Annual Report 2005 - Chubb Group of Insurance Companies

While competing
vigorously to win new
business and retain
existing accounts, our
commercial underwriters
maintained discipline and
wrote business only at
prices that we believe
are commensurate with
a reasonable expectation
of adequate profitability.
in 2005 was an outstanding 84.1%. In 2004, CCI’s combined ratio was
82.5%, with negligible impact of catastrophes after taking into account the
release of $80 million of net reserves for losses related to the terrorist
attack of September 11, 2001.
While competing vigorously to win new business and retain existing
accounts, our commercial underwriters maintained discipline and wrote
business only at prices that we believe are commensurate with a reasonable
expectation of adequate profitability. In the wake of losses from Hurricane
Katrina, we are reducing the maximum amount of coverage we will write
on any one property and the aggregate amounts we will insure in any one
geographic area.
We are very pleased with the improvement at Chubb Specialty
Insurance (CSI), which had 6% premium growth and a combined ratio of
97.3% — a 10.9 percentage point improvement over 2004. These results
were driven by a 12.2 point improvement in professional liability lines.
Net Written Premiums
($ in billions)
The business we wrote in the years 2003 through 2005 is performing much
14000
12000
$11.1
$12.1 $12.3
better than the business written in 2000 through 2002. We believe the
turnaround at CSI is real and sustainable, and we look forward to
10000
8000
$7.0
$9.0
continuing contributions to Chubb’s earnings from this business unit.
6000
During 2005, we sharpened our underwriting focus by selling the renewal
4000
rights to our medical malpractice and managed care errors & omissions
2000
0
2001 2002 2003 2004 2005
lines, while retaining our hospital directors & officers line.
4