Chubb reports 2006 Q4 profit of US$654 million

The Chubb Corporation [NYSE: CB] has reported a 2006 Q4 profit of US$654 million, compared to a 2005 Q4 net income of US$615 million.”Our continuing focus on underwriting discipline enabled Chubb to achieve the best quarter in our history,” said Chubb chairman, president and CEO John D. Finnegan. “The fourth quarter capped an outstanding year, and thanks to significant contributions from all three business units throughout 2006, Chubb attained its fourth consecutive year of record income.” The company’s 2006 Q4 combined loss and expense ratio improved to 83.1% from 89.3% in 2005. Looking at full-year results, Chubb’s combined ratio in 2006 was 84.2%, compared to 92.3% in 2005. The impact of catastrophes accounted for 1.4% of the combined ratio in 2006, whereas in 2005 catastrophes accounted for 5.6% of the combined ratio. Net written premiums for 2006 Q6 declined 4% to US$3 billion. “Premiums for the insurance business were flat,” Chubb reported in a press release. “They declined 2% in the U.S. and grew 6% outside the U.S. (1% in local currencies).”Premiums for the reinsurance assumed business declined 67%, reflecting the impact of the Chubb Re-Harbor Point transaction completed in December 2005, the company reported.