Chubb 1Q Profit Falls By Half On Investment Losses

WARREN, N.J. (AP) — Insurer Chubb Corp. said Thursday that its first-quarter profit was cut in half by losses on alternative investments and falling net written premiums.

The company earned $341 million, or 95 cents per share, compared with a profit of $664 million, or $1.77, in the same period a year earlier. The just-concluded quarter included $266 million in before-tax losses on alternative investments and impairments.

The prior year's first quarter included $68 million in investment gains before taxes.

Excluding investment results, operating income was $514 million, or $1.43 per share, down from $620 million, or $1.65 per share.

Net written premiums fell 7 percent to $2.74 billion, but excluding the effects of foreign currency fluctuations, premiums were down 2 percent.

Analysts surveyed by Thomson Reuters were expecting $1.38 per share on revenue of $2.89 billion, on average. These forecasts typically exclude one-time items.

In the quarter, net premiums for personal insurance fell by 4 percent to $843 million. These personal lines include homeowners insurance, down 5 percent, and personal auto insurance, down 8 percent. Other types of personal insurance were up 1 percent.

Commercial insurance premiums fell 6 percent to $1.3 billion, while specialty insurance was down 10 percent to $630 million.

Shares of Chubb were up 29 cents to $40.75 in after-hours trading. It closed at $40.46, down 12 cents, during the regular session.