The Chubb Corporation, a holding company for a group of property and casualty insurance companies, has reported that its net income for the second quarter of 2008 was $469 million compared to $709 million in the same quarter of 2007.
Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, declined to $518 million from $648 million in the second quarter of 2007. Total net written premiums for the second quarter were flat at $3 billion. Premiums were down 3% in the US and up 11% outside the US.
For the first six months of 2008, net income was $1.1 billion or $3.04 per share, compared with $1.4 billion or $3.46 per share for the first half of 2007. Operating income for the first half of 2008 reduced to $1.1 billion or $3.05 per share from $1.3 billion or $3.13 per share for the comparable period of 2007.
Total net written premiums for the six-month period increased 1% to $6 billion. Premiums declined 2% in the US and increased 13% outside the US.
John Finnegan, chairman, president and CEO, said: In an otherwise excellent quarter, our results were adversely impacted by unusually high catastrophe losses and by one large Surety loss. The catastrophe losses were primarily related to storms in the Midwest US that mostly affected Chubb’s commercial property and marine insurance line.