Summary
Chubb Ltd. (formerly Ace Limited) reported its first quarter 2011 financial results, showing a decrease in net income to $259 million, down from $755 million in the prior year's quarter. This decline was significantly impacted by substantial catastrophe losses, totaling $415 million before reinstatement premiums, largely from the Japan earthquake and New Zealand earthquake, as well as Australian storms. Despite these challenges, the company saw an increase in net premiums earned by 1% to $3.31 billion, driven by growth in international retail and U.S. personal lines businesses, though partially offset by competitive market conditions in global reinsurance and higher reinstatement premiums. Investments remain a key focus, with total investments increasing to $52.7 billion. Net investment income rose by 8% to $544 million, benefiting from higher invested asset bases due to acquisitions and positive operating cash flows. However, net realized gains (losses) were negative $45 million, compared to a positive $168 million in the prior year, largely due to the absence of significant realized gains seen in Q1 2010. The company also completed several acquisitions in late 2010 and early 2011 to expand its specialty lines and geographic reach.
Financial Highlights
34 data points| Revenue | $3.81B |
| Interest Expense | $63.00M |
| Net Income | $250.00M |
| EPS (Basic) | $0.74 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 337.09M |
| Shares Outstanding (Diluted) | 339.66M |
Key Highlights
- 1Net income decreased significantly by 66% to $259 million due to substantial catastrophe losses ($415 million pre-tax).
- 2Net premiums earned increased slightly by 1% to $3.31 billion, supported by international retail and U.S. personal lines, but challenged by reinsurance and catastrophe impacts.
- 3Net investment income grew by 8% to $544 million, reflecting higher invested assets from acquisitions and positive operating cash flows.
- 4The company experienced a significant increase in catastrophe losses, notably from the Japan earthquake ($215 million net loss), New Zealand earthquake, and Australian storms.
- 5Acquisitions played a role in shaping the results, with the full quarter impact of Rain and Hail and Jerneh Insurance Berhad, and partial impact of New York Life's Korea operations.
- 6The combined ratio deteriorated to 105.0% from 92.8% in the prior year, primarily driven by higher loss and loss expense ratios due to catastrophe events.