01—Abstract
Summary
Summary of the 10-K filed February 25, 2010. Cited figures are marked; the original filing is the authoritative source.
Chubb Ltd. (trading as ACE Limited during this period) reported a strong financial performance for the fiscal year ending December 31, 2009.
The company demonstrated resilience amidst challenging economic conditions, maintaining stable net premiums earned at $13.24 billiona. Net income saw a significant increase of 113% to $2.55 billion, driven by improved underwriting results and a substantial decrease in net realized losses compared to the previous year.
The company's diversification across geographies and product lines, including strong performance in its North American and Overseas General insurance segments, contributed to this positive outcome. Management's focus on underwriting discipline and capital management, coupled with prudent investment strategies, positions Chubb well for continued stability and growth.
02—Key points
Key Highlights
- Net income increased significantly to $2.55 billion in 2009, up from $1.20 billion in 2008, reflecting strong operational performance and improved investment results.
- Net premiums earned remained stable at $13.24 billion, demonstrating resilience in premium volume despite economic headwinds.
- The loss and loss expense ratio improved to 58.8% from 60.6% in the prior year, indicating better claims management and/or favorable prior period development.
- The company reported a combined ratio of 88.3%, which is under 100%, signifying an underwriting profit.
- Shareholders' equity grew substantially to $19.67 billion from $14.45 billion, driven by net income and positive changes in unrealized appreciation on investments.
- The Combined Insurance acquisition, completed in April 2008, contributed positively to the results, with its operations included for the full year in 2009.
- Despite market volatility, the company maintained a strong investment portfolio, with net investment income of $2.03 billion and continued diversification strategies.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 25, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $15.07B$13.63B | +10.6% |
| Interest Expense | $225.00M$230.00M | −2.2% |
| Net Income | $2.55B$1.20B | +112.9% |
| EPS (Basic) | $7.57$3.52 | +115.1% |
| EPS (Diluted) | $7.55$3.50 | +115.7% |
| Shares Outstanding (Basic) | 336.73M332.90M | +1.1% |
| Shares Outstanding (Diluted) | 337.54M334.61M | +0.9% |
05—Questions
Frequently Asked Questions
What was Chubb's (ACE Limited's) net income for the fiscal year ending December 31, 2009?
For the fiscal year ending December 31, 2009, Chubb Ltd. (then operating as ACE Limited) reported a net income of $2.55 billion.
How did Chubb's (ACE Limited's) underwriting performance fare in 2009?
Chubb (ACE Limited) demonstrated solid underwriting performance in 2009. The company reported a combined ratio of 88.3%, indicating an underwriting profit, and a favorable loss and loss expense ratio of 58.8%.
What impact did the Combined Insurance acquisition have on Chubb's (ACE Limited's) 2009 results?
The acquisition of Combined Insurance, completed in April 2008, was reflected for the full year in 2009. This acquisition contributed to the company's revenue and diversification, particularly strengthening its accident and health business lines.
How did Chubb (ACE Limited) manage its investment portfolio in 2009?
In 2009, Chubb (ACE Limited) managed its investment portfolio with a focus on stability and return. Net investment income was $2.03 billion. The company held a diversified portfolio primarily in investment-grade fixed-income securities and also liquidated a majority of its publicly traded equity holdings, reinvesting proceeds into corporate bonds.
06—Continue