During Chubb‘s 2nd Quarter 2012 Earnings Call CEO John D Finnegan announced that they were in the process of “culling” the Chubb professional liability book of business. Chubb writes almost $1.1B of professional liability and reported a combined ratio of 98% on the book.
Finnegan remarked “We’d like the professional liability business long-term, but current market conditions being what they are, this is not the time to be aggressively growing the book. We are willing to accept the decline in retention and new business as we reprofile the book for improved profitability.”
Directors and Officers liability was specifically addressed by the company but they did not comment on how hard other lines would be affected.
A transcript of the 2nd Quarter call is available at Seeking Alpha.
Contact Calculated Risk Advisors with any questions on the current state of the market.