Chubb Ltd Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Ace Limited (CB) reported a significant increase in net income for the first quarter of 2012, reaching $973 million, a substantial rise from $250 million in the prior year period. This strong performance was driven by a notable reduction in losses and loss expenses, which fell by 20%, and a significant increase in net realized gains. The company's underwriting results also showed improvement, with the combined ratio decreasing to 89.2% from 105.2% in the prior year, indicating a more profitable underwriting operation. Net premiums written grew by 4% to $3.6 billion, supported by growth in international retail operations and favorable catastrophe loss experience compared to the previous year. Key segments, including Insurance – North American and Insurance – Overseas General, demonstrated positive trends in net premiums written. The Life segment also saw revenue increases due to recent acquisitions. Despite competitive market conditions in some areas like Global Reinsurance, the company's overall financial health appears robust, with substantial total assets of $89.7 billion and shareholders' equity of $25.4 billion as of March 31, 2012.

Key Highlights

• 1Net income surged to $973 million in Q1 2012, a significant increase from $250 million in Q1 2011.
• 2The combined ratio improved substantially to 89.2% from 105.2% year-over-year, indicating improved underwriting profitability.
• 3Net premiums written increased by 4% to $3.6 billion, driven by international growth and lower catastrophe losses compared to the prior year.
• 4Losses and loss expenses decreased by 20% to $1.8 billion, contributing to improved profitability.
• 5Net realized gains (losses) showed a significant positive swing, moving from a loss of $45 million in Q1 2011 to a gain of $260 million in Q1 2012.
• 6Total assets grew to $89.7 billion as of March 31, 2012, with shareholders' equity increasing to $25.4 billion.

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