REALISED GAINS LIFT OLD CHUBB’S FOURTH-QUARTER INCOME

The old Chubb Corporation, recently acquired by Ace to form the new Chubb Ltd, saw fourth-quarter net earnings rise 19.4% to $666m, as a $183m increase in realised gains offset declines in underwriting and investment income. The company’s underwriting income fell 8.8% to $435m, with earned premiums essentially unchanged at $3.11bn and incurred losses rising 0.8% to $1.69bn. The combined ratio added 2.1 points to 86.4%, as each of its personal insurance, commercial insurance and specialty segment posted increases. Investment income for the period fell 5.8% to $305m. For all of 2015, the old Chubb saw net earnings rise 1.7% to $2.14bn, as underwriting income climbed 13.6% to $1.59bn. With earned premiums rising 1.5% to $12.52bn and incurred losses edging down 0.5% to $6.95bn, the combined ratio improved by a full point to 87.3%. The improved underwriting result was driven by the commercial and specialty segments. Investment income for the year fell 5.6% to $1.26bn, a decline that was partially offset by a $30m, 12.4% increase in realised gains.