Severe US weather hits profits at Chubb
US insurer Chubb posted a fall in profits for the first quarter of 2015, as it suffered from losses driven by severe US winter weather.
Its profits fell to $375 million in the first quarter of 2015, compared with $449 million in the first quarter of 2014. Chubb’s operating income, which the company defines as net income excluding after-tax realised investment gains and losses, also fell slightly to $367 million in the quarter, compared with $374 million in the first quarter of 2014.
Catastrophes in the quarter caused $250 million before tax, primarily related to severe winter weather and freeze events in the US. Catastrophe losses in the first quarter of 2014 hit $199 million before tax.
Chubb’s combined ratio deteriorated slightly to 93.9 percent in the first quarter of 2015, compared with 93.2 percent in the prior year quarter.
John Finnegan, chairman, president and chief executive officer, said: “Chubb produced solid results in the first quarter of 2015. Results were adversely impacted by catastrophe and non-catastrophe losses related to severe winter weather in the United States.
“Although catastrophe losses alone had an adverse impact of $0.69 per share in the quarter, we still generated operating income of $1.57 per share, reflecting a strong combined ratio of 85.8 percent excluding catastrophes. We are pleased that in the first quarter we continued to achieve renewal rate increases while maintaining high retention levels in all of our businesses.”
