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Chubb Reports Fourth Quarter Net Income Per Share Of $2.24

PR Newswire Association LLC

WARREN, N.J., Jan. 30, 2014 /PRNewswire/ -- The Chubb Corporation [NYSE: CB] today reported net income in the fourth quarter of 2013 of $569 million or $2.24 per share, compared to $102 million or $0.38 per share in the fourth quarter of 2012.

Operating income was $526million or $2.07 per share in the fourth quarter of 2013,compared to$44million or $0.16 per share in the corresponding quarter of 2012. The company defines operating income as net income excludingafter-tax realized investment gainsand losses.

Results for the fourth quarter of 2012 were adversely affected by Storm Sandy-related losses net of reinsurance recoverable as well as reinsurance reinstatement premiums.

Net written premiums for the fourth quarter increased 4% to $3.0 billion in 2013 from $2.9 billion in 2012. Premiums were up 7% in the U.S. and down 3% outside the U.S. (up 1% in local currencies). The negative 1% effect of foreign currency translation on fourth quarter premium growth was offset by the impact of reinsurance reinstatement premiums related to Storm Sandy, which reduced net written premiums in the year-ago fourth quarter.

The fourth quarter combined loss and expense ratio was 85.5% in 2013 and 111.2% in 2012. The impact of catastrophes on the fourth quarter combined ratio was 2.1 percentage points in 2013 and 29.7 points in 2012. Excluding the impact of catastrophes, the fourth quarter combined ratio was 83.4% in 2013 and 81.5% in 2012.

The expense ratiofor the fourth quarter was 30.8%in 2013and 30.9%in 2012.

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Propertyandcasualtyinvestment income after taxesfor the fourth quarter declined 4%to$284million in 2013from$296million in 2012.

Net incomeforthefourthquarterof2013includednetrealizedinvestment gainsof $67millionbeforetax($0.17pershareafter-tax). Netincomeforthefourthquarterof2012 reflectednetrealizedinvestmentgainsof$90millionbeforetax($0.22pershareafter-tax).

During the fourth quarter of 2013,Chubbrepurchased 3.5 million shares of its common stockata totalcost of $325million,or anaverage cost of $93.72 per share.

Averagedilutedsharesoutstandingforthefourthquarterwere 254.1millionin2013 and266.8millionin2012.

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Book value per share was$64.83atDecember 31,2013compared to$62.04at the end of the third quarter and$60.45atDecember 31,2012.

"Chubb had an excellent fourth quarter and an outstanding 2013," said John D. Finnegan, Chairman, President and Chief Executive Officer. "For the quarter, we produced operating income per share of $2.07 and net income per share of $2.24, both of which were the second-highest of any quarter in our history. 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. During the fourth quarter, the market tone in the U.S. remained firm, and we achieved mid- to high-single-digit changes in our rate increase metrics in all of our business units.

"For the full year 2013," said Mr. Finnegan, "we generated record operating income per share of $8.03 and record net income per share of $9.04. Our excellent results in 2013, and our consistent financial performance over time, demonstrate the successful execution of our business and underwriting strategies. We remain committed to our long-standing strategy of focusing on underwriting discipline and superior claims handling, combined with best-in-class producer relationships, a strong balance sheet and active capital management."

Full Year Results

For the year endedDecember 31,2013, net income was$2.3billion or a record $9.04 per share,compared to$1.5billion or $5.69 per share for the year ended December 31,2012. Operating income totaled$2.1billion in 2013and$1.4 billion in 2012.

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Operating income per share increased to a record $8.03 in 2013from$5.23 in 2012.

Netwritten premiums increased 3%to$12.2 billion in 2013 from $11.9 billion in 2012.  Foreign currency translation and Storm Sandy reinsurance reinstatement premiums had an insignificant effect on premium growth for the year.  Premiumswere up 4%in the U.S.and were flat outside the U.S.(up 2%in local currencies).

The combinedratio in 2013was 86.1%,compared to 95.3% in 2012.  The impact of catastrophesaccountedfor 3.4percentage points of the combinedratio in 2013and 9.6 points in 2012.  Excluding the impact of catastrophes,the combinedratiowas 82.7% in 2013and 85.7%in 2012.

