Chubb (CB) 4th Quarter Profit Jumps 71%

The Chubb Corporation (NYSE: CB), a property and casualty insurer, beat analyst estimates for the 4th quarter when it reported profits were up 71% for the quarter.

Chubb Corp. reported that its 4th quarter net income was $695 million, or $2.03 per share, up from $407 million, or $1.13 per share, for the 4th quarter of 2008.

Chubb Corp. attributed the strong results to gains from investments, including hedge funds, and the lack of major catastrophes during 2009.

The combined ratio (expenses and claims as a percentage of premiums) is a common measure of an insurer's underwriting profitability. When the combined ratio is at or below 100%, an underwriting profit is achieved.

Chubb Corp.'s 4th quarter combined ratio was 84.7%, compared to 84.3% for the same period a year ago.

Although Chubb Corp.'s shares were down for the trading day, they rose slightly during after hours trading.