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					                         News from The Chubb Corporation
                                             The Chubb Corporation
                                             15 Mountain View Road • P.O. Box 1615
                                             Warren, New Jersey 07061-1615
                                             Telephone: 908-903-2000




FOR IMMEDIATE RELEASE

     Chubb Reports 2nd Quarter Operating Income of $.80 Per Share
     WARREN, N.J., July 26, 2001 – The Chubb Corporation [NYSE: CB]
today reported operating income of $142.4 million or $.80 per share
for the second quarter of 2001. As previously announced, this
quarter’s earnings were heavily affected by catastrophe losses. In
the year-earlier second quarter, operating income was $180.7 million
or $1.00 per share. Net income, which includes realized investment
gains, was $146.8 million or $.83 per share in the second quarter of
2001, compared with $184.6 million or $1.02 per share in the second
quarter of 2000.

     For the six months ended June 30, 2001, operating income was
$315.1 million or $1.76 per share compared with $330.6 million or
$1.85 per share in the first six months of 2000. Net income for the
first half of 2001 was $321.8 million or $1.80 per share compared with
2000 first half net income of $338.3 million or $1.89 per share.

     Reported property and casualty net premiums written in the second
quarter of 2001 grew 7.0% to $1.6 billion. U.S. premiums grew 6.1%.
Non-U.S. premiums grew about 16% in local currencies. Reported
property and casualty net premiums written in the first six months of
2001 increased 8.0% to $3.4 billion.

     The combined loss and expense ratio for the second quarter was
103.5% in 2001 and 98.6% in 2000. For the first half, the combined
ratio was 101.7% in 2001 and 100.2% in 2000.

     Catastrophe losses for the 2001 second quarter and six months
were $80.3 million and $91.8 million, respectively, adding
4.9 and 2.8 percentage points to the respective combined ratios for
these periods. Tropical Storm Allison accounted for approximately
two-thirds of the second quarter catastrophe losses. In the second
quarter and first half of 2000, catastrophe losses were $24.3 million
and $54.6 million, respectively, adding 1.6 and 1.8 percentage points
to the respective combined ratios for these periods.
                                  2

     Chubb’s second quarter and six month after-tax results are
summarized below:
                                  Second Quarter        Six Months
Millions of Dollars               2001     2000       2001     2000
Operating Income                 $142.4   $180.7     $315.1   $330.6
Realized Investment Gains           4.4      3.9        6.7      7.7
Net Income                       $146.8   $184.6     $321.8   $338.3
Per Diluted Share
Operating Income                 $ .80    $1.00      $1.76    $1.85
Realized Investment Gains          .03      .02        .04      .04
Net Income                       $ .83    $1.02      $1.80    $1.89
Effect of Catastrophe
 Losses                          $ .29    $ .09      $ .33    $ .20
     "Chubb Commercial Insurance (CCI) made good progress in the
second quarter," said Dean R. O’Hare, Chairman and Chief Executive
Officer. "Excluding catastrophe losses, CCI’s combined ratio improved
to 105.2% from 110.4% in the corresponding quarter a year ago."
Catastrophe losses added 7.6 points to CCI’s combined ratio in the
second quarter of 2001 and zero points in the second quarter of 2000.
Commercial Multi-Peril and Workers' Compensation underwriting results
improved significantly, while the monoline Property business performed
poorly. CCI’s net written premiums increased by 6.4% to $544 million,
compared with a double-digit decline in the corresponding quarter a
year ago. Renewal rates in the U.S. increased 15%, the same as in the
first quarter of 2001, and retention rates improved compared to the
year-ago second quarter. "We are back in the market successfully
selling the Chubb difference in broad coverages, loss control
services, financial strength, global capabilities and unparalleled
claim service," said Mr. O’Hare.

     Chubb Specialty Insurance (CSI) second quarter net written
premiums grew 0.3% to $566 million, and the combined ratio was 94.7%.
Executive Protection (EP) net written premiums were flat because of
reduced sales of multi-year policies compared with previous years;
EP’s earned premiums grew 11.2% in the second quarter. The EP and
Financial Institutions businesses had combined ratios of 93.9% and
85.3%, respectively.