The expense ratiofor the year was 31.9%in 2013and 31.7%in 2012.

Propertyandcasualtyinvestment income after taxes in 2013 declined 5% to $1.1billion in 2013 from $1.2 billion in 2012.

Netincomefor2013includednetrealizedinvestmentgainsof$402millionbeforetax ($1.01pershareafter-tax).  Netincomefor2012reflectednetrealizedinvestmentgainsof $193millionbeforetax($0.46pershareafter-tax).

During 2013,Chubbrepurchased 14.9million shares of itscommon stockata totalcost of $1.3 billion,or anaverage cost of $87.33 per share.

Averagedilutedsharesoutstandingwere 259.4millionin2013and271.4millionin 2012.

FourthQuarterOperationsReview

Chubb Personal Insurance(CPI) netwritten premiums increased 6%in the fourth quarter of 2013 to$1.1 billion.Net written premiums were up 3% excluding reinsurance reinstatement premiums related to Storm Sandy.  CPI'scombinedratiofor the fourth quarter was 83.5%in 2013and 117.9%in 2012.The impact of catastrophes onCPI'scombinedratio in the fourth quarter was 5.3 percentage points in 2013and 40.1 points in 2012.  Excluding the impact of catastrophes,the combinedratiofor the fourth quarter was 78.2%in 2013 and 77.8%in 2012.

Homeowners netwritten premiumswere up 6% (up 2% excluding Storm Sandy reinsurance reinstatement premiums),and the combinedratiowas 75.8% (67.3% excluding the impact of catastrophes).  PersonalAutomobile netwritten premiums increased 2%,and the combined ratiowas 93.9%.  Other Personal lines netwritten premiumswere up 9%,and the combinedratiowas 96.8%.

Chubb Commercial Insurance (CCI) netwritten premiumsfor the fourth quarter of 2013 increased 4%to$1.3billion.  Net written premiums were up 2% excluding reinsurance reinstatement premiums related to Storm Sandy.  The combinedratiofor the quarter was 89.0%in 2013 and 118.7%in 2012.  The impact of catastrophes on CCI's combined ratio in the fourth quarter accounted for 0.6 points in 2013 compared to an impact of 36.8 percentage points in 2012.  Excluding the impact of catastrophes,the combinedratiofor the fourth quarter was 88.4%in 2013and 81.9%in 2012.

In the U.S.,average fourth quarter CCIrenewal rateswere up 6%, renewal premiumretentionwas 83%andthe ratio of newto lost businesswas 0.7to 1.

Chubb Specialty Insurance (CSI) netwritten premiums increased 2%in the fourth quarter to$705million.The combinedratiowas 81.9%,compared to 88.5%in the fourth quarter of 2012.

ProfessionalLiability(PL) netwritten premiums increased 2%,andPLhada combinedratio of 85.9%.  In the U.S.,average PLrenewalrateswere up8%,renewal premiumretentionwas 84% and the ratio of newto lost businesswas 0.8to 1.

Suretynetwritten premiumswere up 4%, and the combinedratiowas 53.9%.

2013 OperationsReview

For the year endedDecember 31,2013, Chubb Personal Insurancenetwritten premiums increased 5%to$4.3 billion.  Net written premiums were up 4% excluding reinsurance reinstatement premiums related to Storm Sandy.  CPI'scombinedratiowas 87.0%in 2013and 94.4%in 2012.  The impact of catastrophesaccountedfor 7.2percentage points of the combinedratio in 2013and 13.7 points in 2012.  Excluding the impact of catastrophes, the combinedratiowas 79.8%in 2013and 80.7%in 2012.

Homeowners netwritten premiums increased 4% (increased 3% excluding Storm Sandy reinsurance reinstatement premiums),and the combinedratiowas 82.3% (70.8% excluding the impact of catastrophes).  PersonalAutomobile netwritten premiumswere up 6%,and the combinedratio was 94.8%.  Other Personal lines netwritten premiums increased 6%,and the combined ratiowas 94.8%.

