.1 billion ($12.6 billion).

In the three months to December 31, a strong rebound in investment income helped Chubb Corporation lift net profit 71% to $US695 million ($788 million).

Fourth-quarter net written premium was $US2.8 billion ($3.2 billion), down 4% including the effect of currency fluctuation.

Mr Lingafelter told insuranceNEWS.com.au Chubb Australia will this year focus on improved systems and service platforms, expanded product capabilities in professional indemnity lines and greater capacity in accident and health.