Chubb profits up but operating income suffers for Q4 2015
Chubb (legacy ACE) has reported an increase for its fourth quarter profits, but a fall in full year profits for 2015.
The insurer, which was formed as a combined unit as a result of the acquisition of the Chubb Corporation by ACE, reported a net income of $683 million for the fourth quarter of 2015, up 23 percent compared with the fourth quarter of 2014, at $555 million.
Chubb said that this increase was down to its strong underwriting performance. However, for full-year profits, Chubb posted a slight decrease of 0.7 percent to $2.83 billion in 2015, compared with $2.85 billion in 2014.
Chubb also saw a decrease in its operating income, net of tax, for both Q$ 2015 and for full-year profits of 2015. The insurer saw a decrease in income profit of 5.8 percent for the fourth quarter of 2015, at $780 million (Q4 2014: $827 million), and it reported a decrease of 3.3 percent for the full year of 2015 at $3.21 billion (2014: $3.32 billion).
Net written premiums for the fourth quarter of 2015 also declined 3 percent to $3 billion compared with $3.1 billion in the fourth quarter of 2014.
However, Chubb’s combined ratio fared well at 87.7 percent for the quarter however, compared with 88.5 percent for the same time period last year.
Evan Greenberg, chairman and chief executive officer of Chubb, said: "For the fourth quarter, our last as ACE, we produced very good operating results that capped an excellent year for the company both financially and strategically.
“After-tax operating income of $780 million in the quarter contributed to full-year earnings of $9.76 per share, essentially flat with last year's record operating income and up 3.5 percent when adjusted for foreign exchange.”
Greenberg also said the firm was now focusing on its integration.
“We are focused on knitting ourselves together as one and achieving the ambitious targets we have set and expect of ourselves and the value creation we will generate for the benefit of our customers, business partners, employees and shareholders,” he said.