Chubb Commercial Insurance netwritten premiumsfor 2013 increased 2%to $5.3 billion.  Net written premiums were up 1% excluding reinsurance reinstatement premiums related to Storm Sandy.  The combinedratiowas 86.5% in 2013and 99.0%in 2012.The impact of catastrophesaccountedfor 2.1percentage points of the combinedratio in 2013and 11.4points in 2012.  Excluding the impact of catastrophes,the combinedratiowas 84.4%in 2013and 87.6%in 2012.

In the U.S.,average CCI renewalrateswere up 7%,renewal premiumretention was 84%and the ratio of newto lost businesswas 0.8to 1.

Chubb Specialty Insurance netwritten premiumsfor 2013 increased 3% to $2.6billion.The combinedratiowas 84.3%in2013and 91.3%in 2012.

ProfessionalLiability's netwritten premiumswere up 2%.  PLhada combinedratio of 89.3%.  In the U.S.,average 2013renewalratesfor PL were up 8%,renewal premiumretentionwas 84%and the ratio of newto lost businesswas 0.8to 1.

Suretynetwritten premiums increased 6%,and the combinedratiowas 47.2%.

January 2014 Winter Weather Losses

Chubb's first quarter 2014 results will be impacted by losses related to the severe winter weather that has occurred during the month of January in the United States.  To date, that weather has resulted in two declared catastrophes related to the freezing and winter storms that occurred between January 3rd and 8th in 19 states.  Chubb's preliminary estimate of the losses from these two catastrophes is in the range of $150 million to $200 million before tax or $0.39 to $0.52 per share after tax.  This estimate does not include an estimate for any other January weather related losses. 

2014Operating IncomeGuidance

Based on management's current outlook, Chubb expects to achieve 2014 operating income per share in the range of $7.10 to $7.40.

This operating income guidance assumes for the full year 2014:

  • An increase of 2% to 4% in netwritten premiums.
  • Catastrophe losses that have an impact of 5 percentage points on the 2014 combined ratio.This assumed impact is 1 point higher than the assumed 4 points of catastrophe losses in Chubb's initial operating income per share guidance for 2013 to take into account anticipated higher than usual catastrophe losses in the first quarter of 2014. The impact of each percentage point of catastrophe losses on operating income per share isapproximately$0.33.
  • Acombinedratio between 89%and 90%.
  • Adecline of 4%to 6%in propertyandcasualtyinvestment income after taxes.
  • Approximately 245millionaverage diluted shares outstanding.

The guidance andrelatedassumptionsare subject to the risks outlined in the company'sforward-looking information safe-harbor statements(see below).

WebcastConference CalltobeHeldTodayat5P.M.

Chubb's senior managementwill discuss the company'sfourth quarter performance with investorsandanalysts today,January30th,at5P.M. EasternStandardTime.  The conference callwill be webcast live on the Internetat http://www.chubb.comand archived later in the dayfor replay.

About Chubb

Since 1882, members of the Chubb Group of Insurance Companies have provided property and casualty insurance products to customers around the globe.  These products are offered through a worldwide network of independent agents and brokers.  The Chubb Group of Insurance Companies is known for financial strength, underwriting and loss-control expertise, tailoring products for the needs of high net worth individuals and commercial customers in niche markets and select industry segments, and outstanding claim service.

The Chubb Group of Insurance Companies is the marketing term used to describe several separately incorporated insurance companies under the common ownership of The Chubb Corporation.  The Chubb Corporation is listed on the New York Stock Exchange (NYSE: CB) and, together with its subsidiaries, employs approximately 10,000 people throughout North America, Europe, Latin America, Asia and Australia.  For more information regarding The Chubb Corporation, including a listing of the insurers in the Chubb Group of Insurance Companies, visit www.chubb.com.

Chubb'sSupplementaryInvestor InformationReport has been posted on its Internet site at  http://www.chubb.com.

Allfinancialresults in thisrelease andattachmentsare unaudited.

 

For further informationcontact:

Investors:

GlennA.Montgomery

   

(908) 903-2365

     
 

Media:

MarkE. Greenberg

   

(908) 903-2682

Definitions of Key Terms

Operating Income:   
Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses.  Management uses operating income, among other measures, to evaluate its performance because the realization of investment gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly, which could distort the analysis of trends.