     Chubb Personal Insurance (CPI) produced a combined ratio of
103.4% as premiums grew 16.0% to $528 million. Mr. O’Hare said that
the Valuable Articles and Excess Liability lines were highly
profitable but that the Homeowners line was unprofitable due to rate
deficiencies in a number of states and an increase in loss frequency,
particularly large losses. "Chubb’s Masterpiece® product remains the
industry’s premier offering," said Mr. O’Hare, "but we have found that
in some locations it is underpriced relative to the outstanding value
provided. We are applying for rate increases in these jurisdictions.
This will provide some relief, but we have also stepped up our efforts
to make sure that the amount of coverage reflects the full current
value of the home and contents and takes into consideration the
escalating costs of restoring vintage homes."
                                         3

     Property and casualty investment income after taxes for the
second quarter increased 4.0% to $188.0 million from $180.8 million in
2000. On a per share basis, property and casualty investment income
after taxes increased 6.0% to $1.06 from $1.00. For the first half,
property and casualty investment income after taxes in 2001 increased
2.9% to $372.6 million or $2.09 per share from $362.1 million or
$2.03 per share in 2000.

     During the second quarter, Chubb purchased 3.3 million shares of
its common stock in open-market transactions, compared with
1.0 million shares in the second quarter of 2000. During the first
six months of 2001, Chubb purchased 3.9 million shares.


For further information contact:          Weston M. Hicks
                                          (908) 903-4334

                                          Glenn A. Montgomery
                                          (908) 903-2365




FORWARD LOOKING INFORMATION

      Certain statements in this communication may be considered to be "forward
looking statements" as that term is defined in the Private Securities Litigation
Reform Act of 1995 such as statements that include words or phrases "will result,"
"is expected to," "will continue," "is anticipated," "estimates," or similar
expressions. Such statements are subject to certain risks and uncertainties. The
factors which could cause actual results to differ materially from those suggested
by any such statements include but are not limited to those discussed or identified
from time to time in the Corporation's public filings with the Securities and
Exchange Commission and specifically to: risks or uncertainties associated with the
Corporation's expectations with respect to premium price increases, its insurance-
to-value and restoration cost review efforts, and the timing and adequacy of
regulatory action on rate filings, and more generally to: general economic
conditions including changes in interest rates and the performance of the financial
markets, changes in domestic and foreign laws, regulations and taxes, changes in
competition and pricing environments, regional or general changes in asset
valuations, weather-related or other natural disasters, the inability to reinsure
certain risks economically, the adequacy of loss reserves, as well as general market
conditions, competition, pricing and restructurings.
                                           4


                               THE CHUBB CORPORATION

                            SUPPLEMENTARY FINANCIAL DATA
                                     (Unaudited)


                                               Periods Ended June 30
                                       Second Quarter            Six Months
                                      2001        2000       2001         2000
                                                   (in millions)

PROPERTY AND CASUALTY INSURANCE
 Underwriting
  Net Premiums Written........... $1,638.0      $1,530.6       $3,370.9     $3,119.9
  Decrease (Increase) in
   Unearned Premiums.............      2.5            (10.7)    (109.8)      (108.1)
     Premiums Earned............. 1,640.5           1,519.9    3,261.1      3,011.8
  Claims and Claim Expenses...... 1,143.1             996.8    2,224.1      2,024.2
  Operating Costs and Expenses...    545.9            498.4    1,114.3      1,016.4
  Increase in Deferred Policy
   Acquisition Costs.............     (1.7)           (3.1)        (29.9)       (32.1)
  Dividends to Policyholders.....      7.2             6.6          14.2         13.3

  Underwriting Income (Loss).....      (54.0)          21.2        (61.6)       (10.0)

 Investments
  Investment Income Before
   Expenses......................      229.3         218.7         454.7        439.0
  Investment Expenses............        2.5           2.6           7.1          6.9

  Investment Income..............      226.8          216.1        447.6        432.1

 Amortization of Goodwill and
  Other Charges..................       (7.8)         (13.4)       (18.2)       (24.8)

 Property and Casualty Income....      165.0         223.9         367.8        397.3

CORPORATE AND OTHER..............       (5.6)          (5.8)        (2.5)       (10.9)

CONSOLIDATED OPERATING INCOME
 BEFORE INCOME TAX...............      159.4         218.1         365.3        386.4

Federal and Foreign Income Tax...       17.0           37.4         50.2         55.8

CONSOLIDATED OPERATING INCOME....      142.4         180.7         315.1        330.6

REALIZED INVESTMENT GAINS
 AFTER INCOME TAX................        4.4            3.9          6.7          7.7

CONSOLIDATED NET INCOME.......... $    146.8    $     184.6    $   321.8    $   338.3

PROPERTY AND CASUALTY INVESTMENT
 INCOME AFTER INCOME TAX......... $    188.0    $     180.8    $   372.6    $   362.1
                                         5

                                             Periods Ended June 30
                                     Second Quarter           Six Months
                                    2001        2000       2001        2000

