Chubb Corp. reported fourth-quarter earnings of $654 million compared with $610 in the same period last year.

Net written premiums for the quarter declined 4 percent to $3 billion, while the combined ratio improved six points to come in at 83.1, the company said.

Bear Stearns property-casualty analyst David Small said the earnings of the Warren, N.J.-based carrier beat both his estimates and that of the consensus.

“The stronger than anticipated results were driven by $135 million in reserve releases from the company's commercial, specialty and runoff insurance segments, somewhat offset by a slightly higher than anticipated overall loss ratio,” Mr. Small wrote.

In a conference call, management predicted an increasingly competitive market environment in all segments of the company's operations.

Mr. Small wrote that his firm questions Chubb's ability to maintain current returns on equities “without more aggressive capital management actions.”

The fact that management said it will not be “chasing the market down” indicates there will be a downside risk to revenue forecasts, he added.

“Maintaining profitability will likely also be difficult given the generally softening marketplace,” Mr. Small wrote.

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