Underwriting Income (Loss):   
Management evaluates underwriting results separately from investment results.  The underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed.  Performance of the business units is measured based on statutory underwriting results.  Statutory accounting principles applicable to property and casualty insurance companies differ in certain respects from generally accepted accounting principles (GAAP).  Under statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned.  Statutory underwriting income (loss) is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred.

Management uses underwriting results determined in accordance with GAAP, among other measures, to assess the overall performance of the underwriting operations.  To convert statutory underwriting results to a GAAP basis, certain policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned.  Underwriting income (loss) determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred.

Property and Casualty Investment Income After Income Tax:   
Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its investment results because it reflects the impact of any change in the proportion of tax exempt investment income to total investment income and is therefore more meaningful for analysis purposes than investment income before income tax.

Book Value per Common Share with Available-for-Sale Fixed Maturities at Amortized Cost:   
Book value per common share represents the portion of consolidated shareholders' equity attributable to one share of common stock outstanding as of the balance sheet date.  Consolidated shareholders' equity includes, as part of accumulated other comprehensive income (loss), the after-tax appreciation or depreciation, including unrealized other-than-temporary impairment losses, of the Corporation's available-for-sale fixed maturities, which are carried at fair value.  The appreciation or depreciation of available-for-sale fixed maturities is subject to fluctuation due to changes in interest rates and therefore could distort the analysis of trends.  Management believes that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Loss and Expense Ratio or Combined Ratio:   
The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability.  Management uses the combined loss and expense ratio calculated in accordance with statutory accounting principles applicable to property and casualty insurance companies to evaluate the performance of the underwriting operations.  It is the sum of the ratio of losses and loss expenses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums written (expense ratio) after reducing both premium amounts by dividends to policyholders.

Net Written Premiums Growth (Decrease) Excluding the Impact of Foreign Currency Translation, Net Written Premiums Growth (Decrease) Excluding the Impact of Reinsurance Reinstatement Premiums, Net Written Premiums Growth (Decrease) Excluding the Impact of Foreign Currency Translation and Reinsurance Reinstatement Premiums
Management uses net written premiums growth (decrease) excluding the impact of foreign currency translation, net written premiums growth (decrease) excluding the impact of reinsurance reinstatement premiums, and net written premiums growth (decrease) excluding the impact of foreign currency translation and reinsurance reinstatement premiums, non-GAAP financial measures, to evaluate the trends in net written premiums, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which international business is transacted and/or the effect of reinsurance reinstatement premiums.  The impact of foreign currency translation is excluded as exchange rates may fluctuate significantly and the effect of fluctuations could distort the analysis of trends.  When excluding the impact of foreign currency translation, management uses the same exchange rate to translate each foreign currency denominated net written premium amount in both periods.  The impact of reinsurance reinstatement premiums related to a major catastrophe event such as Storm Sandy are excluded as these reinsurance reinstatement premiums are infrequent and could distort the analysis of trends.  When excluding the impact of reinsurance reinstatement premiums, net written premiums are increased by the amount of reinsurance reinstatement premiums recognized in the period.

FORWARD-LOOKING INFORMATION

In this press release, the conference call identified above and otherwise, we may make statements regarding our results of operations, financial condition and other matters that are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA).  These forward-looking statements are made pursuant to the safe-harbor provisions of the PSLRA and include statements regarding Chubb's first quarter 2014 catastrophe losses from January weather in the United States and management's 2014 operating income per share guidance and related assumptions.  Forward-looking statements frequently can be identified by words such as "believe," "expect," "anticipate," "intend," "plan," "will," "may," "should," "could," "would," "likely," "estimate," "predict," "potential," "continue," or other similar expressions.  Forward-looking statements are made based upon management's current expectations and beliefs concerning trends and future developments and their potential effects on Chubb.  These statements are not guarantees of future performance.  Actual results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in Chubb's public filings with the Securities and Exchange Commission and those associated with:

