Chubb profit down 37% on investment losses
Business and home insurer Chubb Corp has posted its fourth quarter results with profit down 37% on year.
Net income fell to $407 million, or $1.13 per share, from $650 million, or $1.68 per share, in the same period a year ago.
Net premiums dropped 4% on year to $2.9 billion. Chubb said about half the decline was due to currency fluctuation.
Combined ratio worsened 0.5 percentage points on year to 84.3%.
Chubb was not invested in subprime mortgages, but said the fall in profit was partly due to limited partnership investments. These investments usually include buyout and hedge funds.
Total year earnings were $1.8 billion, or $4.92 per share, down from $2.81 billion, or $7.01 per share in 2007.
John D. Finnegan, chairman, president and chief executive officer, said “This result was achieved in the face of high catastrophe losses for the year, deepening distress in many sectors of the global economy as well as declining insurance rates for the past four years.”
Category: Chubb News, Financials, Insurance News
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