Bloomberg News

Chubb Says Catastrophes Cost Up to $475 Million in Quarter

September 28, 2011

(Adds that Irene was first hurricane to strike U.S. since 2008 in third paragraph.)

Sept. 28 (Bloomberg) -- Chubb Corp, the insurer of high-end homes and corporate boards, said disasters led by Hurricane Irene will cost the company $400 million to $475 million before tax this quarter.

The claims will cost as much as $1.07 a share, after tax, the Warren, New Jersey-based company said today in a statement distributed by PR Newswire. Irene is projected to account for $300 million to $375 million of the quarter’s losses.

Irene, the first hurricane to strike the U.S. since 2008, lashed the U.S. East Cost last month, downing trees and flooding homes in states including North Carolina and New York. The storm will weigh on results at insurers including Chubb and Northbrook, Illinois-based Allstate Corp. that suffered higher than average losses in the second quarter on tornado costs.

Chubb will release complete third-quarter financial results on Oct. 20 after 4 p.m., New York time, the company said.

--Editors: Dan Kraut, David Scheer

To contact the reporter on this story: Noah Buhayar in New York at nbuahaya@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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