  • global political, economic and market conditions, particularly in the jurisdictions in which we operate and/or invest, including:
    • changes in credit ratings, interest rates, market credit spreads and the performance of the financial markets;
    • currency fluctuations;
    • the effects of inflation;
    • changes in domestic and foreign laws, regulations and taxes;
    • changes in competition and pricing environments;
    • regional or general changes in asset valuations;
    • the inability to reinsure certain risks economically; and
    • changes in the litigation environment;
  • the effects of the outbreak or escalation of war or hostilities;
  • the occurrence of terrorist attacks, including any nuclear, biological, chemical or radiological events;
  • premium pricing and profitability or growth estimates overall or by lines of business or geographic area, and related expectations with respect to the timing and terms of any required regulatory approvals;
  • adverse changes in loss cost trends;
  • our ability to retain existing business and attract new business at acceptable rates;
  • our expectations with respect to cash flow and investment income and with respect to other income;
  • the adequacy of our loss reserves, including:
    • our expectations relating to reinsurance recoverables;
    • the willingness of parties, including us, to settle disputes;
    • developments in judicial decisions or regulatory or legislative actions relating to coverage and liability, in particular, for asbestos, toxic waste and other mass tort claims;
    • development of new theories of liability;
    • our estimates relating to ultimate asbestos liabilities; and
    • the impact from the bankruptcy protection sought by various asbestos producers and other related businesses;
  • the availability and cost of reinsurance coverage;
  • the occurrence of significant weather-related or other natural or human-made disasters, particularly in locations where we have concentrations of risk or changes to our estimates (or the assessments of rating agencies and other third parties) of our potential exposure to such events;
  • the impact of economic factors on companies on whose behalf we have issued surety bonds, and in particular, on those companies that file for bankruptcy or otherwise experience deterioration in creditworthiness;
  • the effects of disclosures by, and investigations of, companies we insure, particularly with respect to our lines of business that have a longer time span, or tail, between the incidence of a loss and the settlement of the claim;
  • the impact of legislative, regulatory, judicial and similar developments on companies we insure, particularly with respect to our longer tail lines of business;
  • the impact of legislative, regulatory, judicial and similar developments on our business, including those relating to insurance industry reform, terrorism, catastrophes, the financial markets, solvency standards, capital requirements, accounting guidance and taxation;
  • any downgrade in our claims-paying, financial strength or other credit ratings;
  • the ability of our subsidiaries to pay us dividends;
  • our plans to repurchase shares of our common stock, including as a result of changes in:
    • our financial position and financial results;
    • our capital position and/or capital adequacy levels required to maintain our existing ratings from independent rating agencies;
    • our share price;
    • investment opportunities;
    • opportunities to profitably grow our property and casualty insurance business;
    • corporate and regulatory requirements; and
  • our ability to implement management's strategic plans and initiatives.

Chubb assumes no obligation to update any forward-looking information set forth in this document, which speak as of the date hereof.

 

 

THE CHUBB CORPORATION

               

SUPPLEMENTARY FINANCIAL DATA

(Unaudited)

               
               
 

 

Periods Ended December 31

 

 

Fourth Quarter

 

Twelve Months

 

2013

 

2012

 

2013

 

2012

 

(in millions)

               

PROPERTY AND CASUALTY INSURANCE

             

 Underwriting

             

  Net Premiums Written  

$3,038

 

$2,908

 

$12,224

 

$11,870

  Decrease (Increase) in

             

   Unearned Premiums  

2

 

19

 

(158)

 

(32)

     Premiums Earned  

3,040

 

2,927

 

12,066

 

11,838

  Losses and Loss Expenses   

1,658

 

2,343

 

6,520

 

7,507

  Operating Costs and Expenses  

933

 

897

 

3,893

 

3,756

  Decrease (Increase) in Deferred

             

   Policy Acquisition Costs  

10

 

12

 

(59)

 

(3)

  Dividends to Policyholders  

9

 

7

 

37

 

30

               

  Underwriting Income (Loss)  

430

 

(332)

 

1,675

 

548

               

 Investments

             

  Investment Income Before

             

   Expenses   

360

 

373

 

1,436

 

