Chubb exec razzes rivals for taking federal aid

Following the company's release of strong second-quarter earnings, John J. Degnan, chief operating officer of The Chubb Corp., yesterday took a dig at competitors for accepting federal aid.
JUL 24, 2009
Following the company’s release of strong second-quarter earnings, John J. Degnan, chief operating officer of The Chubb Corp., yesterday took a dig at competitors for accepting federal aid. During Chubb’s earnings conference call, he pledged that the insurer would “compete vigorously against companies which are unsustainable but for government bailouts.” The weakened condition of the Warren, N.J.-based company’s peers brought in a “continued but somewhat more modest and certainly uneven flow” of new business opportunities during the second quarter, Mr. Degnan said. Just how the market dislocation will play out for Chubb during the rest of the year remains to be seen, he said. “Will severely distressed carriers propped up by government funding and with reduced accountability to shareholders elevate the market share over responsible underwriting and disrupt the normal marketplace constraints of supply and demand?” he asked. “Rhetorically, one might ask if consumers are unlikely to buy a car built by the government, why on earth would they want to buy an insurance policy underwritten and adjusted by folks who act more like bureaucrats than businesspeople.” The insurer reaped $551 million in profits for the second quarter, or $1.54 a share, up from $469 million, or $1.27 a share, a year earlier. The net of written premiums slipped by 7% to $2.8 billion, from $3 billion a year earlier. As a result of the insurer’s results, John D. Finnegan, chairman and chief executive, said during the conference call that the company will raise its 2009 operating-income guidance to a range of $5.20 to $5.50 a share, from the January estimate of $4.80 to $5.20 a share.

Latest News

Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says
Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says

Counting advisor moves in and out of firms requires some art as well as science.

Carson Group's M&A head sees '10-to-15 year bull market' for RIAs
Carson Group's M&A head sees '10-to-15 year bull market' for RIAs

“I'm just a big believer that based on demographics alone, we are looking at a 10-to-15 year bull market in M&A in the RIA and independent wealth space,” said Michael Belluomini, SVP of M&A at Carson Group.

Nationwide finds Medicare myth on long-term care could cost Americans dearly
Nationwide finds Medicare myth on long-term care could cost Americans dearly

As a tsunami of retirees comes crashing in, three-fifths of those surveyed believe – wrongly – that the federal safety net will cover their LTC needs.

Fintech bytes: Orion, Altruist unveil new RIA-focused integrations
Fintech bytes: Orion, Altruist unveil new RIA-focused integrations

Orion's latest update, a partnership with 11th.com, focuses on an underserved area of compliance for advisors and wealth firms.

Raymond James reels in advisors managing $1B+ in Colorado
Raymond James reels in advisors managing $1B+ in Colorado

The latest arrivals, including a 10-advisor ensemble from Ameriprise, bolster the firm's independent contractor and employee advisor channels.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave