Chubb Q1 profits down 49%

by David Masters

Story link: Chubb Q1 profits down 49%

US-based insurer Chubb this week posted first quarter profits down 49% on year to $341 million, or $0.95 per share.

The high-net worth specialist said premium sales have been dented by the falling number of high net worth individuals, whilst profits were further damaged by a drop in investment income.

Net written premiums for the quarter were down 7% on year to $2.7 billion.

Meanwhile, before-tax losses on alternative investments and impairments were $266 million.

Combined loss and expense ration was 88.1%, worsening from 83.9% in the year ago period despite a fall in catastrophe payouts.

In addition, Chubb is currently undergoing a share repurchase programme, and purchased 1.8million shares of common stock during the first quarter at a cost of $74 million.

A further 18 million shares are authorised for repurchase under the scheme.

John Finnegan, chairman, president, and CEO, said: “Chubb continued to perform well in a difficult economic and investment environment.

“We generated substantial underwriting profits, reflecting contributions from all of our business units, and our investment portfolio performed extremely well in what continued to be very volatile global capital markets.”