1,518

  Investment Expenses  

11

 

8

 

45

 

36

               

  Investment Income   

349

 

365

 

1,391

 

1,482

               

 Other Income (Charges)   

(5)

 

4

 

6

 

10

               

Property and Casualty Income  

774

 

37

 

3,072

 

2,040

               

CORPORATE AND OTHER  

(55)

 

(64)

 

(237)

 

(237)

               

CONSOLIDATED OPERATING INCOME

             

 (LOSS) BEFORE INCOME TAX   

719

 

(27)

 

2,835

 

1,803

               

Federal and Foreign Income

             

 Tax (Credit)   

193

 

(71)

 

751

 

383

               

CONSOLIDATED OPERATING INCOME 

526

 

44

 

2,084

 

1,420

               

REALIZED INVESTMENT GAINS  

             

 AFTER INCOME TAX     

43

 

58

 

261

 

125

               

CONSOLIDATED NET INCOME  

$  569

 

$  102

 

$ 2,345

 

$ 1,545

               

PROPERTY AND CASUALTY INVESTMENT

             

 INCOME AFTER INCOME TAX 

$  284

 

$  296

 

$ 1,138

 

$ 1,204

               
               
 

 

Periods Ended December 31

 

 

Fourth Quarter

 

Twelve Months

 

2013

 

2012

 

2013

 

2012

               

OUTSTANDING SHARE DATA

             

 (in millions)

             

  Average Common and Potentially

             

   Dilutive Shares   

254.1

 

266.8

 

259.4

 

271.4

  Actual Common Shares at

             

   End of Period   

248.3

 

261.8

 

248.3

 

261.8

               

DILUTED EARNINGS PER SHARE DATA

             

  Operating Income 

$2.07

 

$  .16

 

$ 8.03

 

$ 5.23

  Realized Investment Gains    

.17

 

.22

 

1.01

 

.46

  Net Income  

$2.24

 

$  .38

 

$ 9.04

 

$ 5.69

               

  Effect of Catastrophes  

$(.17)

 

$(2.13)

 

$(1.03)

 

$(2.73)

               
         

Dec. 31

 

Dec. 31

         

2013

 

2012

               

BOOK VALUE PER COMMON SHARE 

       

$64.83

 

$60.45

               

BOOK VALUE PER COMMON SHARE,

             

 with Available-for-Sale Fixed Maturities

             

 at Amortized Cost 

       

61.86

 

53.80

 

 

PROPERTY AND CASUALTY UNDERWRITING RATIOS

PERIODS ENDED DECEMBER 31

               
 

Fourth Quarter

 

Twelve Months

 

2013

 

2012

 

2013

 

2012

               

Losses and Loss Expenses to

             

 Premiums Earned    

54.7%

 

80.3%

 

54.2%

 

63.6%

Underwriting Expenses to                    

             

 Premiums Written 

30.8

 

30.9

 

31.9

 

31.7

               

Combined Loss and Expense Ratio 

85.5%

 

111.2%

 

86.1%

 

95.3%

               

Effect of Catastrophes on

             

 Combined Loss and Expense Ratio 

2.1%

 

29.7%

 

3.4%

 

9.6%

 

 

PROPERTY AND CASUALTY LOSSES AND LOSS EXPENSES COMPONENTS

PERIODS ENDED DECEMBER 31

               
 

Fourth Quarter

 

Twelve Months

 

2013

 

2012

 

2013

 

2012

 

(in millions)

Paid Losses and Loss Expenses 

$1,937

 

$1,889

 

$7,102

 

$6,816

Increase (Decrease) in Unpaid Losses

             

 and Loss Expenses   

(279)

 

454

 

(582)

 

691

               

Total Losses and Loss Expenses 

$1,658

 

$2,343

 

$6,520

 

$7,507

               

The increase in unpaid losses and loss expenses for both the fourth quarter and the twelve months ended 2012 included $620 million related to Storm Sandy.

