Chubb affirms 2008 operating earnings outlook

Insurer Chubb Corp. on Thursday affirmed its outlook for full-year operating income despite larger-than-anticipated catastrophe losses during the first half of the year.

Chubb expects operating earnings to range between $5.70 per share and $6.10 per share for the year. Operating income excludes realized gains and losses from investments.

Analysts polled by Thomson Financial, on average, forecast earnings of $6.04 per share for the year. Analysts typically exclude special gains and losses in their estimates.

"Since our catastrophe losses in the first six months were higher than expected and we're now in the midst of the hurricane season, we have increased our catastrophe loss assumption for the full year from 3 points to 4 points," John Finnegan, the company's chief executive, said in a statement. A one-point increase in catastrophe losses reduces operating income by about 20 cents per share, Finnegan noted.

During the first half of the year, Chubb's operating income totaled $1.1 billion, or $3.05 per share.

Chubb said it expects its combined ratio to range between 86 percent and 88 percent for the year. Combined ratio measure the amount of money an insurer pays in claims and expenses compared with how much it receives from underwriting premiums. A ratio above 100 percent means the insurer is paying out more than it generates from premiums.

Chubb shares fell $1, or 2.1 percent, to close at $47.61.