OUTSTANDING SHARE DATA
 (in millions)
  Average Common and Potentially
   Dilutive Shares...............    178.2           180.2           178.6        178.3
  Actual Common Shares...........    173.2           174.5           173.2        174.5

DILUTED EARNINGS PER SHARE DATA
  Operating Income...............    $ .80           $1.00            $1.76        $1.85
  Realized Investment Gains......      .03             .02              .04          .04
  Net Income.....................    $ .83           $1.02            $1.80        $1.89

  Effect of Catastrophe Losses...    $ .29           $ .09            $ .33        $ .20


                                                                    June 30       Dec. 31
                                                                      2001          2000

BOOK VALUE PER COMMON SHARE............................             $40.55        $39.91

BOOK VALUE PER COMMON SHARE,
 with Available-for-Sale Fixed Maturities
 at Amortized Cost.....................................              39.02        38.60


                     PROPERTY AND CASUALTY UNDERWRITING RATIOS
                               PERIODS ENDED JUNE 30

                                               Second Quarter               Six Months
                                               2001      2000             2001      2000

Losses to Premiums Earned.................    70.0%          65.9%       68.5%      67.5%
Expenses to Net Premiums Written..........    33.5           32.7        33.2       32.7

Combined Loss and Expense Ratio...........   103.5%           98.6%      101.7%     100.2%


             PROPERTY AND CASUALTY CLAIMS AND CLAIM EXPENSE COMPONENTS
                               PERIODS ENDED JUNE 30

                                             Second Quarter         Six Months
                                             2001      2000      2001        2000
                                                        (in millions)

Paid Claims and Claim Expenses.......... $   964.5     $925.2         $2,110.8    $1,817.6
Increase in Unpaid Claims and
 Claim Expenses.........................     178.6           71.6         113.3       206.6

Total Claims and Claim Expenses......... $1,143.1       $996.8         $2,224.1    $2,024.2
                                              6

                            PROPERTY AND CASUALTY PRODUCT MIX
                                 SIX MONTHS ENDED JUNE 30

                                              Net Premiums         Combined Loss and
                                                 Written             Expense Ratios
                                            2001         2000       2001     2000
                                             (in millions)

Personal Insurance
  Automobile........................ $      231.7    $    192.0     97.5%     94.9%
  Homeowners........................        507.1         443.3    115.6     106.2
  Other.............................        217.8         196.4     75.0      72.5
      Total Personal                        956.6         831.7    102.1      95.8

Commercial Insurance
  Multiple Peril....................        373.4          358.1   105.1     111.4
  Casualty..........................        381.4          393.9   110.9     116.5
  Workers' Compensation.............        180.2          165.7    94.2     104.4
  Property and Marine...............        272.5          254.2   123.8     116.0
      Total Commercial                    1,207.5        1,171.9   109.6     113.2

Specialty Insurance
  Executive Protection..............        648.6          626.7    92.2      83.7
  Financial Institutions............        292.9          256.5    93.3      87.9
  Other.............................        265.3          233.1    97.5     105.5
      Total Specialty                     1,206.8        1,116.3    93.6      89.1

      Total                              $3,370.9    $3,119.9      101.7%    100.2%

                                THREE MONTHS ENDED JUNE 30

                                              Net Premiums         Combined Loss and
                                                 Written             Expense Ratios
                                            2001         2000       2001     2000
                                             (in millions)

Personal Insurance
  Automobile........................ $      125.1    $    103.3     98.3%     92.7%
  Homeowners........................        283.6         245.8    117.0     102.7
  Other.............................        119.3         106.1     76.4      75.3
      Total Personal                        528.0         455.2    103.4      94.1

Commercial Insurance
  Multiple Peril....................        168.9         165.8    105.9     111.4
  Casualty..........................        175.9         171.5    111.8     112.5
  Workers' Compensation.............         72.0          64.7     95.4     101.0
  Property and Marine...............        127.5         109.5    134.8     110.8
      Total Commercial                      544.3         511.5    112.8     110.4

Specialty Insurance
  Executive Protection..............        318.8         321.4     93.9      83.6
  Financial Institutions............        132.8         121.1     85.3      83.6
  Other.............................        114.1         121.4    107.1     113.3
      Total Specialty                       565.7         563.9     94.7      90.1

      Total                              $1,638.0    $1,530.6      103.5%     98.6%

The property and casualty product mix for 2000 includes certain reclassifications to conform
with the 2001 presentation, which more closely reflects the way the property and casualty
business is now managed. The total net premiums written and combined loss and expense ratio
are not affected.

				
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Description: FOR IMMEDIATE RELEASE casualty0