Chubb Q3 profits hit by catastrophe losses

by Richard Kilner

Story link: Chubb Q3 profits hit by catastrophe losses

The Chubb Corporation has reported that in the third quarter it made net income of $298m, just over half the $572m it made in the corresponding period last year and significantly less than the $419m.of Q2 2011.

Similarly, net income per share fell, year-on-year, from $1.80 to $1.04.

Quarterly operating income more than halved, declining from $537m in Q3 2010 to $252m in the third quarter of 2011.

The third quarter was affected significantly by catastrophe losses, which came to $420m (pre-tax), almost eightfold the $58m catastrophe losses incurred in the corresponding period last year.

Chairman, President and Chief Executive Officer John D. Finnegan said that it was the third quarter in a row that the firm was adversely affected by significant catastrophe losses, but said that its $298m net income reflected the underlying strength of its business units.