 

 

 

 

PROPERTY AND CASUALTY PRODUCT MIX

                       

QUARTERS ENDED DECEMBER 31

                       
                       
 

Net Premiums Written

       
                       
         

% Increase (Decrease)

       
             

Excluding

       
             

Storm Sandy

 

Combined Loss and

             

Reinstatement

 

Expense Ratios

 

2013

 

2012

 

Total  

 

Premiums

 

2013

 

2012

 

          (in millions)         

               
                       

Personal Insurance

                     

  Automobile  

$  175

 

$  172

 

2%

 

2 %

 

93.9%

 

97.1%

  Homeowners  

651

 

614

 

6

 

2

 

75.8

 

131.3

  Other  

249

 

228

 

9

 

9

 

96.8

 

97.1

      Total Personal  

1,075

 

1,014

 

6

 

3

 

83.5

 

117.9

                       

Commercial Insurance

                     

  Multiple Peril  

279

 

279

 

-

 

(2)

 

73.5

 

103.9

  Casualty  

395

 

393

 

1

 

1

 

102.9

 

93.8

  Workers' Compensation 

245

 

225

 

9

 

9

 

91.5

 

89.3

  Property and Marine 

340

 

308

 

10

 

3

 

83.1

 

184.2

      Total Commercial  

1,259

 

1,205

 

4

 

2

 

89.0

 

118.7

                       

Specialty Insurance

                     

  Professional Liability 

627

 

613

 

2

 

2

 

85.9

 

93.7

  Surety  

78

 

75

 

4

 

4

 

53.9

 

51.4

      Total Specialty 

705

 

688

 

2

 

2

 

81.9

 

88.5

                       

      Total Insurance  

3,039

 

2,907

 

5

 

3

 

85.5

 

111.6

                       

Reinsurance Assumed 

(1)

 

1

 

 *

 

*   

 

*

 

*

                       

      Total 

$3,038

 

$2,908

 

4

 

3

 

85.5

 

111.2

                       

* The change in net premiums written and the combined loss and expense ratios are no longer presented for the Reinsurance Assumed business since it is in runoff.

 

 

                       

PROPERTY AND CASUALTY PRODUCT MIX

                       

TWELVE MONTHS ENDED DECEMBER 31

                       
                       
 

Net Premiums Written

       
                       
         

% Increase (Decrease)

       
             

Excluding

       
             

Storm Sandy

 

Combined Loss and

             

 Reinstatement

 

Expense Ratios

 

2013

 

2012

 

Total  

 

    Premiums    

 

2013

 

2012

 

(in millions)

               
                       

Personal Insurance

                     

  Automobile 

$   731

 

$   691

 

6 %

 

6 %

 

94.8%

 

93.4%

  Homeowners

2,662

 

2,554

 

4

 

3

 

82.3

 

94.2

  Other 

929

 

880

 

6

 

6

 

94.8

 

 

95.6

      Total Personal

4,322

 

4,125

 

5

 

4

 

87.0

 

94.4

                       

Commercial Insurance

                     

  Multiple Peril

1,113

 

1,119

 

(1)

 

(1)

 

83.3

 

93.7

  Casualty 

1,635

 

1,641

 

-

 

-

 

97.3

 

92.1

  Workers' Compensation  

1,091

 

1,014

 

8

 

8

 

89.6

 

93.7

  Property and Marine

1,434

 

1,400

 

2

 

1

 

74.6

 

115.0

      Total Commercial

5,273

 

5,174

 

2

 

1

 

86.5

 

99.0

                       

Specialty Insurance

                     

  Professional Liability

2,319

 

2,273

 

2

 

2

 

89.3

 

96.7

  Surety

314

 

295

 

6

 

6

 

47.2

 

51.4

      Total Specialty

2,633

 

2,568

 

3

 

3

 

84.3

 

91.3

                       

      Total Insurance

12,228

 

11,867

 

3

 

3

 

86.2

 

95.7

                       

Reinsurance Assumed    

(4)

 

3

 

  *

 

*   

 

*

 

*

                       

      Total

$12,224

 

$11,870

 

3

 

3

 

86.1

 

95.3

                       

* The change in net premiums written and the combined loss and expense ratios are no longer presented for the Reinsurance Assumed business since it is in runoff

 

SOURCE Chubb Corporation

Wordcount:  4390

 



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