The Warren, N.J.-based company is one of the largest directors-and-officers liability insurers and is a major insurer of high-value homes and valuables. Commenting on its new asbestos charge, the Chubb explained that it has just completed a rigorous update of its 2002 ground-up asbestos reserve analysis.

The company said its increase in reserves was warranted based on developments related to its clients and on overall industry experience. The $250 million reserve increase reflects "the best estimate of Chubb's actuaries" and uses the latest information available, the insurer said.

"Based upon this detailed update," said Chubb Chief Executive John Finnegan, "we have as high a level of confidence in the adequacy of our asbestos reserves as is possible in this dynamic and challenging environment." As of year-end 2003, Chubb's total reserves for asbestos stood at just over $1 billion, the company noted.

For the full-year 2003, Chubb's net income came in at $808.8 million, compared with net profit of $222.9 million reported in 2002, when the company took a $741 million pretax charge for asbestos and environmental loss reserves.

Chubb pointed out that despite its latest reserve addition, its property-casualty business remains fundamentally strong.

"Chubb has made significant progress in 2003, with solid premium growth, a significant improvement in loss ratio and a lower expense ratio," said Mr. Finnegan. "During the year, we raised new capital, grew the business while maintaining underwriting discipline, restored profitability to our European operations and infused the Chubb culture with a mindset of expense control."

For the 2003 fourth quarter, Chubb's overall p-c net premiums written grew 21 percent to $2.9 billion. In the company's U.S. operations, premiums rose 20 percent, while non-U.S. premiums also improved, growing 24 percent.

Despite an underwriting loss of $137.5 million for the quarter, larger than the $61.1 million loss reported one year ago, the company had underwriting profit of $104.5 million for the full year, reversing a loss of $625.9 million for the full-year 2002.

Looking into various segments, Chubb's commercial-insurance net written premiums rose 19 percent to $1.05 billion for the fourth quarter, with a combined ratio of 113.2 percent including the asbestos charge.

Chubb's specialty-insurance premiums grew 28 percent to $1.24 billion for the quarter, with a combined ratio of 100.6 percent. The company's executive-protection net written premiums also rose, up 20 percent in the fourth quarter, with a combined ratio of 103.8 percent, and the financial-institutions net premiums rose 32 percent in the quarter, with a combined ratio of 109.7 percent.

On the personal-insurance side, Chubb's premiums grew 11 percent to $641 million for the fourth quarter, with a combined ratio of 96.0 percent. The homeowners' line grew 13 percent, while personal auto insurance rose 9 percent with a combined ratio of 98.9 percent, and other personal lines--including valuable articles, excess liability and yacht insurance--grew 8 percent, with a ratio of 85.9 percent.

The investment income for Chubb's property and casualty business, which made up the bulk of the net profit, also improved, up 15.4 percent to $224 million from $194.1 million reported in 2002 fourth quarter.