This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chubb Reports 4th Quarter Net Income Per Share Of $2.03; Operating Income Per Share Is $1.66; Combined Ratio Is 84.7%

WARREN, N.J., Jan. 28 /PRNewswire-FirstCall/ -- The Chubb Corporation (NYSE: CB) today reported that net income in the fourth quarter of 2009 was $695 million or $2.03 per share, compared to $407 million or $1.13 per share in the fourth quarter of 2008.

Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, was $569 million, the same as in the fourth quarter of 2008.  Operating income per share increased 5% to $1.66 from $1.58.

Net written premiums for the fourth quarter were $2.8 billion, a decline of 4%; excluding the effect of currency fluctuation, premiums were down 5%.  Premiums were down 8% in the U.S. and up 9% outside the U.S. (up 4% in local currencies).    

The fourth quarter combined loss and expense ratio was 84.7% in 2009 and 84.3% in 2008.  The impact of fourth quarter catastrophe losses on the combined ratio was negligible in both 2009 and 2008.  The expense ratio for the fourth quarter was 30.1% in 2009 and 30.4% in 2008.  

Property and casualty investment income after taxes for the fourth quarter was $317 million in 2009 and $316 million in 2008.

Net income for the fourth quarter of 2009 included net realized investment gains of $193 million before tax ( $0.37 per share after-tax), largely related to the company's alternative investments.  Net income for the fourth quarter of 2008 reflected net realized investment losses of $250 million before tax ( $0.45 per share after-tax), stemming primarily from impairments of equity securities and a decline in the value of alternative investments.  

During the fourth quarter of 2009, Chubb repurchased 9.8 million shares of its common stock at a total cost of $489 million.  

Book value per share increased 4% to $47.09 at December 31, 2009 from $45.43 at the end of the third quarter.

Full Year Results

For the year ended December 31, 2009, net income was $2.2 billion or $6.18 per share, compared to $1.8 billion or $4.92 per share for the year ended December 31, 2008.  Operating income totaled $2.2 billion in 2009 and $2.0 billion in 2008.  Operating income per share increased 10% to $6.14 in 2009 from $5.58 in 2008.

Total net written premiums in 2009 decreased 6% to $11.1 billion from $11.8 billion in 2008; excluding the effect of currency fluctuation, premiums were down 4%.  Premiums were down 6% in the U.S. and down 6% outside the U.S. (up 3% in local currencies).  

The combined ratio in 2009 was 86.0%, compared to 88.7% in 2008.  The impact of catastrophes accounted for 0.8 percentage points of the combined ratio in 2009 and 5.1 points in 2008.  Excluding the impact of catastrophes, the combined ratio was 85.2% in 2009 and 83.6% in 2008.  The expense ratio for the year was 30.6% in 2009 and 30.2% in 2008.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CB $111.61 0.93%
AAPL $94.26 -0.77%
FB $101.50 2.00%
GOOG $684.03 0.87%
TSLA $163.06 10.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs