Insurance premiums outside America dropped by 3% but rose 7% inside the States in the fourth quarter of 2013 mainly due to the effects of ‘super storm Sandy’, the insurer has reported.
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, Chubb
admitted in a statement on its fourth quarter earnings.
Net written premiums for the fourth quarter increased 4% to $3bn in 2013 but premiums were up 7% in the US and down 3% outside the US. 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.
Insurance, which has an Australian entity, also reported a net income of $704m in the fourth quarter of 2013, compared to $116m the previous year.
Operating income was $601m compared to $50m in the corresponding quarter. 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.
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 ratio for the fourth quarter was 30.8% in 2013 and 30.9% in 2012.
Property and casualty investment income after taxes for the fourth quarter declined 4% to $324m in 2013 from $338m in 2012.
Net income for the fourth quarter of 2013 included net realised investment gains of $76m before tax ($0.17 per share after-tax). Net income for the fourth quarter of 2012 reflected net realised investment gains of $102m before tax ($0.22 per share after-tax).