Annual Report 2001 - Chubb Group of Insurance Companies

We will increase our presence in those states that permit us to earn a
reasonable return and scale back our presence in those states that do not.
In personal lines, we are also working to improve our product mix through
cross-selling to increase the percentage of our homeowner policyholders
who also purchase our higher-margin valuable articles policies.
In Europe, our results were poor, but the continental market finally
began to improve in the third quarter of 2001. Capacity is now
constricting, competitors have pulled back, and we are now able to
charge what we need to. The big European multinational insurers and
reinsurers were very slow to react to the need for price and reunderwriting.
They are now trying to price for profit and at least for the
moment don’t have much in capital gains to cover losses. All across the
European Zone, we have been culling unprofitable accounts and securing
rate increases.
Our Asia and Latin America Zones had another profitable year. A
flight to quality by customers is already under way, and there is strong
demand for top-quality carriers and first-class claims handling. In the
category of longer-term growth opportunities, our Shanghai office is
open for business, and we have signed a joint venture agreement that we
hope will enable us to begin operations soon in India.
I’ve heard some people question how Chubb can be the insurer of
It’s been a decade and
a half since conditions
in the economy and our
industry have been so
favorable for Chubb.
We are now in a position
of being able to achieve
substantial growth in
premiums without
compromising underwriting
standards.
choice — indeed the investment and employer of choice — over the
next several years, since the rising tide of the improving market will
presumably lift all boats.
The answer is, we’re convinced our boat will be lifted higher. It’s
been a decade and a half since conditions in the economy and our
industry have been so favorable for Chubb. We are now in a position of
being able to achieve substantial growth in premiums without
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