Natural disasters hit Chubb

Email Print

26 July 2010

The cost of dealing with natural disaster claims has hit Chubb’s second-quarter net income, pushing it down $US33 million ($37 million) to $US518 million ($580 million).

Numerous storms in the US, and in particular a hailstorm in Oklahoma during May, cost the insurer $US193 million ($216 million) for the quarter compared to $US43 million ($48 million) in the corresponding period last year.

Chubb Chairman John Finnegan says the cost of these disasters will have an impact on future earnings.

“Because of the unusually high level of catastrophe losses in the first six months of 2010, we have increased our catastrophe assumption for our full-year guidance from three points to seven points,” he said.

Net premiums growth was marginal, up 1% from $US2.8 billion ($3.1 billion) in the June 2009 quarter to $US2.9 billion ($3.2 billion) this year.

Premiums declined 1% in the US and increased 11% for the rest of the world.

Personal insurance premiums increased by 5% in the quarter to $US1 billion (S1.1 billion), but commercial premiums were flat at $US1.2 billion ($1.3 billion), with a similar result in specialty insurance where premiums remained at $US666 million ($746 million).